Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

UPDATE ON MAJOR TRANSACTION

Reference is made to the announcements of Agritrade Resources Limited (the "Company") dated 28 October 2015, 18 December 2015 and 23 December 2015 and the circular of the Company dated 30 November 2015 (the "Circular") in relation to, among other things, the acquisition of 51% interest in Merge Mining Holding Limited. Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Circular.

As disclosed in the Circular, one of the Second Conditions is the Ministry of Energy and Mineral Resources of the Republic of Indonesia (the "Ministry") having re-issued the MESD IUP. The Company announces that as the Ministry did not re-issue the MESD IUP on or before the Second Long Stop Date, being 23 December 2017, the Second Completion did not and will not take place. Accordingly, pursuant to the Acquisition and Subscription Agreement, no further Class A Convertible Preference Shares and no Class B Convertible Preference Shares will be issued by the Company, and no additional payment of Consideration will be made by the Company. There is no effect on the 51% interest in MMHL held by the Group or the 63,265,306 Class A Convertible Preference Shares that were issued by the Company at the First Completion, which took place on 23 December 2015.

As at the date of this announcement, MESD is not significant to the Group as (i) MESD has not commenced its mining operation and has not contributed any turnover to the Group as it was still in the exploration stage; (ii) the Group has not relied, and will not rely, on MESD in terms of operational or financial contribution; and (iii) the current major mining operations of MMHL group is conducted by MMI, which has been operating under the Production Operation IUP, which is valid for 20 years from 12 February 2010 until 11 February 2030. Therefore, the Board considers that the non-fulfilment of the Second Conditions will not have any material adverse effect on the operation or financial position of the Group. The Group will continue to explore the possibility of obtaining the MESD IUP.

Shareholders and potential investors are reminded to exercise caution when dealing in the securities of the Company.

By order of the Board Agritrade Resources Limited

Ashok Kumar Sahoo Executive Director and Chief Financial Officer

Hong Kong, 5 January 2018

As at the date of this announcement, the Board comprises Mr. Ng Say Pek (Chairman), Mr. Ng Xinwei, Ms. Lim Beng Kim, Lulu and Mr. Ashok Kumar Sahoo as executive Directors and Mr. Chong Lee Chang, Mr. Siu Kin Wai, Mr. Terence Chang Xiang Wen, Mr. Cheng Yu and Mr. Phen Chun Shing Vincent as independent non-executive Directors.

Agritrade Resources Ltd. published this content on 05 January 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 January 2018 11:39:06 UTC.

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