On behalf of the Board of Directors of Reach Energy, Hong Leong Investment Bank Berhad and Maybank Investment Bank Berhad wish to announce that Reach Energy has on 5 March 2016 entered into a tri-partite conditional Sale and Purchase Agreement with Palaeontol Cooperatief U.A. ("Palaeontol COOP") and MIEH for the proposed acquisition by Reach Energy or a wholly-owned special purpose vehicle to be incorporated by Reach Energy, of 60% equity interest in Palaeontol B.V., a wholly-owned subsidiary of Palaeontol COOP which in turn is an indirect wholly-owned subsidiary of MIEH and 60% of the shareholder loans in Palaeontol B.V. from MIEH for a total purchase consideration of USD154.9 million (equivalent to RM638.2 million), subject to adjustments.

Please refer to the attachment for further details.