JES International : Update on Company Matters

(Incorporated in the Republic of Singapore on 4 April 2006) (Company Registration Number 200604831K)

UPDATE ON COMPANY MATTERS

The board of directors (the "Board") of JES International Holdings Limited (the "Company") refers to the Company's previous announcements dated 31 August 2016, 30 September 2016, 13 October 2016,

30 November 2016, 1 March 2017, 6 April 2017, 28 April 2017, 26 May 2017, 30 June 2017, 14 July

2017, 11 August 2017, 8 September 2017 and 18 September 2017. Unless otherwise defined, capitalised terms in this announcement (the "Announcement") shall have the same meanings as ascribed to them in the aforementioned announcements.

1. PROPOSED DISPOSAL OF THE SHIPBUILDING SUBSIDIARIES

2. As announced by the Company on 14 May 2017, the Company and the Purchaser had mutually agreed to extend the Long-Stop Date of the Proposed Disposal to 31 December 2017.

3. In relation to the Proposed Disposal and at the request of the Company, the Managers have also issued a letter to the Company dated 13 July 2017 certifying that the total amount of bank debts submitted is RMB 2,619,290,787.64, of which RMB 2,181,779,594.13 have been confirmed by the Managers.

4. Further and as announced earlier, the Company is also working together with the Manager to, amongst others, ascertain the financial position of the PRC Subsidiaries. Since the appointment of the Managers on 20 September 2016, the Company has been working with the Managers in managing the affairs of the PRC Subsidiaries.

5. In this regard, the Board and the Company will update shareholders as and when there are material developments on the same.

6. PROPOSED RESTRUCTURING OF THE SHIPBUILDING SUBSIDIARIES

7. As announced by the Company on 30 June 2017, the Company had been informed by the Managers that they are in the process of negotiating with creditors of the PRC Subsidiaries on the restructuring proposal, and negotiating with potential investors to invest in the PRC Subsidiaries pursuant to the restructuring proposal.

8. The Company understands from the Managers that the purpose of the Proposed Restructuring is to restructure the PRC Subsidiaries' assets and liabilities by means of a restructuring scheme between the PRC Subsidiaries and certain of their creditors for the purposes of maximising the value of the Company and its assets for its creditors and shareholders and with a view to rehabilitate the PRC Subsidiaries. To this end, the Managers have informed the Company that they are currently negotiating with several parties who have expressed interests in investing in the PRC Subsidiaries and have made preliminary contacts to conduct due diligence. The Managers have also indicated that formal proposals may be submitted by any interested investor(s) after completion of the due diligence process.

9. For the avoidance of doubt, the Managers appointed by the Jingjiang Court are Taizhou Xingrui Accountant Office Ltd Co (泰州兴瑞会计师事务所有限公司) and Jiangsu Tianzi Law Offices (江 苏天滋律师事务所) respectively.

10. The Company will continue corresponding with the Managers and update shareholders as and when there are material developments on the progress of the Proposed Restructuring.

11. LEGAL PROCEEDINGS AGAINST JIN XIN

12. As announced by the Company on 30 June 2017, Mr Jin Xin had been charged in court in China on 28 June 2017. As at the date of this announcement, the court had not issued its judgment on the alleged offences committed by Mr Jin Xin.

13. As the criminal case is ongoing, the Company does not wish to speculate on the outcome of the same. The Company will update shareholders as soon as a judgment or outcome has been issued by the court.

14. The Board will consider, inter alia, the commerciality and the outcome of the criminal case when contemplating the civil actions available to the Company against Mr Jin Xin.

BY ORDER OF THE BOARD

JES INTERNATIONAL HOLDINGS LIMITED

JIN YU

Chief Executive Officer 20 October 2017