Reference is made to the announcement made by the Company on 11 March 2016.

The Board of Directors of BHS Industries Berhad (“BHS” or the “Company”) is pleased to announce that the Pejabat Setiausaha Kerajaan Pahang (Pahang State Government) had via its letter dated 13 October 2016 received on 21 October 2016, granted the Company’s wholly-owned subsidiary, Ultimate Ivory Sdn. Bhd. (“Ultimate Ivory”) the land approval for 375 acres of land in Kg. Paloh Hinai, Mukim Lepar, Daerak Pekan, Pahang Darul Makmur (“Land”) which would be for development of the entire project of Pekan Green Technology Park (“Project”).

The purchase consideration for the Land’s approval including the 26 acres of land approved for the development of the 1st phase of Pekan Green Technology Park as announced by the Company on 11 March 2016 is Ringgit Malaysia Nine Million and Two Hundred and Fifty Thousand (RM9,250,000.00) only, excluding Goods and Services Tax (“Purchase Consideration”) (“Acquisition”).