ASIATIC GROUP (HOLDINGS) LIMITED

(Company Registration Number 200209290R)

ESTABLISHMENT OF SUBSIDIARY - COLBEN ENERGY HOLDINGS (KEMAMAN) LTD ("CEHKL")

The Board of Directors of Asiatic Group (Holdings) Limited (the "Company") is pleased to announce that its

wholly-owned subsidiary in Singapore, Colben Energy (Singapore) Pte. Ltd. ("CESPL") has incorporated a

wholly-owned subsidiary in British Virgin Island, Colben Energy Holdings (Kemaman) Ltd (“CEHKL”).

The initial issued and paid-up share capital of CEHKL is US$10.00 comprising 10 fully paid-up registered

shares.

CEHKL will hold CESPL’s new investments and business opportunities in Malaysia as part of the corporate

and project development activities of CESPL.

CEHKL ENTERED INTO A SHARE SALE AND PURCHASE AGREEMENT

The Company is also pleased to announce that CEHKL, together with four Malaysian partners in a proposed

joint venture (“JV”), has on 8 December 2010 entered into a Share Sale and Purchase agreement (“S&P”) to

acquire the entire equity interest of Kemaman Biomass Power (M) Sdn Bhd (“MKE”) comprising 500,000

ordinary shares of RM1.00 each for a total consideration of RM51,300 (“Consideration”).

MKE has obtained the approval from the Energy Commission of Malaysia to develop a biomass power plant

in Kemaman, Terengganu, Malaysia (“Project”) under the Small Renewable Energy Program (“SREP”).

The Consideration was arrived at on a willing buyer and willing seller basis based on the net tangible assets

(“NTA”) of MKE as at 31 March 2010. The NTA of the MKE is negative RM5,196 (approximately S$2,200)

after adjusting for the amount due from the existing directors of MKE of RM503,627 (approximately

S$220,000). The Consideration will be paid in cash.

Under the proposed JV, CEHKL shall, upon completion of the S&P, own 30% of the equity interest of MKE

whereas its Malaysian partners, namely Messrs. Tekun Positif (M) Sdn. Bhd, Assuredfirst Holdings Sdn Bhd,

Wealthy Entity Holdings Sdn Bhd and Famous Portfolio Sdn Bhd shall own 25%, 15%, 25% and 5% of the

equity interest of MKE respectively (collectively “Investors”).

Under the S&P, the obligations of the existing shareholders of MKE (“Existing Shareholders”) on a joint

and several basis are as follows:

 completion, on or before 28 February 2011 (or such other date as the parties to the S&P may

agree in writing (“Completion Date”), of all corporate actions and secretarial works,

approvals, authorizations, consents (including any governmental, regulatory and/or corporate

approvals and consents) in form and substance satisfactory to the Investors, if necessary, for

the respective transactions contemplated under the S&P, to constitute towards the validity

and enforcement of the S&P;

 the business of MKE having been carried on in a satisfactory and usual manner and MKE not

having disposed of any material assets or assumed or incurred any material liabilities

(including contingent liabilities) other than those in connection with its ordinary course of

business on or before the Completion Date;

 the Investors being satisfied that all representations, undertakings and warranties of the

Existing Shareholders and MKE under the S&P and the shareholders’ agreement being

complied with, true, accurate and correct as at the Completion Date;

 the Existing Shareholders and/or MKE have successfully procured the Approval and/or

changes required to the Approval (as the case may be at the sole discretion of the Investors)

from the Energy Commission of Malaysia and/or SREP the entry of the Investors as the

shareholders of MKE to continue the development of the Project, and all other terms and

conditions as deemed necessary by the Investors at its sole discretion to be fulfilled by the

Existing Shareholders and/or MKE in conjunction with the S&P and/or Approval and/or

NEWS RELEASE

Asiatic Group’s subsidiary obtains approximately USD 20 million Financing

Facilities for its Power Project in Vietnam

Mr Vu Duc Thanh, Director of VDB, Lai Cai branch (handshake left), Mr James Suan, General

Director of CEVJSC (handshake right), sealing the loan agreement.

Further to the announcements released by the Company on 13 July 2009 and 16 August 2010, the board of directors of Asiatic Group (Holdings) Limited (“

“With the Facility in place, the Project has reached an important stage, a significant milestone for us in the course of each project under our development of energy business.”, said Mr. George Tan, the Managing Director of Asiatic. “This is the first of our numerous efforts to develop renewable energy business that has reached this benchmark, and we believe this industry will continue to be an important segment in the overall electricity supply market in various countries in the years ahead.” The Financing Arrangement is not expected to have any material impact on the earnings per share and net tangible assets of the Company for the current financial year. None of the substantial shareholders and/or directors of the Company has any interest, direct or indirect, in the Financing Arrangement, other than through their respective shareholdings in the Company.

By order of the Board

Tan Boon Kheng

Managing Director

27 September 2010

AboutAsiatic“, or the “Company“) wishes to announce that Colben Energy Holdings (Vietnam) Ltd (“Colben“), a wholly-owned subsidiary of the Company, has, on 27 September 2010, through its 51%-owned subsidiary, Colben Energy (Vietnam) Joint Stock Company (“CEVJSC“), entered into a loan agreement (“Loan Agreement“) with Vietnam Development Bank (“VDB“) for the grant by VDB to CEVJSC of a loan facility amounting to VND366,000 million (approximately US$20 million) (“Facility“) to undertake the 44MW hydropower power plants project in Vietnam (“Project“) (“Financing Arrangement”). Colben will be developing the Project in two (2) phases, with the capacity of Phase 1 located at Coc San, Lao Cai Province being revised from 33MW to 29.7MW after the conclusion of the detailed geological and feasibility study and the capacity of Phase 2 located at Chu Linh, Lao Cai Province remaining unchanged at 11MW, together with two (2) local partners, being Vietnam Infrastructure Development and Finance Investment JSC and HVD Construction and Investment Consultants JSC. As part of its financing plan, CEVJSC intends to use the Facility and loan(s) aggregating approximately VND157,000 million to be obtained from other Vietnamese financial institution(s) to complete Phase 1 of the Project. The Facility will be secured mainly by a charge over the assets and equipments of the Project. Under the terms of the Loan Agreement, CEVJSC may utilise the Facility upon  the satisfactory fulfillment of the disbursement conditions.