Stock Code: 000553(200553)         Stock Abbreviation: ADAMA A (B)         NO. 2019-9


                                     ADAMA Ltd.
      Announcement on Receiving a Notice Prior to Administrative Punishment
      (Hearing) and Decision Notice of Production Suspension and Rectification



The Company and all members of the Company’s Board of Directors confirm that all
information disclosed herein is true, accurate and complete, with no false or
misleading statement or material omission.




ADAMA Ltd. (hereinafter referred to as the “Company”) received a Notice Prior to
Administrative Punishment (Hearing) and a Decision Notice of Production
Suspension and Rectification issued by the Law Enforcement Bureau of Jingzhou
Economic and Technological Development Zone (hereinafter referred to as the
“Bureau”) on February 2, 2019. The following is relevant information in this regard.



I．      Main Contents of the Two Notices

1. Main Contents of the Notice Prior to Administrative Punishment (Hearing)
On January 30th and 31st, 2019, the Provincial Environmental Inspection Team,
together with personnel from its municipal branch, conducted an inspection at the
Company’s old production site at No. 93, Beijing Donglu Road, Jingzhou City.
During such inspection, the inspectors took several samples, some of which showed
elevated levels of water pollutant, in excess of discharge standards prescribed by the
State in the production process.

According to the Notice, on January 30th, 2019, the "Monitoring Report by Jingzhou
Environmental Protection Monitoring Station (Supervisory) (2019), File No. 10"
showed that the total phosphorous at No. 2 pump pool of the wastewater discharge
reached 5.32mg / L, exceeded the maximum allowable emission limit for the second
category of pollutants in Table 4 of the General Discharge Standard of Wastewater
(GB8978-1996).

Based on Item 2 of Article 83 of the Law on the Prevention and Control of Water
Pollution of the People's Republic of China, the Bureau intends to impose an
administrative penalty of a fine of one million RMB yuan for the Company’s
wastewater discharge that exceeded the maximum allowable emission limit.



2. Main Contents of the Decision Notice of Production Suspension and Rectification

The alleged violation in the Decision Notice of Production Suspension and
Rectification is as same as the one in the Notice Prior to Administrative Punishment
(Hearing) mentioned above. According to the item 2 of Article 83 of the Law on the
Prevention and Control of Water Pollution of the People's Republic of China, the
Bureau instructed the Company:
(1) to stop production immediately at the old site upon the receipt of the decision
notice and take corrective measures to formulate and implement a rectification plan;
(2) within 15 working days after receiving the decision notice, the rectification plan
should be reported to the Bureau for filing and disclosed to the public;
(3) after completing the rectification, the Company should report the achievement as
well as disclose information regarding the progress of rectification to the Bureau for
filing within 15 working days.
The decision notice of production suspension and rectification will be lifted on the
date on which the above file is submitted to the Bureau.


II．Measures taken by the Company

The Company is deeply committed to environmentally sustainable production, has a
strong track record worldwide of compliance with relevant regulations, and takes
seriously any potential instance of exceeding of emissions thresholds. The Company
is, of course, fully cooperating with all relevant authorities in the execution of their
inspection and has already taken specific measures as follows:

1. Upon learning of a potential exceeding of an emissions threshold, the Company
   immediately and voluntarily decided to suspend production at the old site in
   Jingzhou.

2. The Company set up an environmental emergency response working group which
   includes senior management and senior experts, from China and globally, to
   investigate and advance rectification, and is devoting all necessary resources to
   achieve compliance with all relevant laws and regulations and to ensure the safe
   and environmentally sustainable operation of the facility.

3. The Company has already put together a proposed remediation plan which it is
   discussing with the authorities. Once it receives the approval of the authorities of
   the remediation plan, the Company will complete the rectification as soon as
   possible and file the achievements of the rectification to the authorities.

4. Since the combination which brought the China assets into the global ADAMA
   group, the Company has been conducting a comprehensive environmental
   self-examination in the course of which it is taking significant action and making
   investment to upgrade all operations in China and achieve best-in-class
   environmental standards. In this context, in recent years, the Company has already
   invested $125 million in the relocation of the Jingzhou old site, and has installed
   advanced production and environmental facilities at a new and already operational
   site, including an investment of $16 million in a new, state-of-the-art wastewater
   facility, which is ready to commence operation. The Company is committed to
   augment its efforts in whatever way necessary to rapidly bring its Chinese
   operations to the highest international standard.



III．Impact on the Company

1. Neither the aforesaid violation of the Company is within the scope of articles two,
  four and five of the Implementing Measures of the Shenzhen Stock Exchange for
  Compulsorily Delisting Listed Companies with Major Violations, nor does it
  conform to item 7 to 9 of article 13.2.1 of the Listing Rules of Shenzhen Stock
  Exchange.

2. Bearing in mind that Sanonda’s old plant is no longer the main production asset of
  the Company together with its subsidiaries, and given that the global ADAMA
  group has significant production capabilities elsewhere in China and worldwide,
  and assuming the rectification process proceeds according to the plan being
  proposed by the Company, it does not foresee a material impact of the suspension
  on its overall performance for the financial year 2019.



The Company will strictly follow the requirements of the Listing Rules of Shenzhen
Stock Exchange, and timely disclose the relevant information. The investors shall be
aware of the investment risk.



It is hereby announced.




                                              Board of Directors of the Company

                                                                February 12, 2019