General Announcement::Update on Legal Proceedings

ASTAKA HOLDINGS LIMITED

(Company Registration No: 200814792H)

(Incorporated in the Republic of Singapore)

UPDATE ON LEGAL PROCEEDINGS

1. INTRODUCTION

The board of directors (the "Board" or "Directors") of Astaka Holdings Limited (the "Company") refers to the Company's announcements dated:

1. 27 November 2020, 7 December 2020 and 25 January 2021, 17 February 2021, 28 April 2021 and 30 July 2021 (collectively, the "CSCE KL Announcements") in relation to, inter alia, the Originating Summons served by Astaka Padu Sdn Bhd ("APSB") on China State
   Construction Engineering (M) Sdn Bhd ("CSCE") in the Kuala Lumpur High Court ("KL Court") and the notice of application filed in relation thereto, seeking for, inter alia, an interim injunction to prevent CSCE from commencing and/or proceeding with adjudication proceedings against APSB pursuant to the Construction Industry Payment and
   Adjudication Act 2012 until disposal of the Originating Summons ("Notice of Application") on 25 January 2021 (the "KL Matter"); and
2. 19 December 2019, 23 December 2019, 17 March 2020, 28 July 2020, 17 December 2020, 28 April 2021, 24 May 2021, 2 June 2021, 25 June 2021 and 22 July 2021 (collectively, the "Aliran Announcements") in relation to:
3. 1. the payment claim from Aliran Asia Sdn Bhd ("Aliran") dated 12 December 2019 and the notice of adjudication dated 11 March 2020 (the "First Notice of Adjudication");
   2. the adjudication decision dated 7 May 2021 in relation to the First Notice of
      Adjudication ("First Claim Adjudication Decision");
   3. the additional payment claim dated 22 July 2020 ("Additional Claim") from Aliran and the notice of adjudication dated 2 December 2020 ("Second Notice of Adjudication");
   4. the adjudication decision dated 20 April 2021 in relation to the Second Notice of Adjudication (the "Additional Claim Adjudication Decision");
   5. the letter of demand dated 24 June 2021 issued by APSB to Aliran to counterclaim for excess payment in the amount of RM4,538,150.41 (the "Letter of Demand");
   6. the notice of arbitration issued by APSB to Aliran on 21 July 2021 in relation to the Letter of Demand; and
   7. service of the cause papers by Aliran, being the Originating Summons and the Affidavits in Support, in respect of the First Claim Adjudication Decision and the Additional Claim Adjudication Decision, to APSB via email on 24 June 2021 (the
      "Enforcement Applications").

Unless otherwise defined, all capitalised terms shall bear the same meanings as ascribed to them in the CSCE KL Announcements and the Aliran Announcements.

2. KL MATTER - DISMISSAL OF ORIGINATING SUMMONS AND NOTICE OF APPLICATION

2.1 The Board wishes to announce that APSB was informed by Sanjay Mohan Advocates & Solicitors

("Sanjay Mohan"), APSB's Malaysian legal advisers in respect of the KL Matter, that the KL Court had, on 6 August 2021, dismissed APSB's Originating Summons against CSCE and the

Notice of Application in relation thereto, which were heard before the KL Court on 26 July 2021, with costs of RM 6,000 and RM 4,000 awarded to CSCE, respectively.

2.2 Following the outcome of the KL Matter, the Group is seeking further legal advice from Sanjay Mohan on the next steps to take including other possible legal options.

3. ENFORCEMENT APPLICATIONS - FILING OF STAY OF PROCEEDINGS

3.1 The Board wishes to announce that Mah-Kamariyah & Philip Koh, APSB's Malaysian legal advisers in respect of the Enforcement Applications, had on 10 August 2021, filed the following stay of proceedings in the KL Court in respect of:

1. Originating Summons No. WA-24C-79-06/2021 ("OS 79") filed by Aliran in respect of the First Claim Adjudication Decision; and
2. Originating Summons WA-24C-80-06/2021 ("OS 80") filed by Aliran in respect of the Additional Claim Adjudication Decision

(collectively, the "Stay of Proceedings").

3.2 The Stay of Proceedings seeks the following orders from the KL Court:

1. that all further proceedings in the KL Court in respect of OS 79 and OS 80 be stayed pending reference to arbitration;
2. that the costs of the Stay of Proceedings be borne by APSB; and
3. such further and/or other relief as the KL Court deems fit.

4. 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

10 August 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].