JES International : Update on Company Matters

JES INTERNATIONAL HOLDINGS LIMITED

(Incorporated in the Republic of Singapore on 4 April 2006)

(Company Registration Number 200604831K)

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UPDATE ON COMPANY MATTERS _________________________________________________________________________________

The board of directors (the "Board") of JES International Holdings Limited (the "Company") refers to the Company's previous announcements dated 1 March 2017, 28 April 2017, 14 July 2017, 8 September 2017, 18 September 2017 and 20 October 2017. Unless otherwise defined, capitalised terms in this announcement (the "Announcement") shall have the same meanings as ascribed to them in the aforementioned announcements.

• 1. PROPOSED RESTRUCTURING OF THE SHIPBUILDING SUBSIDIARIES

  The Company has been informed that the managers have had prospective investors, however no firm offer has been received yet. The Company has further informed the Managers of the compliance requirements of the Company to release announcements on any updates to the restructuring and that the Company's standing instructions to the managers are that the Company is to be immediately notified of any material updates.

• 2. PROPOSED DISPOSAL OF THE SHIPBUILDING SUBSIDIARIES

  As previously announced, the long-stop date for the proposed disposal of the shipbuilding subsidiaries is 31 December 2017. The Company has been negotiating with the purchaser on an extension of the long-stop date of the proposed disposal, however the parties could not reach an agreement on the same. In this regard, the parties will be entering into a termination and settlement agreement with a view to mutually terminate the proposed disposal of the shipbuilding subsidiaries, with no claims to be made by either party against the other party.

  The Company will continue to be the legal and beneficial owner of the shipbuilding subsidiaries. Further and as previously announced, the Managers have been responsible for the management of the shipbuilding subsidiaries, and the Company has not and will not be liable for any outgoings of the shipbuilding subsidiaries.

• 3. ALLEGATIONS AGAINST JIN XIN

  The Company has been informed by Mr Zhang Wencan of Jiangsu Tianzi Law Firm, the legal counsel to the Managers of the Proposed Restructuring that Jin Xin has on 24 January 2018 been sentenced by the Jingjiang People's Court, Jiangsu Province to an imprisonment term of 12 years and 6 months. Jin Xin has the right of appeal to the Taizhou Intermediate People's Court, Jiangsu Province within 15 days from 24 January 2018. The Company understands that the written judgment in relation to Jin Xin's conviction has yet been issued by the Jingjiang People's Court, Jiangsu Province, and therefore the Company is unable to ascertain the charges that Jin Xin has been convicted of. The Company has requested for a copy of the said written judgment and will provide further updates when it has the same.

  At this juncture, the Board is considering the option of pursing civil actions against Mr Jin Xin as it awaits the written judgment of Mr Jin Xin's conviction. The Company's decision shall be solely premised on whether the interests of shareholders and the Company has been adversely affected

by any acts by Jin Xin and whether it is commercially feasible to pursue any such actions against Jin Xin.

4.

CASH COMPANY STATUS - QUARTERLY UPDATE ON ACQUISITION OF NEW BUSINESS

In relation to the Company's classification as a cash company on 18 September 2017, the Company is currently considering its cash position in relation to all outstanding liabilities and cashflow forecasts.

The Company had been contacted by potential investors expressing interests to inject new businesses into the Company. The Company is reviewing the commercial terms and financials of such new businesses with a view to maximise shareholder value in the event that any transactions do materialise.

At this juncture, the Board is currently considering the options available to the Company and will update shareholders as and when there are material developments on the same.

BY ORDER OF THE BOARD

JES INTERNATIONAL HOLDINGS LIMITED

JIN YU

Chief Executive Officer

5 February 2018