Star Phoenix Group Ltd

("Star Phoenix" or "the Company")

2 January 2020

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

DRILLING RIGS SALE UPDATE

Following the announcement on 23 December 2019, Star Phoenix, an international company with oil and gas projects and oilfield service businesses in Trinidad and Indonesia, announces that following the buyer failing to provide the Company with the agreed cash consideration for the sale of four drilling rigs and related equipment, the Company has decided to terminate the transaction with the buyer and has commenced a new sale process for the drilling rigs and related equipment. Further updates will be provided as and when appropriate.