Reference is made to the announcement made by the Company on 24 June 2019 in relation to the acceptance of the Letter of Award by Fajarbaru Builder Sdn. Bhd. (“FBSB”), a wholly owned subsidiary of FBG, for Main Building Works (Phase 1) dated 19 June 2019 issued by Ong & Ong 360 Consultancy Sdn. Bhd. on behalf of Malton Development Sdn. Bhd. (“MDSB”), a wholly owned subsidiary of Malton Berhad, in respect of the Proposed High-Rise Residential Development comprising of 3 Tower Blocks: Tower A (46-Storey), B (49-Storey) and C (30-Storey) encompassing 536, 572 and 268 units respectively on top of a 3-level of Basement Car Park and 10-level of Podium Car Park and Facilities on Lot 345 (PT 193) Section 48, Jalan Kolam Air, Off Jalan Kuching, Kuala Lumpur, Wilayah Persekutuan (“Duta Park Residences”).

The Board of Directors of FBG is pleased to announce that FBSB has on 24 August 2020 accepted a Letter of Award for Main Building Works (Phase 2) via Architect's Instruction (“Phase 2 Contract”) dated 21 August 2020 issued by Ong & Ong 360 Consultancy Sdn. Bhd. on behalf of MDSB.

The Phase 2 Contract sum is Ringgit Malaysia One Hundred and Eight Million Thirty One Thousand Two Hundred Fifty and Cents Seventy Only (RM108,031,250.70). The Phase 2 Contract is expected to be completed within Twenty Four (24) months period.

The Phase 2 Contract will have no material effect on the share capital and substantial shareholders’ shareholding of FBG.

The Phase 2 Contract is expected to contribute positively to the earnings and net assets of the Group from the financial year ending 30 June 2021 onwards.

None of the Directors and Substantial Shareholders, persons connected to the Directors or Substantial Shareholders of the Company and its subsidiaries or persons connected thereto have any interest, direct or indirect in the Phase 2 Contract.

The Directors of the Company are of the opinion that the Phase 2 Contract is in the best interest of the Group.

This announcement is dated 24 August 2020.