Reference is made to the Company’s announcements dated 18 September 2023, 18 December 2023 and 19 March 2024 in relation to the memorandum of understanding dated 17 September 2023 signed between Citaglobal and Shanghai SUS Environment Co., Ltd for a proposed collaboration in the areas of waste-to-energy ("WTE") project (“MOU”).

Further to the MOU, the Board of Directors of Citaglobal (“Board”) wishes to announce that on 15 July 2024, a Joint Development Framework Agreement (“JDFA”) was executed between SUS Environment and the Company (collectively, the “Parties” or the “Consortium”, and individually as “Party”) in relation to a proposed collaboration for the following areas:

(i) development, financing, construction and operation of WTE projects in Pahang, Malaysia by converting the municipal waste into electricity, which is then sold as renewable energy; and
(ii) development of biomass project in Malaysia especially converting agriculture waste like empty fruit brunches and/or palm oil sludge oil waste (“Palm Oil EFB / Sludge Oil Waste”) to energy
(collectively, the “Project”) (“Proposed Joint Development”).

The JDFA sets out the salient terms and conditions for the Proposed Joint Development to be undertaken by the Parties.

The Parties mutually agreed that the provisions in the JDFA are legally binding and shall be reflected in the respective definitive joint development agreement(s) (“JDA(s)”) including the shareholders’ agreement (“SHA”) for incorporation of a special purpose vehicle (“SPV”) between the Parties in relation to the Project, to be executed within six (6) months from the date of the JDFA, failing which the JFDA will be terminated automatically, unless mutually extended by the Parties.

The Proposed Joint Development focuses on reducing waste generation, promoting waste repurposing, and ensuring compliance with environmental regulations. This collaboration is a significant step towards achieving Citaglobal and SUS Environment’s shared vision of promoting sustainable waste management practices in Malaysia which entails the efficient management of waste to minimise its environmental impact while maximising resource utilisation.

Please refer to the attachment for further details.

This announcement is dated 15 July 2024.