Investment in BRJ China Credit Fund Limited

Adamas Finance Asia Limited

Investment in BRJ China Credit Fund Limited

Adamas Finance Asia Limited ("AFA" or the "Company" - AIM ticker: ADAM) has agreed to invest US$500,000 into an investment fund launched by Adamas Asset Management (HK) Limited ("Adamas"), the Hong Kong-based investment management firm that since February 2014 has been acting as AFA's investment manager.

The investment follows the distribution last month to AFA of a US$75,300 dividend from a US$1 million investment made during August 2013 into the Greater China Credit Fund, an investment vehicle managed by Adamas. That distribution was the first dividend received by AFA, which until a reverse takeover in February 2014 was known as China Private Equity Investment Holdings Limited.

The BRJ China Private Credit Fund Limited ("BRJ") was launched in August 2013 and plans to invest US$50 million, seeking target returns of 24%-30% per annum through asset-backed investments into operationally-strong growth companies in China. It is intended that BRJ will target to distribute an annual dividend of 8%, payable semi-annually. AFA has agreed to subscribe for 500 Class A US$1,000 shares in BRJ.

BRJ was established to provide capital for operationally-sound Chinese SME's 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. BRJ aims predominantly to use property as collateral on structured loans of between RMB 10 million and RMB 15 million (US$1.7 - 2.5 million).

BRJ's authorised share capital is US$50,000 which is made up of 100 Management Shares and 499,900 Participating Shares. Investors are being invited to subscribe for Class A Participating Shares and Class B Participating Shares at a fixed price of US $1,000 per Class A Share and Offshore RMB 1,000 (approx. US$166) per Class B Share.

The launch of BRJ follows successes achieved by Adamas with both its Greater China Credit Fund and another fund, the Asia Private Credit Fund ("APCF") launched in March 2010. Exits to date from short-term structured investments made by those funds have yielded gross IRRs ranging between 27% and 34%.

AFA Chairman John Croft said: "This decision to invest in BRJ underscores our commitment to building a refreshed portfolio of income-generating assets attractive to investors who are seeking a high-yield investment opportunities focused on Greater China. Following our recent restructuring as Adamas Finance Asia Limited, we are now positioned to benefit from the investment advice provided by the Adamas team in Asia, which has a strong and proven track record of identifying and managing investments into high-growth businesses."

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