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 Award under the Provision of Underwater Services from Vestigo Petroleum Sdn. Bhd. (“Contract”).

2.         SALIENT TERMS OF THE CONTRACT

The Contract which will be on call basis was effective from 7 July 2020 and shall be valid until 28 August 2023 unless otherwise terminated pursuant to the terms of the Contract.

3.         FINANCIAL EFFECTS

The Contract is 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 2020 and thereafter within the duration of the Contract. Notwithstanding this, the Contract is not expected to have any material effects on the share capital and shareholding structure of the Company.

4.         RISKS ASSOCIATED WITH THE CONTRACT

The risks factors associated with the Contract include execution and operational risks contributed by human or technical inefficiency, equipment and materials in compliance with the terms of the Contract, unexpected mechanical breakdown, as well as uncertainties in supply and price of materials, economic, regulatory and political conditions. Throughout the years, ALAM has established its track record and expertise to undertake this Contract. 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 Contract.

6.         DIRECTORS' STATEMENT

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

The announcement is dated 6 August 2020.