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Asia Pacific Investment Partners Exceeds Target Fundraise By 50% - Official Press Release

Press Release 20th April 2012


Asia Pacific Investment Partners Exceeds Target Fundraise By 50%

Asia Pacific Investment Partners ("APIP"), a Mongolia focused operating group primarily engaged in property development and cement production, today announced that it has closed its highly successful private placement offering at a pre-money valuation of US$140m. The Group received demand for 2,136,622 common shares at a price of HK$55 per share for aggregate gross proceeds of HK$117.5m (US$15.1m). This exceeds the target fundraise of US$10m by over 50%.

The additional proceeds will enable APIP to stockpile a greater quantity of clinker - material used in the production of cement - at a time when prices are below their summer peak. It will also allow APIP to increase the pace of its 2012/13 capital expenditure timetable to build a parallel cement crushing line and a clinker kiln at its limestone deposit in the South of Mongolia. Part of the fundraise will be used for construction finance in the Olympic Residence, a 25,000 sqm. luxury residential property currently mid-way through development. This will ensure that the building reaches a level during this operating season, where it can be weather tight and will allow the interior to be worked upon during the winter months. There will also be a small injection of the proceeds into Asia Finance, a high margin lending business currently providing loans to SME's in the mining supply chain.

Investors were predominantly Hong Kong and London-based, including a family office which invested USD 5m and an AIM-listed Asia-focused resource company, which pledged USD 2m.

Lee Cashell, CEO of Asia Pacific Investment Partners, commented:

"This is the first time we have allowed equity investments at the parent company. The levels of commitment we have received from clients, past investors at the subsidiary levels and investment professionals familiar with Mongolia, demonstrates that Asia Pacific Investment Partners is positioned as one of the lead conglomerates in Mongolia.

"The fundraise will reinforce APIP's ability to list on a major exchange in 2013. In relation to this, we have begun talking to listings' authorities and initiated talks with some large investment banks. We are also due to announce the appointment of some key personnel within the next two weeks."

Media Enquiries

Will Tindall

Chief Communications Officer

+44 (0)77 7619 5209

Notes to Editors

Asia Pacific Investment Partners ("APIP") is a Mongolia focused operating group that has a range of subsidiaries primarily engaged in property development and cement production. APIP has a very strong asset base, which includes one of the largest and most highly valued landbanks in the country and the only cement producing facility in the capital. This enables APIP to be exceptionally well positioned to take advantage of what many multinational institutions expect will be the fastest growing economy in the world over the next five years.

The cement factory's future long term growth is underpinned by two strategically placed limestone deposits and the landbank provides key sites for APIP's ten year property development pipeline. To date, APIP has successfully designed, constructed, marketed, managed and fully sold four major residential developments in Ulaanbaatar. It is currently building its next development, the Olympic Residence, which will have 96 luxury residential units, four floors of retail and leisure facilities and will provide over US$90 million of revenue to the Group.

APIP has also successfully obtained a securities and underwriting license and a non-banking financial institution license; Asia Pacific Securities is now one of the most active brokerage firms on the country's burgeoning stock market and Asia Finance is successfully lending to SMEs at up to 4.0% per month. APIP has also accumulated eight exploration licenses within the country's rich mining sector, which it is currently harvesting by asset trades, asset injections and value enhancements. APIP is forecast to return USD49 million in net income for 2013.

Founded in 2001 by American venture capitalist Lee Cashell, APIP has been profitable every year since its inception and is regarded as one of the most transparent private companies in Mongolia. APIP has been audited by Price Waterhouse Coopers for a number of consecutive years and is looking to list on a major exchange within the next twelve months.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.