Southern Alliance Mining Ltd. Issues Clarification on Temporary Suspension at Associated Company, MCRE Resources Sdn Bhd

Key Highlights

• Southern Alliance Mining Ltd. (SAM) holds a 40% equity interest in MCRE Resources Sdn Bhd (MCRE).
• MCRE has received a formal directive from the Minerals and Geoscience Department Malaysia to temporarily suspend operations at its rare earth elements (REE) mining site in Hulu Perak, Perak.
• The suspension is for three (3) weeks and is a response to a recent water discoloration incident in Sungai Perak, which has been widely reported in the media.
• This suspension order affects three mining companies in the area, including MCRE.
• Important: MCRE’s operating licence has not been suspended – only a temporary halt to operations has been ordered.
• The purpose of the suspension is to facilitate investigations by Malaysian authorities, including the Department of Environment (DOE), into the cause of the water discoloration.
• MCRE is cooperating fully with the authorities and remains committed to environmental responsibility and compliance with all regulations and the approved Environmental Impact Assessment (EIA).
• The Board of SAM does not expect the temporary suspension to have any material impact on the Group’s financial performance at this time.
• SAM will provide further updates to shareholders on any material developments as they arise.

Detailed Information for Investors

Southern Alliance Mining Ltd. (SAM), a company incorporated in Singapore, has issued a clarification regarding its associated company, MCRE Resources Sdn Bhd (MCRE), following numerous media reports related to a recent environmental incident.

MCRE, in which SAM owns a significant 40% stake, has received a letter from the Malaysian Minerals and Geoscience Department, dated 13 November 2025, instructing a temporary suspension of works at its rare earth elements (REE) mining operations in Hulu Perak, Perak. The suspension order is for three weeks and has been issued to three mining companies operating in the vicinity. The directive follows a water discoloration incident in Sungai Perak, which has attracted media attention and regulatory scrutiny.

It is crucial for shareholders to note that MCRE’s operating licence remains valid and has not been revoked or suspended. The action taken is a temporary measure, intended to allow authorities, including the Department of Environment (DOE), to thoroughly investigate the cause of the discoloration. The outcome of these investigations could have implications for ongoing operations and regulatory compliance, but as of the latest update, there is no indication of wrongdoing or permanent closure.

MCRE has assured SAM and stakeholders that it is fully cooperating with the relevant authorities and is steadfast in its commitment to maintain high standards of environmental responsibility. The company continues to comply with all applicable regulations and the requirements of its Environmental Impact Assessment (EIA).

From a financial perspective, SAM’s Board is closely monitoring the situation and, based on current information, does not expect the three-week suspension to have any material impact on the Group’s financial performance. However, given the high-profile nature of the incident and the regulatory attention, shareholders should remain alert for further announcements that may arise from the ongoing investigations.

The company has pledged to keep shareholders updated on any material developments or changes to the current assessment.

Potential Price-Sensitive Information

• The temporary suspension, while not expected to materially impact financial performance, could affect investor sentiment due to environmental concerns and regulatory scrutiny in the rare earth mining sector.
• Any change in the regulatory stance, or extension of the suspension, may potentially impact SAM’s share price and should be closely watched by investors.
• The outcome of the DOE investigation, if adverse, could have longer-term implications for MCRE and by extension, SAM.

Conclusion

The clarification by Southern Alliance Mining Ltd. provides assurance that the temporary suspension at MCRE is a precautionary and investigative measure rather than a punitive regulatory action. The Board’s judgement that the suspension is not financially material is reassuring, though shareholders should stay updated for any developments from the ongoing environmental investigation.

Shareholders and potential investors should remain vigilant regarding further updates, as the situation may evolve and could become price sensitive depending on the outcomes of regulatory investigations.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should perform their own due diligence and consult with their financial advisors before making investment decisions. The information herein is based on the latest company disclosures as of 21 November 2025 and may be subject to change.

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