OREANDA-NEWS. December 05, 2011. The Company is pleased to announce that Angang Group Company, the ultimate controlling shareholder of the Company, has undertaken to provide a discount of not less than 5% of the Average Import Price on the price of iron concentrate as determined under the Formula (the “2011 Undertaking”), reported the press-centre of Angang Group.

The amount of the discount in the 2011 Undertaking is based on a previous similar undertaking (the “2009 Undertaking”) given by Angang Holding in relation to the price of iron concentrate as published in the announcement of the Company on 4 December 2009.

The 2011 Undertaking shall have the same term as the 2011 Supply of Materials and Services Agreement, which shall terminate on 31 December 2013. Such 2011 Undertaking will not constitute a change to the relevant annual cap for the supply of principal raw materials (of which iron concentrate is a part) to the Group by Angang Group.

Save as disclosed in this announcement, there is no other change in the terms of the 2011 Supply of Material and Services Agreement.

The Directors consider that the price of iron concentrate to be provided by Angang Group to the Group, taking into account the above discount in the 2011 Undertaking, fall within the pricing standard set out in the 2011 Supply of Materials and Services Agreement.

Accordingly, TC Capital Asia Limited, the independent financial adviser to the Independent Board Committee and the Independent Shareholders, confirms that it has not changed its opinion as set out in the Circular for the reason that, with the 2011 Undertaking, the Group will benefit from a more favorable pricing of iron concentrate compared to the current pricing basis as disclosed in the 2011 Supply of Materials and Services Agreement.

Furthermore, the discount in the 2011 Undertaking falls within the pricing standard set out in the 2011 Supply of Materials and Services Agreement, which is fair and reasonable so far as the Independent Shareholders are concerned and in the interests of the Company and its Shareholders as a whole.

The Directors are of the view that, taking into account the 2011 Undertaking, the terms of the continuing connected transactions as disclosed in the Announcement and the Circular, including the 2011 Supply of Materials and Services Agreement and the relevant 2012 and 2013 annual caps for the transactions thereunder are fair and reasonable and are on normal commercial terms, in the ordinary and usual course of business, and in the interest of the Company and the Shareholders as a whole.

The Independent Board Committee, having taken into account the advice of TC Capital Asia Limited, also confirms that it has not changed its opinion as set out in the Circular. A supplemental circular containing information relating to the terms of the 2011 Undertaking will be dispatched to the Shareholders as soon as possible in accordance with Rule 14A.49 of the Listing Rules.