The Board of Directors of Reneuco Berhad (Company) announced that the special purpose vehicle jointly incorporated by the Company and Citaglobal Berhad on 40:60 basis, namely Citaglobal Reneuco Energy Solution Sdn Bhd ("CREES"), had on 21 February 2024, accepted a conditional letter of award dated 9 February 2024 ("CLOA") from MRL, for the exclusive provision and supply of electricity ("Electricity") and renewable energy ("Green Energy") to the ECRL network for both traction and non-traction ("Project"), which shall include and encompass any activities incidental to the performance of the Project, such as, but not limited to the right and authority to: (a) undertake the development, design, construction, testing, commissioning and completion of the transmission and distribution interconnection facilities (" IF"), and. (b) operate and maintain the IF during the concession period., at CREES's own risks, costs and expenses with the terms and conditions set out in the CLOA (collectively, "Concession"). The Concession is conditional upon the execution of the definitive agreements by the relevant parties, and subject further to the salient terms and conditions of the Concession (" Term Sheet") to be mutually agreed between CREES and MRL (collectively, "Parties") within ten (10) business days or such other period as may be extended by MRL from the acceptance of the CLOA.

The Parties shall finalise and/or enter into the definitive agreements within three (3) months from the date of the CLOA. Pending the finalisation of the definitive agreements and upon acceptance of the CLOA, CREES undertakes to perform and execute the following preliminary work in respect of the Project: (i) the procurement of a commitment bond of MYR 5,000,000 in the name of MRL within thirty (30) days from the date of the CLOA ("Commitment Bond (CLOA)); (ii) the appointment of a suitable, experienced, qualified and registered (if required) design consultant, approved by MRL; (iii) the development or preparation of conceptual design and the engineering, procurement, construction and commissioning (EPCC) tender documents for the development, design, construction and commissioning of the IF, which satisfy all applicable laws, specifications, standards requirements (technical or otherwise) and conditions of the relevant authorities ("Relevant Authorities") including Energy Commission and Tenaga Nasional Berhad (" TNB"), as approved by MRL; (iv) the performance of any necessary survey works, site investigation, soil investigation, and the procurement of long lead equipment, etc. in respect to the IF; (v) the liaising and engagement with any and all the Relevant Authorities or otherwise, as needed prior to the commencement of the construction of the IF; and (vi) the submission of a master implementation plan within thirty (30) days of the CLOA.

Terms in relation to the Concession for the exclusive supply of Electricity Energy and Green Energy to ECRL network by CREES: (i) MRL is desirous to award a concession to CREES as the Exclusive Provider of Electricity and Green Energy of up to 100 megawatts to both traction and non-traction of the ECRL network, subject always to MRL's entitlement to 30% mix of Green Energy from the total energy supply subject to demand load of the ECRL network, for thirty (30) years with an option to renew for an additional thirty (30) years exercisable solely and at MRL's absolute discretion, provided always that the ECRL network remains in operation ("Concession Period"). (ii) The main obligations and deliverables under the Concession is the delivery of Electricity and Green Energy to the ECRL network requires for the following obligations: (a) CREES shall construct and deliver the IF for the purpose of the Project; (b) CREES shall incorporate a special purpose company ("SPC") as the supplier for Electricity and Green Energy; and (c) The IF shall be operated and maintained by the SPC. Interconnection facilities: (i) The ownership of IF shall belong to MRL.

(ii) The commencement of the IF construction shall be subject to the following conditions precedent: (a) performance bond of 5% of the Project Cost (as defined herein) ("Performance Bond") (the Commitment Bond (CLOA) will be replaced by the Performance Bond once the latter is in place); (b) corporate guarantee by the shareholders of CREES, on joint and several basis; (c) any and all approvals, consents, licences, etc. relating to the construction of the IF; (d) the incorporation of the SPC by CREES with paid-up capital of MYR 30,000,000; and (e) novation of the Consultancy Service Agreement between MRL and Jurutera Perunding Meinhardt Sdn Bhd dated 17 April 2023 ("Meinhardt Contract" which expression shall include any subsequent variation orders thereto) to CREES for a contract amount to be mutually agreed in the Term Sheet. The commercial value of the Meinhardt Contract and the variation orders to be payable by CREES, and such other technical conditions precedent to be mutually agreed between the parties.

(iii) The lump sum cost of work capped at RM600,000,000 ("Project Cost"). (iv) The completion of the IF must meet the agreed date(s) when the supply of Electricity and Green Energy to the ECRL network as may be imposed or approved by MRL for both traction and non-traction at respective supply points, of which the supply of Green Energy for Section A & B of the ECRL network shall be no later than April 2027 and for Section C of the ECRL network shall be no later than April 2028 (subject always to demand load of the ECRL network).