ISR Capital : ISSUE OF 50,000,000 CONVERSION SHARES

(Company Registration No. 200104762G) (Incorporated in the Republic of Singapore) (the "Company")

Unless otherwise defined all capitalised terms shall have the definitions given in ISR Capital Limited's announcement dated 18 November 2014 and the Company's Circular to Shareholders dated 24 August 2015.

The board of directors (the "Board") of ISR Capital Limited (the "Company") would like to announce that following the subscription of the first sub-tranche of Tranche 2 Bonds which amounted to S$1,000,000 by the Subscriber on 22 March 2017, the Subscriber has on 27 March 2017 exercised its rights to convert four (4) Bonds (Certificate No. 116 to 119) in respect of the first sub-tranche of Tranche 2 Bonds. The converted Bonds, with an aggregate principal value of S$200,000 will be converted into 50,000,000 Conversion Shares at the Lowest Floating Conversion Price of S$0.0040 for each Conversion Share on 27 March 2017. An aggregate amount of S$950,000 of the first sub- tranche of the Tranche 2 Bonds has been converted as of 27 March 2017.

The Lowest Floating Conversion Price of S$0.0040 was determined by taking 85% of the average of the traded volume weighted average prices per share ("VWAP") for any three (3) consecutive Trading Days as selected by the Subscriber during the 30 Trading Days immediately preceding the Closing Date of the first sub-tranche of Tranche 1 Bonds, which fell on 17 September 2015. The three (3) consecutive VWAP selected are as follows:

Lowest Floating Conversion Price = (X+Y+Z) x 0.85 = S$0.0040

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Accordingly, the Company has issued and allotted 50,000,000 Conversion Shares to the Subscriber on 27 March 2017 and the total number of issued and paid-up shares of the Company has increased from 1,764,249,336 shares to 1,814,249,336 shares.

By Order of the Board ISR Capital Limited

Chen Tong Executive Chairman 27 March 2017

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