General Announcement::UPDATE ON CALL BY CERTAIN SHAREHOLDERS

DARCO WATER TECHNOLOGIES LIMITED

(Incorporated in the Republic of Singapore)

(Company Registration No. 200106732C)

UPDATE ON:

CALL BY CERTAIN SHAREHOLDERS

FOR THE COMPANY TO COMMENCE ACTION AGAINST

CERTAIN INDIVIDUALS

NOTICE OF DISCONTINUANCE / WITHDRAWAL

1. INTRODUCTION
   The board of directors (the "Board" or "Directors") of Darco Water Technologies Limited (the
   "Company", and together with its subsidiaries, the "Group") refers to the Company's previous announcements made on 26 April 2021, 16 August 2021, 15 September 2021 and 13 October 2021 (the "Previous Announcements") in relation to, inter alia, the service to the Company of Court papers for a derivative action on 26 April 2021 ("OS 405/2021"), the fixing of the hearing for OS 405/2021 on 14 September 2021, the dismissal by the Court of the Plaintiffs' application for leave to commence statutory derivative proceedings in OS405/2021 on 14 September 2021 and the lodgment by the Plaintiffs of a notice of appeal to the appellate division of the High Court of
   Singapore against the High Court's decision in relation to OS405/2021 (the "Appeal").
   Unless otherwise defined, all terms and references used herein shall bear the same meanings ascribed to them in the Previous Announcements.
2. UPDATE ON THE PROCEEDINGS - NOTICE OF DISCONTINUANCE / WITHDRAWAL
   The Board wishes to update shareholders that the Plaintiffs have filed a notice of discontinuance / withdrawal of the Appeal (the "Notice of Discontinuance") with the Court on 8 December 2021. Pursuant to the Notice of Discontinuance, the Plaintiffs have wholly discontinued and withdrawn any action against the Company pursuant to the Appeal.
   The Company will continue to keep Shareholders updated on any material developments relating to the Group on a timely basis.
3. CAUTION IN TRADING
   Shareholders and potential investors are advised to exercise caution in trading their Shares Shareholders are advised to read this announcement and any further announcements by the

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Company carefully, and should consult their stock brokers, bank managers, solicitors or other professional advisors if they have any doubt about the actions they should take.

BY ORDER OF THE BOARD

Kong Chee Keong

Executive Director and Chief Executive Officer

9 December 2021

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