IRC Limited — Capital/Financing Update 2013

Aug 21, 2013

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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(Incorporated in Hong Kong with limited liability) (Stock Code: 1029)

IRC: K&S Mine Further De-risked with Appointment of Mining Contractor

‘‘ ’’ ‘‘ ’’ Wednesday 21st August 2013 — Hong Kong, IRC Limited ( IRC or the Company , together with its subsidiaries, the ‘‘Group’’; Stock Code 1029) is pleased to announce that it has appointed a local group as the mining contractor at its flagship K&S Mine. The contract covers both mine development and preparation of stockpiles ahead of commercial production targeted for the end of the first half 2013, and full-scale ore production thereafter.

The appointment is expected to have two key benefits to IRC. First, the contract reduces IRC’s capital expenditure as the fleet will now be provided by the contractor. The contractor has independently reviewed the mining programme and has estimated costs within IRC’s forecasts taking into account other costs. Second, IRC benefits from a long relationship with the contractor through their ongoing work at the Group’s Kuranakh project. The contractor has expertise with the machinery, maintenance, optimising utilisation rates and sourcing the equipment needed.

Commenting on the announcement, Jay Hambro, Executive Chairman of IRC said: ‘‘The appointment of a mining contractor marks another milestone in risk reduction for the ongoing development of the large K&S Mine. Funding risk is addressed by our ample cash balance and undrawn credit facility with ICBC. Technical construction risk is addressed by our EPC contract with CNEEC. This new mining contract will further reduce funding requirements and should give the market confidence in our mine and equipment plans. I am pleased to report that the team is already mobilised to site and will continue to expand the local team over the next few months.’’

By Order of the Board G. JAY HAMBRO Executive Chairman

Hong Kong, People’s Republic of China Wednesday, 21 August 2013

As at the date of this announcement, the Executive Directors of the Company are Mr G. Jay Hambro, Mr Yury Makarov, and Mr Raymond Kar Tung Woo. The Non-Executive Directors are Mr Simon Murray, CBE, Chevalier de la Légion d’honneur, Mr Cai Sui Xin and Mr Liu Qingchun. The Independent Non-Executive Directors are Mr Daniel Bradshaw, Mr Jonathan Martin Smith and Mr Chuang-Fei Li.

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For further information please visit ircgroup.com.hk or contact:

Nicholas Bias Head of Communications, IRC Ltd Telephone: +852 2772 0007 Mobile: +852 9088 1029 Email: nb@ircgroup.com.hk

Media: Artemis Associates Vanita Sehgal Telephone: +852 2861 3227 Mobile: +852 6373 6676 Email: vanita.sehgal@artemisassociates.com

Registered Office IRC Limited 6H, 9 Queen’s Road Central Hong Kong Office: +852 2772 0007 Fax: +852 2772 0329 Email: ir@ircgroup.com.hk Website: www.ircgroup.com.hk

Jonathan Yang Telephone: +852 2861 3234 Mobile: +852 6373 6676 Email: jonathan.yang@artemisassociates.com

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