1.         INTRODUCTION

The Board of Directors of Alam Maritim Resources Berhad ("ALAM” or "the Company") is pleased to announce that its wholly-owned subsidiary, Alam Maritim (M) Sdn Bhd has been awarded with the respective Letter of Contract Amendment on two (2) vessels under the Provision of Offshore Support Vessels for Petroleum Arrangement Contractors (“PACs”) Production Operations (“Contracts”).

2.         SALIENT TERMS OF THE RESPECTIVE CONTRACTS

The salient terms of the respective Contracts are as follows:

The total value of the Contracts is approximately Ringgit Malaysia Six Million Four Hundred Eighty Thousand (RM6,480,000).

3.         FINANCIAL EFFECTS

The Contracts are expected to contribute positively to the earnings and net tangible assets of ALAM and its group of companies for the financial year ending 31 December 2019 and thereafter within the duration of the contract. Notwithstanding this, the Contracts will not have any material effect on the share capital and shareholding structure of ALAM.

4.         RISKS ASSOCIATED WITH THE WORK ORDERS

The risk factors associated with the Contracts include execution and operational risks such as availability of vessels, skilled manpower, equipment and materials in compliance with the terms of the Contracts, unexpected mechanical breakdown, changes in political, economic and regulatory conditions. Throughout the years, ALAM has established its track record and expertise to undertake these Contracts. In mitigating the risks, ALAM will closely monitor all planned activities as per the project schedule and ALAM adheres to the Quality, Health, Safety, Security and Environment - Integrated Management System in ensuring to continually deliver reasonable quality services.

5.         DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors or major shareholders of ALAM, or persons connected to them has any direct or indirect interest in the Contracts.

6.         DIRECTORS' STATEMENT

The Board of Directors of ALAM is of the opinion that the acceptance of the Contracts are in the best interest of the Company.

The announcement is dated 23 December 2019.