The Board of Directors of WSC is pleased to announce that further to its announcement made on 9 July 2016 in relation to the tender awarded by Nord Stream 2 AG to its pipe coating business unit, namely Wasco Coatings Europe B.V. (“WCEU”), an indirect wholly-owned subsidiary of WSC incorporated in The Netherlands for the provision of concrete weight coating and storing of more than 200,000 pipes for Nord Stream 2 Project, a Letter of Intent (“LOI”) was signed by WCEU and Nord Stream 2 AG on 10 August 2016 to commence mobilization of works for Nord Stream 2 Project pending the finalization of a formal contract to be signed by WCEU and Nord Stream 2 AG.

WCEU and Nord Stream 2 AG are in ongoing negotiations to finalize the contract for concrete weight coating and logistics works for the Nord Stream 2 Project. With the execution of the LOI, the parties have agreed to finalise and execute a contract by 30 September 2016, or such date as may be extended by agreement in writing by the parties. All works performed under the LOI shall automatically be incorporated into the scope of the contract to be entered into.

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

About the Nord Stream 2 Project:

Nord Stream 2 is a planned pipeline through the Baltic Sea, which will transport natural gas over 1,200km from the world’s largest gas reserves in Russia via the most efficient route to consumers in Europe. Nord Stream 2 will largely follow the route and design of the successful Nord Stream pipeline. With Europe’s domestic gas production projected to halve in the next 20 years, Nord Stream 2’s twin pipeline will help to meet Europe’s gas import needs, with capacity to transport 55 billion cubic metres of gas per year, enough to supply 26 million European households. This secure supply of natural gas with its low CO2 emissions will also contribute to Europe’s objective to have a more climate-friendly energy mix with gas substituting for coal in power generation and providing back-up for intermittent renewable sources of energy such as wind and solar power.

The Nord Stream 2 pipeline involves two parallel 48 inch lines, roughly 1,200 km, each starting from south-west of St Petersburg (a Russian port city on Baltic Sea) and ending at German coast, Greifswald.

This announcement is dated 11 August 2016.