Reference is made to the Company's previous announcement(s) dated 19 December 2025, 23 December 2025, 26 December 2025 and 31 December 2025 in relation to the material litigation under Suit No. TWU-22NCvC-30-10/2025 (HC) ("Suit 30") involving the Company and its wholly-owned subsidiary, Wullersdorf Resources Sdn. Bhd. ("WRSB") ("the Group"), specifically:
(a) the Stay Application (Enclosure 31) ("Stay Application") filed by the Company and WRSB against Southsea Gold Sdn. Bhd. ("the Plaintiff" or "SGSB"); and
(b) the Injunction Application (Enclosure 4) ("Injunction Application") filed by the Plaintiff against WRSB.
The Board of Directors of the Company ("the Board") wishes to announce that on 30 July 2026, the High Court of Sabah & Sarawak at Tawau delivered its ruling on the Stay Application and Injunction Application.
1. DETAILS OF THE COURT'S RULING
1.1 Stay Application (Enclosure 31)
The Court allowed the Stay Application on, inter alia, the following terms:
(a) all substantive proceedings in Suit 30 are stayed pending the disposal of Suit No. TWU-22NCvC-5-2/2024 ["Suit [5]"] at the High Court (Note: in Suit [5], the Company and WRSB are the Plaintiff and SGSB is the 4th Defendant - which is on-going);
(b) the stay is to continue for thirty (30) days after the delivery of the judgment in Suit [5];
(c) within the said 30-day period, either party may apply for the stay to be continued, varied or discharged;
(d) the stay does not operate as a stay of further preservative relief upon:
- fresh evidence of tailings storage facility ("TSF") failure;
- imminent environmental danger;
- fresh regulatory orders;
- a material breach of an existing safety direction; or
- any material change in circumstances arising after the order.
The principle ground for granting the Stay Application was on the basis that Suit 30 constitutes a multiplicity of proceeding vis-a-vis Suit [5], which is presently on-going.
1.2 Injunction Application (Enclosure 4)
Following the decision on the Stay Application, the Court also stayed the Injunction Application pending the disposal of Suit [5] and any appeals arising therefrom. The Plaintiff is at liberty to apply to restore the Injunction Application after the stay is lifted, or earlier, upon demonstrating a material change in circumstances.
To note, the High Court took cognizance of the present injunctions obtained by the Company and WRSB on 4 December 2023 and 6 November 2023 in Suit [5].
2. STRIKING OUT OF CLAIM AGAINST MR. CHONG TZU KHEN
2.1 The Board also wishes to update that, Mr. Chong Tzu Khen, Chief Executive Officer of the Company, ("Mr. Chong") was sued by SGSB as part of Suit 30 as the 5th Defendant.
2.2 On 23 February 2026, Mr. Chong filed an application to the High Court for, amongst other prayers, that the claim made by SGSB against him to be struck out.
2.3 Concurrent with the ruling on the Stay Application and Injunction Application on 30 July 2026, the High Court allowed the said application, and SGSB's claim against Mr. Chong was struck out. The Tawau High Court also ordered costs in the sum of RM8,000.00 to be paid by SGSB to Mr. Chong.
3. FINANCIAL AND OPERATIONAL IMPACT
The Court's decision is not expected to have any material financial or operational impact on the Group, including on earnings, net assets or gearing for the financial year ending 30 September 2026.
This announcement is dated 31 July 2026.