Global Energy Resources Intl : Announcements and Notices - Change in Use of Proceeds from Rights Issue

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Global Energy Resources International Group Limited ᐑଢঐ๕༟๕਷ყණྠϞࠢʮ̡

(continued in Bermuda with limited liability)

(Stock Code: 8192)

CHANGE IN USE OF PROCEEDS FROM RIGHTS ISSUE

Reference is made to the prospectus ("Prospectus") of Global Energy Resources International Group Limited ("Company", together with its subsidiaries, the "Group") dated 18 April 2017 in relation to, among other things, the rights issue of shares of the Company (the "Rights Issue"). Unless otherwise defined, all capitalised terms used herein shall have the respective meanings ascribed to them in the Prospectus.

As disclosed in the Prospectus, the Group intended to apply the net proceeds from the Rights Issue of approximately HK$99,690,000 ("Net Proceeds") in the following manner:

• (i) as to approximately HK$50,000,000 for the development of securities trading business;

• (ii) as to approximately HK$25,000,000 for the development of money lending business;

• (iii) as to approximately HK$3,000,000 for the operations of carbon emission trading platform ("CETP"); and

• (iv) as to the remaining balance of approximately HK$21,690,000 for general working capital and future business development of the Group.

Please refer to the section headed "Reasons for the Rights Issue and Use of Proceeds" of the Prospectus for further details of the intended use of proceeds from the Rights Issue.

The board of directors of the Company ("Board") wishes to update the shareholders of the Company and potential investors that as at 31 December 2017 approximately HK$12.0 million out of the Net Proceeds have been applied by the Group as planned and the following Net Proceeds remained unutilised ("Unutilised Net Proceeds"):

• - approximately HK$50.0 million remained unutilised for the development of securities trading business;

• - approximately HK$15.0 million remained unutilised for the development of money lending business;

• - approximately HK$1.4 million remained unutilised for the operations of the CETP; and

• - approximately HK$21.2 million remained unutilised for general working capital and the future business development of the Group.

INVESTMENT BUSINESS

To better utilise the Group's idle cash, the Group plans to make investment in listed or unlisted securities in Hong Kong and/or cryptocurrency with a view to enhancing the value of the Group as a whole.

In light of the demand for margin financing from securities trading clients of the Group was not as high as the management had expected in early 2017 and the Group has been providing loans at a comparatively low interest margin in order to increase its attractiveness, the Board has resolved to re-allocate approximately HK$50.0 million of the Unutilised Net Proceeds (comprising approximately HK$35.0 million out of the development of securities trading business and approximately HK$15.0 million out of the development of money lending business) to the Group's investment business sector.

THE OPERATIONS OF THE CETP

Reference is also made to the announcement of the Company dated 16 November 2017 (the "16 November Announcement"), among other things, in relation to the formation of a joint venture company ("Joint Venture Agreement") for enhancing, operating and promoting the CETP. The share capital of the joint venture company shall be HK$5,800,000, of which 60% (i.e. HK$3,480,000) shall be contributed by the Group using the internal resources of the Group within 3 months from the date of the Joint Venture Agreement. In this regard, the Group has decided to deploy approximately HK$3.5 million from the portion of the Unutilised Net Proceeds allocated for future business development to the setup and operations of the joint venture company.

As at the date of this announcement, apart from the reallocations as disclosed above, the other proposed use of the Net Proceeds remains unchanged.

Having considered the impact of the proposed change in the use of the Unutilised Net Proceeds on the Group's business, the Board is of the view that the new allocation of the Unutilised Net Proceeds will meet the Group's business and operational needs more effectively in line with the Group's latest business development. The Board considers that the proposed change in the use of the Net Proceeds will not have any material adverse effect on the existing business and operation of the Group and is in the best interests of the Company and its shareholders as a whole.

By Order of the Board

Global Energy Resources International Group Limited

Ma Jian Ying

Chief Executive Officer and Executive Director

Hong Kong, 18 January 2018

As at the date of this announcement, the board of Directors comprises Mr. Chen Ping, Ms. Ma Jian Ying, Mr. Tsang Chun Kit Terence and Mr. Wang An Zhong as executive Directors, Mr.

Shi Guang Rong and Mr. Hsu Bin Chun as non-executive Directors and Mr. Leung Wah, Ms.

Sun Ching and Ms. Wong Mei Ling as independent non-executive Directors.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the GEM website atwww.hkgem.comon the "Latest Company Announcements" page for at least 7 days from the date of its posting and on the Company website atwww.8192.com.hk.