The Board of Directors of Masteel is pleased to announce that the Company has entered into an Off-Take Agreement (“the Agreement”) with Stemcor Australia Pty Ltd (“Stemcor Australia”) of Level 13, 15 Blue Street, North Sydney, NSW 2060, Australia on 27 October 2009 to export high tensile deformed bars for the next two years to the Australian market via Stemcor Australia worth approximately RM120 million of steel bars in accordance with all the terms and conditions as stipulated in the Agreement (“Strategic Alliance”).

2. DETAILS OF THE STRATEGIC ALLIANCE

Information on Stemcor Australia

 Stemcor Australia is a company incorporated in Australia under the laws of Australia and has its registered office at Level 13, 15 Blue Street, North Sydney, NSW 2060, Australia.

The principal activity of Stemcor Australia is exporting, importing and distributions of steel products.

3. RATIONALE

The Strategic Alliance will enable the Company to penetrate into growth markets like Australia and bring about export income for the Company.

4. EFFECTS OF THE STRATEGIC ALLIANCE

The Strategic Alliance is not expected to have any material impact on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of the Company for the financial year ending 31 December 2009.

5. APPROVALS REQUIRED

The Strategic Alliance is not subject to approval of the shareholders of Masteel.

6. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders of Masteel and/or persons connected to them have any interest, direct or indirect, in relation to the Agreement.

7. STATEMENT BY BOARD

The Board of Directors of Masteel is of the opinion that the Strategic Alliance is in the best interest of Masteel.

A copy of the press release in conjunction with the above is enclosed.

This announcement is dated 27 October 2009.