Kresta : Letter to ASX – KRS reponse to Appendix 3Y – Change of Director’sInterest Notice Query

23 July 2020

Mr Sean Maloney

Adviser, Listings Compliance (Perth)

Australian Securities Exchange Limited

Level 40, Central Park

152-158 St George's Terrace

Perth WA 6000

By email: [e-mail]

Dear Mr Maloney

Kresta Holdings Limited ('KRS'): Response to Appendix 3Y - Change of Director's Interest Notice Query

We refer to your letter communication dated 21 July 2020, please find below responses to the Request for Information.

1. Please explain why the Appendix 3Y was lodged late.

We have received this Director change of interest information on late Friday 17th July 2020. We prepared an incorrect Appendix 3X form and changed to Appendix 3Y under ASX's guidance as practical as possible.

The late lodgement was due to a misunderstanding from Mr Xueqiang Liu of providing KRS the information within 5 business days and KRS to release the information within 5 business days. We have communicated via email and phone on this matter with Mr Liu and made sure he is fully aware his disclosure obligation going forward.

2. What arrangements does KRS have in place under Listing Rule 3.19B with its directors to ensure that it is able to meet its disclosure obligations under Listing Rule 3.19A?

KRS and its Directors are aware of their responsibilities under listing rules 3.19A and 3.19B. These responsibilities are set out in KRS' Share Trading Policy, which requires all key management personnel to notify the Company Secretary before making any purchase or sale of their security holdings. These responsibilities are also set out in the appointment letters for each Director.

3. If the current arrangements are inadequate or not being enforced, what additional steps does KRS intend to take to ensure compliance with Listing Rule 3.19B?

KRS confirms that its current practices are adequate and ordinarily effective to ensure compliance with Listing Rules 3.19A and 3.19B. The late lodgement of the Appendix 3Y were due to a once-off oversight resulting from the director going through a difficult time, this does not reflect a deficiency in the internal procedures between KRS and its Directors. We had spoken to Mr Liu of his Director's obligations over the phone again and emailed all directors their obligations under Listing Rules 3.19A and 3.19B again as a reminder.

We trust the responses given address your queries.

Yours sincerely

Tao Li

Company Secretary

Kresta Holdings Limited

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