Proposed Bonus Issue

The Board of Directors (the "Directors") of HG Metal Manufacturing Limited (the "Company") refers to the announcement made on 27 December 2007 in relation to the proposed bonus issue of new ordinary shares (the "Bonus Shares") in the capital of the Company.

The Directors wish to clarify that the approval in-principle for the listing and quotation of the Bonus Shares given by Singapore Exchange Securities Trading Limited is in respect of 120, 827, 048 Bonus Shares and not 106,174,534 Bonus Shares as previously announced

Submitted by Foong Lee Heng on 7 January 2008 to SGX