Pacific Andes International : UPDATE ON RESTRUCTURING PROCESS

(Incorporated in Bermuda with limited liability)

The Company refers to previous announcements made on 1 July 2016, 10 August 2016, 17 August

2016, 9 September 2016, 14 September and 29 September 2016 with respect to the new initiatives in the Company's restructuring process. The Company now wishes to announce that on 27 March 2017 an indirect subsidiary of the Company, Golden Target Pacific Limited ("Golden Target"), filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code.

One of the primary reasons the Company and other affiliated entities filed for relief under Chapter 11 was to bring the Pacific Andes Group's many creditors into a single forum so that there could be an efficient, effective and transparent group-wide restructuring of the entire Group's capital structure. The objective is to maximize value for all creditors and stakeholders. The protection afforded by chapter 11 prevents adverse action from third parties frustrating the integrity of the restructuring efforts.

In the Courts of the Virgin Islands we have seen a number of such attempts to frustrate the prospects of a holistic restructuring for the Group in relation to several entities within the Group. Accordingly, the directors of the Company's indirect subsidiary, Golden Target, believe that it is in the best interests of its shareholders to file for protection under Chapter 11 to ensure the continuation of a transparent and comprehensive restructuring process.

The Company will continue to engage and work closely with all creditors, including bondholders, to achieve the best possible consensual restructuring for all interested parties, and will continue to provide regular updates on any material developments.

On behalf of the board of directors Ng Puay Yee (Jessie)

Executive Chairman 28 March 2017