Reference is made to the Company’s announcements made on 15 March 2021 and 19 August 2021 (“Announcements”). For consistency purposes, the abbreviations used in this announcement shall carry the same meaning as those previously defined in the Announcements unless otherwise defined herein.

1. Introduction

The Board of Directors of Uzma is pleased to announce that Uzma Kuala Muda Sdn. Bhd. (“UKM”), an indirect wholly-owned subsidiary of the Company had received a notification letter (“Notification Letter”) from the Energy Commission ("EC") dated 8 August 2022 granting the extension of the Financial Closing Date ("FCD"), Scheduled Commercial Operation Date ("SCOD") and the term of the Power Purchase Agreement ("PPA") for the Large Scale Solar Photovoltaic Plant (“LSSPV”) of 50MWac (“Facility”) at Kuala Muda, Kedah ("Extension").

2. Salient Terms

The EC notified UKM among others: -

i) extension of the FCD from 30 June 2022 to 30 September 2022;

ii) extension of SCOD from the initial date of SCOD to 31 December 2023; and

iii) extension of the term of PPA with four (4) years extension with a total period from 21 years to 25 years, with the following conditions:-

    a. the agreement related to the period of land use rights shall be amended to ensure that the project site can be used until the end of the PPA, in particular, for a period of 25 years;          and

    b. the warranty for solar plant panels and equipment shall be extended, in particular, for a period of 25 years.

UKM and TNB will execute a Supplementary Agreement to the PPA to reflect the extension period.

3. Risk factors

Potential risk factors include project operational and execution risks, cost of solar photovoltaic panel, work schedules, delivery timelines and adverse weather conditions.

4. Financial effects

The Extension will not have any effect on the share capital and shareholding structure of the Company. However, it is expected to contribute positively towards the earnings and net assets per share of the Company for the financial year ending 30 June 2023 and onwards until the expiry of the PPA.

5. Directors’ and Major Shareholders’ Interests

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of Uzma has any direct or indirect interest in the Extension.

6. Directors’ Statement

The Board of Directors of the Company, after considering all the relevant factors, is of the opinion that the Extension is in the best interest of the Company.

The Company will make further announcements on this matter as and when it deems expedient.

This announcement is dated 25 August 2022.