We refer to our announcements made on 10 October 2023, 11 October 2023, 20 June 2024, 10 October 2024, 10 April 2025, 8 October 2025 and 9 April 2026 pertaining to the Industrial Tree Planting Agreement ("ITPA" or "Agreement") entered into between Focus Lumber Berhad ("the Company" or "FLB") and Rakyat Berjaya Sdn Bhd ("RBSB").

The Board of Directors ("the Board") of FLB wishes to provide the final update on the progress of the Industrial Tree Plantation project.

The Company is pleased to announce that the Annual Work Plan ("AWP") has been approved by the Sabah Forestry Department ("SFD"). Following the approval, RBSB has, on 25 June 2026, issued a formal commencement letter to Forming Plantation Sdn Bhd ("FPSB"), a wholly-owned subsidiary of FLB, authorising FPSB to commence the Industrial Tree Planting development within the approved coupe, subject to compliance with the terms and conditions stipulated in the relevant approvals and the ITPA.

The Company will proceed with the commencement of the Industrial Tree Plantation development in accordance with the approved Annual Work Plan and the requirements of the relevant authorities.

Therefore, the Company is expected to commence its operational activities, comprising harvesting activities and nursery works, in the third quarter of 2026.

In view that the Company is expected to commence its timber operation in the third quarter of 2026 in accordance with the terms and conditions as stipulated in the ITPA, the Company will not be providing further update on the progress of the Industrial Tree Plantation project. However, the Company will ensure that it complies with Paragraphs 9.36(1) and (2) of the Main Market Listing Requirements in relation to the announcement of the timber production figures for each month and each quarter respectively.

This announcement is dated 6 July 2026.