Asia Cassava Resources : VOLUNTARY ANNOUNCEMENT - PROPOSED PARTICIPATION IN JOINT BIDDING

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ASIA CASSAVA RESOURCES HOLDINGS LIMITED

亞洲木薯資源控股有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 841)

VOLUNTARY ANNOUNCEMENT

PROPOSED PARTICIPATION IN JOINT BIDDING

This announcement is made by Asia Cassava Resources Holdings Limited (the "Company") on a voluntary basis.

The board of directors (the "Board") of the Company wishes to inform its shareholders and potential investors that on 28 November 2019, Rizhao Yushun Cassava Co., Ltd. ("Rizhao Yushun"), a subsidiary of the Company, and a domestic alcohol producer in China (the "Alcohol Producer") have entered into a joint agreement* (聯合體協議書), pursuant to which Rizhao Yushun and the Alcohol Producer agreed on joint bidding (the "Proposed Joint Bidding") for an alcohol plant located in Ganyu, Jiangsu Province, China ("Ganyu Alcohol Plant"), and should the Proposed Joint Bidding be successful, Rizhao Yushun and the Alcohol Producer will establish a joint venture to own and operate the Ganyu Alcohol Plant (the "Potential Joint Venture").

The existing owner and also the potential vendor of Ganyu Alcohol Plant (the "Potential Vendor") is currently in the process of winding-up, and Ganyu Alcohol Plant is one of the assets to be disposed of. Therefore, the Proposed Joint Bidding is subject to the approvals from the bankruptcy administrator and also the creditors committee of the Potential Vendor. Although the bankruptcy administrator of the Potential Vendor preliminarily agreed on the Proposed Joint Bidding, however it still needs the final approval by the creditors committee of the Potential Vendor.

If the Proposed Joint Bidding is approved by the creditors committee of the Potential Vendor and meanwhile the Company wins in the Proposed Joint Bidding, the Potential Joint Venture would constitute a notifiable transaction under Chapter 14 of the Rules (the "Listing Rules") Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

In light of the above, the Company will publish further announcement(s) in due course according to the progress of the Proposed Joint Bidding and the Potential Joint

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Venture. Furthermore, the Company will comply with its information disclosure obligations in accordance with the applicable provisions under the Listing Rules as and when appropriate.

As of the date of this announcement, the Proposed Joint Bidding is still pending on the final approval by the creditors committee of the Potential Vendor, and also it is uncertain whether the Company will win in the Proposed Joint Bidding. Therefore, the shareholders and prospective investors of the Company should exercise caution when dealing in the securities of the Company.

By Order of the Board

Asia Cassava Resources Holdings Limited

Chu Ming Chuan

Chairman

Hong Kong, 9 December 2019

As at the date hereof, the Company's executive directors are Mr. Chu Ming Chuan (Chairman), Ms. Liu Yuk Ming and Ms. Lam Ching Fun and the Company's independent non-executive directors are Professor Fung Kwok Pui, Mr. Chui Chi Yun Robert and Mr. Zhu Taiyu.

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