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Chairman's Statement
Extracted from Annual Report 2015

Dear fellow shareholders,

On behalf of the Blumont Board, I would like to present and report on the Group's financial results and activities for the year which has ended 31 December 2015.

2015 has been a turbulent year for commodities with a backdrop of global equity market corrections and declining demands of commodities especially from China. The carnage is not over as yet and the market bottom is anybody's guess.

Despite the challenging times not only for this year but has been for the past few years, we have been afforded the unwavering support given by our shareholders and business partners. For that, we are indeed grateful.

THE YEAR 2015

This has been a year of consolidation.

We are adjusting to this mode of asset disposal, trimming off losses and debt repayment. We have been painstakingly managing this phase of consolidation for the past year and shall be spilling over this exercise to next year such that Blumont shall be in a better shape to come in the year 2016.

We express our gratitude to the shareholders for giving us the overwhelming mandate for the recent rights issue.

THE FUTURE AHEAD

Blumont is forward looking and the past is well behind us. In times of crisis, we shall take advantage of the opportunities that lie ahead.

As mentioned, 2015 has been and 2016 will be simply about rebuilding a company.

We have initiated consolidation together with pursuit of debt repayment and thereafter to be back in the business of mining, properties and sterilisation.

Shareholders interest and profit generating is paramount to the Company's survival.

We are and shall be rebuilding, restructuring and re-acquiring in 2016 and beyond.

FINANCIAL REVIEW

The Group's revenue for financial year 2015 was consistent with financial year 2014, with an increase of S$0.04 million or 1% from S$3.60 million to S$3.64 million. Sterilisation segment remained the largest contributor to revenue with 99% (S$3.59 million) and followed by property segment with 1% (S$0.05 million).

The Group had a net 'other losses net' of S$8.43 million for financial year 2015 as compared to S$6.93 million in financial year 2014. These losses were mainly due to the impairment loss and loss on disposal of the Group's portfolio of equity investments in companies listed in the Singapore Exchange and Bursa Malaysia relating to the investment holding segment.

In addition, the Group had impairment loss on financial assets, available-for sale of S$5.89 million in financial year 2015 as compared to S$18.65 million in financial year 2014, impairment on investment in associate of S$0.22 million in financial year 2015 as compared to S$4.35 million in financial year 2014, share of loss of associate of S$1.72 million in financial year 2015 as compared to S$1.46 million in financial year 2014 and impairment loss in other receivables third party of S$0.65 million in financial year 2015 as compared to S$0.72 million in financial year 2014, interest expenses on Loan from Wintercrest Advisors LLP of S$3.86 million in financial year 2015 as compared to S$2.40 million in financial year 2014 which mainly relates to mineral and energy resources segment.

As a result, the Group recorded a net loss for the financial year 2015 was S$28.96 million as compared to S$66.24 million in financial year 2014.

The cash and bank balances decreased by S$1.94 million or 49% from S$3.96 million as at 31 December 2014 to S$2.02 million as at 31 December 2015. During the year, the Group generated cash inflows from placement of shares, rights issue, disposal of assets from the investment holding segment and operating cashflows from sterilisation segment. The decrease in Group's cash and bank balances was mainly contributed by partial repayment of borrowings from rights issue proceeds and dividend paid to non-controlling interest of subsidiary during the financial year.

Net liability value per ordinary share as at 31 December 2015 was 0.31 cents (31 December 2014: net asset value of 0.33 cents) based on issued share capital of 4,514,224,998 (31 December 2014: 2,609,387,832).

FOOTNOTE AND APPRECIATION

On behalf of the Board and Management Team, I would like to convey our sincere appreciation to our shareholders for maintaining the support and confidence in the Group throughout the entire year.

We shall look forward to your continued support towards a better future for Blumont and its Shareholders in the years to come.

NG KIM HUATT
Executive Director