Exit by BRJ China Credit Fund Limited

Adamas Finance Asia Limited

BRJ China Credit Fund Fully Exited on Project Renheng

BRJ China Credit Fund Limited ("BRJ" or the "Fund"), an investment fund into which Adamas Finance Asia Limited ("ADAM" or the "Company" - AIM ticker: ADAM) invested US$500,000 in April 2014, has achieved a gross IRR of 27.26% from a newly-exited project, Project Renheng.

The exit from Project Renheng comes within one month of BRJ's first exit, from Project Changlelu, which achieved an IRR of 31.83%.

BRJ was launched in August 2013 by Hong Kong-based Adamas Asset Management (HK) Limited ("Adamas"), which since February 2014 has been has been acting as ADAM's investment manager.

With Project Renheng, BRJ provided bridging finance for a successful pharmaceutical business in China. The borrower has now repaid in full both the principal and interest on the RMB13 million (approx. US$2.1 million) loan, which was structured by the Adamas investment team as an early investment by the BRJ Fund. The exits from Project Renheng and Project Changlelu have increased BRJ's Net Asset Value, and the cash generated is available for future investment.

The BRJ investment in Project Renheng was in line with the strategic approach followed by the Adamas investment team, which places strong emphasis on rigorous due diligence, tight management involvement and an insistence on robust collateral. The collateral backing Project Renheng was two penthouse apartments in a prime location in Pudong, the Central Business District of Shanghai. The collateral was further underpinned by corporate guarantors involved with the borrower and a personal guarantee. The overall loan-to-value ratio was 29.78%.

BRJ was launched by Adamas to provide capital for operationally-sound Chinese SMEs in need of short-term bridging finance not easily available within the PRC, where more than 90% of such companies have difficulty in obtaining bank funding. The Fund plans to invest US$50 million, seeking target returns of 24%-30% per annum with the objective of an annual dividend of 8%, payable semi-annually.

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