Far East Hotels and Entertainment : COMPLETION OF PLACING OF NEW SHARES UNDER GENERAL MANDATE

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities of the Company.

FAR EAST HOTELS AND ENTERTAINMENT LIMITED

Ⴣ؇ৢֳྼุϞࠢʮ̡

(Incorporated in Hong Kong with limited liability)

(Stock Code: 00037)

COMPLETION OF PLACING OF NEW SHARES

UNDER GENERAL MANDATE

Placing Agent

The Board is pleased to announce that all conditions to the Placing Agreement have been fulfilled and completion of the Placing took place on 22 March 2021. An aggregate of 122,142,135 Placing Shares have been successfully placed by the Placing Agent to not less than six Placees at the Placing Price of HK$0.106 per Placing Share pursuant to the terms and conditions of the Placing Agreement.

Reference is made to the announcement of Far East Hotels and Entertainment Limited (the "Company") dated 1 March 2021 in relation to the Placing (the "Announcement"). Unless otherwise defined, the capitalised terms used herein shall have the same meanings as defined in the Announcement.

COMPLETION OF THE PLACING

The Board is pleased to announce that all conditions to the Placing Agreement have been fulfilled and completion of the Placing took place on 22 March 2021. An aggregate of 122,142,135 Placing Shares have been successfully placed by the Placing Agent to not less than six Placees at the Placing Price of HK$0.106 per Placing Share pursuant to the terms and conditions of the Placing Agreement, representing (i) 20.00% of the issued share capitalof the Company immediately before the Placing; and (ii) approximately 16.67% of the issued share capital of the Company as enlarged by the allotment and issue of the Placing Shares immediately upon completion of the Placing. To the best of the knowledge, information and belief of the Directors and having made all reasonable enquiries, the Placees and their respective ultimate beneficial owner(s), as applicable, are professional, institutional or other investors who are parties independent of the Company and its connected persons.

The gross proceeds from the Placing amounted to approximately HK$12.9 million and the net proceeds amounted to approximately HK$12.7 million (after deducting the placing commission and other related expenses and professional fees). The Company will apply the net proceeds from the Placing for general working capital of the Group.

SHAREHOLDING STRUCTURE OF THE COMPANY UPON COMPLETION OF THE PLACING

The shareholding structure of the Company immediately before and after completion of the Placing is as follows:

ShareholdersImmediately before completion of the PlacingImmediately after completion of the Placing

Number of	Approximate	Number of	Approximate
Shares	%	Shares	%
Mr. Derek Chiu	131,195,875	21.48	131,195,875	17.90
(Note 1)
Mr. Deacon Te Ken Chiu	113,726,476	18.62	113,726,476	15.52
(deceased)	(Note 2)
Madam Chiu Ju Ching Lan	188,000	0.03	188,000	0.03
Mr. Choy Wai Shek	3,000,000	0.49	3,000,000	0.41
Raymond
Placees	-	0.00	122,142,135	16.67
Other public shareholders	362,600,324	59.38	362,600,324	49.47
Total	610,710,675	100.00	732,852,810	100.00
Notes:

1.

As at the date of this announcement, Mr. Derek Chiu, an executive Director who is also the managing director and the chief executive of the Company, beneficially owned 52,765,576 Shares. The remaining

78,430,299 Shares were held by Energy Overseas Ltd., a company wholly owned by Mr. Derek Chiu.

2.

The late Mr. Deacon Te Ken Chiu beneficially owned 12,491,424 Shares. Of the remaining 101,235,052 Shares, (i) 100,939,842 Shares were held by various private companies wholly owned by the late Mr. Deacon Te Ken Chiu of which 72,182,400 Shares were held by Achiemax Limited; and (ii) 295,210 Shares were held by Far East Consortium Limited, a wholly-owned subsidiary of Far East Consortium International Limited. The late Mr. Deacon Te Ken Chiu was a controlling shareholder of these companies and a director of Achiemax Limited.

By Order of the Board

Far East Hotels and Entertainment Limited

Derek Chiu

Executive Director, Managing Director and Chief Executive

Hong Kong, 22 March 2021

As at the date of this announcement, the executive Directors are Mr. Derek Chiu (Managing Director and Chief Executive) and Ms. Amanda Chiu; the non-executive Directors are Madam Chiu Ju Ching Lan and Mr. Alex Chiu; and the independent non-executive Directors are Mr.

Ip Shing Hing, Mr. Ng Wing Hang Patrick and Mr. Choy Wai Shek Raymond.