Asia Pacific Investment Partners (“APIP” or “THE GROUP”)

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Asia Pacific Investment Partners Exceeds Target Fundraise By 50%

The fundraise will reinforce APIP’s ability to list on a major exchange in 2013.

Asia Pacific Investment Partners (“APIP”), a Mongolia focused operating group primarily engaged in property development and cement production, has today announced the close of 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
will(at)apipcorp(dot)com    
+44 (0)77 7619 5209
http://www.apipcorp.com

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William Tindall
Asia Pacific Investment Partners
+44 7776195209
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