Introduction

The Board of Directors of Minetech (“Board”) is pleased to announce that Techmile Resources Sdn Bhd [Registration No. 202001021725 (1378045-K)] ("TRSB"), a wholly-owned subsidiary of Minetech had on 27 October 2020 accepted a Letter of Award dated 19 October 2020 (“LOA”) from ARNN Technologies Sdn Bhd [Registration No. 200401002040 (640543-V)] (“ATSB”) appointing TRSB as a contractor to undertake and complete the contract works for “Merekabentuk, membangun, membekal, memasang, mengkonfigurasi, menguji dan mentauliah Pusat Data Bersepadu” at a contract value of RM37,462,130.90, on a Call Out Basis Option for Works (“Works”).

ATSB will instruct TRSB to carry out the Works on selected scopes under the LOA and TRSB will prepare detail work order proposal for ATSB’s review and approval. The final value of the Works will be derived from the approved actual scope of works and mutually agreed by ATSB and TRSB via service order. The service order will be issued to TRSB based on approved work order proposal and is based entirely on ATSB’s consideration and availability of the Works. The Works will commence upon acceptance of the service order and is expected to be completed within 24 months from the commencement date with any extension period obtained from the project owner to be added to the completion date.

Financial Effects

The Works is expected to contribute positively to the revenue, earnings and net assets of Minetech Group for financial year ending 31 March 2021.

The Works will not have any impact on the share capital and/or shareholding structure of Minetech.

Risk Factors

 There are no foreseeable significant risks other than operational risk associated with the Works during the contract period. Minetech Group management would put in place control measures and operational procedures to reduce the impact or likelihood of such events.

Directors’ and/or major shareholders’ interests

None of the Directors and/ or Major Shareholders of Minetech and/or persons connected to them has any interest, direct or indirect, in the Works.

Directors’ Statement

The Board of Directors, after considering amongst others, the potential financial benefits arising from the Works, is of the opinion that the acceptance of the LOA is in the best interest of Minetech Group.

This announcement is dated 27 October 2020.