Silver Base : VOLUNTARY ANNOUNCEMENT - RENEWAL OF MASTER DISTRIBUTION AGREEMENTS IN RESPECT OF PRODUCTS WITH 52% ALCOHOL CONTENT

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 886)

VOLUNTARY ANNOUNCEMENT

RENEWAL OF MASTER DISTRIBUTION AGREEMENTS

IN RESPECT OF PRODUCTS WITH 52% ALCOHOL CONTENT

This is a voluntary announcement made by Silver Base Group Holdings Limited (the "Company", together with its subsidiaries, the "Group") to enhance the transparency of the Company.

The board (the "Board") of directors (the "Directors") of the Company is pleased to announce that Silver Base International Development Co. Limited ("Silver Base

International"), an indirect wholly-owned subsidiary of the Company, and 宜賓五糧液 集團進出口有限公司 (Yibin Wuliangye Import and Export Co., Ltd.*) ("Yibin

Wuliangye"), a reputable supplier in China and one of the Group's major suppliers, have renewed two master distribution agreements in respect of the distribution of Yibin Wuliangye's products with 52% alcohol content (the "Products") in international market other than the People's Republic of China (but including Hong Kong and the Macau Special Administrative Region as well as Taiwan), namely the master distribution agreement for the international duty-free market and the master distribution agreement for the international market (collectively the "Master Distribution Agreements").

The terms of the two above-mentioned Master Distribution Agreements are the same except for the difference in targeted international market (international duty-free store market and the international market other than the international duty-free store market). Further information on the Master Distribution Agreements are set out below:

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To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, Yibin Wuliangye is not a connected person of the Company and is independent of the Company and its connected persons.

REASONS FOR ENTERING INTO THE MASTER DISTRIBUTION AGREEMENTS

The entering into of the Master Distribution Agreements represents an early renewal of the relevant agreements entered into on 12 November 2007, which will expire on 31 December 2020. The Group has well established distribution channels and networks in the PRC and international markets. The Board believes that the entering into of the Master Distribution Agreements will, on one hand, consolidate the supply of the Group's products in the future and, on the other hand, represents a trust and recognition of the capability of the Group's distribution channels and networks by Yibin Wuliangye.

By Order of the Board

Silver Base Group Holdings Limited

Liang Guoxing

Chairman

Hong Kong, 27 July 2020

As at the date of this announcement, the Board comprises Mr. Liang Guoxing (Chairman and Chief Executive Officer) and Ms. Chen Xiaoxu as executive Directors; Mr. Wu Jie Si as non-executive Director; and Mr. Hung Sui Kwan, Mr. Ma Lishan and Mr. Lee Kwok Keung Edward as independent non-executive Directors.

• For identification purpose only

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