We refer to our announcement dated 9 December 2014 and our prospectus dated 26 June 2014, wherein it was stated that Tanah Makmur Berhad (“Tanah Makmur”) had proposed to the State Government of Pahang for the new State Administrative Complex of the State Government of Pahang to be incorporated in the KotaSAS Township, and that Tanah Makmur, through Kreatif Sinar Gabungan Sdn Bhd (“Kreatif Sinar Gabungan”), a 65%-owned subsidiary of Tanah Makmur, was awaiting to be awarded the Project.

The Board of Directors of Tanah Makmur Berhad wishes to announce that Kreatif Sinar Gabungan had received the Letter of Award (“LA”) for the Project dated 14 December 2016 from the State Government of Pahang. Kreatif Sinar Gabungan had on 21 December 2016 accepted the LA for the Project.

The LA states among others that the cost of the Project is RM392,000,000.00  as basis of the tender and commitment has been agreed by the State Government of Pahang. The total contract value shall be RM415,520,000.00 subject to the terms of conditions in the Pre Offer Document and Kreatif Sinar Gabungan’s compliance with the Goods and Services Tax Act 2014.

The salient terms of the LA are as follows:

1. Bank guarantee or a guarantee from insurance company or insurance guarantee or performance bond;

2. the delivery of the Site Possession on 27 December 2016 as per the terms and conditions of the Contract, upon receipt of the Liability Insurance of RM2,000,000.00 and Work Insurance Policy of RM415,520,000 by the Project Director.

3. Kreatif Sinar Gabungan shall not subcontract all or any part of the works without prior written consent from the Project Director.

4. to disclose the name of the successful sub-contractors to the Project Director before the start of any works for the Project Director’s approval and followed by the signing of the Deed of Assignment with the sub-contractors for direct payment to the respective sub-contractors;

5. the Project is to be completed within 39 months. The date of completion of the Project shall be on 26 March 2020.

This announcement is dated 21 December 2016.