MEMORANDUM OF UNDERSTANDING

Scanwolf Corporation Berhad ("SCANWOLF" or "The Company")
Disposal of Shares in Scanwolf by Messrs Loo Bin Keong, Tan Sin Keat and Leuk Sing King, Substantial Shareholders and Directors of the Company, and Mr Teoh Teik Kean, Director of the Company.

Further to the Company’s earlier announcement on the execution of the Memorandum of Understanding (“MOU”) between the major shareholders with MKL Resources (L) Ltd to dispose of 25,600,000 ordinary shares, representing 32% of the Company’s total issued and paid-up capital for a total consideration of Ringgit Malaysia Thirteen Million Fifty Six Thousand (RM13,056,000.00) only on July 26, 2011, the Board of Directors of the Company wishes to announce that the Company has on November 29, 2011 been informed by its major shareholders that the MOU has lapsed due to the inability of both parties to reach an agreement on the proposed terms and conditions of the MOU.

This announcement is dated November 29, 2011.