Reference is made to the following Company’s announcements:

1. announcement made on 30 November 2020 in relation to the commencement of arbitration proceeding by JCT Industries Group Sdn. Bhd (“JCT”) against Kelington Technologies Sdn. Bhd. ("KTSB"), a wholly owned subsidiary of Kelington; and
2. announcement made on 8 June 2021 in relation to the update of adjudication proceeding between KTSB and JCT.

The Board of Directors of Kelington wishes to announce that KTSB had on 13 June 2022 responded to the Claimant Notice of Arbitration dated 27 November 2020.

In summary, KTSB disputes the Claimant entitlement to the relief sought in the Notice of Arbitration and claims against the Claimant by way of counterclaims, including but not limited to:

1. the sum of RM6,272,033.97;
2. further, or alternatively, such sums as may be determined by this Honourable Tribunal on a quantum meruit basis;
3. interest for such period and rate as the Honourable Tribunal deems fit;
4. costs of the arbitration; and
5. such further relief as the Honourable Tribunal deems fit and proper.

The Board of Directors is of the view that the above arbitration proceeding will not have any impact on its earnings for the financial year ending 31 December 2022 as the relevant provision for impairment on trade receivables has been made for the financial years ended 31 December 2019 and 31 December 2020.

In view that the arbitration process might take years, this arbitration does not have any material financial impact on the Company for the time being.

The Company will make the necessary announcements on material developments in respect of this matter from time to time.

This announcement is dated 13 June 2022.