Samsung Heavy Industries sign Engineering Service Agreement

• Shipbuilding Automation Project with Samsung Heavy Industries (SHI)
• Engineering Service Agreement for First Phase Robotic Technology Proof of Concept
• FBR to be paid US$150,000 plus reasonable expenses for Phase 1 delivery

FBR Limited (ASX: FBR) has executed an Engineering Service Agreement with Samsung Heavy Industries (SHI) to deliver the first phase of a shipbuilding automation project. Phase 1 will see FBR develop and conduct a physical demonstration and validation of a core technology module of a shipbuilding construction robot. Completion of Phase 1 is anticipated in five months or less. Upon execution of the Engineering Service Agreement, FBR and SHI entered into a 10-year exclusive dealing relationship for the materials to be delivered in Phase 1. FBR will be paid US$150,000 plus reasonable expenses and any additional fees incurred on a time and materials basis (with pre-approval from SHI) for the delivery of Phase 1 of the Engineering Service Agreement. FBR and SHI intend to work on commercialisation business models for the shipbuilding construction robot in parallel to Phase 1 in preparation for potential subsequent phases.