We refer to the announcement made on 19 January 2011, wherein Masteel announced that the Company had entered into a Heads of Joint Venture Agreement (“JVA”) with KUB Malaysia Berhad (Company No. 6022-D) (“KUB”), a company listed in the Main Market of Bursa Malaysia Securities Berhad whereby KUB and Masteel (“Parties”) have agreed to combine their capabilities and resources to co-operate and collaborate with each other in the joint-venture company, Metropolitan Commuter Network Sdn Bhd (“MCN”) to pursue the rail transit network project in the Iskandar Development Region (“Project”) and the Parties are desirous of submitting a joint proposal for the Project to the Government of Malaysia (“Proposal”).

Pursuant to Bursa Malaysia Securities Berhad’s letter dated 4 August 2006, we wish to announce the status of the JVA as follows:-

1) On 8 August 2011, MCN presented the proposal to the Economic Council (“EC”) chaired by YB Prime Minister, Dato’ Sri Mohd Najib Tun Razak who had directed MCN to finalise the matter pertaining its proposal in conjunction with the government’s double tracking program under the auspices of the Ministry of Transport before reverting back to the EC.

The announcement is dated 24 August 2011.