Posted 11/21/12 Dear Shareholders, California

Posted 11/21/12

Dear Shareholders,

California Grapes International, Inc. (“CGI”) is restructuring our executive management personnel in China and the current Board of Directors. This restructuring is a result of the resignation submitted by Mr. Frank Yglesias as both an executive and board member of CGI. This resignation was submitted to the Board of Directors on Wednesday November 14^th by email communication and formally accepted Thursday November 15^th by the remaining members of the Board of Directors.

In an additional email communication received by the Board of Directors later that same day, Mr. Yglesias clarified that his resignation will also include his retention of the Wholly Owned Foreign Entity (the “WOFE”) known as Beijing Jin Long Fei. This communication further explained that as the “sole” legal representative of the WOFE, his intentions are to liquidate all assets and proceed with the course of paying off the debts and liabilities and close the operation through the legal process of Corporate Bankruptcy in China.

The acceptance of Mr. Yglesias’s resignation did not come without careful consideration. While this course of action changes the focus of our immediate sales operation in China, we believe that the end result will be a fiscally stronger, healthier company moving forward. The business plan for CGI is not a single revenue stream, but rather multiple channels of revenue.

There are several details that will be worked out over the coming weeks with regards to the Board of Directors and the executive personnel. We will also evaluate the most effective process of dealing with the current outstanding loans to the WOFE. The next step for CGI will be to hold a shareholder conference call before the Christmas Holiday in order to fill shareholders in on the details of CGI’s execution plan and the changes to the corporate structure. We will notify every one of the exact date and time as soon as we have it set.

The CGI team is very confident in this new direction and is looking forward to becoming a much leaner profit driven corporation in the coming year.

Sincerely,
California Grapes International, Inc.