STA.L Regulatory News (STA)

Star Phoenix Group Ltd

("Star Phoenix" or "the Company")

10 November 2020

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. 

CONSULTANCY AGREEMENT

Star Phoenix (AIM: STA), an international company with an oilfield services business in Trinidad and an oil and gas interest in Indonesia, advises that it has entered into a consultancy agreement (the "Consultancy Agreement") with Fire Phoenix Ltd (the "Consultant").

Principal terms of the Consultancy Agreement:

· Under the terms of the Consultancy Agreement, the Consultant shall provide the Company with business development and M&A advisory services. The Consultant will identify, review, evaluate and inform the Board of opportunities in businesses which the Company would reasonably consider being of interest for investment or acquisition purposes;

· In return for its services, the Consultant shall receive a monthly fee of US$13,000 inclusive of tax, payable monthly in arrears, with no other financial payments nor reimbursement of expenses, unless agreed by the Company in advance; and

· The Consultancy Agreement is effective from 10 November 2020 and will continue for a period of 12 months, with termination at any time upon 30 days written notice

The Consultant is deemed to be a related party of Beijing Sibo Investment Management LP ("Sibo") which holds over 10% shareholding in the Company, for the purposes of the AIM Rules for Companies ("AIM Rules"). In view of this, the entry into the Consultancy Agreement comprises a related party transaction for the purposes of the AIM Rules. The Company's independent directors consider, having consulted with WH Ireland Limited, the Company's nominated adviser, that the terms of the Consultancy Agreement being entered into are fair and reasonable insofar as the Company's shareholders are concerned.

This announcement has been approved by Chairman Kerry Gu on behalf of the Company.