Hong Kong Resources : UPDATE ANNOUNCEMENT (I) FORMATION OF SPECIAL INVESTIGATION COMMITTEE AND (II) RE-DESIGNATION OF EXECUTIVE DIRECTOR AND RESIGNATION OF THE CHIEF EXECUTIVE OFFICER

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

HONG KONG RESOURCES HOLDINGS COMPANY LIMITED

香港資源控股有限公司

(Incorporated in Bermuda with limited liability and carrying

on business in Hong Kong as HKRH China Limited)

(Stock Code: 2882)

UPDATE ANNOUNCEMENT

1. 1. 1. FORMATION OF SPECIAL INVESTIGATION COMMITTEE AND
   2. RE-DESIGNATIONOF EXECUTIVE DIRECTOR AND RESIGNATION OF THE CHIEF EXECUTIVE OFFICER
2. FORMATION OF SPECIAL INVESTIGATION COMMITTEE
   The Board wishes to inform the shareholders and potential investors of the Company that in the Board Meeting, resolutions had been passed to authorise Mr. Li and Mr. Hu, both being executive directors; and Dr. Loke and Mr. Fan, both being independent non-executive Directors, to form the Special Investigation Committee to undertake investigation on matters pertaining to the Transactions.

1. RE-DESIGNATIONOF EXECUTIVE DIRECTOR AND RESIGNATION OF THE CHIEF EXECUTIVE OFFICER
   The Board announces that, with effect from 4 October 2019, Mr. Xu has been re-designated as a non-executive Director and resigned as the chief executive officer of the Company.

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1. FORMATION OF SPECIAL INVESTIGATION COMMITTEE
   The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders and potential investors of the Company that in the Board meeting held on 4 October 2019 (the "Board Meeting"), resolutions had been passed to authorise Mr. Li Ning ("Mr. Li") and Mr. Hu Hongwei ("Mr. Hu"), both being executive directors; and Dr. Loke Yu alias Loke Hoi Lam ("Dr. Loke") and Mr. Fan, Anthony Ren Da ("Mr. Fan"), both being independent non-executive Directors, to form a special investigation committee (the "Special Investigation Committee") to
   undertake investigation on matters pertaining to 14 defaulting loans provided by Prosten Finance Limited ( 禧升創投有限公司), a wholly-owned subsidiary of the Company which is principally
   engaged in money lending business, for the total principal amount of HK$74.40 million with interest receivable amounting to approximately HK$11.6 million (the "Transactions").

The Board will make further announcement(s) in relation to the results of the investigation of the Transactions as and when appropriate.

1. RE-DESIGNATIONOF EXECUTIVE DIRECTOR AND RESIGNATION OF THE CHIEF EXECUTIVE OFFICER
   The Board announces that, with effect from 4 October 2019, Mr. Xu Zhigang ("Mr. Xu") has been re-designated as a non-executive Director and resigned as the chief executive officer of the Company.
   Mr. Xu Zhigang, aged 48, was appointed as an executive Director and chief executive officer of the Company with effect from 14 February 2018. He holds a master's degree in business management from Southwest Jiaotong University in the People's Republic of China. Mr. Xu was the chairman and an executive director of Prosten Health Holdings Limited (stock code: 8026) up to 12 February 2018 and was then re-designated to a non-executive director. Mr. Xu was a vice president of Kaisa Health Group Holdings Limited (formerly known as "Mega Medical Technology Limited", "Wing Tai Investment Holdings Limited" and "Wing Lee Holdings Limited") (stock code: 876) and an executive director and later re-designated as a non-executive director of Aurum Pacific (China) Group Limited (stock code: 8148). All of these companies are listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). Mr. Xu has extensive experience in areas such as corporate management, business financing, corporate investment and asset acquisition.
   Save as disclosed above, Mr. Xu has not held any directorship in the last three years in any public companies the securities of which are listed on any securities market in Hong Kong or overseas and does not have any relationship with any Directors, senior management, substantial or controlling shareholders of the Company.

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As at the date of this announcement, Mr. Xu does not have any interest in the shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Mr. Xu is subject to retirement by rotation and re-election at the annual general meeting in accordance with the bye-laws of the Company. His remuneration as a non-executive Director shall be determined with reference to his duties and responsibilities with the Company and the prevailing market conditions.

Save as disclosed above, there is no other information relating to the re-designation of Mr. Xu that is required to be disclosed pursuant to Rule 13.51(2)(h) to (v) of the Rules Governing the Listing of Securities on the Stock Exchange nor any matters that need to be brought to the attention of the shareholders of the Company or the Stock Exchange.

CONTINUED SUSPENSION OF TRADING IN THE SHARES

At the request of the Company, trading in the shares of the Company on the Stock Exchange had been suspended since 9:00 a.m. on 30 September 2019 and will remain suspended until further notice.

Shareholders of the Company and potential investors are advised to exercise caution when dealing

in the shares of the Company.

By order of the Board of

Hong Kong Resources Holdings Company Limited

Mr. Li Ning

Chairman

8 October 2019

As at the date of this announcement, the Board comprises Mr. Li Ning (Chairman), Ms. Dai Wei and Mr. Hu Hongwei as executive directors; Mr. Xu Zhigang as non-executive director; and Dr. Loke Yu alias Loke Hoi Lam, Mr. Xu Xiaoping and Mr. Fan, Anthony Ren Da as independent non-executive directors.

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