Regal International : Update on the Notice of Compliance – Appointment of Special Auditor

The Board of Directors (the 'Board') of Regal International Group Ltd. (the 'Company') refers to:

1. the notice of compliance (the 'Notice of Compliance') issued by Singapore Exchange Regulation ('SGX RegCo') on 29 March 2021; and
2. the announcement made by the Company on 2 April 2021 titled 'Announcement in relation to Notice of Compliance issued by Singapore Exchange Regulation on 29 March 2021' (the '2 April 2021 Announcement').

All capitalised terms used in this announcement, which are not defined, shall have the meanings ascribed to them in the Notice of Compliance and the 2 April 2021 Announcement. In particular, 'Disposal' refers to the disposal of 1,000,000 ordinary shares in Upright Strategy Sdn Bhd held by Bellanova Sdn Bhd, a wholly owned indirect subsidiary of the Company, representing the entire issued share capital of Upright Strategy Sdn Bhd, to Twin Revenue Sdn Bhd ('Twin Revenue') for a cash consideration of RM 2,500,000. The Disposal was completed on 31 December 2019. Twin Revenue is not an 'interested person' as defined under Listing Rule 904(4)(a).

Shareholders are advised to refer to the full text of the Notice of Compliance and the 2 April 2021 Announcement, which are available on SGXNet, for further details.

Listing Rule 704(14) provides, inter alia, that an issuer must immediately announce any appointment of a special auditor and the issuer may be required by the SGX-ST to announce the findings of the special auditors.

The Board wishes to inform shareholders of the Company that the Audit Committee of the Company has, in consultation with SGX RegCo, appointed Deloitte & Touche Financial Advisory Services Pte Ltd as the special auditor of the Company on 28 July 2021 to conduct an independent review into the Disposal as well as all transactions involving the Company and Twin Revenue as highlighted in RSM Chio Lim LLP's audit report for FY2019.

The special auditor of the Company, Deloitte & Touche Financial Advisory Services Pte Ltd, shall provide regular updates of its findings to the Audit Committee of the Company and SGX RegCo. Upon completion of the special audit, the special auditor of the Company shall issue a written report to the Audit Committee of the Company outlining, inter alia, the engagement scope, work performed, key observations and findings.

The Company will make further announcements to update shareholders of the Company on any material developments in connection with the special audit as and when necessary or appropriate.