The Board of Directors of TAS Offshore Berhad ("TAS" or the "Company") wishes to announce that one of its wholly-owned major subsidiaries, TA Ventures (L) Ltd has received Notice of Termination from QMS1 Offshore Services Ltd ("QMS1") purporting to terminate a shipbuilding contract relating to the construction of one unit of offshore construction vessel.

TAS's position is that the purported Notice of Termination is not valid and the Company intends to proceed with legal proceedings.

1. Brief details of the Contract

The Shipbuilding Contract is between TA Ventures (L) Ltd & QMS 1 Offshore Services Ltd for construction of one unit Offshore Construction Vessel with contract price amounted to USD11,700,000.00.  The contractual delivery date was on 11 December 2015. The vessel was built by China contract builder.

2.        Date of receipt of the Notice of Termination

TAS received the purported Notice of Termination via email on 5 April 2016.

3.         Details of events lead to Notice of Termination

The vessel was ready for delivery within the agreed time frame but the buyer failed to provide relevant documents and certificates for further process, citing technical and quality issues which we strongly disagree.

4.         Recourse of TAS

TAS’s recourse is to enforce its rights under the contract and will take necessary measures to protect TAS interests.

5.         Financial Impact to the Group

The purported termination of contract is expected to have an impact on the Company's results for 2016 financial year.  The extent of the impact cannot be ascertained at this point in time as it will depend on the outcome of the legal proceedings against QMS1.

6.         Operational impact to the Group

This purported Notice of Termination is not expected to have major operational impact to the Group.

This announcement dated 7 April 2016.