Southern Alliance Mining Ltd. announced that the Company has entered into a joint venture agreement with Duli Yang Maha Mulia Sultan Ibrahim Ibni Almarhum Sultan Iskandar ("DYMM" or "JV Partner") to establish a joint venture company. In connection with the joint venture, the Company has on 16 July 2021, entered into a mining operator agreement with DYMM ("Mining Operator Agreement"), pursuant to which the JV Company shall carry out exploration work for gold and any other mineral or deposits and/or mining activities at the Tenggaroh mine, Johor. In view of the current opportunity presented by the Proposed Joint Venture and Gold Mining Operation, the Group proposes to diversify its existing business of selling: iron ore concentrate of low level of impurities with total Fe grade of between 62% to 65% to steel mills and trading companies mainly located in Malaysia and China; and (ii) pipe coating materials that are crushed iron ore with a natural characteristic of a higher density for subsea pipes (collectively, the "Existing Business") to include the mining of gold and other precious metals, base metals and minerals. The Company intends to convene an extraordinary general meeting ("EGM") to seek approval of the shareholders of the Company ("Shareholders") for, inter alia, the Proposed Joint Venture and Gold Mining Operation and the Proposed Diversification. The Malaysian government announced the National Mineral Industry Transformation Plan 2021-2030 (MIT 2021-2030 Plan) earlier this year, which aims to grow the Malaysian mineral industry into a complete value chain for the next 10 years. The Group intends to capitalise on the initiatives under such MIT 2021-2030 Plan, to diversify the Group's source of revenue and boost the financial condition of the Group. In addition, the Proposed Joint Venture and Gold Mining Operation is in line with the Company's intention to diversify from the Existing Business and expand into the Proposed New Business, as elaborated on in paragraph 3 below. The Proposed Joint Venture and Gold Mining Operation will enable the Group to leverage on the resources of the JV Partner, as well as to reduce risks and burden of the Proposed New Business on the Group.