Further to the Announcement made by the Board of Directors of Stone Master Corporation Berhad ("SMCB" or "the Company") on 19th April 2019 pertaining to the Memorandum of Understanding entered between SMCB with Sing Foong Niap Engineering Sdn. Bhd.(Company No. 660440-D) (“SFNE”) for the purpose of establishing a mutual understanding and agreement between the SMCB and SFNE where as part of the SMCB’s proposal to regularise its financial conditions and revival of its factory and/or business operations, SMCB has today, 22nd April 2019, accepted a Letter of Intent (“LOI”) from SFNE where SFNE has set out below its intention to collaborate and/or arrange to potentially work with SMCB (“the Collaboration”) subject to the final terms to be agreed upon and governed by a definitive agreement to be entered into at later date by SFNE with the Company ("Definitive Agreement") :

(1) SFNE has identified up to about RM100.0 million of potential works that they can potentially collaborate with SMCB immediately; and 

(2) SFNE intends to provide assistance in the form of supplier’s credit and advances of between RM15.0 million and RM18.0 million to SMCB for the purposes of the Collaboration.

The Collaboration between SFNE and SMCB is subject to SMCB obtaining further extension of time from the Bursa Malaysia Securities Berhad (“Bursa Securities”) to rehabilitate the Company from its PN17 status and also where a formal Definitive Agreement to be entered within two (2) months from the date of this LOI.

None of the Directors and/or major shareholders of SMCB and/or persons connected with them have any interest, direct or indirect, in the LOI.

The Board of Directors of SMCB, having considered all aspects of the LOI, is of the opinion that the LOI is in the best interest of the SMCB Group.

The LOI does not require approval of the Company’s shareholders and/or regulatory authorities.

The LOI is available for inspection at the registered office of SMCB at Unit 2-3, Medan Klang Lama 28, No. 419, Jalan Klang Lama, 58100 Kuala Lumpur during office hours from Mondays to Fridays (except on public holidays) for a period of two (2) months from the date of this Announcement.

This Announcement is dated 22nd April 2019.