LION ASIAPAC LIMITED

(Co. Reg. No. 196800586R)

(Incorporated in the Republic of Singapore)

RESOLUTION OF ISSUES IN RELATION TO THE PROPOSED ACQUISITION OF LAND IN YANGZHOU FOR PROPERTY DEVELOPMENT


The Board of Directors of Lion Asiapac Limited (the "Company", and together with its subsidiaries, the "Group") wishes to announce that, with reference to the announcements by the Company on 17 December 2012, 27 December 2012 and 16 July 2013 relating to the proposed acquisition ("Proposed Acquisition") of land in Yangzhou ("Yangzhou Land"), the People's Republic of China, as well as the announcement on the Company's full year results on 21 August 2013 and related announcement on the auditors' comments on the accounts on 27 September 2013, approvals for the Company's application for, inter alia, the waiver of the late payment penalty charges and late payment interest have been obtained from the Yangzhou City Government ("YCG") and Yangzhou Municipal State-Owned Land Resource Administration Bureau ("YLB"), according to the notification by the Yangzhou Economic and Technological Development Zone Management Committee.
Following the approvals from the YCG and YLB, the Company is arranging for the injection of approximately RMB 157.1 million into the registered capital of Yangzhou Lion Property Development Co Ltd ("Yangzhou Lion") (approximately US$25.5 million, being the balance
85% of the registered capital of Yangzhou Lion). The Company intends for Yangzhou Lion to settle the balance land cost of approximately RMB 84 million (approximately S$17.3 million) with YLB thereafter.
The factors surrounding the uncertainties relating to the carrying amount of land deposits, related transaction costs and accruable late payment penalty charges, as disclosed in the Independent Auditors' Report to the shareholders of the Company and in Note 3(c) to the consolidated financial statements of the Group for the financial year ended 30 June 2013, have also been eliminated accordingly.
As previously disclosed in Section 3 of the Company's announcement on 17 December
2012, the Proposed Acquisition constitutes a "major transaction" under Chapter 10 of the Listing Manual and accordingly will be subject to shareholders' ratification of the same. The circular to shareholders containing, inter alia, further details of the Proposed Acquisition and a notice of the extraordinary general meeting to be convened to seek shareholders' ratification of the Proposed Acquisition will be despatched to shareholders in due course.
BY ORDER OF THE BOARD LION ASIAPAC LIMITED
Tan Yen Hui
Company Secretary
Singapore, 16 October 2013

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