$AUMAS (0098.MY)$ Material Litigation (cont’d) On 4 Decembe...

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$AUMAS (0098.MY)$ Material Litigation (cont’d)

On 4 December 2023, the Sandakan High Court in Civil Suit No. SDK-22NCvC-11-6/2023 (Sandakan

Suit) has granted an inter partes injunction order against SGSB along the following terms:

a) that SGSB be restrained, either by itself or through its directors, associates, officers, servants, agents,

nominees or anyone else, from taking any further steps in respect of SGSB’s Demand dated 2 May

2023 and/or the purported Temporary Resolution between WRSB and SGSB, including requesting

and/or receiving any payment until the disposal of this action;

b) that SGSB be restrained, either by itself or through its directors, associates, officers, servants, agents,

nominees or anyone else from hindering the operations of WRSB, including WRSB’s use and

enjoyment of the land as provided for in the sub-lease agreement between SGSB and WRSB dated 1

October 2015 and the use of the facilities built for the purpose of WRSB’s operations until the full

disposal of this action.

Resulting from the actions of SGSB and/or LFM around May 2025 in damaging and obstructing the

perimeter drain of WRSB’s Tailing Storage Facility (TSF), on 6 November 2025, the Company and WRSB

obtained a second injunction from the Tawau High Court on, among other things, the following terms:

a) that SGSB and LFM be restrained, either by themselves or through their directors, officers, managers,

servants, agents, associates, nominees or anyone else, from hindering and/or preventing all necessary

rectification and/or modification works to the existing perimeter drain for the TSF of WRSB, including

access by all necessary vehicles, machinery, equipment and workers for the said purpose.

SGSB has contemporaneously filed a separate suit against the Company and WRSB in the High Court at

Tawau on 5 July 2023 under Suit No. TWU-22NCvC-12-7/2023 to claim for the remaining balance of the

Temporary Resolution amounting to RM7,000,000 and the removal of the fixtures and plants erected on

SGSB’s mining land measuring 150 acres. The claim was premised on the allegation that WRSB was

occupying that portion the land illegally. The Company and WRSB have filed a Defence to dispute the

entirety of the claim. The occupation of the 150 acres was based on the Letter of Consent dated 18

September 2015 issued by SGSB to WRSB at the material time.

The solicitor of the Company and WRSB is of the opinion that SGSB had wrongfully demanded for the

sum of RM6,000,000 from WRSB at the material time. There is no legal basis for SGSB to allege that

WRSB has illegally occupied its 150 acres of land to site its mining plant and equipment. This is because

SGSB had issued a Letter of Consent dated 18 September 2015 permitting WRSB to use that portion free

of charge.

The two Suits have been consolidated and are being heard together. The trial of the consolidated suits

commenced on 24 to 28 November 2025, with further trial dates scheduled on 23 to 27 February 2026, 27

to 30 April 2026, 11 to 15 May 2026 and 18 to 22 May 2026.

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