City Cement Company agreed with Umm Al-Qura Cement Company to extend the non- binding Memorandum of Understanding signed on 04/09/1444 AH (corresponding to 11/03/2022 AD), and an addendum to extend the memorandum of understanding signed on 04/04/1445 AH (corresponding to 19/10/2023 AD), with the same previous terms and conditions for another additional six months from the date of expiration of extension of the memorandum of understanding, in order to complete the necessary procedures in this regard. The extension is due to complete the necessary procedures to complete the deal and to carry out financial, legal, commercial and technical evaluations, out of the company's keenness to complete it in accordance with regulatory procedures and To ensure the accuracy of completing the transaction procedures. The costs associated with the event, and if they have changed or not with indication of the reasons.

It is worth mentioning that there is no financial impact resulting from the extension of the Memorandum of Understanding. The Company has appointed the Financial Advisor, Legal Advisor, Financial and Tax Due Diligence Advisor, Technical Due Diligence Advisor and Commercial Due Diligence Advisor to carry out the due diligence work, conduct the necessary assessments and final negotiations, sign the agreement and apply to the relevant authorities to obtain the necessary approvals.