The Warrants C are issued to the entitled shareholders of Borneo Oil Berhad ("Bornoil") pursuant to the renounceable rights issue of up to 2,373,841,596 new ordinary shares of RM0.10 each in Bornoil ("Bornoil Share(s)") ("Rights Share(s)") on the basis of six (6) Rights Shares for every one (1) existing Bornoil Share held, together with up to 1,186,920,798 free detachable Warrants C on the basis of one (1) free Warrant C for every two (2) Rights Shares subscribed for, as at 5.00 p.m. on Friday, 16 October 2015 at an issue price of RM0.10 per Rights Share ("Rights Issue with Warrants").

Each Warrant C carries the entitlement to subscribe for one (1) new Bornoil Share at the exercise price of RM0.11 and at any time during the exercise period of ten (10) years as indicated above ("Exercise Period") commencing from and including the issue date and ending at 5.00 p.m. on the expiry date (provided that if such a day is not a market day, then it shall be the market day immediately preceding the said non-market day). The Warrants C are subject to the adjustments in accordance with the provisions of the deed poll dated 28 September 2015, constituting the Warrants C. Any Warrants C not exercised during the Exercise Period will thereafter lapse and cease to be valid for any purpose.