Missing Inventory in Shanghai Bonded Warehouse – Update

30 October 2020 NZX Limited Wellington Missing (presumed stolen) Inventory in Shanghai Bonded Warehouse QEX Logistics Limited (QEX) wishes to provide a further update on certain issues collateral to the missing inventory from the Shanghai bonded warehouse. Banking Arrangements As previously advised the lost inventory is likely to result in QEX breaching three of its financial covenants comprised in its principal bank funding agreement. Since the last NZX announcement QEX has had several constructive discussions with its Banker. QEX has advised its Bankers of the inventory situation and the Bank has requested that QEX provide the Bank with a further update on the inventory position and its impact upon the Company's financial position and performance in two weeks' time. In the interim, QEX continues to operate on a business as usual basis, and its Bank is continuing to support QEX with current credit facilities operating. The Company will update the market in respect of any material developments with respect to its banking position. Insurance The Board has reviewed QEX's insurance position, and at this stage does not consider that QEX is able to mitigate its potential losses through any claim under any policy of insurance. Other avenues of legal redress QEX is engaging legal counsel in China to explore all available avenues of legal recourse against third parties in China with a view to mitigating its losses incurred as a consequence of the inventory being misappropriated. ENDS Authority for this announcement Ronnie XUE Chief Executive Officer ronnie.x@qexpress.co.nz Date of release: 30 October 2020 End CA:00362282 For:QEX Type:MKTUPDTE Time:2020-10-30 09:52:42