1 Amax Holdings Limited Aug, 2010 Non-performing Assets Treatment: Junket Business in Macau

2 In December 2007, Amax Group granted a loan of HK$1.9 billion in exchange for 80% profits made by AMA, our Macau business partner. The loan was used as liquidity and working capital in AMA’s operations. Amax Holdings Limited AMA Ace High Group Limited Amax – AMA Contractual Agreement 100% Amax Group $1.9 billion Loan 80% Profit Sharing

3 AMA is a junket aggregator, which works with different collaborators to generate revenue. AMA allows collaborators to utilize its capital for their operation, providing liquidity to clients. AMA Collaborator 2 Collaborator 3 Collaborator 1 Sub- collaborator A VIP Client B Sub- collaborator C VIP Client D Sub- collaborator E VIP Client F Sub- collaborator G VIP Client H AMA Original Business Structure Altira Macau Cash Non-cash Chips And other collaborators

4 Amax Holdings AMA Collaborator 2 Collaborator 1 Collaborator 3 New Amax – AMA Relationship Chart Altira Macau A share of commissions income Structural change of relationship due to: –Negative impact of 1.25% commission cap imposed by Macau Government –Breach of contract by AMA’s collaborators Pending legal proceedings on the matter AMA turned to a loss for the 2009 financial year And other collaborators Sub- collaborator A VIP Client B Sub- collaborator C VIP Client D Sub- collaborator E VIP Client F Sub- collaborator G VIP Client H

5 Profit & Loss on Investment (AFS) Dec 2007 Mar 2008 Sep 2008 On-going concern basis 2009 loss on investment – HK$1.9 billion* HK$ 5 billion - HK$ 1.5 billion - HK$ 1.51 billion - HK$ 1.49 billion - HK$ 483 million Mar 2009 Sep 2009 Mar 2010 *For details of uncertainties, please refer to page 6 HK$ 5.1 billion AFS Value: HK$ 2.1 billion HK$122 million

6 Amax Holdings AMA Collaborators with Repayment Schedules Collaborators without Repayment Schedule Non-performing assets / collaborators Uncertainty 2 Uncertainty 1 Amax Collection Uncertainties Uncertainty 3 Uncertainty 1 The risk of AMA becoming insolvent due to litigation, bad debt, collection issues, and other externalities A creditor of AMA has taken legal action against the company for the recovery debts due by AMA Uncertainty 2 Includes all collaborators with repayment schedules Currently assuming all repayment schedules will be fulfilled Amount total: HK$173.2M Risk of collection issues on the total amount Uncertainty 3 Includes all collaborators without repayment schedules Amax assumes zero recoverability due to limited supporting information and evidence from AMA and its collaborators Upside potential in the case of successful collection: HK$ 2.14 billion

7 Amax Management Action Action taken as of now Called loan on AMA Contract not terminated for the benefit of the Amax Group, where Amax will share potential upside but will not share further loss Appointed Horwath Corporate Advisory Services Limited, a corporate governance and advisory specialist firm to advise on the costs and benefits of different alternatives in recovering the loan and the profit owed by AMA.