Asset Acquisitions and Disposals::UPDATE ON PROPOSED INVESTMENT IN ADAZAL PRIVATE LIMITED

Metal Component Engineering Limited

(Incorporated in the Republic of Singapore)

(Company Registration 198804700N)

UPDATE ON PROPOSED INVESTMENT IN ADAZAL PRIVATE LIMITED

The board of directors (the "Board") of Metal Component Engineering Limited (the "Company" and together with its subsidiaries, the "Group") refers to the Company's announcement on 19 November 2021 (the "Announcement") in relation to the Group's proposed investment in Adazal Private Limited (the "Proposed Investment"). Unless otherwise defined herein, capitalised terms used herein shall bear the same meaning ascribed to them in the Announcement.

The Board wishes to update that the Company had, through the Sponsor, consulted the SGX-ST on the applicability of Rule 1014(2) of the Catalist Rules on the Proposed Investment, and the SGX-ST has confirmed that based on the Company's submissions and representations to the SGX-ST, the SGX- ST has no objection to the Company's view that the Proposed Investment constitutes a discloseable transaction within the meaning of Chapter 10 of the Catalist Rules and that the Company would not need to convene an extraordinary general meeting to seek Shareholders' approval for the Proposed Investment.

The Company will make further announcements, in compliance with the requirements of the Catalist Rules, as and when there are material developments in respect of the Proposed Investment. Shareholders and potential investors of the Company should note that there is no certainty or assurance as at the date of this announcement that the Proposed Investment will be completed. The completion of the SSA and the SPA are interdependent and subject to conditions which may or may not be fulfilled, including the SPA being subject to the receipt of the listing and quotation notice in respect of the Consideration Shares on Catalist of the SGX-ST. Shareholders and potential investors of the Company are advised to read this announcement and any further announcements made by the Company carefully.

By Order of the Board

Lee Wei Hsiung

Company Secretary

9 December 2021

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

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 Ms Alice Ng, Director of Continuing Sponsorship, ZICO Capital Pte. Ltd., at 8 Robinson Road #09-00 ASO Building, Singapore 048544, telephone [phone].