Agritrade Resources : Announcements and Notices - In-principle Letter of Intent in Respect of A Possible Acquisition of A 600 Megawatt Plant in India

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 Bermuda with limited liability)

(Stock Code: 1131)

IN-PRINCIPLE LETTER OF INTENT IN RESPECT OF

A POSSIBLE ACQUISITION OF A 600 MEGAWATT POWER PLANT IN INDIA

This announcement is made by Agritrade Resources Limited (the "Company", together with its subsidiaries, collectively referred to as the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the announcement (the "Announcement") of the Company dated 23 February 2018 in relation to a potential acquisition of a 600 megawatt coal fired thermal power plant in India. Terms used herein shall have the same meanings as those defined in the Announcement unless otherwise stated.

The Board wishes to inform the Shareholders and potential investors of the Company that the Company is currently in the course of the bid process (the "Bid Process") undertaken by the lenders (the "Lenders") of the Target Company in relation to the Potential Acquisition and the Company has completed its due diligence exercises on the Target Company. In addition, the Board is pleased to announce that on 27 July 2018, the Company was informed by the Lenders that the Company was selected as the recommended bidder for the acquisition of the ownership of the Target Company and an in-principle letter of intent (the "LOI") was issued and entered into between the Company and the Lenders on 27 July 2018. Subject to compliance with the terms and conditions as set out in the LOI and the bid document of the Bid Process, the recommended bidder shall be declared as the successful bidder by the Lenders subject to their sole discretion and post evaluation. If the Company is successfully selected as the successful bidder, a final letter of intent is expected to be issued by competent authorities of the Lenders in August 2018.

The Company wishes to emphasize that no binding agreement in relation to the Potential Acquisition has been entered into as at the date of this announcement and the Potential Acquisition may or may not proceed. If the Potential Acquisition materializes, it may constitute a notifiable transaction of the Company under the Listing Rules and further announcement(s) will be made by the Company in compliance with the Listing Rules as and when appropriate.

Shareholders and potential investors of the Company should be aware that the LOI is non-legally binding and details and terms of the Potential Acquisition are subject to commercial negotiation and the terms of the definitive agreements (if any) to be entered into between the relevant parties. As the Potential Acquisition may or may not proceed, Shareholders and potential investors of the Company are advised 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, 27 July 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.