On 26 October 2022, Penta-Ocean Construction Company Limited, as main contractor (the ?Main Contractor?) entered into a sub-contract (the ?Sub-Contract?) with Yongnam Engineering & Construction (Private) Limited (Judicial Managers Appointed) (?YNEC?), as sub-contractor, pursuant to which YNEC agreed, inter alia, to undertake certain supply, fabrication, installation, dismantling and removal works for earth retaining stabilising structures for the proposed erection of a 20-storey elective care centre and national dental centre at Second Hospital Avenue (Bukit Merah), Singapore. YNEC is a wholly-owned subsidiary of Yongnam Holdings Limited (Judicial Managers Appointed) (the ?Company?). The judicial managers of the Company announced that YNEC has entered into a novation agreement with Aztec Steel Pte.

Ltd. (the ?Replacement Sub-Contractor?) and the Main Contractor in respect of the Sub-Contract (?Novation Agreement?). By entering into the Novation Agreement, the Replacement Sub-Contractor will perform and be bound by the terms and conditions of the Sub-Contract in every way as if the Replacement Sub- Contractor was named in the Sub-Contract as a party thereto from the outset in lieu of YNEC. The Replacement Sub-Contractor shall be responsible for all duties, obligations and liabilities under the Sub-Contract and/or at law (including but not limited to all liabilities arising from any breach of the Sub-Contract and defaults attributable to YNEC) arising prior to, on or subsequent to the date of the Novation Agreement.

Save as otherwise provided in the Novation Agreement, the Main Contractor and YNEC will release and discharge each other from the performance of the other party's obligations, duties and liabilities under the Sub-Contract, and from all liabilities, claims and demands whatsoever arising out of, or in respect of, the Sub-Contract whether arising prior to, on or subsequent to the date of the Novation Agreement with effect from the date of the Novation Agreement.