General Announcement::Update in respect of Loan Facility

(Incorporated in the Republic of Singapore)

(Company Registration Number: 198203779D)

UPDATE IN RESPECT OF LOAN FACILITY

The Board of Directors (the "Board") of Pacific Star Development Limited (the "Company", and together with its subsidiaries, the "Group") refers to the announcement dated 24 December 2018 (the "Loan Facility Announcement") relating to the Group's S$70 million secured loan facility (the "Loan Facility"). Unless otherwise defined herein, capitalised terms shall have the meanings as ascribed to them in the Loan Facility Announcement and in the Company's results announcement dated 10 May 2021 for the third financial quarter ended 31 March 2021.

The Company wishes to announce that the Lenders have agreed to extend additional financing of S$2,000,000 to the Group (the "Loan Increment") under the existing framework (including the security arrangements thereunder) of the Loan Facility. The principal amount (excluding interest accrued and capitalised till date) under the Loan Facility would therefore be increased from S$70,000,000 to S$72,000,000. On 30 June 2021, Twin Prosperity Group Ltd (the Borrower as defined in the Loan Facility Announcement, and a wholly owned subsidiary of the Company) has executed the documentation pursuant to which the Lenders shall provide the Loan Increment to the Borrower.

The Loan Increment will be applied towards the working capital requirements of the Company and its subsidiaries outside of Malaysia. This is an interim financing measure whilst the Company's management team continues to work on obtaining Additional Financing and the Package Deal to address the short-term working capital needs of the Group.

Although the Lenders of the Loan Facility, which was due in December 2020, have not called for repayment at this point of time, they continue to reserve their rights and remain constructive in the discussions relating to the Additional Financing (to be provided on a secured basis) and Package Deal. Hence, the Loan Increment and the Loan Facility are currently repayable on demand.

None of the Directors and/or the controlling shareholders of the Company and their respective associates have any interest, direct or indirect, in the Loan Increment, save for their interests by virtue of their shareholdings, as the case may be, in the Company and the Group.

ON BEHALF OF THE BOARD

Ying Wei Hsein

Executive Chairman

30 June 2021

This announcement has been reviewed by the Company's Sponsor, SAC Capital Private Limited (the "Sponsor"). This announcement has not been examined or approved by the Singapore Exchange Securities Trading Limited (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. David Yeong, SAC Capital Private Limited at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542. Telephone number: [phone].

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