INTRODUCTION

SILK Holdings Bhd (“SHB”) is pleased to announce that its subsidiary, Jasa Merin (Malaysia) Sdn Bhd (“JMSB”), has been awarded a contract by Vestigo Petroleum SdnBhd (“VPSB"), for the provision of Marine Vessel Services to Support Vestigo’s Drilling Program & Production for Tembikai Field Development.

DURATION OF CONTRACT

The contract, commencing from the third week of June 2015, is for a primary term of two (2) years.

RISK FACTORS

Risk factors affecting the contract are mainly operational risks such as accidents and unexpected breakdown of vessel. Notwithstanding this, the Company shall ensure strict compliance with the safety and operational procedures in the execution of contract requirements and has developed a programmed maintenance schedule which stringently adheres to the International Safety Management (ISM) Standards in maintaining performance and seaworthiness of all its vessels.

FINANCIAL EFFECTS

The contract, estimated to have a value of approximately RM21.170Million for the primary term, is expected to contribute positively to the earnings of the Group for the financial year ending 31 July 2015 and beyond. The contract is not expected to have any effect on the share capital and shareholding structure of SHB. There are no significant risks involved in JMSB fulfilling its obligations under the contract.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the contract awarded.

DIRECTORS’ STATEMENT

The Board of SHB is of the opinion the acceptance of the contractis in the best interest of the Group.

This announcement is dated 3 June 2015.