Clarification To The Announcement In Relation To The Notice Of Annual General Meeting

Reference is made to the Notice of Annual General Meeting ("AGM") released by Yongnam Holdings Limited (the "Company") on 13 April 2009 under announcement no. 00130 in particular, in relation to the agenda items 6 and 7 in the Notice of AGM.

The Company wishes to clarify the following matter:-

Resolution 8: Authority to allot and issue shares up to 100% of the total number of issued shares excluding treasury shares of the Company on a pro-rata basis by way of a renounceable rights issue.

Resolution 8 serves to seek the approval of the shareholders to allow the Company to increase the 50% limit in Resolution 7 to 100% only for pro-rata renounceable rights issues. This resolution is subject to the approval of Ordinary Resolution 7.

BY ORDER OF THE BOARD

SEOW SOON YONG
Chief Executive Officer
16 April 2009