OREANDA-NEWS.  September 14, 2012. The second meeting of the fifth session of the Board of Baosteel made the resolution that: to safeguard the interests of our shareholders, boosting investor confidence, and maintaining the company's share price, with comprehensive consideration on investors’ recommendations and the company's financial condition, Baosteel is planning to repurchase outstanding shares with the price of no more than 5.00 yuan per shares with total buyback amount not more than 5 billion yuan. Baosteel is the first listed steel enterprise who announced to repurchase share at present, reported the press-centre of Baosteel. 

Since the beginning of this year, subjected to changes in the macroeconomic environment, the overall downturn in the capital markets, as well as the fundamentals of the steel industry, Baosteel shares price is continuously below the net assets per share.

according to “Public shares buy back for the listed company (Trial)"," Supplementary Provisions for shares buy-back with the centralized auction trading for listed company" and " business guidelines for shares buy-back with the centralized auction trading for Shanghai Stock Exchange listed company" and other relevant regulations, Baosteel intended to buy back stocks by centralized auction trading, the capital sources is equity funds. According to the company's operation and financial situation, 50 billion yuan of the total amount of buy back will not develop significant impact on the company's operating, financial and future development. Baosteel will be in accordance with the relevant laws and regulations and regulatory documents to fulfill relevant follow-up procedures of buyback.