IPE : ANNOUNCEMENT

E162178A_IPE 1..2

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.

*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 929)

ANNOUNCEMENT

The directors (the ''Directors'') of IPE Group Limited (the ''Company'', together with its subsidiaries, the ''Group'') make the following disclosures in compliance with Rule 13.18 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Pursuant to the term of a loan facility agreement (the ''Facility Agreement'') dated 16 May 2016 and entered into, among other parties, Integrated Precision Engineering Company Limited (a wholly-owned subsidiary of the Company) as borrower (the ''Borrower''), the Company and seven of its subsidiaries (including the Borrower) as guarantors (together the ''Guarantors''), United Overseas Bank Limited and First Commercial Bank, Ltd., Hong Kong branch as mandated lead arrangers, and various financial institutions as lenders, a term loan facility of HK$300,000,000 (the ''Facility Loan'') is made available to the Group for general corporate purposes including, but not limited to financing working capital and refinancing or full repayment of existing indebtedness due under the term and revolving facility made available to the Group in 2013.

* for identification purposes only

The Facility Loan is repayable in 10 quarterly instalments on the dates and in the amounts set out in the table below:

Instalment

Number of months from the date of the Facility Agreement

Principal repayment (% of the Facility Loan outstanding at the end of the

period from and including the date of the Facility Agreement to and including the date which is six (6) months from the date of the Facility Agreement)

1st Nine (9) 5

2nd Twelve (12) 5

3rd Fifteen (15) 5

4th Eighteen (18) 5

5th Twenty one (21) 5

6th Twenty four (24) 5

7th Twenty seven (27) 5

8th Thirty (30) 5

9th Thirty three (33) 5

10th Thirty six (36) Remainder

Total 100

As common with other syndicated loan facilities, the Facility Agreement provides that if each of the Borrower and the Guarantors has failed to procure that Mr. Chui Siu On shall:

(a) remain as (i) the chairman or chief executive officer and (ii) one of the substantial shareholders of the Company with at least 15% voting power/shareholding; and (b) shall continue to maintain control over and be actively involved in the management and business of the Company, it will be one of the events of default under the Facility Agreement, in which event all or any part of the commitments under the Facility Loan may be cancelled and all amounts outstanding under the Facility Loan may immediately become due and payable.

Disclosure of the above will also be included in the subsequent interim and annual reports of the Company for so long as the said event of default provision continues to exist.

By order of the Board IPE Group Limited Chui Siu On Chairman

Hong Kong, 16 May 2016

As at the date of this announcement, the Board comprises eight executive Directors, namely, Mr. Chui Siu On (Chairman), Mr. Ho Yu Hoi, Mr. Li Chi Hang, Mr. Lau Siu Chung, Mr. Yuen Chi Ho, Ms. Chiu Tak Chun, Mr. Zeng Guangsheng and Mr. Wu Kai Ping; and four independent non-executive Directors, namely, Dr. Cheng Ngok, Mr. Choi Hon Ting, Derek, Mr. Wu Karl Kwok and Mr. Nguyen, Van Tu Peter.