Update on Future Metal Holdings Limited

11 November 2019

ADAMAS FINANCE ASIA LIMITED

(the "Company" or "ADAM")

Positive Progress and Update on Future Metal Holdings Limited

("Future Metal")

Adamas Finance Asia Limited (AIM: ADAM), the London quoted company focused on providing shareholders with attractive uncorrelated, risk adjusted returns from a diversified portfolio of pan-Asian investments, is pleased to provide an update on its investment in Future Metal, which was previously known as Hong Kong Mining Holdings. The Company holds an 85% shareholding in Future Metal, representing ADAM's largest investment by value in the portfolio.

The Company is pleased to report continuing good progress at Future Metal with the management team onsite nearing completion of the necessary works to prepare the quarry to restart production as planned in late 2019, with a test production run scheduled to occur later this month.

The local management team is continuing to closely oversee and monitor all activities on site and has sourced and contracted experienced local construction teams to assist with the renovation and repair of buildings and equipment. As of today, onsite works included:

·    The instalment of key utilities including electricity and water.

·    Full renovation of staff living quarters to provide secure and safe accommodation for the local management team and contract labourers.

·    Purchased and successfully installed a new weighbridge for the quarry.

·    Site levelling has also been completed near the quarry's entrance ground and is to be carried out at the production station later this month.

·    Installation of major production equipment on site, including a jaw crusher, an impact crusher and two vibrating sieves.

In addition, the local management team believes that the quarry is likely to commence initial production following the instalment of the conveyor belts.

·    Conveyor belts to transport output will be installed following the completion of site levelling works.

·    It is a requirement of the local environmental bureau that the quarry completes the land hardening process as well as fully enclose the plant prior to granting of the Work Safety Permit. The local management team is in late-stage discussions with a number of contractors to assist with these tasks.

On 16 September 2019, the Company announced the anticipated metrics for such full-scale production at Future Metal's quarry, including the expected output quantities and estimated sales prices, as well as a new independent market study that confirmed considerable demand locally from customers for the quarry's products.

On 4 September 2019, the Company announced that various permits and licences have been applied for and awarded to Future Metal to enable production to restart. Harmony Capital, the Investment Manager of ADAM, was and continues to be instrumental in ensuring the ongoing good progress at Future Metal.

Further details on Future Metal including an updated photo gallery of recent on-site activities can be found on Future Metal's website: www.futuremetalholdings.com. 

For further information, please visit the Company's website at http://adamasfinance.com and follow the Company on Twitter (@AdamasFinance).

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About Adamas Finance Asia

Adamas Finance Asia Limited (ADAM) is quoted on the AIM Market of the London Stock Exchange and is committed to providing shareholders with attractive uncorrelated, risk adjusted long-term returns from a combination of realising sustainable capital growth and delivering dividend income.

The Company is focused on providing growth capital and financing to emerging and established Small and Medium Enterprises (SME) sector throughout Asia, well diversified by national geographies, instruments and asset classes. This vital segment of the economy is underserved by the traditional banking industry for regulatory and structural reasons.

The Company's investment manager, Harmony Capital, seeks to capitalise on its team's established investment expertise and broad networks across Asia. Through rigorous diligence and disciplined risk management, Harmony Capital is dedicated to delivering attractive income and capital growth for shareholders with significant downside protection through selectively investing in assets and proactively managing them.

Harmony Capital is predominately sourcing private opportunities and continues to create a strong pipeline of attractive income generating assets from potential investments in growth sectors across Asia, including healthcare, fintech, hospitality, IT and property.