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:-

During September, October and November 2011, Masteel had held a series of meetings with the officials from the Ministry of Transport (“MOT”) on the Iskandar Malaysia’s commuter rail project and had presented and discussed with MOT, Keretapi Tanah Melayu Berhad and Railway Asset Corporation on the various operational requirements of MCN. Masteel is currently waiting for the next presentation scheduled to be held in the first quarter of 2012 to the Economic Council to seek approval for the proposed commuter rail project, barring any unforeseen circumstances.