MATERIAL LITIGATION PURSUANT TO PARAGRAPH 9.04(F) OF THE BURSA MALAYSIA SECURITIES BERHAD MAIN MARKET LISTING REQUIREMENT

We refer to the announcements dated 30 December 2021, 10 January 2022, 19 January 2022, 31 January 2022, 2 March 2022, 8 March 2022, 24 March 2022, 31 March 2022, 15 April 2022, 25 April 2022, 9 May 2022, 20 May 2022, 24 May 2022, 31 May 2022, 7 June 2022, 14 June 2022, 28 June 2022, 25 July 2022, 9 August 2022 and 26 August 2022 ("Announcements") in relation to the civil claims by the Ministry of Environment and Forestry of Indonesia against PT Rafi Kamajaya Abadi ("PTRKA").

The Board of Directors of TDM Berhad wishes to announce that TDM Berhad has been informed by its Indonesian subsidiary, PTRKA that Pengadilan Tinggi Pontianak (“Court”) has delivered its decision on the appeal of the case as follows:

1. The Court allowed part of the Appellant’s appeal.
2. The Court is of the view that the Respondent claims is based on the ‘strict liability’ principle.
3. The Appellant is responsible on the loss due to the fire incident based on the ‘strict liability’ principle.
4. The Appellant is to pay a compensation of IDR188,977,440,000.00 (Approximately RM53,504,371) for the environmental loss to the National Account of Indonesia as per the claim by the Respondent.
5. The Appellant is to rehabilitate the environment on the affected area due to the fire incident of 2,560 ha and to reactivate the affected ecology system with the cost of IDR731,036,640,000.00 (Approximately RM206,975,266).
6. The Court rejected the rest of the Appellant’s claims against the Respondent.
7. The Court rejected the Appellant's counterclaims against the Respondent.
8. The Appellant to bear the cost of IDR150,000 (Approximately RM42.50).

The Company is analysing its potential financial and operational impact against PTRKA, the Company and the Group.

The Company was also informed by PTRKA that its legal counsel has filed an appeal against the above decision to Mahkamah Agung in Jakarta, Indonesia.

Further announcements will be made as and when there are material developments on the above matter.

This Announcement is dated 20 December 2022.