Updates On Legal Proceedings Brought By Jiwa Harmoni Offshore Sdn Bhd As The Plaintiff Against Ishi Power Sdn Bhd As The Defendant In Respect Of The Project Known As Construction Of 3 X 700MW Coal-Fired Power Plant At Tanjung Bin, Johor, Malaysia

The Board of Directors of Yongnam Holdings Limited (the "Company") refers to the announcement made by the Company on 29 October 2007 in relation to JIWA HARMONI OFFSHORE SDN BHD ("JHO"), a wholly owned subsidiary of the Company's subsidiary, YNE Project Engineering Pte. Ltd., commencing legal proceedings in the High Court of Kuala Lumpur against ISHI POWER SDN BHD ("ISHI") in respect of disputes arising from the project known as CONSTRUCTION OF 3 X 700MW COAL-FIRED POWER PLANT AT TANJUNG BIN, JOHOR, MALAYSIA (the "Project").

In the same announcement, the Company stated that JHO had obtained an interim injunction from the High Court of Kuala Lumpur, Malaysia restraining ISHI, its agent, servants or whosoever from calling on the performance bonds issued to ISHI in respect of the Project.

On 30 March 2009, the High Court of Kuala Lumpur, Malaysia ruled that the interim injunction obtained to restrain ISHI from calling on the performance bonds be dismissed. The Company has submitted an appeal to the Court of Appeal of Kuala Lumpur, Malaysia ("Court of Appeal") against the decision of the High Court of Kuala Lumpur, Malaysia. The Company wishes to announce that the Court of Appeal is yet to fix a hearing date for the said appeal by the Company.

In the interim, the Company is making arrangement with ISHI's lawyers for the sum totaling RM3,262,500 (approximately S$1,370,000, which represents the full value of the performance bonds) to be paid over to a joint solicitors interest bearing account, as stakeholders pending the hearing and disposal of the appeal.

The Company will continue to make further announcement(s) as and when there are material developments concerning the above matter.

BY ORDER OF THE BOARD
SEOW SOON YONG
8 April 2009