ARES ASIA(00645): AAR is currently working on resolving the related matters of receivables from end customers.

ARES ASIA (00645) Announcement: On March 18, 2024, Ares Asia Resources Pte. Ltd. (AAR) (an indirect wholly-owned subsidiary of the Company) entered into a Coal Purchase Agreement with a supplier (Supplier), a company incorporated in the Republic of Singapore. The Supplier agreed to sell and AAR agreed to purchase a specified quantity of Indonesian thermal coal (Coal Goods) under the agreement. On February 6, 2025, AAR submitted an arbitration application to the Singapore International Arbitration Centre against the Supplier for contractual disputes under the Coal Purchase Agreement. AAR is seeking compensation of $3.835 million for amounts paid to the Supplier, damages, interest, legal costs and expenses, as well as a statement and order for the Supplier to compensate any costs and expenses incurred by the Company's clients as a result of any claims related to Coal Goods, and any other remedies deemed appropriate by the arbitration tribunal. On February 12, 2025, the Singapore International Arbitration Centre notified AAR that the arbitration has commenced and is ongoing. The Company will continue to seek legal advice and take necessary actions to protect its best interests. AAR is dealing with matters related to receivables from end customers. Due to the Supplier's failure to fulfill key terms of the Coal Purchase Agreement, it is currently uncertain whether AAR can recover approximately $3.317 million in receivables from end customers. The ability to recover this receivable will depend on the outcome of the arbitration. As of the date of this announcement, due to the arbitration being in its preliminary stages, the Company is unable to accurately predict the final outcome of the arbitration or assess its impact on the Company's financial position. If there are any further developments regarding the arbitration, the Company will issue another announcement in accordance with relevant regulations to inform shareholders and the public.