FWK

TORONTO, July 22, 2011 /CNW/ -- TORONTO, July 22, 2011 /CNW/ - Liuyang Fireworks Limited (TSX-V: FWK) (the "Company"), a leading China-based manufacturer of consumer fireworks. The Company is pleased to announce that at the annual general meeting of shareholders of the Company held on June 17, 2011 (the "Meeting"), disinterested shareholders of the Company approved (the "Shareholder Approval") of an amended and restated stock option plan (the "Plan") as well as the cancellation of certain incentive stock options exercisable at $0.60 per share expiring on June 24, 2014 and re-issuance of such incentive stock options at an exercise price of $0.25 per share expiring on June 24, 2014. The Company will also like to welcome Mr. Robert Wilson to the board of directors as elected as an independent director at the annual general meeting of the shareholders of the Company, along with Mingyue Hu, Miao Hu, Peng Peng, David Lake, and John Nelson. Mr. Wilson replaces former director, Mr. Richard Helbig, who remains engaged as an advisor to the Company on a consulting basis. Mr. Wilson is the current Executive Vice President of Asia Bio-Chem Group Corp. and has extensive experience in the capital markets. Mr. Wilson was Managing Director of Research Capital Corporation from April 2004 to January 2008. He was an independent consultant from the period of November 2001 through April 2004, providing consulting services to executives of public companies in relation to the making of and divestiture of investments. Mr. Wilson was Vice President of BMO Nesbitt Burns from May 1998 to November 2001. Pursuant to the Plan and Shareholder Approval, the Company now wishes to announce that it has effective July 18, 2011 subject to approval of the TSX Venture Exchange, cancelled a total of 4,880,049 outstanding incentive stock options granted on June 24, 2009 at an exercise price of $0.60 expiring on June 24, 2014, re-issued 1,944,634 such incentive stock options at an exercise price of $0.25 expiring on June 24, 2014, and issued 2,000,000 incentive stock options having an exercise price of $0.20 expiring on July 18, 2016 together with a further 1,700,000 incentive stock options having an exercise price of $0.25 expiring on July 18, 2016 to directors, officers and consultants of the Company. About Liuyang Fireworks Limited Liuyang Fireworks Limited is a leading China-based manufacturer of consumer fireworks that are distributed domestically and in more than 15 countries in North America, South America and Europe. The Company has more than 17 years of experience in the fireworks industry and is a supplier to the world's top five fireworks wholesalers and retailers. Liuyang's ISO9001-certified manufacturing facilities are located in the Liuyang area of Hunan, China where more than half of the world's fireworks are produced. The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable securities legislation. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/22/c6946.html p Jacky Longbr/ Chief Financial Officerbr/ Liuyang Fireworks Limitedbr/ Tel : 416-613-0208 ext 206br/ a href="mailto:jackylong@farocean.com"jackylong@farocean.com/a /p

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