re: redemption of Global Pharm Convertible Bond

Adamas Finance Asia Limited

("ADAM", the "Company" or the "Group")

UPDATE ON REDEMPTION OF GLOBAL PHARM CONVERTIBLE BOND

The Company is pleased to announce that its 75% owned subsidiary, Blazer Delight Limited ("Blazer Delight"), has entered into a revised agreement for the redemption of the remainder of its convertible bond held in Global Pharm Holdings Group Inc. ("Global Pharm") (the "Convertible Bond") (the "Revised Agreement").

Global Pharm has, to date, made payments of approximately US$6.01 million (net to ADAM) to offset against the original redemption amount of the Convertible Bond of approximately US$25.05 million (net to ADAM).

Under the Revised Agreement, Global Pharm has undertaken to make the following payments (all amounts net to ADAM):

· US$2.7 million, payable within 10 business days of the drawdown of a new bank loan by Global Pharm;

· US$75,000 in respect of each of September (which has been received) and October 2016; and

· US$750,000 each month from November 2016.

The outstanding amount of the Convertible Bond continues to be subject to interest of 26% per annum, compounded on a daily basis.

As security for the Convertible Bond, Global Pharm Holdings Limited, LLC ("GPHL") has undertaken to increase its pledge of shares in Global Pharm to Blazer Delight to 9.09% of the issued share capital of Global Pharm (net to ADAM).

As announced on 21 October 2015, GPHL undertook to transfer shares in Global Pharm to Blazer Delight in respect of each previously agreed monthly repayment which was missed or incomplete (the "Transfer Shares"). Under the Revised Agreement, GPHL has undertaken to transfer all shares not previously transferred which have been accrued from January 2016 up to October 2016.

Following the resumption of monthly payments in November, for each incomplete monthly payment, shares equivalent to 0.0075% (net to ADAM) of the issued share capital of Global Pharm will be transferred to Blazer Delight and the cap for the maximum amount of Transfer Shares will be raised from 0.075% to 0.225% of the issued share capital of Global Pharm. Provided the Convertible Bond is fully repaid by 30 April 2019, the Transfer Shares will be returned to GPHL.

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