The board of directors of Citaglobal Berhad announced that the company has on 20 April 2023 entered into a consortium agreement with Reneuco Berhad (Consortium Agreement) to formalise the collaboration between the Parties via a new special purpose vehicle to be incorporated under the proposed name of Citaglobal Reneuco ECRL Energy Solution Sdn Bhd and to regulate the Parties' relationship, understanding, shareholding and investment as shareholders of the Consortium SPV Company to undertake the ECRL IPP Project. Pursuant to the Consortium Agreement, Citaglobal and Reneuco mutually agreed to restructure their shareholding in the Consortium SPV Company for the ECRL IPP Project to 60:40 respectively, which the Parties acknowledged and agreed Citaglobal shall lead the negotiations as the controlling shareholder in the Consortium SPV Company with MRL to finalise the terms and conditions for the ECRL IPP Project. The Consortium SPV Company aims to finalise the contract award with MRL for the ECRL IPP Project soonest possible.

Details Of The Consortium Joint Venture: Salient terms of the Consortium Agreement: The name of the Consortium SPV Company shall be Citaglobal Reneuco ECRL Energy Solution Sdn Bhd, subject to the approval of the Companies Commission of Malaysia or such other name as may be mutually agreed by the Parties and approved by the Companies Commission of Malaysia; The initial share capital of Consortium SPV Company shall be MYR 500,000, which Citaglobal shall contribute MYR 300,000 (60%) and Reneuco shall contribute MYR 200,000 (40%) respectively (Agreed Proportion). The paid-up share capital of the Consortium SPV Company may as decided by the board of directors of the Consortium SPV Company from time to time be increased to meet its required capital expenditure and financing plan for the Business, where such increases in the share capital as approved by the Parties shall be subscribed and paid by the Parties in accordance with the Agreed Proportion. Business of the Consortium SPV Company: The Consortium SPV Company shall carry on or cause to be carried on, inter alia, the following business activities (Business): to carry out all activities in relation to the implementation of the ECRL IPP Project through the special purpose joint venture vehicle; and (b) the engagement in any activity and the pursuit of and in conformity with the objective and purpose under clause 4.1.3(a).

Funding requirements for the Consortium SPV Company: Any funding requirements of the Consortium SPV Company for the Business shall be met based on respective shareholders' shareholding equity in the following manner of priority or such other manner as the shareholders may agree to: firstly, via capital injection on the basis of at least, in aggregate, 20% in the form of equity and/or shareholders' advances or loans for the project financing of the ECRL IPP Project; secondly, through external borrowings from banks or financial institutions; and thirdly, via internal available funds of the Consortium SPV Company.