IRC Limited — Capital/Financing Update 2014

Sep 16, 2014

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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(a company incorporated in Hong Kong with limited liability)

(Stock code: 1029)

IRC: K&S PROGRESS & CONTRACTOR DELAY SETTLEMENT AGREED

Tuesday, 16 September 2014: IRC Limited (‘‘IRC’’ or ‘‘The Company’’, Stock Code 1029) is pleased to announce good ongoing progress at its K&S operation, notably the works which IRC is directly undertaking. Furthermore, following the earlier announcement of an extended processing plant completion date of 31 December 2014, the Company also advises on the successful negotiation of a US$19.5 million settlement from contractor China National Electric Equipment Corporation (CNEEC).

Key Highlights

• . Agreed US$19.5 million settlement from contractor due to extended plant completion date.

• . Completion by IRC of the required 4.7 million tonne ore stockpile ready for processing plant commissioning.

• . Near completion of rail, power and water infrastructure — pending progress at processing plant by contractor.

• . Completion of tailings dam and facilities.

Commenting on the progress and settlement, Jay Hambro, Executive Chairman of IRC said: ‘‘Commissioning of our world-class K&S project is approaching fast. I am delighted that the IRC team has proved its mettle completing the mining works; with a stockpile of ore ready to feed the plant, and the tailings pipelines and dams to handle the waste from the plant. We are almost ready with the rail infrastructure into the plant, which will link to the already built bridge that connects us to the TransSiberian Railway and enables delivery to customers in China. The fact that IRC has successfully completed its portion of works ahead of the processing plant start-up demonstrates our operational abilities and I congratulate the teams on the ground for their efforts.

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We are working hard with our contractor CNEEC to assist them with their revised commissioning date for the processing plant at the very end of the year. Our operations and executive teams are heavily integrated with their employees and are working round-the-clock. Under the terms of the EPC contract, IRC has negotiated a settlement of US$19.5 million with CNEEC for this year. Whilst we have a strong capital structure in place, this positive outcome will bring further comfort to shareholders that we are adequately covered for our capital expenditure and financial commitments.’’

Operations

The ore stockpile totals 4.7 million tonnes with an average grade of 31% Fe. The stockpile quality is graduated, with lower grade tonnes for first commissioning and higher quality tonnes for commercial production. With the stockpile in place, mining operations have been suspended as there is no need to mine more tonnes and it is considered more prudent to preserve cash. Stripping activities have also been suspended, with 3.8 million tonnes of ore available for mining.

The tailings pipeline is 6.3 kilometres long with only 880 metres left to be completed. The tailings dam and facilities are also completed, with capacity to store 120 million cubic metres of material, enough for the life of mine of operations.

CNEEC Settlement

IRC announced in its 2014 Interim Results in August 2014 that CNEEC would extend the completion date of the K&S processing plant to 31 December 2014. Under the EPC agreement, as compensation for agreeing to extend the planned commissioning date, CNEEC has agreed to a reduction of approximately US$19,500,000 in the total price payable to it under the engineering, procurement and construction contract between CNEEC and K&S, IRC’s wholly owned mining company.

Under the revised EPC contract terms, should there be any further delays in the commissioning date of the project beyond 31 December 2014, CNEEC would be liable for further compensation.

By Order of the Board G. JAY HAMBRO Executive Chairman

Hong Kong, People’s Republic of China Tuesday, 16 September 2014

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 contact:

Nicholas Bias

Head of Communications Telephone: +852 2772 0007 Mobile: +852 9088 1029 Email: nb@ircgroup.com.hk

Shirly Chan (中文查詢) Investor Relations Co-Ordinator Telephone: +852 2772 0007 Mobile: +852 6623 3450 Email: sc@ircgroup.com.hk

Registered Office

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

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