Loan to Portfolio Company

Adamas Finance Asia Limited

("ADAM" or the "Company")

Loan to Portfolio Company

The Board of Adamas Finance Asia Limited (AIM ticker: ADAM) announces that the Company has agreed to advance a loan of US$2.4 million to Changtai Jinhongbang Real Estate Development Co., Ltd ("CJRE"), a company in which ADAM holds an indirect 15% interest (the "Loan").

CJRE is the owner of the Tian Tong Shan Villa Project (the "TTS Project"), a substantial development project for a spa resort with ancillary residential, commercial and recreational facilities in Fujian Province, China.

CJRE will use the Loan to fund the continuing development of the TTS Project, where Phase One is due for completion in mid-2015, and where Starwood Hotels & Resorts Worldwide, Inc. has agreed to be the operator of the planned five-star hotel trading under the Le Méridien brand. An independent valuation by Roma Appraisals Limited at 31 December 2013 valued the 15% holding in the TTS Project at US$48 million.

The Loan carries a coupon of 10%, payable six monthly, and has a two year term with a potential one year extension at the option of Lead Winner Limited, a wholly owned subsidiary of ADAM which holds the investment in CJRE. The application of the Loan is restricted to the continuing development of the TTS Project.

Funding for the Loan is being provided to ADAM by Elypsis Solutions Limited ("Elypsis") the Company's major shareholder, by means a loan with a coupon of 9%, also payable six monthly (the "Elypsis Loan").

Due to the shareholding of Elypsis in ADAM, the Elypsis Loan constitutes a related party transaction under Rule 13 of the AIM Rules for Companies. The Directors of ADAM (excluding Conor MacNamara, who is not deemed to be independent of Elypsis) consider, having consulted with W H Ireland Limited, the Company's nominated adviser, that the terms of the Elypsis Loan are fair and reasonable insofar as shareholders are concerned.

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