General Announcement::UPDATE ON LEGAL PROCEEDINGS IN RELATION TO THE JB MATTER

ASTAKA HOLDINGS LIMITED

(Company Registration No: 200814792H)

(Incorporated in the Republic of Singapore)

UPDATE ON LEGAL PROCEEDINGS IN RELATION TO THE JB MATTER

1. INTRODUCTION
   The board of directors (the "Board" or "Directors") of Astaka Holdings Limited (the "Company") refers to the Company's announcements dated 27 November 2020, 7 December 2020, 25 January 2021, 17 February 2021, 28 April 2021, 29 June 2021, 30 July 2021 and 26 August 2021
   (collectively, the "Announcements") in relation to, inter alia, the Writ of Summons and Statement of Claim served by China State Construction Engineering (M) Sdn Bhd ("CSCE") on Astaka Padu Sdn Bhd ("APSB") in the High Court of Malaya at Johor Bahru ("JB Court") on 25 January 2021 and the stay of proceedings pending referral to arbitration filed by APSB on 16 February 2021 in relation thereto, pursuant to Section 10 of the Arbitration Act 2005 ("Stay of Proceedings") (the "JB Matter"). Unless otherwise defined, all capitalised terms shall bear the same meanings as ascribed to them in the Announcements.
2. JB MATTER - DISMISSAL OF STAY OF PROCEEDINGS

1. The Board wishes to announce that the JB Court had, on 1 September 2021, dismissed APSB's Stay of Proceedings with costs of RM5,000 awarded to CSCE (the "Dismissal"). The Stay of Proceedings was dismissed on the basis that:
2. 1. references to the construction contract in the settlement agreement entered into between APSB and CSCE on 1 October 2019 (the "Settlement Agreement") are insufficient to meet the requirements of the Arbitration Act 2005; and
   2. notwithstanding that there were references made to the construction contract in the Settlement Agreement, the parties had agreed to refer the dispute to the Construction Industry Payment and Adjudication Act 2012 and therefore the arbitration agreement was no longer applicable.
3. Following the outcome of the JB Matter, the Group is seeking further legal advice from Sanjay Mohan Advocates & Solicitors, APSB's Malaysian legal advisers, on the next steps to take including other possible legal options. This includes, but is not limited to, filing a Notice of Appeal against the dismissal as soon as practicable.

3. GENERAL

The Company will make further announcements to update its shareholders when there are material updates in respect of the matters above, as and when necessary. Shareholders are advised to refrain from taking any action in respect of their securities in the Company which may be prejudicial to their interests, and to exercise caution when dealing in the securities of the Company. In the event of any doubt, Shareholders and potential investors should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisers.

By Order of the Board

Khong Chung Lun

Executive Director and Chief Executive Officer

3 September 2021

This announcement has been prepared by the Company and reviewed by the Company's sponsor, Novus Corporate Finance Pte. Ltd. (the "Sponsor"), in compliance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited (the "SGX-ST") Listing Manual Section B: Rules of Catalist.

This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made, or reports contained in this announcement.

The contact person for the Sponsor is Mr Andrew Leo, Chief Executive Officer, at 7 Temasek Boulevard, #18-03B Suntec Tower 1, Singapore 038987, telephone [phone].