General Announcement::General Update

MAGNUS ENERGY GROUP LTD.

(Incorporated in Singapore)

(Registration No. 198301375M)

GENERAL UPDATE

The Board of Directors ("Board") of Magnus Energy Group Ltd (the "Company" and, together with its subsidiaries, the "Group") refers to the announcements dated 6 August 2018, 12 October 2018, 12 November 2018, 6 March 2019, 4 April 2019, 28 June 2019, 23 August 2019, 30 September 2019, 31 December 2019, 31 March 2020, 30 June 2020, 30 September 2020, 30 December 2020, 31 March 2021, 29 April 2021 and 30 June 2021 (the "Previous Announcements") and wishes to provide a general update on the ongoing affairs of the Group.

Save as otherwise defined, all capitalised terms shall have the same meaning as the Previous Announcements.

GENERAL UPDATE (July 2021 - September 2021)

WITHDRAWAL OF REVISED PROPOSAL FOR RESUMPTION OF TRADING

The Company has, on 30 September 2021, applied through its continuing sponsor ("Sponsor") to withdraw its Revised Resumption Proposal which was submitted to the SGX-ST on 27 May 2021. In arriving at the decision to withdraw the Revised Resumption Proposal, the Board has considered, among others, the following developments:

1. The unexpected delay and the lack of clarity from JTC to approve the sale of the Loyang Property (the "Delay"). The expected cash inflow from the completion of the sale of Loyang Property was intended to be used to demonstrate the Company's financial viability to complete contracts (if awarded) to its business partners and in its business ventures. Please refer to the section entitled "Property in Loyang (Singapore)" of this announcement for the latest development with JTC on the Loyang Property.
2. While there have been certain contracts that were awarded in favor of the Company's Indonesian subsidiary, PT Oriental Magnus Engineering Indonesia ("PT OMEI"), PT OMEI was not able to participate therein as the Company was not in the position to commit the requisite funds for the execution of the related projects. Had the sale of Loyang Property been completed without the Delay, PT MEI would have been a party to these contracts.
3. The Delay, along with the resurgence of Covid-19 cases around the world and prevailing travel restrictions, has also affected the Company in its pursuance of the potential business ventures mentioned in the Previous Announcements.
4. Suits 202 and 1075 (as defined below) are still ongoing and at this stage the Company is not able to obtain clarity on the potential proceeds/liabilities to be realized in the event of a settlement. The Company is expected to have to continue to pay for legal expenses incurred until a settlement is reached for both Suits 202 and 1075.

In light of the foregoing, the Company requires more time to demonstrate the viability of its new businesses to the SGX-ST i.e. when it has (i) either definitively secured project(s) / contract(s) or entered into binding agreement(s) in relation to such project(s) / contract(s), as well as (ii) obtained clarity as to the status / timeline for concluding the sale of the Loyang property and Suits 202 and/or 1075. The Board recognises the aforementioned challenges faced by the Company and will continue to work closely with the EBS Consultant and JTC to first complete the disposal of the Loyang Property before pursuing such business ventures. Notwithstanding, taking into consideration the Company's working capital position, discussions with the Management and the current business performance and outlook of the Company's subsidiary, Mid-Continent Equipment, Inc. ("MEI"), the Board has assessed that the Company is able to continue as a going concern.

The Company will aim to submit a new proposal (the "New Resumption Proposal") to the SGX-ST once it has achieved meaningful progress on its business diversification plans and when it has greater clarity about the

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MAGNUS ENERGY GROUP LTD.

(Incorporated in Singapore)

(Registration No. 198301375M)

GENERAL UPDATE

status and timeline of the aforementioned issues. The Company will make the necessary application to the SGX-ST through its Sponsor for such an extension of time to submit the New Resumption Proposal in due course.

The Company will keep the shareholders of the Company ("Shareholders") updated on any further material developments in respect of the above matter.

POTENTIAL BUSINESS VENTURES

There are no material updates to the potential business ventures listed below, please refer to the Previous Announcements for more details on these business ventures:

1. Heads of agreement signed on 24 May 2021, with Area Energy Inc, primarily due to the resurgence of Covid-19 cases around the world and prevailing travel restrictions.
2. Letter of offer from the Indonesian chemical plant operator (the "Client") for the refurbishment and reactivation of the Client's chemical plant. The Company is in communication with the Client on the commencement date.
3. Heads of agreement between PT OMEI and the state-owned enterprise (the "SOE") on 8 December 2020, partially due to the current pandemic situation and the lack of funding support as described in the first section of this announcement.
4. Cooperation agreement entered between OMEI and the SOE on 25 November 2020 due to same reasons as (3) above.

ASSET DISPOSALS

1. MEG Management Sdn Bhd ("MMSB")
   As set out in the Previous Announcements, the Company will continue to retain MMSB until a settlement is reached on the Company's writ of summons in the High Court of Singapore (the "Court") against former directors and/or officers of the Company.
2. Flagship Ecosystems Pte. Ltd. ("FES")
   The Company had on 14 June 2021 applied to ACRA to strike off FES. A notice dated 4 August 2021 has been published in the Government Gazette for this purpose. If there is no objection received within 60 days from the notice (that is 3 October 2021), the name of the Company will be struck off from the register. As at the date of this announcement, the Company did not receive any objection to the strike-off application.
3. Property in Loyang (Singapore)
   On 21 July 2021, Mid-Continent Equipment Group Pte. Ltd. ("Midcon") had submitted the exit Environmental Baseline Study ("EBS") to JTC.
   On 18 August 2021, JTC highlighted to Midcon that there is barium contamination in the groundwaters of the Loyang Property. Midcon and the EBS Consultant had clarified with JTC that Midcon should not be held responsible for the barium contamination since Midcon has never handled barium in its operations nor has/stored barium in its premises. The contamination arises from external source(s), where Midcon is not

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MAGNUS ENERGY GROUP LTD.

(Incorporated in Singapore)

(Registration No. 198301375M)

GENERAL UPDATE

in a position to ascertain the source of the contamination, that flowed through groundwater into the Loyang Property. The Company understands that the level of barium is not hazardous to human.

Following the clarification discussion between Midcon and JTC, Midcon had worked with the EBS Consultant and on 17 September 2021, submitted a revised EBS report to JTC. The revised EBS report has included further details that substantiate Midcon's view that the contamination is due to external factors. Midcon will continue to follow up with JTC on the matter and the Company will keep Shareholders updated on any further material developments in respect of the aforementioned.

ACCOUNTABILITY AND LEGAL PROCESSES

1. LEGAL DISPUTES ON INDONESIAN CONTRACTOR, PT HANJUNGINThere are no material updates to this matter.
2. THAMES CAPITAL
   There are no material updates to this matter.
3. HC/S 202/2020 ("Suit 202") - Action by the Company against its former directors and former CEO
   The Company had on 3 March 2020 filed a writ of summons in the Court against the following former directors and/or officers of the Company:
4. 1. Luke Ho Khee Yong ("Luke Ho") (former chief executive officer);
   2. Seet Chor Hoon (former independent director);
   3. Kushairi bin Zaidel (former chairman and independent director);
   4. Ong Sing Huat (former non-independentnon-executive director);
   5. Ong Chin Chuan (former independent director);
   6. Lim Kuan Yew (former managing director); and
   7. Koh Teng Kiat (former chief operating officer and executive director),

(collectively, the "Defendants").

Parties have concluded the specific discovery stage of the proceedings arising from Luke Ho's amendments to his Defence ("Amended Defence") and the Company's consequential amendments to its Reply to Luke Ho's Defence. The parties have been directed by the Court to file and exchange the Affidavits of Evidence- in-Chief of their respective witnesses of fact by 6 December 2021. Whilst the Company is prepared to proceed to trial, the Company is concurrently considering preliminary settlement proposals from a few defendants and open to exploring settlement of the suit with all the defendants and the insurance company.

1. HC/S 1075/2020 ("Suit 1075") - Action by Thong Soon Seng against the Company and Third Party Proceedings commenced by Company against Luke Ho (the "Third Party")
   On 29 February 2020, the Board received a letter of demand from a Mr. Thong Soon Seng regarding a loan allegedly entered into by the Company's former CEO, Luke Ho. The Company has no records of this transaction, as announced on 3 March 2020.

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MAGNUS ENERGY GROUP LTD.

(Incorporated in Singapore)

(Registration No. 198301375M)

GENERAL UPDATE

On 10 November 2020, the Company was served with the Writ of Summons and Statement of Claim in respect of Mr. Thong's claim against the Company under the Alleged Oral Loan Agreements.

On 18 January 2021, the Company filed its Statement of Claim against the Third Party Luke Ho. Luke Ho then filed his Defence on 1 February 2021 and the Company filed its Reply to Luke Ho's Defence on 16 February 2021.

On 16 September 2021, the Plaintiff amended his Statement of Claim ("Amended Statement of Claim").

Arising from the Amended Statement of Claim, the Company will have to file its amended Defence by 30 September 2021. The Company will also be amending its Statement of Claim against Luke Ho in the Third Party proceedings.

The Company will keep Shareholders updated when there are material developments in respect of all matters above.

BY ORDER OF THE BOARD

Magnus Energy Group Ltd.

Charles Madhavan

Executive Director and

Chief Executive Officer

30 September 2021

This announcement has been prepared by the Company and reviewed by the Company's sponsor, Novus Corporate Finance Pte. Ltd. (the "Sponsor"), in compliance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited (the "SGX-ST") Listing Manual Section B: Rules of Catalist.

This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made, or reports contained in this announcement.

The contact person for the Sponsor is Mr Pong Chen Yih, Chief Operating Officer, at 7 Temasek Boulevard, #18-03B Suntec Tower 1, Singapore 038987, telephone [phone].

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