The Board of Directors (“Board”) of SILK Holdings Bhd (“Company”) wishes to announce that the Company, had on 5 September 2014, incorporated a 51% owned subsidiary in Malaysia known as Jasamerin Energy Ventures Sdn Bhd (“JMEV”). The Certificate of Incorporation of JMEV was received on 5 September 2014.

JMEV has an authorised share capital of Ringgit Malaysia One Million (RM1,000,000.00) only divided into 1,000,000 ordinary shares of RM1.00 each, of which 100 ordinary shares have been issued at par and fully paid-up.

The principal activity of JMEV is to explore other opportunities in the oil and gas sector.

Subsequent to the incorporation, the Company will subscribe an additional 509,949 ordinary shares of RM1.00 each at par for a cash consideration of RM509,949.00, representing 51% of the allotment of 999,900 ordinary shares of RM1.00 each in the issued and paid-up share capital of JMEV, in proportion to the existing shareholdings of the Company in JMEV.

The incorporation of JMEV will not have any effect to the issued and paid-up capital of the Company as well as its substantial shareholders’ shareholdings and is not expected to have a material effect on the earning, net assets and gearing of the Company and the Group for the financial year ending 31 July 2015.

None of the directors or major shareholders or person connected with the directors or major shareholders has any interest, direct or indirect in the incorporation of JMEV.

This announcement is dated 5 September 2014.