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North American Fur Auctions Announces Strategic Alliance with FURCHINA

May 10, 2017

Today in Toronto, Canada, North American Fur Auctions Inc. and FURCHINA made a joint announcement that they have entered into a framework agreement to form a strategic alliance in China.

Over the coming weeks, senior representatives of both NAFA and FURCHINA will work to more fully negotiate the terms of their strategic alliance agreement which includes how both parties will extend their cooperation and collaborate on the development of both the selling and marketing of furs in China and its fashion industry, making use of new Internet-based and mobile technologies.

“It is a key element of NAFA’s mission to extend its reach and position in the global fur industry, and China, in particular,” said Mr. Michael Mengar, NAFA’s President and CEO. “In this regard, NAFA is very excited to collaborate with FURCHINA so that both parties can work to grow our mutual businesses in this essential market.”

This development will not impact or alter NAFA’s current auction system or means of doing business, but rather represents an enhancement to NAFA’s ability to penetrate the Chinese market. Not only will it allow for NAFA products to have greater exposure in China, it will also allow our shippers to benefit from the first commercially and technologically sound Internet-based fur marketing platform.

At the same time, this collaboration will enhance the growth of FURCHINA’s service offerings. As an authority in fur grading and auction operations, NAFA will support FURCHINA in the management of auction services, including the sorting of raw skins and the preparation for auctions using NAFA’s established grading system.

Developed in 2013 and headquartered in Yuyao, Zhejiang province, FURCHINA is the market leader in fur auction trading in China. The business model includes two components: online auction sales and offline auction services, including a physical auction facility where buyers can inspect the fur assortments prior to the online sales.

“While it still may be in its infancy, China is by far the largest fur market in the world, and has tremendous growth potential,” said founder and President Mr. Tony Xie. “NAFA is the world’s oldest fur auction company, dating back to 1670. The combination of NAFA’s over 345 years of auction experience and history, with FURCHINA’s cutting edge technology will realize on that potential. Working together with NAFA, we will be able to sell millions of Chinese and international fur pelts each year to more than 20,000 buyers who registered in our platform.”

“It is a great honor to work with NAFA on establishing this strategic agreement,” he continued. “This alliance will create a smooth selling and marketing channel between both of our online and offline businesses. FURCHINA is building up the industry service platform that we believe will greatly enhance NAFA’s market position in China. I also believe that working with NAFA can significantly help to improve FURCHINA’s platform services and further facilitate NAFA’s expansion in China.”

“We feel as good about working with Mr. Xie and his team as he feels about with working with us,” said Michael Mengar, NAFA’s President and CEO. “Thanks to his enthusiasm, commitment and vision for evolving the fur trade in China, FURCHINA has created a very successful model. This strategic alliance offers us a new opportunity to expose our world-class fur collections that represent the finest ranched mink, fox and wild fur to thousands of new consumers throughout this incredibly important fur buying country, while at the same time, providing the world class traditional auction services that we are known for.”

Present to sign the initial agreement to collaborate were Michael Mengar, NAFA’s President and CEO, Tony Xie, Founder and President of FURCHINA, Yu Chen, Board Director of FURCHINA, and Simon Lin, Vice President of FURCHINA, along with NAFA’s Senior Management team.

The final details of NAFA and FURCHINA’s strategic partner agreement will be negotiated by the parties over the coming weeks and is expected to include a wide range of business initiatives, covering both online and offline auction house services. These details, along with the completion of the final strategic alliance agreement will be announced once they are completed.

“Today’s announcement marks the beginning of a special and exciting cooperation,” said Mr. Mengar. “We couldn’t be more pleased that our two brands are aligning together on this project to lead the fur industry forward with technological advances and global alliances.”

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