We refer to the Company’s announcement dated 17 November 2021 in respect of the court case initiated against Emir Oil LLP (“EO” or the Defendant”), a major subsidiary of the Company in connection with the inspection by the Department of Industrial Safety of Mangistau region of the Republic of Kazakhstan (“Plaintiff”).

(hereinafter referred to as “the Suit”)

The Board of Directors of Reach Energy Berhad (“REB” or “the Company”) would like to furnish the following additional information relating to the above mentioned matter:

1. The Statement of Claim (“the Claim”) was received on 9 November 2021 by EO.  Since then, EO has been seeking clarification from relevant parties to examine the violation of the hazardous facilities and technical equipment.  This has resulted the Company releasing the announcement on 17 November 2021. Accordingly, EO had to assess the implication of the Claim including the potential loss of revenue arising from the Claim in the event EO loses the case.
2. Currently, EO is operating as usual pending a preliminary Court hearing scheduled to be held on 22 November 2021. The Court is to decide whether a suspension of EO’s hazardous facilities and technical equipment is necessary.

The Company will engage a technical consultant to assess and conclude that the operation of the facilities and equipment is safe. The Company is seeking necessary technical and legal advice to resolve the claims and mitigate the risk of suspension of the hazardous facilities and technical equipment at EO.

This announcement is dated 19 November 2021.