MEDIA RELEASE

COASTAL GROUP TAPS INTO THE FASTEST GROWING LNG SUPPLY CHAIN

1 August 2016

SANDAKAN, SABAH, MALAYSIA – Coastal Contracts Bhd (“Coastal Group”) today announced
that it has entered into a Memorandum of Understanding (“MOU”) with PT. Jaya Samudra Karunia
Internasional (“JSK”) for the acquisition of 49% equity interest in PT. Jaya Samudra Karunia Gas (“JSK
Gas”), a company incorporated in Jakarta, Indonesia.

JSK has a core business in coal transportation sector in Indonesia. Given the huge potential in Indonesia
LNG market, JSK has ventured into the LNG supply chain. Recently, it was awarded the LNG Regasification
and LNG Storage contracts to support a 200 MWh gas-fired power plant in Bali, Indonesia by Indonesian
state-owned company.

LNG regasification facilities generally fall into two main categories, fixed or floating. Here, we will focus on
the floating LNG regasification facilities, which is the Floating Storage Regasification Unit (“FSRU”) solution.
FSRU solution is intended to meet the energy demands of an ever-changing global market. It is an
innovative and ideal solution for safe, efficient and lower cost LNG transmission and storage as compared
to a land-based terminal. This is also the most economical way of adding storage and regasification capacity
to the local gas supply, where there are land constraints. There has also been emergence of FSRU
seasonal charter as flexibility becomes the fundamental theme. FSRU is also being used as a bridging
solution for the development of land-based terminals or as a mid-term solution until offshore gas discoveries
are commercialized.

The acquisition enables Coastal Group to establish its presence in the LNG supply chain and to develop
expertise in the FSRU solution. It will be able to build a new portfolio of LNG related products and services
which are core to the LNG downstream sector, especially for small-scale FSRU which is suitable for
archipelagic region, less capital intensive and requires shorter construction period. The acquisition also
enhances Coastal Group’s capabilities by venturing into the LNG supply chain and moving further up the
value chain in terms of technology, technical knowledge and expertise in the downstream sector.
Furthermore, it also allows Coastal Group to diversify its earnings stream while simultaneously, diverging
CCB’s risk profile from the Oil and Gas upstream sector.

“LNG market is deemed as the current fastest growing market given its excellence in terms of cost
efficiency as the use of LNG is very much cheaper than the other fossil energy sources. While there has
always been a significant cost differential between FSRU and onshore regasification terminals, the
evolution of a preference towards FSRU is rooted in several other factors including the need to reutilize
excess shipping capacity and the necessity to cater for seasonal gas demand. In certain jurisdictions such
as China and Indonesia, the shift towards FSRU was largely driven by the need to diversify the energy mix
and switch away from crude and coal to cleaner fuels such as natural gas. As such, we envisage an
exponential growth of the FSRU market”, said Mr Ng Chin Heng, the Executive Chairman of Coastal Group.

Coastal Contracts Bhd – Media Release 1 August 2016

“In Indonesia, the population is scattered across thousands of islands with varying levels of gas demand
and in certain parts of Indonesia where the water depth is too shallow for a conventional FSRU to operate,
small scale FSRU is the most suitable and efficient way for gas distribution, this implies that small scale
FSRU has very good prospect too, not only in Indonesia, but in other Southeast Asia countries, including
Malaysia”, he said.

“This strategic acquisition marks the first step towards our long term and mutually beneficial business
relationship with JSK. There will be more upcoming projects of similar kind following the successful delivery
of the first small-scale FRU and FSU in the world. As Indonesia’s power-generation plans are positioning
the country to become one of the fastest-growing markets for LNG and a regional first-mover in small-scale
LNG receiving terminal in Asia, we foresee exciting opportunities for growth in this new sector”, he added.

********************

Coastal Contracts Bhd – Media Release 1 August 2016

About Coastal Contracts Bhd

Established in 1982 and listed on the Main Market of Bursa Malaysia Securities Berhad since
August 2003, Coastal Group has two main business units namely Shipbuilding Division and Oil
& Gas Division. Shipbuilding Division specialises in fabrication and sale of Offshore Support
Vessels (“OSV”) and marine transportation vessels whereas Oil & Gas Division focus on the
development, ownership and chartering of strategic offshore assets for oil & gas upstream sector.

In addition, the Group’s combined yard space of about 100 acres is equipped with engineering
facilities offering vessel and offshore structure fabrication, as well as repair and maintenance
services.

Coastal Group has globe-straddling business networks and diversified customer base spanning
across many geographical locations, from Malaysia, Indonesia and Singapore to as far away as the
Middle East, Europe, Africa and the American continents. Coupled with proven track records and
a visionary management team that has close to 30 years of extensive experience in the maritime
industry, Coastal Group is primed to benefit from the global growth in offshore oil and gas
exploration, development and production activities as well as in regional commodities shipping.

Coastal has the prestigious honour of being featured in Forbes Asia’s list of 200 Best Under a
Billion for six years running (2006 to 2011). The annual list picked 200 top-performing publicly
traded corporations in Asia Pacific (with annual revenue between USD5 million and USD1 billion)
based on earnings growth, sales growth and return on equity in the past twelve months and over
three years. On top of that, Coastal was also a winner of the KPMG Shareholder Value Award for
five straight years (in respect of financial performance for 2005 to 2010). KPMG’s awards
applauded the top public listed companies in Malaysia that have focused on using their capital
efficiency towards the creation of improved economic profits for shareholders. In addition to the
commendations mentioned above, Coastal was also presented with “The Most Profitable Company
Award” for the Industrial Products Sector at TheEdge Billion Ringgit Club 2011 Corporate
Awards held in July 2011. Coastal won this distinctive award for achieving the highest return on
equity over the last three financial years.

Kindly forward all media enquiries to:

Kelvin Ng – nchong@coastalcontracts.com
Kong Wei Ket – wk.kong@coastalcontracts.com

Disclaimer
This media release is provided for information only. No assurance or guarantee is, or should be taken to be, given in
relation to the future business performance or results of Coastal Group. Nothing in this media release constitutes
investment advice and this media release shall not constitute an offer to sell or the solicitation of any offer to buy any
securities or otherwise engage in any investment activity. You should make your own enquiries and take your own
advice (including financial and legal advice) before making an investment in Coastal’s securities or in making a
decision to hold or sell your securities in Coastal.

Coastal Contracts Bhd – Media Release 1 August 2016