Reference is made to Bursa query letter dated 28 March 2022 and our announcement dated 25 March 2022 in respect of the aforesaid matter. Please find our reply for additional information for public release as follow:

1. Further details on the reclamation and development including the estimated financial commitment required and source of funds, and the nature and types of intended development/project on the Reclamation Land

(a) Reclamation Details

The gross reclamation land area is about 27 acres. The reclamation work will take 3 years to complete upon obtaining the Commencement of Work Order from the relevant appropriate authorities.

(b) Estimated Financial Commitments Required

Estimated total reclamation cost amounting to RM94 million, taking into consideration of 27 acres x 43,560 sq.ft = 1,176,120 sq.ft x RM80.00 per sq.ft.

(c) Source of Fund to Finance the Reclamation Work and Development Project

(i) Project financing through financial institutions.

(ii) Fund raising via corporate exercise, i.e. Private Placement and/or Right Issues.

(d) The Nature and Types of Intended Development/Project on the Reclamation Land

In the preliminary stage, the proposed mixed development project on the reclamation land consist of residential and commercial components as overall. Design to create a holistic living environment, the project will comprise an urbanised residence integrated with an office precinct, lifestyle retail, F&B outlet, wellness centre and shop lot which collectively offers live, work, eat and play concept for a comprehensive and better quality of life.

2. The basis and justification to arrive at the purchase consideration of RM5,000,000
   

In light of Mutiara Biopolis Properties Sdn. Bhd. ("MBP") has obtained the Reclamation Agreement with Penang Development Corporation (PDC) on the development project, RM5 million is to buy over the 80% equity interest in MBP on a willing buyer-willing seller basis so as to having a stake control and drive Sparkle Gateway Sdn. Bhd. ("SGSB" or "the Purchaser") as a major shareholder in accordance with the Reclamation Agreement that had been entered into by both parties (SGSB and Lotus Conquest Sdn. Bhd.). SGSB will have a net development land measuring 6.24 acres upon completion of Reclamation with its proposed GDV estimated to be RM1.2 billion. This will help to increase the existing land bank of the Group in Penang Island.

3. Further details on the prospects of Reclamation land/Project based on the intended development on the Land
   

Reclamation land is strategically located between the first and second bridge of Penang, the reclaimed land and project is close to Penang International Airport and a stone's throw away from Free Trade Zone (FTZ) Penang.

Besides, it is nestled within a mature neighbourhood that is encircled by all kinds of amenities and facilities.

In addition, due to the scarcity of land on Penang Island and the anticipated increase in demand from FTZ in the coming years, the Proposed Development is responsive to emerging needs and poised to perform well.