Gold Horse Intl (OTC BB:GHII)

During fiscal 2010, we satisfied all remaining amended and restated 14% secured convertible debentures by issuing 325,467 shares of our common stock for the principal balance of $1,199,450 and repaying the remaining principal balance of $983,550 using cash. The elimination of the debt will reduce our interest expense in future periods.

The Jin Ma Companies intend to meet their liquidity requirements, including capital expenditures related to the purchase of land for the development of future projects, through cash flow provided by operations, and from the collection of outstanding accounts and notes receivable balances. Upon acquiring land for future developments, the Jin Ma Companies intend to raise funds to develop its projects by the presale of units and by obtaining financing mainly from local banking institutions with which it has done business in the past. We believe that the relationships with these banks are in good standing and that the Jin Ma Companies’ real estate will secure the loans needed.