We refer to the announcement dated 25 August 2022 ("Announcement").

(Unless otherwise defined, the abbreviations use throughout this announcement are the same as those previously defined in the Announcement).

The Board of Directors of the Company wishes to provide update on the following information in the Announcement:

1. Item 2.2, Third Paragraph  – Capitalisation of reserves

For illustrative purposes, based on the latest audited financial statements of the Company for the financial year ended (“FYE”) 31 December 2021 and its unaudited financial statements for the period ended 30 June 2022, the pro forma effects of the Proposed Bonus Issue on the retained profits of the Company are as follows:-

Pursuant to Paragraph 6.30(2)(b) of the Listing Requirements, the Board confirms that the Company has sufficient reserves to cover the capitalisation of the Bonus Shares based on the latest audited financial statements of Focus Lumber for the FYE 31 December 2021 and its unaudited financial statements for the period ended 30 June 2022.

2. Item 4.2 – NA, NA per share and gearing

For illustrative purposes, the pro forma effects of the Proposed Bonus Issue on the NA, NA per Share and gearing of Focus Lumber Group based on the latest audited consolidated statement of financial position of Focus Lumber as at 31 December 2021 and its unaudited consolidated statement of financial position as at 30 June 2022 are as follows:-

Minimum Scenario

Notes:

(1) 435,700 FLB Shares bought back by the Company;

(2) After capitalisation of RM22,347,200 from the retained profits of the Company pursuant to the Proposed Bonus Issue.

(3) After deducting the estimated expenses in relation to the Proposed Bonus Issue of approximately RM60,000.

(4) Calculated based on NA over number of Shares in issue (excluding Treasure Shares held by our Company)

Maximum Scenario

Notes:

(1) 435,700 Focus Lumber Shares bought back by the Company;

(2) Assuming 5,652,000 Outstanding Options are exercised into new Focus Lumber Shares prior to the Entitlement Date.

(3) Including reversal from the ESOS reserve account to the share capital account arising from the exercise of 5,652,000 Outstanding Options.

(4) After capitalisation of RM23,477,600 from the retained profits of the Company pursuant to the Proposed Bonus Issue.

(5) After deducting the estimated expenses in relation to the Proposed Bonus Issue of approximately RM60,000.

(6) Calculated based on NA over number of Shares in issue (excluding Treasure Shares held by our Company)

This announcement is dated 26 August 2022.