Bohai Pharmaceuticals (OTC BB:BOPH)

On January 5, 2010, Bohai Pharmaceuticals Group, Inc. (the “Company”) entered into a Securities Purchase Agreement (the “SPA”) with certain accredited investors (the “Investors”), for which Euro Pacific Capital, Inc. (“Euro Pacific”) is acting as representative, whereby the Company issued two-year convertible notes in the aggregate amount of $12 million (collectively, the “Notes”) and warrants to purchase shares of the Company’s common stock. As of the date of this Report, there is currently $10.5 million due under the Notes and the current maturity date of the Notes is January 5, 2012.

The Company is currently working with Euro Pacific as representative of the Investors on an amendment to the Notes (the “Proposed Amendment”) which would: (i) extend the maturity date of the Notes from January 5, 2012 to April 5, 2012 (such extra three month period, the “Extended Period”); and (ii) increase the interest rate on the Notes to an annual rate of 12% (or 3% for the Extended Period). Under the terms of the SPA, Euro Pacific has the power and authority to enter into the Proposed Amendment on behalf of the Investors and will undertake a process during the month of December 2011 of informing the Investors of the Proposed Amendment, following which (and prior to the original maturity date of the Notes) it is expected that the Company and Euro Pacific will formally enter into the Proposed Amendment.