Asia Energy Logistics : Announcements and Notices - Supplemental Announcement in Relation to the Annual Report for the Year Ended 31 December 2015

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亞 洲 能 源 物 流 集 團 有 限 公 司

(Incorporated in Hong Kong with limited liability)

The Board wishes to provide, for the purpose of the Annual Report, the following additional information in relation to the fundraising activities conducted by the Group and the actual use of proceeds during the year ended 31 December 2015.

Reference is made to the circular of Asia Energy Logistics Group Limited (the "Company") dated 13 March 2015 in relation to the proposed issue of convertible notes (the "Circular") and the annual report of the Company for the year ended 31 December 2015 (the "Annual Report"). Unless the context requires otherwise, capitalized terms used herein shall have the same meanings as defined in the Circular.

The Board wishes to provide, for the purpose of the Annual Report, the following additional information in relation to the fundraising activities conducted by the Group and the actual use of proceeds during the year ended 31 December 2015.

On 16 January 2015, the Company entered into the Subscription Agreement which was supplemented and amended by the Supplemental Agreement with the Subscriber and ACP pursuant to which the Company agreed to issue and the Subscriber agreed to subscribe for the Convertible Notes in the aggregate principal amount of up to HK$100 million at a price equivalent to 100% of the principal amount of the Convertible Notes. The Convertible Notes comprised the Tranche 1 Notes and the Tranche 2 Notes which, as at 31 December 2015, only the Tranche 1 Notes have been fully subscribed by and issued to the Subscriber.

As disclosed in the Circular, the net proceeds from the issue of the Tranche 1 Notes, after deduction of professional fees and all related expenses, are estimated to be approximately HK$55 million which was intended to be applied, and was actually applied as at 31 December 2015, in the following manners:

1. approximately HK$30 million to be

   applied towards repaying two existing

   loans (including any applicable interest accrued therefrom);

   approximately HK$20 million had been applied towards repayment of an existing loan and the remaining HK$10 million

   placed in bank deposits pending the repayment of the other existing loan;

2. approximately HK$10 million to be applied as partial payment of the

   contribution that has not yet been paid by the Group to the joint venture company

   engaged in the shipping business; and

   approximately HK$10 million had been placed in bank deposits pending the

   payment towards the contribution to the joint venture company engaged in the

   shipping business; and

3. approximately HK$15 million to be applied for general working capital purposes prior to completion of the disposals of the railway business.

approximately HK$15 million applied

towards the operating costs of the Group for the year ended 31 December 2015.

By order of the Board

Executive Director

19 August 2016

As at the date of this announcement, the executive directors of the Company are Mr. Liang Jun, Mr. Fung Ka Keung, David, Ms. Yu Sau Lai, Mr. Tse On Kin, Mr. Fu Yong Yuan and Mr. Lin Wenqing; the non-executive directors of the Company are Mr. Yu Baodong (Chairman) and Ms. Sun Wei; and the independent non-executive directors of the Company are Mr. Chan Chi Yuen, Professor Sit Fung Shuen, Victor and Mr. Siu Miu Man.