Increase in Shareholding in Hong Kong Mining

Adamas Finance Asia Limited

("ADAM" or the "Company")

Increase in Shareholding in Hong Kong Mining

Adamas Finance Asia Limited (AiM: ADAM), a London quoted pan-Asian diversified investment vehicle, is pleased to announce the increase of its interest in Hong Kong Mining Holdings Limited ("HKMH") from 10.95% to 79.26%. The holding is held by ADAM's wholly owned subsidiary, Dynamite Win Limited ("Dynamite Win").

HKMH is a natural resources company whose primary asset is a large dolomite magnesium limestone mine in the province of Shanxi, China. HKMH is in the process of restarting operations.

The increase in shareholding in HKMH is a result of the completion of the enforcement of a share pledge in favour of Dynamite Win by Superior Profit International Investment Limited ("Superior Profit"), the previous controlling shareholder of HKMH, following the suspension of HKMH's IPO process as announced in January 2016.

Superior Profit has completed the transfer of its 68.32% shareholding in HKMH to Dynamite Win for no consideration as part of an agreed plan to restart operations at the mine in due course. ADAM looks forward to the ongoing cooperation of the directors of Superior Profit with respect to the rehabilitation of the business. The longer term objective remains to list HKMH on a recognised stock exchange.

As at 30 June 2017, ADAM's holding of 10.95% in HKMH was valued in the balance sheet at US$8.7 million. The value of the increased holding will be independently assessed during the preparation of the report and accounts for the year ending 31 December 2017.

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About Adamas Finance Asia ("ADAM")

ADAM is a London quoted investment company focusing on delivering long-term income and capital growth to shareholders through a diverse portfolio of pan-Asian investments.

ADAM aims to provide uncorrelated returns through a combination of capital growth and dividend income from a broad spectrum of national geographies and asset classes.

The Company's recently appointed investment manager Harmony Capital, which has a dedicated team with real Asian expertise, will focus on the strategy of creating income and capital growth as well as addressing the issues of the ongoing legacy portfolio. Harmony is sourcing predominantly private opportunities and a strong pipeline already exists. Income generating assets include investments in property, mining, pharmaceuticals, and telecoms across Asia.