We refer to the Company’s announcements on 15 December 2022, 20 December 2022 and 10 January 2023. Unless otherwise stated, the definitions and terms used herein shall have the same meaning as defined in the previous announcements.

The Board of Directors (“the Board”) of DNeX wishes to announce that on 22 February 2023, a Consent Order was recorded in the Kuala Lumpur High Court Originating Summons No. WA-24NCC(ARB)-55-12/2022 (“OS”). Among others, the Consent Order provides that:

1. The board composition of SilTerra Malaysia Sdn. Bhd. (“SilTerra”) shall remain as at the composition prior to the Members’ Written Resolution purportedly passed on 21 November 2022;

2. The Board of SilTerra will not deliberate on matters in respect of the OS and the impending arbitrations, and the Board of SilTerra is entitled to convene subsequent meetings in respect of other matters related to SilTerra, and that SilTerra shall remain a nominal party;

3. Tethystronics Technologies Company Limited (“TTCL”) and DNeX Semiconductor Sdn. Bhd. (“DSSB”) shall ensure that their respective nominee directors of SilTerra abide by the terms of the Consent Order and that such directors shall continue to act in the best interest of SilTerra; and

4. The Consent Order shall be effective and enforceable until any final award obtained by TTCL in the arbitration is fully satisfied or the date of the final award of the arbitration if all TTCL’s claims are unsuccessful.

As a result of the above, the High Court of Kuala Lumpur had struck out the OS together with the notice of application (ex-parte) for injunction relief against DSSB and SilTerra with no order as to costs.

The Consent Order will not have any material financial impact other than legal cost to be incurred and no material operational impact is expected arising from the Consent Order. In contrary, the Consent Order will allow the Board of SilTerra to continue to operate their business as usual with a functional Board.

This announcement is dated 22 February 2023.