HG Metal Manufacturing : Renewal Of Lease For The Amalgamated Private Lots A21285 & A2185b At 28 Jalan Buroh Singapore 619484

HG METAL MANUFACTURING LIMITED

(Company Registration No. 198802660D)

RENEWAL OF LEASE FOR THE AMALGAMATED PRIVATE LOTS A21285 AND A2185B AT 28

JALAN BUROH SINGAPORE 619484

The Board of Directors of HG Metal Manufacturing Limited (the "Company", and together with its subsidiaries, collectively the "Group") is pleased to announce that its subsidiary, Oriental Metals Pte Ltd ("Oriental") has on 15 January 2018 accepted a letter of offer ("Letter of Offer") from JTC Corporation ("JTC") to renew the lease for the property known as Private Lots A21285 and A2185B (also known as Lot 04423V of Mukim 06) at 28 Jalan Buroh, Singapore 619484 (the "Property").

Pursuant to the terms of the Letter of Offer, Oriental is granted a 3 year development period by JTC, effective from 2 January 2018, to further invest in the construction of building and other structures and to install plant and machinery at the Property. Subject to the fulfillment by Oriental of certain terms and conditions of the Letter of Offer, JTC will grant a renewal of lease of the Property to Oriental for a further term of 20 years commencing from 1 August 2019 (the "Lease Renewal").

The investment on building and civil works as well as on plant and machinery at the Property will be financed internally from the Group's existing funds as well as through external borrowings. The Lease Renewal is not expected to have any material impact on the Group's net tangible assets or earnings per share for the current financial year ending 31 December 2018.

None of the Directors or substantial shareholders of the Company has any interest, whether direct or indirect, in the Lease Renewal (save through their shareholdings in the Company, if any).

By Order of the Board

Foo Sey Liang Executive Director

15 January 2018

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