Share Buy-Back Mandate

Boustead’s Share Buy-Back Mandate was initially approved at an EGM held in FY2009 and has since been renewed on an annual basis. The Mandate provides Boustead with the flexibility to purchase or acquire shares when it is in the company’s best interests to do so - as a means of enhancing shareholder’s value.

A share buy-back enables the Directors to:

• Improve the return on equity;
• Enhance the EPS and the NTA per share (depending on the market conditions);
• Exercise greater control over the company’s share capital structure and dividend payments;
• Facilitate the return of surplus cash reserves over and above ordinary capital requirements;
• Mitigate short-term volatility in the company’s share price and offset the effects of short-term speculation;
• Bolster the confidence of investors and shareholders; and,
• Allow greater flexibility in providing shares to eligible employees under existing or future share-based incentive schemes.

Shares purchased under the Share Buy-Back Mandate can be held as treasury shares to satisfy the company’s obligations to furnish shares to eligible employees under share-based incentive schemes in a manner most beneficial to Boustead and its shareholders.

The Directors will only purchase or acquire shares as and when circumstances permit and only if it can benefit the company and shareholders.