Forgame : FORMATION OF INDEPENDENT INVESTIGATION COMMITTEE

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Forgame Holdings Limited

雲 遊 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00484)

FORMATION OF INDEPENDENT INVESTIGATION COMMITTEE

This announcement is made by Forgame Holdings Limited (the ''Company'' and together with its subsidiaries, the ''Group'') pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'') and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the announcement of the Company dated 11 December 2019 (the ''Announcement''). Capitalised terms used herein shall have the same meanings as those defined in the Announcement.

As stated in the Announcement, the Affected Loan in the aggregate outstanding amount of approximately RMB41 million were unreachable.

The Board wishes to announce that an independent investigation committee (the ''Independent Investigation Committee''), initially comprising Mr. Zhang Qiang, a non- executive Director, and Mr. How Sze Ming, Mr. Zhao Cong Richard and Mr. Wan Joseph Jason, all independent non-executive Directors, has been established on 20 December 2019 pursuant to a resolution of the Board passed on 20 December 2019 for the purpose of, among other things, investigating and reporting on various matters and events leading to and/or otherwise relating to the Affected Loan, and recommending actions to be taken by the Board. Mr. How Sze Ming, an independent non-executive Director, has been appointed as the chairman of the Independent Investigation Committee. The Independent Investigation Committee may also appoint other professional advisers to assist in its investigation. As at the date of this announcement, one of the big four international accounting firms has been appointed to conduct an independent forensic investigation on the outstanding corporate loans especially the Affected Loans and report the results of the investigation to the Independent Investigation Committee. Subject to the findings of the Independent Investigation Committee, the Independent Investigation Committee may report to the Board and make recommendations to the Board on appropriate actions to be taken.

- 1 -

Further announcement will be made by the Company as and when appropriate in accordance to the requirements of the Listing Rules. Shareholders and potential investors of the Company should exercise caution when dealing in the shares of the Company.

By order of the Board

Forgame Holdings Limited

HAN Jun

Chairman

Hong Kong, 20 December 2019

As at the date of this announcement, the executive directors of the Company are Mr. HAN Jun and Ms. LIANG Na; the non-executive director of the Company is Mr. ZHANG Qiang; the independent non-executive directors of the Company are Mr. HOW Sze Ming, Mr. ZHAO Cong Richard and Mr. WAN Joseph Jason.

- 2 -