Reference is made to the news article published in the Nanyang Press on Wednesday, 4 January 2012, which states that Navis Capital had indicated their intention to acquire shares in XDL.

The Board of Directors of XDL, having made due and diligent enquiry with our major shareholder, namely HongPeng International Holdings Ltd (“HongPeng”), wish to inform that Navis Capital had indicated their intention to acquire the entire shareholdings of HongPeng in XDL during an informal discussion.