PRESS RELEASE Further exit with 28.2% IRR highlights strength of repositioning strategy 23rd October 2014: An investment fund into which AIM-quoted Adamas Finance Asia Limited (Ticker: ADAM) has invested US$800,000, has successfully exited from another Chinese credit-finance project with a gross internal rate of return (IRR) of 28.19%.

Project Innovation involved the provision of credit funding of US$521,000 to a natural resource trading company to cover advance payment on an oil trading arrangement. It was structured by the BRJ China Credit Fund Limited (the BRJ Fund"), launched last year by ADAM's Hong Kong-based investment manager Adamas Asset Management (HK) Limited (Adamas).
ADAM Chairman John Croft said: "In line with the strategic repositioning of the Company, we are continuing to plan the orderly disposal of our existing asset portfolio to generate cash for investment in high-yield corporate lending in Greater China, where a large number of opportunities such as Project Innovation exist. As the Company works towards that objective, this latest high-yield exit for the BRJ Fund provides another example of the solid capabilities provided by the award-winning Adamas investment teams in Asia."
The Adamas team identifies opportunities to provide capital for operationally sound Chinese SMEs in need of short-term bridging finance not easily available within the PRC, where more than 90% of such companies have difficulty in obtaining bank funding. It places strong emphasis on rigorous due diligence and robust collateral in order to identify borrowers able and willing to meet borrowing commitments, and the BRJ Fund has achieved earlier exits with gross IRRs ranging from 27.3% to
57.0%.

Full Stock Exchange Announcement follows: For further information contact:

John Croft, Adamas Finance Asia Limited: +44 (0) 7785 315 588

Tim Feather, WH Ireland Limited: +44 (0) 113 394 6600

Allan Piper, First City Public Relations (Hong Kong): +852 2854 2666

Simon Hudson, Tavistock Communications (London): +44 (0) 20 7920 3170

www.adamasfinance.comTicker symbol: ADAM

Issued by First City (China) Ltd

ADAMAS FINANCE ASIA LIMITED BRJ Fund exits Project Innovation

Adamas Finance Asia Limited ("ADAM" or the "Company") is pleased to announce that the BRJ China
Credit Fund Limited ("BRJ" or "the Fund"), into which it has invested US$800,000, has achieved a gross internal rate of return (IRR) of 28.19% with its latest exit from a credit-finance investment project, Project Innovation.
BRJ is an investment fund launched by ADAM's investment manager, Hong Kong-based Adamas Asset Management (HK) Limited ("Adamas") to provide capital for operationally sound Chinese SMEs in need of short-term bridging finance not easily available within the PRC, where more than 90% of such companies have difficulty in obtaining bank funding. With Project Innovation, BRJ provided credit funding of US$521,000 to a natural resource trading company that needed to make an advance payment on an oil trading arrangement.
ADAM Chairman John Croft said: "In line with the strategic repositioning of the Company, we are continuing to plan the orderly disposal of the existing asset portfolio to generate cash for investment in high-yield corporate lending in Greater China, where a large number of opportunities such as Project Innovation exist. As the Company works towards that objective, this latest high-yield exit for the BRJ Fund provides another example of the solid capabilities provided by the award-winning Adamas investment teams in Asia."
BRJ's investment into Project Innovation was in line with the strategic approach followed by the Adamas investment team, which places strong emphasis on rigorous due diligence and robust collateral in order to identify borrowers able and willing to meet borrowing commitments.
The collateral backing for the project was a convertible bond issued by a Hong Kong main-board listed company, with an overall loan-to-value ratio of 20.55%. The collateral was further underpinned by a personal guarantee from one of the main shareholders of another Hong Kong main-board listed company (with a current market cap of approximately US$1 billion). The loan tenor was three months but the borrower opted for an early repayment option two months from drawdown.
The full repayment of the Project Innovation loan brings the non-weighted average IRR achieved from project exits by BRJ since ADAM first invested last April to 36.08%, well ahead of targeted annual returns of 24%-30% per annum. Other projects have yielded gross IRRs of 27.26%, 31.83% and 57.04%, respectively, on fully-repaid loans of up to US$4.8 million. The Fund plans to invest US$50 million, with the objective of distributing an annual dividend of 8%, payable semi-annually.
The exit from Project Innovation has increased BRJ's Net Asset Value, and the cash generated is
available for future investment.

Enquiries:

Adamas Finance Asia Limited

John Croft +44 (0) 1825 830587

W H Ireland Limited

Tim Feather +44 (0) 113 394 6611

First City Public Relations (Hong Kong)

Allan Piper +852 2854 2666

Tavistock Communications (London)

Simon Hudson +44 (0) 207 920 3170

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