Update on Disposal of Interest in Global Pharm

Adamas Finance Asia Limited

(the "Company")

Update on Disposal of Interest in Global Pharm

Further to the announcement on 1 April 2015, the Company announces that it has received a payment of US$0.75 million from Global Pharm Holdings Group, Inc. ("Global Pharm").

Under the redemption agreement announced on 18 December 2014, the Company was due to receive an initial payment of US$2.4 million on 31 December 2014, a further US$9 million on 31 March 2015 and a final payment of US$13.6 million on 30 April 2015, an aggregate of US$25 million. The initial payment was received, but the second and third payments have not been made. The payment of US$0.75 million has been offset against the US$9 million due on 31 March 2015. Overdue amounts from the two payments due on 31 March 2015 and 30 April 2015 are subject to penalty interest of 26% per annum, compounded on a daily basis.

The Company's Investment Manager, Adamas Global Alternative Investment Management Inc. ("AGAIM"), is in discussions with Global Pharm to resolve the matter and negotiate a revised redemption schedule.

AGAIM is an affiliate company of Adamas Asset Management (HK) Limited ("Adamas"), which has over US$620 million under management and has established a strong track record as a provider of credit finance to Chinese SMEs. Adamas funds have to date provided finance to 55 SMEs within China, successfully exited 45, and experienced only five delays in repayments of principal or interest. In each of the five cases, it commenced proceedings in the Chinese courts, with the result that all five defaulters subsequently settled in full either ahead of court action or as a result of judicial decisions.

Global Pharm's core business involves the production and processing of herbs used in Traditional Chinese Medicine (TCM) and pharmaceutical distribution. The company's unaudited results for the year ended 31 December 2014 showed revenues of over US$300 million and a net profit of approximately US$35 million. During the course of the year Global Pharm acquired a major ginseng trading centre in Jilin Province, China and launched an electronic ginseng trading platform, both moves intended to enhance and diversify existing income streams.

The Company will make further announcements as appropriate.

ENDS

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