1) As for the justification on the purchase consideration, we wish to clarify that this share purchases is based on the great potential of the iron ore-mining business of GMT. If we look into the existing iron ore-mining license of GMT in Port Dickson, their annual output generated is estimated at 120,000 metric tonnes. Based on market average, the selling price of the output is estimated at RM200.00 per tonne, therefore total value of turnover would be approximately RM24 million annually. The iron ore-mining production cost according to industrial average is 54% of the sales generated, therefore this would produce a 46% profit margin amounting to about RM11 million per annum. In future, should GMT secures more iron ore-mining licenses, this investment would bring additional value to the Group.

 2) As for the financial information of GMT, please find Appendices 1.1, 1.2 & 1.3 per attached for the details.

 3) As for the effect of the transaction on Asiaep’s issued and paid-up share capital and substantial shareholders’ shareholdings, please find Appendix 2 per attached.

 4) The funding for the cash consideration will be from internally generated funds.

 5) As for the weighted average market price to be derived for the calculation, please find Appendix 3 per attached.

 6) We have mentioned that the Proposed Acquisition is subject to Bursa Malaysia Securities Berhad’s approval as stipulated in item (8) of the announcement. However, the issuance of the new shares as part of the purchase consideration is not subject to shareholders’ approval as the directors of the Company had on 16 June 2010 received the approval from the shareholders of the Company for the issuance of new shares of up to 10% of total issued shares capital of the Company pursuant to Section 132D of the Companies Act. The Company will utilise the said approval for the issuance of 20 million new shares to GMT in respect of this Proposed Acquisition.

 7) The Group is now exploring for alternative sources of income and this is our initial plan in tapping into the potential of the iron ore-mining industry. We are proposing to involve in mining of iron ore by acquiring shares in GMT as GMT currently requires financial support from investor to expand its production. Our involvement in iron ore mining has a high potential in contributing positive result to our financial position due to the market need of iron ore. As we are aware, China the world biggest consumer of iron ore require more than 1 billion ton of iron ore until year 2015 to produce steel.