On December 25, 2013, Mr. Chaoying Li, a director of QKL Stores Inc., provided notice of his resignation from the Board of Directors of the Company for personal reasons, effective as of January 1, 2014. At the time of his resignation, Mr. Li also served as Chairman of the Compensation Committee and as a member of the Audit Committee and the Nominating and Corporate Governance Committee. Mr. Li submitted his resignation to the Board via email on December 25, 2013.

There were no disagreements between Mr. Li and the Company on any matter relating to the Company's operations, policies or practices, which resulted in his resignation.