| Introduction | Molan Steel Company announces receiving a notice of registration of a commercial lawsuit instituted by Yara International Limited against Molan Steel Company before the Commercial Court in Riyadh. |
| Lawsuit Opponent | Yara International Limited |
| Name of the Plaintiff | Molan Steel Co. |
| Type of the Lawsuit | Contract cancellation |
| Name and Location of the Competent Judicial Authority | The Commercial Court in Riyadh |
| Date of Submitting the Lawsuit | 2025-10-05 Corresponding to 1447-04-13 |
| Summery of the Lawsuit and its Reasons | The Lawsuit was filed due to a fundamental error in the financial statements issued on the acquisition date of November 30, 2024, by the defendant (Yara International Limited), upon which the purchase price of the branch subject to the contract was based, which directly and materially affected a significant increase in the contract value. |
| Expected Financial Impact Including the Claimed Sums, Fees and any other Charges | Return the amount of 17,000,000 riyals paid to the seller (Yara International Limited), and cancel the liabilities and assets arising from this contract which included in the preliminary statements issued on June 30, 2025. |
| Any Substantial Legal, Regulatory, or Operational Risks that may Result from the Lawsuit, including the Results of such Impact on the Company's Financial, Legal or Operational Standing | At this stage, the potential legal consequences and risks associated with this case cannot be determined. The Company will announce any material developments related to this Lawsuit in due course. |
| Measures Taken by the Company, including the Estimation of the Potential Liability Resulting from the Lawsuit | Based on the available documents, the company obtained legal advice on its right to nullify the contract. The company also notified the defendant of its intention to resort to the judiciary via an official letter addressed to them. Mediation was also sought to resolve the dispute amicably, but reconciliation was unsuccessful. Accordingly, the company does not expect to bear any liability as a result of filing the lawsuit. |
| Additional Information | Any other material developments related to the lawsuit will be announced in due course. |
