On behalf of the Board of Directors of Kelington ("Board"), UOB Kay Hian Securities (M) Sdn Bhd ("UOB Kay Hian") wishes to announce that the Company proposes to undertake the following:-

(i) bonus issue of up to 322,623,476 new ordinary shares in Kelington ("Kelington Share(s)" or "Share(s)") ("Bonus Share(s)") on the basis of 1 Bonus Share for every 1 existing Share held on an entitlement date to be determined and announced later by the Board ("Bonus Entitlement Date") ("Proposed Bonus Issue of Shares");

(ii) issuance of up to 215,082,317 free warrants in Kelington ("Warrant(s)") on the basis of 1 Warrant for every 3 Shares held on an entitlement date, which will be after the Bonus Entitlement Date, to be determined and announced later by the Board ("Warrants Entitlement Date") ("Proposed Issuance of Free Warrants"); and

(iii) diversification of the existing principal activities of Kelington and its subsidiaries ("Kelington Group" or the "Group") to include manufacturing, distribution and trading of industrial and specialty gases ("Industrial Gases Business") ("Proposed Diversification").

The Proposed Bonus Issue of Shares, Proposed Issuance of Free Warrants and Proposed Diversification are collectively referred to as the "Proposals".

Further details of the Proposals are set out in the attachment enclosed.

This announcement is dated 6 April 2021.