PACIFIC ALLIAN ORD USD0 01 : Letter to Shareholders

140018f1-332f-486a-99ec-16b2d83f78bc.pdf GrantThornton

Our Ref MEGS/PDB/160512 LTR SHAREHOLDERS PDB

TO THE SHAREHOLDERS

23 May 2016

Dear Shareholder

PACIFIC ALLIANCE ASIA OPPORTUNITY FUND LIMITED • IN VOLUNTARY LIQUIDATION {THE COMPANY)

Grant Thornton Speclallat Sarvlcao (Cayman) Limited

Physical address

48 Market Street, 2nd Floor, Suite 4290 Canella Court, Camana Bay

Grand Cayman, Cayman Islands

MalUnq Address

10 Market Street,No.765

Camana Bay,Grand Cayman KY1 9006 Cayman Islands

T [phone]

F+1346 949 7120

I refer to my appointment as joint voluntary liquidator and the first distribution to the registered shareholders dated 24 March 2016.

As you are aware, the first distribution to shareholders was comprised of either cash or Feeder III (as previously defined) shares, depending upon preferences expressed. That first distribution represented 98.072% of the Company's value as per the net asset value of the Company as at 31 December 2015 (the NAV). A cash reserve was retained to provide for the Company's liabilities, the costs of the liquidation and any potential movement in the Company's value as a result of the 2015 audit. The 2015 audit has since been completed and no adjustments were made with regard to the NAV. I am therefore delighted to advise that a second distribution representing 1.918% of the Company's value as per the NAV has been effected on 20 May 2016.

As a result, a total of 99.990% of the Company's value has now been distributed.

An amount of USD250,000 (or 0.1557% of the NAV) or has been retained to account for service provider final invoices yet to be received. Should any funds be remaining following payment of those final invoices, a further distribution will be made of those remaining funds.

A detailed report to shareholders is to be distributed shortly together with a notice of final meeting. The final meeting is a Cayman Islands statutory requirement and is largely a formality at which resolutions will be sought regarding the agreement of the liquidators' report and accounts, retention and destruction of books and records, the liquidators' remuneration and how to deal with any-=t1rn:J dividend payments.

ours faithfully )

for and o half f Pacific Alliance Asia Opportunity Fund Limited

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Chartered Accountants

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A subs.idiary o.f Granl Thomlo.n UK LL.P., ...