Up Energy Development : Announcements and Notices - Adjournment of Bermuda Hearing and Additional Powers to Provisional Liquidators

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(Incorporated in Bermuda with limited liability)

(Stock code: 307)

This announcement is made by Up Energy Development Group Limited (In Provisional Liquidation (For Restructuring Purposes)) (the "Company") pursuant to Rule 13.09, Rule 13.19 and Rule 13.25 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the provisions of inside information under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong).

Reference is made to the announcements of the Company dated 23 May 2016, 7 July 2016, 13 September 2016, 21 September 2016, 13 October 2016, 17 October 2016, 24

October 2016, 3 November 2016 and 29 November 2016 (the "Announcements") and the Bermuda Winding Up Petition hearing being held on 10 February 2017 (Bermuda time), the Board announced as below. Capitalised terms used in this announcement shall bear the same meanings as those defined in the Announcements unless the context requires otherwise.

ADJ OURNMENT OF BERMUDA HEAR IN G

The hearing for the Bermuda Winding-Up Petition was further adjourned by the Supreme Court of Bermuda until 12 May 2017 (Bermuda time).

On 10 February 2017, the Supreme Court of Bermuda ordered that the Petitioner shall have liberty to restore the Petition for hearing by letter to the Registrar with 7 days' notice to the Company

ADD IT IO NA L POWERS TO PROV IS IO NA L LI QU IDATORS

On 10 February 2017, the Supreme Court of Bermuda ordered that Osman Mohammed Arab and Lai Wing Lun both of RSM Corporate Advisory (Hong Kong) Limited and Roy Bailey of EY Bermuda Ltd. be and are hereby granted the following additional powers as Provisional Liquidators ("PLs") of the Company:-

* For identification purposes only

1. To approach, engage, consult and negotiate with third parties and/or creditors of the Company with a view to obtaining funds for the payment of the fees and expenses of the PLs and from the funds, pay such cost and expenses of the PLs as deemed necessary by the PLs (the "Funding" as defined at paragraph 1(n) of the Amended Order dated 28 October 2016) for the payment of ongoing operating costs during the period of the Provisional Liquidation, including the fees and expenses of the PLs, and to pay such costs and expenses as the PLs deem necessary;

2. To consider and if thought advisable, enter into agreement(s) with third parties and/or creditors of the Company for Funding, subject to the approval of such agreement(s) by this Honourable Court;

3. To approach, engage, consult and negotiate with creditors and/or management and/or shareholders of the Company, and third parties as may be required, and to consider and if thought to be in the best interest of creditors of the Company to enter into, subject to the approval by this Honourable Court, any agreements necessary or desirable effectively to restructure the affairs of the Company, including as deemed appropriate, to draft, with a view to implementing, a scheme of arrangement to be entered into between the Company and its creditors, and/or its members, under the provisions of section 99 of the Companies Act 1981, and to do all things necessary to facilitate such actions including a review (and/or to take into their custody or under their control where deemed necessary) of the books, records, property and things in action to which the Company is or appears to be entitled, wherever situate, further to consider and if thought appropriate, to form an informal committee of creditors of the Company to report and consult upon the progress of such a scheme at intervals to be agreed between the committee and the PLs;

4. With regard to paragraph 1(b) and 1(c), above, the PLs will consult with the Company in respect of any agreement(s) with third parties and/or creditors (i) to the extent it is reasonably possible to do so; and (ii) provided such consultation does not breach any duty of confidentiality, regulatory requirement or existing order of this Honourable Court and the PLs will serve notice on the Company of any application to this Honourable Court for approval of such agreement(s); and

5. To make available on behalf of the Company, to creditors and/or third parties, for review and copy, the books, papers, writings, documents and records in the possession or control of the Company situate in Bermuda or any other jurisdiction, for the purpose of such third parties/creditors conducting due diligence toward negotiating and implementing a funding agreement and a restructuring proposal only in respect of the Company and subject to written confidentiality agreements being entered into beforehand with such creditors and/or third parties.

The PLs have liberty to seek a winding up order in the event that they form the opinion that a restructuring is no longer viable.

Further announcement(s) will be made by the Company to inform the public on any material development of the debt restructuring of the Company as and when appropriate.

CONTINUED SUSPENSION OF TRADING

At the request of the Company, trading in the shares of the Company on the Stock Exchange has been halted with effect from 9:00 a.m. on 30 June 2016. Trading in the Shares will remain suspended until further notice.

By Order of the Board of

Joint Chairmen

Hong Kong, 22 February 2017

As at the date of this announcement, the Board comprises Mr. Wang Chuan, Mr. Zhang Li and Mr. Zheng Yuan as Executive Directors; and Mr. Chui Man Lung, Everett, Mr. Li Bao Guo, Mr. Liu Yongshun, and Mr. Wu Yanfeng as Independent Non-executive Directors.