The Board of Directors of BHS Industries Berhad wishes to announce that BHS Palau Incorporated , a wholly owned subsidiary of BHS, had on 23 June 2016 entered into a lease agreement with Kaleb Udui Jr. of P.O. Box 1027, Palau PW 96940 (“Kaleb Udui Jr. or the “Lessor”) to lease from Lessor all those premises located in Ngetkib Hamlet of Airai State, Palau, more particularly described as Cadastral Lot No. 037N06 measuring approximately 16,225 square metres for a total consideration of U.S. Dollars One Million Two Hundred Thousand (USD1,200,000) equivalent to RM4,824,000.

Please refer to the document as attached for further details.