MIRA INFORM REPORT

Report Date :

20.06.2008

IDENTIFICATION DETAILS

Name :	CONTINENTAL CHEMICAL CORPORATION PTE LTD

Formerly Known As :	^{CONTINENTAL PACIFIC (S) PTE LTD}

Registered Office :	^{2 Seraya Place} ^{Jurong Island} ^{, 627857}

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^22.12.1994

Com. Reg. No.:	^199409372Z

Legal Form :	^{Pte Ltd}

Line of Business :	^{Import, Export and Distribution of Industrial Chemicals and the Provision of Related Chemical Formulation Supports}

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Status :	Very Good

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

CONTINENTAL CHEMICAL CORPORATION PTE LTD

Line Of Business

^{THE IMPORT, EXPORT
AND DISTRIBUTION OF INDUSTRIAL CHEMICALS AND}

^{THE PROVISION OF RELATED CHEMICAL FORMULATION
SUPPORTS.}

Parent Company

^{CONTINENTAL CHEMICAL HOLDINGS LTD}

PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : US$217,225,988

Networth : US$145,159,512

Paid-Up Capital : US$100,891,408

Net result : US$ 8,108,632

Net Margin(%) : 3.73

Return on Equity(%) : 5.59

Leverage Ratio : 0.67

COMPANY IDENTIFICATION

^{Subject
Company : CONTINENTAL CHEMICAL CORPORATION PTE LTD}

^{Former
Name : CONTINENTAL PACIFIC (S) PTE LTD}

^{Business
Address : 2 SERAYA PLACE}

^{JURONG ISLAND}

^{Town : SINGAPORE}

^{Postcode : 627857}

^{County :}

^{Country : Singapore}

^{Telephone : 6425 1360}

^{Fax :
6425 1232/6425 1356}

^{ROC
Number : 199409372Z}

^{Reg.
Town :}

PREVIOUS IDENTIFICATION

^{CONTINENTAL
PACIFIC (S) PTE LTD DATE OF CHANGE OF
NAME:09/05/2002 METRO}

SUMMARY

^{All
amounts in this report are in : USD}

^{Legal Form :}^{Pte Ltd}

^{Date Inc. :}^22/12/1994

^{Previous Legal Form : -}

^{Summary year :}^31/12/2006

^{Sales :}^217,225,988

^{Networth :}^145,159,512

^{Capital :
-}

^{Paid-Up Capital :}^100,891,408

^{Employees : 100}

^{Net result :}^8,108,632

^{Share value : -}

^{Auditor :}^{PRICEWATERHOUSECOOPERS}

^{BASED
ON ACRA'S}

^{NO.
OF SHARES CURRENCY AMOUNT}

^{ISSUED
ORDINARY 2,000,000 SGD 2,000,000.00}

^{ISSUED
ORDINARY 73,695,922 USD 99,739,998.43}

^{PAID-UP
ORDINARY - SGD
2,000,000.00}

^{PAID-UP
ORDINARY - USD 99,739,998.43}

REFERENCES

^{Litigation : No}

^{Company
status : TRADING}

^{Started
:
22/12/1994}

PRINCIPAL(S)

^{TAN
TIEW HEE
S2513643H Managing Director}

DIRECTOR(S)

^{TAN
TIEW HEE
S2513643H Director}

^{Appointed
on : 04/04/2003}

^{Street
: 53 MIMOSA ROAD}

^#01-55

^{MIMOSA PARK}

^{Town: SINGAPORE}

^{Postcode: 808012}

^{Country: Singapore}

^{TAN
TIEW HEE
S2513643H Managing Director}

^{Appointed
on : 11/04/2003}

^{Street
: 53 MIMOSA ROAD}

^#01-55

^{MIMOSA PARK}

^{Town: SINGAPORE}

^{Postcode: 808012}

^{Country: Singapore}

^{DR
CHAI KYU JOON
DJ009369 Director}

^{Appointed
on : 10/06/2004}

^{Street
: 606 DONG 103}

^{HO MOK-DONG APT}

^{YANG CHUN-KU}

^{Town: SEOUL}

^Postcode:

^{Country: Korea, Republic of}

^{CHANG
SOW KUEN
S1365694J Company Secretary}

^{Appointed
on : 31/12/2004}

^{Street
: 130 GEYLANG EAST AVENUE 1}

^#02-299

^{Town: SINGAPORE}

^{Postcode: 380130}

^{Country: Singapore}

^{WONG
NAM SOON
S0225190F Director}

^{Appointed
on : 05/11/2007}

^{Street
: 32 CHENG SOON CRESCENT}

^{CHENG SOON GARDEN}

^{Town: SINGAPORE}

^{Postcode: 599904}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{NG
ENG SOON
S1190958B}

^{ROGER
NG YONG GANG S1599975F}

^{LIM
THIN KONG FRANCIS
S1835761E}

^{ADDANKI
GOPAL RAO S2618785J}

^{HADIRAN
SRIDJAJA D050535}

^{JASIN
SRIDJAJA D795282}

^{HADISAN
SRIDJAJA S2598934A}

^{JOHANNES
MUNANDAR SETIAWAN K840936}

^{KIM
JONG CHIL
JR0147765}

^{TEO
JOO WOON
S7026374B}

^{EWE
EE FOONG
S2534316F}

^{WONG
CHEE SIONG S2538186F}

ACTIVITY(IES)

^{IMPORTERS
And EXPORTERS
Code:11760}

^{CHEMICALS
Code:3970}

^{HOLDING
COMPANIES
Code:11320}

^{BASED
ON ACRA'S RECORD}

^{1)
WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS;}

^{TRADING
IN CHEMICALS & PETROCHEMICAL PRODUCTS & DERIVATES}

CHARGES

^{Date :
24/09/2005}

^{Comments
: CHARGE NO : C200505777
(DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
: MOSCOW NARODNY BANK LTD}

^{Date :
28/06/2006}

^{Comments
: CHARGE NO: C200604177 (DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
(S ) : ABN AMRO BANK N.V.}

^{Date :
21/09/2006}

^{Comments
: CHARGE NO : C200606348
(DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
: XIAMEN INTERNATIONAL BANK ZHUHAI BRANCH}

^{Date :
20/10/2006}

^{Comments
: CHARGE NO : C200607079
(DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
: COMMERZBANK AKTIENGESELLSCHAFT}

^{Date :
21/05/2007 Amount: 17,500,000}

^{Comments
: CHARGE NO: C200703781}

^{SECURED
: US$17,500,000.00}

^{CHARGEE(S):
CITIBANK N.A.}

^{Date :
08/06/2007 Amount: 250,000,000}

^{Comments
: CHARGE NO: C200704298}

^{SECURED
: US$250,000,000.00}

^{CHARGEE(S):
CREDIT SUISSE}

^{Date :
11/06/2007 Amount: 250,000,000}

^{Comments
: CHARGE NO: C200704343, 4345, 4348,
4353, 4355, 4356, 4361}

^{SECURED
: US$250,000,000.00}

^{CHARGEE(S):
CREDIT SUISSE}

^{Date :
11/06/2007 Amount: 250,000,000}

^{Comments
: CHARGE NO: C200704362, 4363, 4364,
4365, 4366}

^{SECURED
: US$250,000,000.00}

^{CHARGEE(S):
CREDIT SUISSE}

^{Date :
29/05/2006}

^{Comments
: CHARGE NO: C200603344 (DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
(S ) : SOUTHERN BANK BHD}

^{Date :
16/03/2005}

^{Comments
: CHARGE NO: C200501547 (DISCHARGED
- 06/11/2006)}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE:
OVERSEA-CHINESE BANKING CORPORATION LTD}

^{Date :
30/05/2000}

^{Comments
: CHARGE NO: 200002369 (DISCHARGED -
04/04/2003)}

^{SECURED:
0.00 AND ALL MONIES OWING}

^{CHARGEE
(S): HL BANK}

^{Date :
09/03/2001}

^{Comments
: CHARGE NO: 200101105 (DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
(S ) : CITIBANK N.A.}

^{Date :
04/07/2001}

^{Comments
: CHARGE NO: 200103003 (DISCHARGED)}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING (SGD)}

^{CHARGEE
(S ) : OVERSEAS UNION BANK LIMITED}

^{Date :
29/11/2001}

^{Comments
: CHARGE NO: 200105868 (DISCHARGED -
06/05/2005)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S):
THE DEVELOPMENT BANK OF SINGAPORE LTD}

^{Date :
22/02/2002}

^{Comments
: CHARGE NO: 200200891 (DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S):
CITIBANK N.A.}

^{Date : 09/04/2003}

^{Comments
: CHARGE NO : C200301563
(DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
: BANGKOK BANK PUBLIC CO LTD}

^{Date :
13/06/2003}

^{Comments
: CHARGE NO : C200302793
(DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
: MALAYAN BANKING BHD}

^{Date :
12/06/2003}

^{Comments
: CHARGE NO : C200302700
(DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
: KBC BANK N.V.}

^{Date :
05/02/2004}

^{Comments
: CHARGE NO : C200400623
(DISCHARGED)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
: RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGSELLSCHAFT}

^{Date :
02/12/2003}

^{Comments
: CHARGE NO : C200305768 (DISCHARGED
- 19/06/2006)}

^{SECURED
: 0.00 AND ALL MONIES OWING}

^{CHARGEE
: MOSCOW NARODNY BANK LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^HL
BANK

^{OVERSEAS
UNION BANK LIMITED}

^{DBS
BANK LTD.}

^{BANGKOK
BANK PUBLIC COMPANY LIMITED}

^{KBC
BANK N.V.}

^{RAIFFEISEN
ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT}

^{MOSCOW
NARODNY BANK LIMITED}

^{OVERSEA-CHINESE
BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{CONTINENTAL
CHEMICAL HOLDINGS LTD
75,695,922 Company}

^{Street
: BANK OF BERMUDA BUILDING}

^{6 FRONT STREET}

^{Town: HAMILTON HM11}

^Postcode:

^{Country: Bermuda}

FORMER SHAREHOLDER(S)

^{STARMAX
INTERNATIONAL LIMITED
500,000}

^{GLOBECHEM
INTERNATIONAL CO LIMITED
2,000,000}

HOLDING COMPANY

^{CONTINENTAL
CHEMICAL HOLDINGS LTD
UF32508G % : 100}

SUBSIDIARY(IES)

^{CONTINENTAL
PETROCHEMICALS (SINGAPORE) PTE LTD}

^{CONTINENTAL
RESEARCH & DEVELOPMENT PTE LTD}

^{CONTINENTAL
PACIFIC (HONG KONG) PTE LIMITED}

^{CONTINENTAL
SPECIALTIES (GUANGZHOU) CO LTD}

^{PT
CONTINENTAL SOLVINDO}

^{GLOBECHEM
INTERNATIONAL COMPANY LIMITED}

^{CONTINENTAL
PETROCHEMICAL (ZHUHAI) COMPANY LIMITED}

^{CONTINENTAL
BIOENERGY SINGAPORE PTE LTD}

^{(f.k.a
CONTINENTAL PLASTICIZERS (S) PTE LTD)}

^{CONTINENTAL
SPECIALITIES (THAILAND) CO., LTD}

^{CONTINENTAL
SPECIALTIES HOLDING (THAILAND) COMPANY LIMITED (CSHT)}

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality :
AVERAGE}

^{Liquidity
:
SUFFICIENT}

^{Payments
: REGULAR}

^{Trend
:
LEVEL}

^{Financial
Situation : GOOD}

FINANCIAL ELEMENTS

^{All amounts in this
report are in : USD}

^{Audit
Qualification:        UNQUALIFIED
(CLEAN)        UNQUALIFIED (CLEAN)}  ^{Date
Account Lodged:
22/02/2006}

^{Balance Sheet
Date: 31/12/2006 31/12/2005}

^{Number of
weeks:
52 52}

^{Consolidation
Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary
Exp 47,599,856 35,189,161}

^{Tangible Fixed
Assets: 4,356 24,085}

^{Investments 85,207,517 45,077,517}

^{Total
Fixed Assets:
132,811,729
80,290,763}

^{Inventories: 495,255 31,391}

^{Receivables: 19,720,708 29,604,058}

^{Cash,Banks,
Securitis: 21,170,988 12,727,707}

^{Other current
assets: 67,980,786 34,173,113}

^{Total
Current Assets:
109,367,737
76,936,269}

^{TOTAL
ASSETS:
242,179,466
157,227,032}

^{--- LIABILITIES ---}

^{Equity
capital:
100,891,408
42,891,410}

^{Profit &
lost Account: 44,268,104 36,159,472}

^{Total
Equity:
145,159,512
79,050,882}

^{L/T deffered
taxes: 10,938 10,938}

^{Other long term
Liab.: 11,286,000 5,993,882}

^{Total
L/T Liabilities:
11,296,938
6,004,820}

^{Trade
Creditors:
33,834,011
37,189,774}

^{Prepay. & Def.
charges: 697,077 631,349}

^{Short term
liabilities: 897}

^{Due to Bank: 46,030,374 30,983,913}

^{Provisions: 1,143,375 984,994}

^{Other Short term
Liab.: 4,018,179 2,380,403}

^{Total
short term Liab.:
85,723,016
72,171,330}

^{TOTAL
LIABILITIES:
97,019,954
78,176,150}

^{--- PROFIT & LOSS ACCOUNT
---}

^{Net Sales 217,225,988 183,803,938}

^{Purchases,Sces
& Other Goods:
201,877,221
168,158,798}    ^{Gross
Profit:
15,348,767
15,645,140}  ^{Result of ordinary operations}  ^{NET RESULT BEFORE TAX:                8,583,511                  11,661,836}  ^{Tax :                                   474,879                     250,912}  ^{Net income/loss year:                 8,108,632
11,410,924}  ^{Interest Paid:                        3,137,114                   2,183,077}  ^{Depreciation:                            13,391                      38,356}  ^{Directors Emoluments:                    74,409                     197,866}  ^{Wages and Salaries:                     970,206                     885,349}  ^{Financial Income:                       933,215                     325,512}

RATIOS

                             ^{31/12/2006                  31/12/2005}  ^{Turnover per employee:     2172259.88                 1838039.38}  ^{Net
result / Turnover(%): 0.04                       0.06}  ^{Fin. Charges / Turnover(%):0.01                       0.01}  ^{Stock / Turnover(%):
0.00
0.00}  ^{Net Margin(%):             3.73                       6.21}  ^{Return on Equity(%):
5.59
14.43}  ^{Return on Assets(%):       3.35                       7.26}  ^{Net Working capital:
23644721.00                4764939.00}  ^{Cash
Ratio:                0.25                       0.18}  ^{Quick Ratio:               0.48                       0.59}  ^{Current ratio:
1.28                       1.07}  ^{Receivables Turnover:      32.68                      57.98}  ^{Leverage Ratio:
0.67                       0.99}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Dividends
Coverage : Net income loss
year/Dividends}

^{Net Working capital : (Total current assets - Total short term liabilities)}

^{Cash Ratio : Cash Bank securities/Total short term
liabilities}

^{Quick Ratio :
(Cash Bank securities + Receivables)/Total Short Term Liabilities}

^{Current ratio : Total current assets/Total short term
liabilities}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible
assets)}

FINANCIAL COMMENTS

^{THE
FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW}

^{OF
THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET
WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY} ^{83.63% TO
US$145,159,512 (2005: US$79,050,882). THIS WAS ATTRIBUTED TO} ^{A RISE
IN ACCUMULATED PROFITS BY 22.42% TO US$44,268,104 IN FY 2006} ^{FROM
US$36,159,472 IN FY 2005.}

^LEVERAGE:

^{IN
THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY DUE TO BANKS WHICH} ^{MADE UP
53.70% (2005: 42.93%) OF THE TOTAL CURRENT LIABILITIES AND} ^{AMOUNTED
TO US$ 46,030,374 (2005: US$30,983,913).}

^{TRADE
CREDITORS FELL BY 9.02% AND AMOUNTED TO US$33,834,011 (2005:} ^{US$37,189,774).
BREAKDOWN WAS AS FOLLOWS:}

^{* NON RELATED PARTIES (TRADE) - 2006:
US$14,891,988}

^{(2005:
US$10,141,823)}

^{* SUBSIDIARIES (TRADE) - 2006: US$18,942,023
(2005: US$27,047,951)}

^{OVERALL,
THE LEVERAGE RATIO HAD IMPROVED TO 0.67 TIMES (2005: 0.99} ^{TIMES), INDICATING
THAT THE GROUP'S TOTAL LIABILITIES WERE LESS} ^{SUBSTANTIAL IN RELATION
TO ITS TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL,
SUBJECT'S LIQUIDITY SITUATION WAS CONSIDERED HEALTHY AS} ^{SEEN FROM
NET WORKING CAPITAL AND LIQUIDITY RATIOS. NET WORKING} ^{CAPITAL INCREASED
BY 3.96 TIMES FROM US$4,764,939 IN FY 2005 TO} ^{US$23,644,721 IN FY
2006.}

^{CURRENT
RATIO ROSE TO 1.28 TIMES (2005: 1.07 TIMES) WHILE QUICK RATIO} ^{FELL TO 0.48
TIMES (2005: 0.59 TIMES) RESPECTIVELY.}

^{CASH
AND CASH EQUIVALENTS ROSE BY 66.34% FROM US$12,727,707 IN FY} ^{2005 TO
US$21,170,988 IN FY 2006. BREAKDOWN WAS AS FOLLOWS:}

^{* CASH AT BANK AND ON HAND - 2006:
US$1,960,004 (2005: US$1,813,108)}

^{* SHORT TERM BANK DEPOSIT - 2006: US$4,400,000 (2005: NIL)}

^{* PLEDGAED BANK DEPOSITS - 2006: US$14,810,984
(2005: US$10,914,599)}

^{PROFITABILITY:}

^{SUBJECT POSTED AN
INCREASE IN REVENUE OF 18.18% WHICH AMOUNTED TO} ^{US$217,225,988
(2005: US$183,803,938). HOWEVER, NET
PROFIT FELL BY} ^{28.94% WHICH AMOUNTED TO US$8,108,632 (2005:
US$11,410,924). THIS} ^{COULD BE DUE TO THE DECREASE OF OTHER GAINS
(NET) BY 49.32% AND} ^{AMOUNTED TO US$3,944,596 (2005: US$7,783,930).
AS A RESULT, NET MARGIN} ^{FELL TO 3.73% (2005: 6.21%).}

^{REVENUE CONSISTED OF THE FOLLOWING}^:

^{* SALE OF GOODS - 2006: US$216,725,988 (2005:
US$183,303,938)}

^{* CHEMICAL FORMULATION SUPPORT FEE - 2006:
US$500,000 (2005:}

^US$500,000)

^{DEBT SERVICING:}

^{DEBT
SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS} ^{CAN BE
MAINTAINED OR IMPROVED AND PAYMENTS BY TRADE DEBTORS ARE} ^FORTHCOMING.

^{IN
ADDITION, IT WAS NOTED THAT AVERAGE COLLECTION PERIOD WAS COMPUTED} ^{AT 33 DAYS
(2005: 58 DAYS).}

^{NON-CURRENT ASSETS:}

^{* TRADE AND OTHER RECEIVABLES - 2006:
US$47,599,856 (2005:}

^{US$35,189,161)
WERE CLASSIFIED UNDER PRELIMINARY}

^{NOTES TO FINANCIAL STATEMENTS:}

^{* BORROWINGS - BILLS PAYABLE SECURED}

^{BILLS
PAYABLE AND OTHER BANK FACILITIES OF THE COMPANY ARE SECURED BY} ^{PLEDGE BANK
DEPOSITS OF US$14,810,984 (2005: US$10,914,599).}

^{THE BORROWINGS
HAVE AN AVERAGE MATURITY OF 2 MONTHS (2005: 2 MONTHS)} ^{FROM THE END
OF THE FINANCIAL YEAR.} ^{THE CARRYING AMOUNTS OF TOTAL BORROWINGS WERE
DENOMINATED IN UNITED} ^{STATES DOLLAR AT THE BALANCE SHEET DATE.}

^{THE
WEIGHTED AVERAAGE EFFECTIVE INTEREST RATE OF TOTAL BORROWINGS AT} ^{THE BALANCE SHEET
DATE WAS 7.18% P.A. (2005: 6.27% P.A.)}

^{* SHARE CAPITAL - UNDER THE COMPANIES
(AMENDMENT) ACT 2005 THAT CAME}

^{INTO
EFFECT ON 30/01/2006, THE CONCEPTS OF PAR VALUE AUTHORISED SHARE}

^{CAPITAL
WERE ABOLISHED.}

^{ALL
ISSUED SHARES ARE FULLY PAID.}

^{ON 03/05/2006, THE
COMPANY ISSUED 31,955,922 ORDINARY SHARES FOR A} ^{TOTAL
CONSIDERATION OF US$57,999,998 TO ITS IMMEDIATE HOLDING COMPANY} ^{TO
FINANCE THE PURCHASE OF ADDITIONAL SHARES IN ITS SUBSIDIARY,} ^{CONTINENTAL
BIOENERGY SINGAPORE PTE LTD AND ALSO TO STRENGTHEN ITS} ^{WORKING
CAPITAL.}

^{* CONTINGENT LIABILITIES - THE COMPANY
PROVIDED GUARANTEES TO BANKS} ^{FOR CERATIN OF ITS SUBSIDIARIES FOR THEIR
INDEBTEDNESS TO SECURE} ^{BANKING FACILITIES OF APPROXIMATELY
US$32,856,799 (2005: US} ^{$29,676,799).}

^{THE DIRECTORS ARE
OF THE VIEW THAT NO MATERIAL LOSSES WILL ARISE IN} ^{RESPECT OF
THE GUARANTEES PROVIDED AT THE END OF THEIR FINACIAL} ^STATEMENTS.

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{22/12/1994 AS
A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF} ^{"METRO PACIFIC
CORPORATION PTE LTD". ON 28/12/2000, IT CHANGED TO} ^{THE
NAMESTYLE OF "CONTINENTAL PACIFIC (SINGAPORE) PTE LTD".}

^{SUBSEQUENTLY
ON 09/05/2002, THE COMPANY CHANGED TO ITS PRESENT} ^{NAMESTYLE OF
"CONTINENTAL CHEMICAL CORPORATION PTE LTD".}

^{THE
COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF} ^{2,000,000
ORDINARY SHARES, OF A VALUE OF S$2,000,000, AND 73,695,922} ^{ORDINARY
SHARES, OF A VALUE OF US$99,739,998.43.}

^{PRINCIPAL
ACTIVITIES:}

^{SUBJECT
IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY} ^{AUTHORITY
(ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1)
WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS;} ^{TRADING IN
CHEMICALS & PETROCHEMICAL PRODUCTS & DERIVATES}

^{2)
OTHER INVESTMENT HOLDINGS COMPANIES}

^{DURING THE
FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES} ^{OF THE
COMPANY ARE THOSE OF THE IMPORT, EXPORT AND DISTRIBUTION OF} ^{INDUSTRIAL
CHEMICALS AND THE PROVISION OF RELATED CHEMICAL} ^{FORMULATION
SUPPORTS.}

^{FROM
THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^BACKGROUND:

^{* SUBJECT
HEADQUARTERED IN SINGAPORE, IS ONE OF ASIA'S LEADING} ^{MANUFACTURERS
OF INTERMEDIATE PETROCHEMICALS AND SPECIALTY RESINS.} ^{THE CONTINENTAL
CHEMICAL GROUP PRODUCES THROUGH ITS OWN PRODUCTION} ^{FACILITIES AND
THROUGH TOLLING OPERATIONS, A VARIETY OF} ^{PLASTICIZERS AND OTHER
INTERMEDIATE CHEMICALS TOGETHER WITH} ^{SPECIALTY CHEMICALS SUCH AS
INDUSTRIAL SOLVENTS AND RESINS FOR THE} ^{COATING, CASTING, ADHESIVE
AND TEXTILE INDUSTRIES.}

^{*
SUBJECT PROCURES ITS CHEMICALS FROM ASIA REGION AND SUPPLIES MAINLY}

^{TO
OVERSEAS MARKETS.}

^{*
IN ADDITION, SUBJECT HAS PRODUCTION FACILITIES STRATEGICALLY}

^{LOCATED
IN THAILAND, INDONESIA AND CHINA BESIDES SINGAPORE.}

^ACTIVITIES:

^{*
LEADING PRODUCER OF INTERMEDIATE CHEMICALS & SPECIALTY RESINS IN} ^ASIA

^{*
LARGEST PRODUCER OF PHTHALIC ANHYDRIDE (PS) AND PLASTICIZERS IN} ^{SOUTHEAST
ASIA}

^PRODUCTS:

^{*
INTERMEDIATE CHEMICALS}

^{*
WATER BASED RESINS}

^{*
SOLVENT BASED RESINS}

^{*
UNSATURATED POLYESTER RESINS}

^{*
END USES}

^{IMPORT
COUNTRIES:}

^{*
ASIA REGION}

^{EXPORT
COUNTRIES:}

^*
CHINA

^*
INDIA

^*
INDONESIA

^{*
HONG KONG}

^*
THAILAND

^*
MALAYSIA

^*
EGYPT

^{*
SOUTH AFRICA}

^{*
SRI LANKA}

^*
PAKISTAN

^*
BANGLADESH

^*
SPAIN

^{*
NEW ZEALAND}

^*
AUSTRALIA

^*
VIETNAM

^{*
PHILIPPINES}

^*
FIJI

^{*
UNITED STATES}

^*
MALDIVES

^{*
RUSSIAN FEDERATION}

^*
ISRAEL

^*
EUROPE

^{*
MIDDLE EAST}

^{SUBJECT
IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{*
SINGAPORE CHINESE CHAMBERS OF COMMERCE & INDUSTRY}

^{*
SINGAPORE CHEMICAL INDUSTRY COUNCIL}

^{*
SINGAPORE MANUFACTURERS' FEDERATION}

^{*
SINGAPORE CHEMICAL INDUSTRY COUNCIL}

^{NO
OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED}

^{THE
COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF CONTINENTAL CHEMICAL} ^{HOLDINGS
LTD, INCORPORATED IN BERMUDA.}

^{NUMBER
OF EMPLOYEES (31 DECEMBER)}

^{*
2006 - 100}

^{*
2005 - 51}

^{*
2004 - 41}

^{*
2003 - 40}

^{*
2002 - 34}

^{*
2001 – 21}

^LITIGATIONS:

^{*
SUBJECT HAS NO LITIGATION FOR THE PAST YEARS ACCORDING TO RELIABLE}

^SOURCES.

^{REGISTERED
AND BUSINESS ADDRESS:}

^{2
SERAYA PLACE}

^{JURONG
ISLAND}

^{SINGAPORE
627857}

^{DATE
OF CHANGE OF ADDRESS: 10/06/2002}

^{-
RENTED PREMISE}

^{-
PREMISE OWNED BY: CONTINENTAL BIOENERGY SINGAPORE PTE. LTD.}

^{-
HEADQUARTERS}

^{WEBSITE:
http://www.continentalcorp.ws}

^{EMAIL:
cccpl@continentalcorp.ws}

MANAGEMENT

^{THE
DIRECTORS AT THE TIME OF THIS REPORT ARE:}

^{1)
DR CHAI KYU JOON, A SOUTH KOREAN}

^{-
BASED IN KOREA}

^{2)
WONG NAM SOON, A SINGAPOREAN}

^{-
HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

^{3)
TAN TIEW HEE, A SINGAPOREAN}

^{-
HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
HIGH QUALITY COMPETITIVENESS IN ASIA
EXCELLENT BUSINESS CLIMATE
POLITICAL STABILITY.

WEAKNESSES

SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS..

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, WEAKER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES RECORDED SLOWER GROWTH.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.6% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 7.5%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF FOOD, BEVERAGES AND TOBACCO (45.7%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (23.3%). OTHER WHOLESALE SEGMENTS THAT REPORTED BETTER BUSINESS WERE WHOLESALING OF INDUSTRIAL AND CONSTRUCTION MACHINERY (9.7%) TELECOMMUNICATIONS AND COMPUTERS (8.3%) AND CHEMICALS AND CHEMICAL PRODUCTS (6.8%).

ON THE OTHER HAND, WHOLESALE SEGMENTS THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-19.4%), HOUSEHOLD EQUIPMENT AND FURNITURE (-4.4%), SHIP CHANDLERS AND BUNKERING (-3.1%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.9% IN 3Q 2007 OVER 3Q 2006. DOMESTIC SALES EXCLUDING PETROLEUM ROSE BY 9.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 3Q 2007 ROSE BY 12.2% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 3Q 2007 OVER PREVIOUS QUARTER. SHIP CHANDLERS AND BUNKERING EXPANDED BY 27.9%, MAINLY DUE TO HIGHER BUNKER SALES.

THE GENERAL WHOLESALE TRADE SECTOR FELL IN 3Q 2007 AFTER RECORDING STRONG GROWTH IN 2Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q 2007 ROSE BY 4.3%, IN COMPARISON TO 3Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 9.0%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (51.2%) AND TIMBER, PAINT AND CONSTRUCTION MATERIALS (15.5%). OTHER WHOLESALE SECTORS THAT REGISTERED BETTER BUSINESS IN 3Q 2007 WERE CHEMICALS AND CHEMICAL PRODUCTS (7.6%) AND TELECOMMUNICATIONS AND COMPUTERS (5.0%)

FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING, GENERAL WHOLESALE TRADE, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED INCREASES OF 2.6% TO 6.1 %IN 3Q 2007, IN CONTRAST TO THE LOWER SALES IN THE PREVIOUS QUARTER.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 8.0% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 12.0%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 3Q 2007 ROSE BY 4.9% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 3Q 2007 WITH THE EXCEPTION OF CHEMICALS AND CHEMICAL PRODUCTS. WHOLESALE TRADE OF FOOD, BEVERAGES AND TOBACCO, AND SHIP CHANDLERS AND BUNKERING BOTH GREW BY 17.1%. WHOLESALE OF ELECTRONIC COMPONENTS ROSE BY 12.5%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE BY 1.3%, WEAKER THAN THE 7.9% IN 2Q 2007. MOTOR VEHICLES FELL BY 6.8% COMPARED TO THE 2.4% GROWTH IN 2Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.7%, A DECLINE FROM THE 11.O% IN 2Q 2007.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THIS APPLIES PARTICULARLY TO FIRMS IN THE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD AND ELECTRICAL APPLIANCES.

AS A RESULT OF YEAR-END FESTIVE SHOPPING, A NET WEIGHTED BALANCE OF 31% OF RETAILERS EXPECTS BUSINESS TO IMPROVE IN THE COMING MONTHS. THE RETAIL SECTORS THAT ARE FORECASTING BETTER BUSINESS INCLUDING DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY

SINGAPORE DEPARTMENT OF STATISTICS

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions