RHM.L Regulatory News (RHM)

19 November 2015

Resource Holding Management Limited

("RHM" or the "Company")

PUCF group photovoltaic contract

The Board of RHM (AIM:RHM) notes the announcement made today by PUCF Founder (MSC) Berhad ("PUCF"). RHM's wholly owned subsidiary, RedHot Media International Limited ("RMIL"), currently holds 443,168,402 ordinary shares in PUCF which represents 41.58% of PUCF's issued share capital, and 36,215,840 warrants to subscribe for new PUCF shares.

PUCF's announcement states that PUCF's wholly owned subsidiary, Founder Energy Sdn Bhd ("FESB") has today entered into a contract with Gen Master Manufacturing Sdn Bhd ("Gen Master"), whereby FESB is to undertake the design, supply, installation, testing and commissioning of a 420 kilowatts peak (nominal) photovoltaic grid connected system and all ancillary works (the "Contract"). The value of the Contract is RM 3,967,122, with the project taking place in Malaysia.

Gen Master was incorporated in Malaysia on 15 June 2001 as a private limited company and is principally involved in the importation, export sales and retail of tractor parts, generators and heavy machinery.

The Contract period shall commence from 18 November 2015 and is to be complete by 31 December 2015, unless terminated earlier or extended in accordance with its terms or agreed otherwise by FESB and Gen Master in writing.

PUCF's announcement states that FESB has agreed to pay certain liquidated and ascertained damages to Gen Master at a rate of RM500 per calendar day in the event that FESB fails, refuses and/or neglects to complete the works within the Contract period or any extension thereof. The number of days of delay caused by force majeure shall be excluded from the computation of liquidated and ascertained damages.

PUCF's announcement also states that FESB shall indemnify and keep Gen Master indemnified against all claims, actions, damages, liabilities, outgoings, losses, costs (including legal costs on a solicitor and client basis) and expenses that Gen Master may incur and/or suffer in respect of any negligence of performance or professional services, and/or breach and/or default on FESB's part in the provision of the works.

PUCF's announcement highlights a number of business risks that FESB faces in respect of the Contract, including, inter alia, increases in costs, non-completion of the Contract and delays in completion of the Contract.

PUCF's announcement also states that the Contract is expected to contribute positively to the future earnings of the PUCF group.

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