All Asia Asset Capital : Results Announcement 2016

Press Release 28 June 2017 All Asia Asset Capital Limited ("All Asia Asset Capital", "AAA" or the "Company") Results for the year ended 31 December 2016

All Asia Asset Capital (AIM: AAA), an investment company focused on investing in the growing markets of

the Asia Pacific region, today announces its results for the year ended 31 December 2016.

All Asia Asset Capital Limited

Robert Berkeley, Executive Chairman and Finance Director

Tel: [phone]

Tel: [phone]

www.aaacap.com

Allenby Capital Limited (Nominated Adviser and Broker)

Nick Athanas / Alex Brearley / Nick Naylor

Tel: [phone]

www.allenbycapital.com

About AAA

AAA is an investment company that has been established as a platform for investors looking to access growing markets in the Asia-Pacific region. The Company invests in a portfolio of companies with at least a majority of operations (or early-stage companies that intend to have at least a majority of their operations) in the Asia-Pacific region in industries with high growth potential including, but not limited to: agriculture, forestry and plantations, mining, natural resources, property, and/or technology. AAA is publicly quoted and its shares are traded on the AIM Market, which is operated by the London Stock Exchange.

CHAIRMAN'S STATEMENT

I am pleased to present the results of All Asia Asset Capital Limited (the "Company") together with its subsidiaries (the "Group") for the year ending 31 December 2016.

Business Review

Between October 2013 and July 2014, the Company invested a total of US$1,800,000 in cash to acquire the Company's stake in Andaman Power & Utilities Co., Ltd. ("APU") (equivalent to approximately GBP1,415,000 at current exchange rates). In addition, in July 2014 the Company issued 11,000,000 new shares in AAA to the Purchaser as part consideration for the acquisition of shares in APU. The value attributed to AAA's investment in APU in the Company's interim results for the period ended 30 June 2016, announced by the Company on 16 September 2016, was £4,338,000, which was based on an independent valuation report that was commissioned by the Company.

In September 2016 and previously, the Company announced that APU had become majority owned by United Power of Asia Public Company Limited ("UPA"), a public listed company in Thailand, and that APU was moving forward to further developments of 200 Megawatt plants in the region. On 15 December 2016, the Company further announced that it had become apparent to the Board that, due to the actions of third parties, APU's effective economic interest in the project company which intended to construct and operate the proposed power plant project was likely to be substantially diluted. At that point in time, the Board estimated that it was likely that AAA's effective interest in the Proposed Power Plant Project would be reduced to a level in the region of 0.07%. The Company highlighted that these events would likely lead to a very substantial decrease value in the Company's seven per cent interest in APU.

The Board investigated the above events and sought to take further steps to clarify the situation. Following these actions, on 6 February 2017, the Board received an initial approach regarding the purchase of 100% of the issued share capital of AAA's subsidiary, Energy Central Limited ("Energy Central") for a cash consideration of Thai Baht 34,889,000, which is equivalent of approximately £0.8m at current exchange rates. Energy Central's sole asset was the Company's interest in APU.

Subsequently the Company entered into a conditional sale and purchase agreement with Chakris Kajkumjohndej (the "Purchaser") for the disposal of Energy Central (the "Disposal"). Following the approval of the Disposal by shareholders of AAA in a general meeting held on 24 March 2017, full payment has been received and the Disposal was subsequently completed. As part of the disposal, the Company released the Purchaser and Mr. Upakit Pachariyangkun from any and all claims, demands, obligations, liabilities, or causes of action which the Company has or shall have in relation to the purchase of APU's shares and potential damage to the Company due to the action(s) of those persons or the majority shareholder(s) of APU.

The consideration for the sale of Energy Central was determined after arm's length negotiations between the Company and the Purchaser. In the context of the difficulties described above, the Directors considered that the consideration was fair and reasonable and that pursuing the disposal was in the best interests of the Company and its shareholders as a whole. The Directors believe that this was especially the case when compared with alternative courses of action, such as pursuing formal legal claims against

the original sellers of the shares in APU, given the likely timeframe for the pursuit of any such legal claims and the uncertainly regarding the likelihood of a superior outcome from any such litigation.

With regard the Companies other investment, AAA still holds a minority investment representing a 7% interest in Myanmar Allure Group Co., Ltd. ("MAG"). During the year MAG continued operating the Allure Resort, a combined hotel, resort and gaming facilities located in Tachileik province, Myanmar, in the vicinity of the Thailand-Myanmar Mae Sai border.

MAG is continuing to search for a partner and partnership opportunities together with other entities who have a gaming background, with a view to potentially having a partner co-invest in new building development. During this time, MAG plan to continue to improve their operations' performance and capacity utilisation by maximising their existing resources.

The Company announced on 2 November 2016 that it was seeking to take steps to actively realise the Company's investment in MAG. At this stage the Company has not engaged in any advanced discussions with third parties in respect of realising AAA's interest in MAG.

In December 2016, the Company signed an agreement with Nature Cove Holdings Limited, through which the Company was provided with a convertible loan of £100,000 in cash provided by a shareholder of the Company, in order to provide a short-term financing for the Company. This loan was subsequently repaid in June 2017 and no conversion of the loan's principal amount or interest into new ordinary shares in the capital of the Company took place during the term of the loan.

Financial Results

During the 12 months ended 31 December 2016, the Company made a net loss of £0.5 million before taking into account the impairment on the Company's investment in APU (2015: net loss of £0.3 million). An impairment charge of £3.8 million was incurred in the 12 months ended 31 December 2016 reflecting the situation encountered with APU as detailed above and the subsequent sale by AAA of its interest in APU for approximately £0.8m.

During the 12 months ended 31 December 2016, the majority of the assets of the Group consisted of its two investments in APU and MAG which, as at 31 December 2016, had a carrying value of £2.4 million in AAA's balance sheet. AAA's investments in APU and MAG have been attributed fair values of £0.8 million and £1.59 million respectively as at 31 December 2016. The valuation on APU takes into consideration, retrospectively, the sale of Energy Central Limited that took place post year end.

As at 31 December 2016 the net assets of the Group were £2.12 million (31 December 2015: net assets of £5.68 million) and the Group had cash and cash equivalents of £0.04 million (31 December 2015: cash and cash equivalents of £0.19 million). Further details on the methodology for valuing the investments is contained in note 7 to the financial statements. The Company's cash position has improved since 31 December 2016 as a result of the cash consideration received from the sale of Energy Central Limited.

Board Changes

On 21 April 2017 the Company announced that Mr. Paniti Junhasavasdikul would step down as an executive director and general counsel of the Company as of 30 April 2017. We extend our gratitude to him for his diligence, commitment and contribution to the Company during his tenure of office and we wish him the best for his future endeavours.

The Company believes that it is very important that they identify the right candidate to replace Paniti Junhasavasdikul who possesses the skills and experience that match the strategic direction of the business. The Company will provide an update on their plans for the board once they have further assessed the strategic direction of the Group following the sale of Energy Central.

The Company announced on 2 November 2016 that they were considering a proposal to amend the existing investing policy of the Company and it was noted that this change in investing policy would be subject to approval of shareholders. The Company intends to re-assess this proposal once they have appointed a new Chief Executive Officer.

Economic Outlook

With the Company's investee company, MAG, being located in Myanmar is it important that we consider the current economic climate. In a recent report, the World bank commented that Myanmar's economy will grow by an average of 7.1% per year in the next three years, as inflation pressures are expected to ease up and private and public investments in infrastructure services and non-commodity sectors, such as light manufacturing and hospitality, are forecasted to rise. Given that MAG's focus is on the local tourism and hospitality sector, this should be a positive trend.

Appreciation

I would like to thank all the hard work of my fellow Board members and staff, our advisers and of course our shareholders for their continuing support for AAA. I sincerely hope that the Company will continue to enjoy such support towards the development of the Group in the years to come.

Robert Anthony Rowland Berkeley

Chairman

London, 28 June 2017