Middle East Paper Co. Announces Update on the Use of the Proceeds of Issuing shares with Suspension of Rights Issue

The Company announces that its Board of Directors has recommended, on 21/02/1448H corresponding to 04/08/2026G, presenting to the next General Assembly a proposal to amend the use of the Net Offering Proceeds, as set out below.

The Company notes that, if approved by the General Assembly and implemented, the proposed amendment would result in a discrepancy of 5% or more between the actual use of the Net Offering Proceeds and the planned uses announced in the prospectus, in accordance with the prospectus and Article 57(f) of the current Rules on the Offer of Securities and Continuing Obligations.

The proposed reallocation is intended to optimize the use of the Net Offering Proceeds, by prioritizing projects that are ready for execution and capable of generating near-term strategic and economic value while preserving the Company’s long term growth objectives.

The proposed amendments to the use of the Net Offering Proceeds are as follows:

1. Construction of the Containerboard Production Plant - Al Tadweer Al Akhdar Company (PM5): Increase the allocation from SAR 174,806,124 to SAR 465,931,015.65, by reallocating the entire amount previously allocated for the acquisition in the corrugated boxes sector, amounting to SAR 291,124,891.65, to fund the project using internal cash, reducing the need for debt financing and accelerating its execution.

2. Production Expansion Project of Juthor Company - Tissue Mill (TM6): No change to the allocation of SAR 153,978,495.76.

3. Acquisition in the corrugated boxes sector: Reallocate the full allocation of SAR 291,124,891.65 to the PM5 project.

The proposed reallocation reflects the Company’s current investment priorities and the absence of any immediate acquisition opportunities requiring deployment of the allocated capital. It does not represent a change in the Company’s M&A strategy, which remains unchanged. The Company continues to evaluate acquisition opportunities and retains the financial flexibility to pursue value-accretive transactions as they arise.

The proposed amendments do not change the total Net Offering Proceeds and are expected to enhance capital efficiency, support the Company’s growth strategy and maximize long-term shareholder value.

Attached is a table showing the uses of the Net Offering Proceeds as stated in the Prospectus, the proposed reallocation, the variance percentages, and the reasons and justifications for the proposed amendments.