Further to the announcement made on 13 February 2019, the Board of Directors of the Company wishes to announce that the Company, IHI Corporation and Nomura Holdings, Inc. (“Parties”) have conducted the feasibility study of the business of Empty Fruit Bunch (“EFB”) Pulp, EFB Paper and EFB Pellets as described in the MOU and completed the evaluation of the feasibility and profitability of the collaboration including but not limited to the project of Phase 2a and Phase 2b of the Company’s Green Technology Park Pahang (“GTPP”) as well as the project in Negeri Sembilan and Sarawak.

Following the result of the abovementioned study, the Parties have agreed to continue with the feasibility study on the development of a 30-megawatt Biomass Power Plant, Alkaline Recovery Plant and wastewater treatment plant for the GTPP and projects in Negeri Sembilan and Sarawak. The Parties started discussion on the collaboration structure including but not limited to establishment of a joint venture arrangement and terms of the definitive agreement, which will be entered into between the Parties to formalise the collaboration.

The Company will make further announcement on the definitive agreement as soon as the terms of the definitive agreement have been agreed upon by the Parties.

This announcement is dated 10 April 2019