CH Karnchang PCL : Report on Connected Transactions in Respect of Office Building Lease

(Translation)

No. CK-18-0000-PO-L-0002

January 5, 2018

Re:

Report on Connected Transactions in Respect of Office Building Lease

Attn.: President of the Stock Exchange of Thailand

CH. Karnchang Public Company Limited (the "Company") hereby reports the connected transaction among the Company and Expert Transport Co., Ltd., whose shares are held by the Company's major shareholder in respect of execution of the office building space lease agreements, which are deemed connected transactions in the category of short-term rent/lease of real property in accordance with the Stock Exchange of Thailand Notification, Re: Disclosure and Acts of Listed Companies on Connected Transactions B.E. 2546 (2003), as per the following details:

• 1. Transaction Date (Agreement Execution Date)

  January 1, 2018

• 2. Related Parties

  Lessees : Expert Transport Co., Ltd.

  Lessor : CH. Karnchang Public Company Limited

• 3. General Characteristics and Details of Connected Transactions

  3.1 Expert Transport Co., Ltd., whose shares are held by the Company's major shareholder, has agreed to execute the following agreements with the Company (representing execution of the lease agreement in continuation of the existing agreement):

3.1.1 An office building space lease agreement in Viriyathavorn Building No. 587, 14th and 15th Floor, Sutthisarnvinijchai Road, Dindaeng Subdistrict, Dindaeng District, Bangkok, covering a total area of 1,073.82 square meters, at the rental rate of Baht 180,401.76 per month.

3.1.2 A service agreement for air conditioners and facilities in the building under Clause 3.1.1 at the rate of Baht 289,544.82 per month (inclusive of value added tax of Baht 18,942.18).

The said agreements have a term of three years from January 1, 2018 - December 31, 2020.

4. Total Transaction Value

The total value of the space lease and service agreements of Expert Transport Co., Ltd. amounts to Baht 469,946.58 per month, totaling Baht 16,918,076.88 throughout the agreement term. In this regard, such transactions are deemed medium-sized transactions with the value of more than 0.03 percent but less than 3 percent of the Company's net tangible assets, or representing 0.08 percent of the Company's net tangible assets, (the Company's net tangible assets as at September 30, 2017 amounted to Baht 22,130 Million), and fall into the category of short-term rent/lease of real property with a period of not exceeding three years which the Company is required to disclose to the Stock Exchange of Thailand.

5. Details of Related Parties

5.1 Expert Transport Co., Ltd., whose shares are held by the Company's major shareholder. As at January 1, 2018, Mahasiri Siam Co., Ltd. which is the major shareholder of CH. Karnchang Public Company Limited held shares in CH. Karnchang Public Company Limited representing 17.30 percent of the Company's paid-up capital and held shares in Expert Transport Co., Ltd. representing 90 percent of the registered capital.

5.2 List of common directors and management and details of shareholding proportion

Shareholders	CH. Karnchang Public Company Limited	Expert Transport Co., Ltd.	Mahasiri Siam Co., Ltd.
%Director Executive	%Director	%Director
Mahasiri Siam Co., Ltd.	17.30	90.00	-
Mr. Plew Trivisvavet	1.10 /	1.98 /	22.15 /
Ms. Supamas Trivisvavet	0.01 /	-	- /
Mr. Narong Sangsuriya	0.03 /	- /	-
Mr. Prasert Marittanaporn	- /	- /	-
Mr. Sittidej Trivisvavet	0.09 /	0.10 /	-

6. Reasons and Necessities of Execution of the Transactions

This represents renewal of the space lease agreements in continuation of the existing agreements to ensure continued business operations in respect of office building lease.

Please be informed accordingly.

Very truly yours,

(Dr. Anukool Tuntimas)

Director and Executive Vice President

Human Resource and General Administration

2