Sinostar PEC : PROPOSED ACQUISITION OF 70% EQUITY INTEREST OF DONGMING QIANHAI

SINOSTAR PEC HOLDINGS LIMITED (Company Registration No.: 200609833N)

PROPOSED ACQUISITION OF 70% EQUITY INTEREST IN THE REGISTERED AND PAID-UP CAPITAL OF DONGMING QIANHAI PETROCHEMICAL CO LIMITED ("DONGMING QIANHAI") AS A MAJOR TRANSACTION AND INTERESTED PERSON TRANSACTION - NEW SUPPLEMENTAL AGREEMENT

Unless otherwise defined, all capitalised terms shall bear the same meanings as the announcements released by SINOSTAR PEC HOLDINGS LIMITED ("Company") on 29 June 2017, 29 September 2017, 6 December 2017, 22 December 2017 und 28 December 2017 ("Announcements").

NEW SUPPLEMENTAL AGREEMENT

The Board of Directors ("Board") of the Company refers to the Announcements.

The Board wishes to announce that as at the date of this announcement, Dongming Qianhai is still at trial run stage and in order to achieve the estimated production capacity and to satisfy the relevant designing requirements, Dongming Qianhai needs more time to complete such trial run. Accordingly, the Purchaser and the Vendor have entered into a new supplemental agreement in respect of the Agreement ("New Supplemental Agreement") on the date of this announcement.

Pursuant to the New Supplemental Agreement, the Purchaser and the Vendor agreed to extend the Long Stop Date of the Proposed Acquisition to 30 April 2018.

Parties further agreed that, in the event that ten (10) Business Days before the Long Stop Date, the trial run of Dongming Qianhai is still not completed:

• (i) the Purchaser has the right to terminate the Agreement immediately, and the Vendor is obligated to return the 50% of Consideration paid by the Purchaser and to make payment of an interest with the interest rate of 5% per annum commencing on the date of this New Supplemental Agreement.

• (ii) the Purchase is also entitled to continue the Proposed Acquisition, and it has the right to commence the change of registration of the Target Equity Interest with the relevant authorities immediately, and the Vendor is obligated to fully support the change of registration, including but not limited to amend the Articles of Association of Dongming Qianhai and to re-appoint the legal representative (if required by the Purchaser).

• (iii) if the Purchaser chooses to continue the Proposed Acquisition in accordance with the New Supplemental Agreement, the Purchaser has the right to commence the Completion Audit in accordance with Clause 2(4)(iv) of the Agreement, once the Completion Date is fixed, and the Consideration might be adjusted based on the result of the Completion Audit.

Further announcements in relation to the Proposed Acquisition will be made in due course in a timely manner.

By Order of the Board

Zhang Liucheng

CEO and Executive Director

31 January 2018