The Board of Directors ("Board") of Astral Asia Berhad ("AAB") wishes to announce that its subsidiary, Astral Asia Plantation Sdn Bhd ("AAP"), has obtained Board’s approval to grant iron ore mining rights to Astral Chem Sdn Bhd ("AC"), a wholly-owned subsidiary of AAB.

1. DETAILS OF THE TRANSACTION

AAP has granted AC exclusive rights to explore and mine iron ore on a parcel of land owned by AAP, measuring approximately 100 acres, located at Ladang Bukit Kuin.

Key terms of the arrangement are as follows:

• Duration: The rights are granted commencing from the date of the agreement and may be terminated by mutual consent.
• Consideration: AC shall compensate AAP through a royalty payment rate to be agreed upon by both parties.
• Responsibility: AC shall be fully responsible for all costs related to mining operations, including regulatory approvals and environmental compliance.
• Licensing: The requisite mining license(s), including the Proprietary Mining License (PML), will be applied for and held by AAP, as the registered landowner. This approach aligns with the regulatory requirements set forth by the Pahang State Government, ensuring that all mining activities are conducted in compliance with state laws and regulations.

2. RATIONALE

This intra-group arrangement facilitates the monetisation of AAB Group's land assets while leveraging the operational capabilities of AC. It is part of the Group's strategy to diversify income sources and enhance value through sustainable resource development.

3. FINANCIAL EFFECTS

The transaction is not expected to have any material effect on the issued share capital or shareholding structure of AAB. However, it is anticipated to contribute positively to the earnings and net assets of the Group.

4. RISK FACTORS

While mining operations carry inherent regulatory and market risks, these risks will be managed by AC. As this is an intra-group transaction, operational and financial oversight will remain within the AAB Group structure.

5. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS, AND PERSONS CONNECTED

As this is an intra-group transaction between the subsidiaries of AAB, none of the Directors and/or major shareholders of AAB or persons connected to them has any interest, direct or indirect, in the transaction.

Further details regarding the terms of the agreement, project timeline, regulatory approvals, and environmental assessments will be disclosed in due course.

This announcement is dated 27 May 2025.