General Announcement::UPDATE ON COVID-19 SITUATION

SOUTHERN ALLIANCE MINING LTD.

(Company Registration Number. 201931423D)

(Incorporated in the Republic of Singapore)

UPDATE ON COVID-19 SITUATION

The board of directors (the "Board") of Southern Alliance Mining Ltd. (the "Company", and together with its subsidiary, the "Group") wishes to provide an update on the COVID-19 situation in relation to the Company's subsidiary, Honest Sam Development Sdn Bhd (the "Subsidiary").

As set out in the Company's offer document dated 16 June 2020 and the Company's subsequent announcements, including the announcement dated 14 January 2021, the Group has been allowed to operate in Malaysia pursuant to approvals granted by the Malaysian Ministry of International Trade and Industry since 22 April 2020, subject to certain conditions. The Group had put in place strict standard operating procedures in relation to the management of COVID-19 since the commencement of its operations.

The Board also wishes to update that the Subsidiary has consistently adopted a preventive approach in respect of COVID-19 and accordingly on 10 September 2021, conducted a vaccination program, administered by Ministry of Health of Malaysia (Kementerian Kesihatan Malaysia ("KKM")) for the employees of the Subsidiary. As at the date of this announcement, the Subsidiary has achieved a vaccination rate as set out below:

	Office / Mine Workers		% Vaccinated	% Unvaccinated
	Vaccinated		1st Dose	1st and 2nd Dose
Mine Workers	28.80	70.11	1.09
Office	-	100.00	-
Total	37.02	62.02	0.96

On 16 September 2021, an employee of the Subsidiary, a mine worker of the Chaah mine located in Johor, Malaysia, was tested positive for COVID-19. The management of the Group activated its internal emergency response plan by shutting down and suspending all operations at the Chaah mine on the same day. As a precautionary measure, the Group's management also immediately mandated swab tests for the rest of the mine workers using self-test kits. The test results indicated that other mine workers may also have contracted COVID-19. This was immediately reported to KKM. Mine workers who self-tested positive for COVID-19 were then duly isolated within specially designated facility areas as identified by KKM.

Further confirmatory tests were also carried out by KKM at the mine, and it was confirmed on 19 September 2021 that a total number of 57 of the mine workers are COVID-19 positive. In light of the above, the Group performed full disinfection and sanitisation of the Chaah mine. As ordered by KKM, all COVID-19 positive mine workers were transferred to quarantine centres.

For the avoidance of doubt, the Chaah mine is a confined area that is segregated and no other persons, save for the mine workers, have access to the Chaah mine.

The temporary closure of the Chaah mine from 16 September 2021 to 21 September 2021 as well as the operation below full capacity till end of September 2021 as the Group awaits for the recovery of the affected staff are not expected to have any material impact on the Group's financials for the financial year ending 31 July 2022.

Meanwhile, the Group remains committed to adhering to the relevant COVID-19 guidelines prescribed by the KKM on a stringent basis, as well as to monitor the situation. The Board will also make the appropriate announcement(s) as and when there are material developments on this matter.

BY ORDER OF THE BOARD

Dato' Sri Pek Kok Sam

Executive Director and Chief Executive Officer

20 September 2021

Southern Alliance Mining Ltd. (the "Company") was listed on Catalist of the Singapore Exchange Securities Trading Limited (the "Exchange") on 26 June 2020. The initial public offering of the Company was sponsored by PrimePartners Corporate Finance Pte. Ltd. (the "Sponsor").

This announcement has been reviewed by the Company's Sponsor. It has not been examined or approved by the Exchange and the Exchange assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document. The Sponsor has also not drawn on any specific technical expertise in its review of this announcement.

The contact person for the Sponsor is Ms. Ng Shi Qing, 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318, [e-mail].