1.0       INTRODUCTION

            The Board of Directors of the Company is pleased to announce that EORF has on 24 April 2020 entered into a Memorandum of Understanding (“MOU”) with Hyundai for the 

            purpose of exploring business opportunities in the international construction market.

             EORF and Hyundai are collectively referred to as “Parties” and individually referred to as “Party”.

2.0      INFORMATION OF HYUNDAI

            Hyundai, company incorporated in South Korea is a leading international Engineering, Procurement and Construction (“EPC”) contractor.  

3.0      OBJECTIVES AND RATIONALE OF THE MOU

           a)         Hyundai is looking for global strategic partners to enhance its technical and commercial competitive edge and to promote its business opportunity in the international                               construction market.

           b)         EORF is a long-term business partner of Hyundai and wishes to join forces with Hyundai and be its global strategic partner by providing its competitive proposal, based                           on a  wealth of its technical and financial resources, experience and expertise.

           c)         Hyundai and EORF entered into the MOU to explore business opportunities as a global strategic partner in cooperation with, and for the best interest of each other.

4.0    SALIENT TERMS OF THE MOU

          a)        Parties will introduce to each other construction projects related to EPC and investment opportunities arising worldwide, including but not limited to Plant Module projects.

          b)        Parties will explore and evaluate the possibility of joint participations in projects and for such purpose, exchange such information or data as may be reasonably required                          by the other Party during the course of such discussions.

          c)         If Parties agree to jointly participate in any projects, Parties will enter into a binding Preliminary Agreement to cooperate on an exclusive basis.

          d)         The MOU is only intended to facilitate discussions on the general possibility of cooperation for future projects and shall not constitute an obligation or commitment of                                Parties to jointly participate in future projects or enter into the Preliminary Agreement.  

          e)         All information and data exchanged between Parties for the purpose of this MOU shall be treated as confidential and no Party shall disclose any such information or data                         to any third party, except when necessary for the purposes of the MOU.

5.0     TERMINATION OF THE MOU

           If no Preliminary Agreement is executed, the MOU shall terminate upon the first occurrence of any of the following :-

           a)        either Party, at any time, gives notice of its intention to terminate the MOU to the other Party; or

           b)        after a period of five (5) years from the date of execution of the MOU, unless otherwise extended by mutual agreement of Parties.

6.0     FINANCIAL EFFECTS OF THE MOU

          The MOU will not have any material effect on the share capital and substantial shareholders’ shareholdings of the Company and is not expected to have any material effect on                the net assets, earnings and gearing of the Company for the financial year ending 31 December 2020.

7.0     DIRECTORS’ STATEMENT

          None of the Directors and/or substantial shareholders of the Company and/or person connected with them have any interest, direct and/or indirect, in the MOU.

          Having considered all aspects of the MOU, the Board of Directors of the Company is of the opinion that the MOU is in the best interest of the Company.

8.0     APPROVAL REQUIRED

          The MOU is not subject to the approval of shareholders of the Company.

This announcement is dated 29 April 2020