Further to the announcement made on 5 November 2021 in relation to the MOU, the Board of Directors of YKGI Holdings Berhad (“YKGI” or “the Company”) is pleased to announce that ASTEEL Development Sdn. Bhd. (“ADSB”) has on 13 May 2022 accepted the Letter of Award from Hornbill Networks Consortium Sdn. Bhd. to construct and complete the buildings works for the Proposed Construction and Completion of 90 Units Housing Development at Lot 4013 Block 14 Salak Land District, Samariang, Kuching, Sarawak for a total contract sum of RM8.0 million ("Contract").

DURATION OF CONTRACT

The Contract is for a duration of 12 months commencing 23 May 2022 and shall be completed by 22 May 2023.

FINANCIAL EFFECTS

The Contract will have no effect on the share capital of ADSB and the Company and is expected to contribute positively towards the earnings and net assets of the Group for the duration of the Contract.

RISK FACTORS

The Company does not foresee any exceptional risk other than the normal operational risks associated with the Contract. Nevertheless, the Company will take the necessary steps to mitigate the risks that may arise therefrom.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors and/or major shareholders and/or person connected with them has any interest, direct or indirect in the Contract.

DIRECTORS' STATEMENT

The Board of Directors of YKGI is of the opinion that the Contract is in the best interest of YKGI Group.

This announcement is dated 13 May 2022.