Reference is made to Sapura Industrial Berhad (“SIB” or “the Company”)’s announcement dated 24 December 2025 (“the Announcement”).

1.           EXECUTION OF SALE AND PURSHASE AGREEMENT

1.1        Further to Paragraph 3 and 10 of the Announcement, the Board of Directors of SIB wishes to announce that its wholly-owned subsidiary, Sapura Machining Corporation Sdn Bhd (Company Registration No: 198501003276 (135718-A)) (“SMCSB”) had on 27 January 2026 executed a Sale and Purchase Agreement (“SPA”) with Lim Chee Cheng and Lim Chee Meng (collectively, the "Purchasers") to dispose all that piece of vacant freehold industrial land held under individual title H.S.(D) 207937, PT No. 6409, Bandar Sri Sendayan, Daerah Seremban, Negeri Sembilan, measuring approximately 35,332 square metres (equivalent to approximately 380,310.48 square feet) ("Land") for a total cash consideration of RM24,720,181.00 (the "Sale Consideration") and upon the terms and conditions as contained in the SPA (“the Proposed Disposal”).

2.           SALIENT TERMS OF THE SPA

2.1        The Proposed Disposal is conditional upon procurement of the relevant State Authority’s approval for the disposal of the Land to the Purchasers and the creation of a charge in respect of a loan which may be taken by the Purchasers to acquire the Land, within 6 months from the date of the SPA. On the date the last of the conditions precedent is fulfilled, the SPA shall be unconditional (“Unconditional Date”).

2.2        The Sale Consideration shall be paid in the following manner:

(a)  10% of the Sale Consideration amounting to RM2,472,018.10 shall be paid by the Purchaser as refundable deposit in the following manner:

• 2% of the Sale Consideration amounting to RM494,403.62 has been paid by the Purchasers to the SMCSB’s real property agent as earnest deposit prior to the execution of the SPA;

• 3% of the Sale Consideration amounting to RM741,605.43 shall be paid by the Purchasers to their solicitors as stakeholder on the date of the SPA as a retention sum to be applied towards real property gains tax; and

• 5% of the Sale Consideration amounting to RM1,236,009.05 (“Balance Deposit”) shall be paid by the Purchasers to SMCSB’s solicitors as stakeholder on the date of the SPA as balance deposit. SMCSB’s solicitors are authorised to release the Balance Deposit including all interests earned thereto to SMCSB on the Unconditional Date.

(b) 90% of the Sale Consideration amounting to RM22,248,162.90 (“Balance”) shall be paid by the Purchasers to SMCSB’s solicitors as stakeholders within 3 months form the Unconditional Date (“Completion Date”). If the Purchasers fail to pay the Balance by the Completion Date, SMCSB shall grant to the Purchasers an automatic extension of 30 days from the Completion Date to pay the Balance, provided that the Purchasers shall pay to SMCSB interest at the rate of 8% per annum on the Balance or any part thereof remaining unpaid, calculated on a daily basis, from the day next following the Completion Date until the date of actual payment of the Balance. SMCSB’s solicitors are authorised to release the Balance together with all interests earned thereto to SMCSB on the 14th day following the day upon which the Memorandum of Transfer (among other documents) have been duly presented for registration at the relevant land office and vacant possession of the Land having been delivered to the Purchasers.

2.3        Vacant possession of the Land, free from all encumbrances and claims whatsoever, must be delivered to the Purchasers or the Purchaser’s Solicitors by SMCSB or SMCSB’s Solicitors within three (3) business days after the Completion Date (“Date of Possession”), failing which SMCSB shall be liable to the Purchasers for interest at the rate of 8% per annum calculated on a daily basis on the total Sale Consideration, from the day following the Date of Possession until the date of actual delivery of actual delivery of vacant possession of the Land to the Purchasers.

3.           Barring unforeseen circumstances, the acquisition is expected to be completed by the third quarter of the financial year end 2027.

4.           Further announcements will be made as and when there are material developments relating to the Proposed Disposal.

5.           The SPA will be available for inspection at the registered office of SIB which is situated at Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan during normal working hours, 9.00 a.m. to 5.30 p.m, from Monday to Friday (except public holiday) for a period of three (3) months from the date of this announcement.

This announcement is dated 27 January 2026.