Molan Steel Co. Announces an update on Previously Announced Event: The Company's accumulated losses reaching 99.21% of its capital

First:The Board of Directors has adopted a plan to address the accumulated losses, building on measures previously implemented by the Company, comprising a cost restructuring and operational efficiency program — including the centralization of operationsin Riyadh, rationalization of fixed expenses, andimproved inventory and working capital management— in addition to accelerating its industrialtransformation through the acquisition of MayarInternational Industry Company (Cool Master) andthe expansion of products and services with higherprofit margins. Second: Pursuant to this plan, the Board has resolved to call the Extraordinary General Assembly to convene, no later than 25/10/2026, toconsider the Company's continuation of its businessactivities, and to vote on proceeding with the existingcapital increase application before the Capital MarketAuthority, increasing the Company's capital from SAR(26,600,000) to SAR (53,200,000) through a fully-subscribed rights issue offering to shareholders, incompliance with the statutory deadline stipulatedunder Article (132) of the Companies Law. Third: Following the implementation of the capital increase resolution and its registration with the Commercial Registry, the plan will be further implemented through capital reduction procedures, reducing the Company's capital to SAR (26,810,480) through the cancellation of (26,389,520) shares, in order to fullyextinguish the accumulated losses, subject tofulfillment of the relevant regulatory requirements, obtaining the approval of the Capital MarketAuthority, and submitting the recommendation to theExtraordinary General Assembly for voting in duecourse. Fourth: The Company will announce any further material developments in this regard as they occur.