IRC Limited — Capital/Financing Update 2015

Aug 24, 2015

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 Exchange of Hong Kong Code: 1029)

IRC RECEIVES FURTHER GOVERNMENTAL SUPPORT AT K&S WITH CONFIRMATION OF TAX CONCESSIONS

Monday, 24 August, 2015: IRC Limited (‘‘IRC’’ or the ‘‘Company’’, together with its subsidiaries, the ‘‘Group’’; Stock Code 1029) is pleased to report that the K&S project company has confirmed approval of governmental support via a range of tax concessions.

KEY HIGHLIGHTS

• . K&S does not need to pay corporate tax over the next five years, followed by at a reduced rate of 10% in the following five years

• . Mining royalty fee at K&S is waived for the first two years, then payable at reduced rates over the next eight years

• . Property tax of K&S is reduced to 1.5% over the next five years

While the concessions in royalty and property tax will decrease the direct operating expenses of K&S, the taxation charges of the project will benefit from the reduced corporate tax rate.

Commenting on the news, Jay Hambro, Executive Chairman of IRC said: ‘‘It is timely that as we are conducting the commissioning of K&S project, I am delighted that K&S is receiving considerable levels of governmental support. As K&S moves to production, the regional economic impact will be considerable and together with the bridge project will provide a significant boost to the Jewish Autonomous Region (EAO) of the Russian Far East where K&S is located.

We are confident that K&S will be amongst the lowest cost iron ore mines in the world. As previously announced K&S’s lowest possible cash cost could reach US$28 per tonne for a delivered tonne and rerated for our premium 65% product versus a global average of 62%.’’

By Order of the Board G. JAY HAMBRO Executive Chairman

Hong Kong, People’s Republic of China Monday, 24 August 2015

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

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IRC Limited

6H, 9 Queen’s Road Central Hong Kong Tel: +852 2772 0007 Email: ir@ircgroup.com.hk Website: www.ircgroup.com.hk

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

Shirly Chan

Manager — Communications & Investor Relations Telephone: +852 2772 0007 Mobile: +852 9688 8293 Email: sc@ircgroup.com.hk

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