Methanol Chemicals Co. (Chemanol) announces an update on the non-binding Memorandum of Understanding signed with Global Company for Downstream Industries (GDI) for supplying Methanol & Exploring Future opportunities in the field of Petrochemical Products.

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Introduction	Further to its announcement on Tadawul on 13/02/2022 regarding the signing a non-binding Memorandum of Understanding with Global Company for Downstream Industries (GDI) for supplying Methanol & Exploring Future opportunities in the field of Petrochemical Products, and as part of strengthening their collaboration, Methanol Chemicals Co. (Chemanol) and Global Company for Downstream Industries (GDI) have signed a Heads of Agreement on Sunday October 16th , 2022 for a strategic partnership to produce speciality chemicals including Methyl Diethanolamine, Choline Chloride at an indicative cost of approximately SAR 500 Million. The partnership aims also to explore the possibility of producing other chemical materials as work is underway to identify them. Such materials include Dimethyl Disulfide, Dimethyl Sulfate, Chlorine Derivatives, Poly Alpha Olefins and Aromatic Solvents.

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Explanation

Introduction

Further to its announcement on Tadawul on 13/02/2022 regarding the signing a non-binding Memorandum of Understanding with Global Company for Downstream Industries (GDI) for supplying Methanol & Exploring Future opportunities in the field of Petrochemical Products, and as part of strengthening their collaboration, Methanol Chemicals Co. (Chemanol) and Global Company for Downstream Industries (GDI) have signed a Heads of Agreement on Sunday October 16th , 2022 for a strategic partnership to produce speciality chemicals including Methyl Diethanolamine, Choline Chloride at an indicative cost of approximately SAR 500 Million. The partnership aims also to explore the possibility of producing other chemical materials as work is underway to identify them. Such materials include Dimethyl Disulfide, Dimethyl Sulfate, Chlorine Derivatives, Poly Alpha Olefins and Aromatic Solvents.

This Agreement is considered as an enhancement to Chemanol’s future plans for strategic transformation to become one of the largest producers of specialty petrochemicals in the region,

The two companies are currently working on the preparation of the economic and technical feasibility studies for the future projects, communicating with the competent authorities for approvals and licenses, looking for global technology providers and identifying sources of financing these projects. However, the relevant financial impact shall be determined upon the completion of all studies and according to the market changes.

The Company will announce any updates or developments regarding these studies in due course of time. Previous Announcement Methanol Chemicals Company (Chemanol) announces signing a non-binding Memorandum of Understanding with Global Company for Downstream Industries (GDI) for supplying Methanol & Exploring Future opportunities in the field of Petrochemical Products. Date of Previous Announcement on Tadawul's Website 2022-02-13 Corresponding to 1443-07-12 Percentage of fulfilled achievement N/A Event's Expected Completion Date N/A Reasons for Exceeding the Announced End Date N/A The costs associated with the event, and if they have changed or not with indication of the reasons. N/A Impact of the Delay on the Company's Financial Results N/A

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