IRC Limited — Capital/Financing Update 2015

Jun 5, 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)

K&S PROJECT UPDATE & 2015 PRODUCTION FORECAST

5 June, 2015: IRC Limited (‘‘IRC’’ or the ‘‘Company’’, together with its subsidiaries, the ‘‘Group’’; Stock Code 1029) reports that following a progress appraisal from our main contractor we are updating the market with regard to 2015 K&S production forecasts.

The contractor advises that the operational plant will be handed to IRC in the second half of 2015 allowing total concentrate production during the calendar year of c.500,000 tonnes whilst reaching full capacity in the fourth quarter allowing a year of full capacity in 2016 and onwards. The capacity of the current plant at K&S is 3.2 million tonnes per annum of a high grade 65.8% concentrate and the plant is capable of being expanded to 6.3 million tonnes per annum.

All key equipment is now on site and the contractor is engaged in the commissioning process. This process includes wiring, installation, testing and automation. There are now over 1,000 contractor employees at site and processing of main equipment, like ball mills, installation work programmes are ongoing 24 hours a day. The contractor envisages starting to provide power supply and cold commissioning process to start this month, with hot commissioning including material process thereafter.

IRC’s contract with our main contractor, CNEEC, includes terms that include liquidated damages from the contractor for delays. IRC is engaged in discussions with our project finance bank and the contractor with regard to these liquidated damages. CNEEC has proposed that there are some extra works that they carry out in addition to the original design to further enhance the plant and IRC is considering this proposal in conjunction with the contractor delay obligations.

Commenting on the news, Jay Hambro, Executive Chairman of IRC said: ‘‘In the coming months, K&S will complete the commissioning process and start full-scale commercial production. K&S will be our largest operation with the benefits of scale and a location much closer to China, K&S remains capable of generating good margins despite the current low price environment. It is in the hard times like today when operations like K&S prove their mettle, and we are rewarded for being one of a handful of international producers that can prosper in such times. Following conversations with our main contractor, we are also revising our production target of K&S for 2015 to 0.5 million tonnes but are still confident of our ability to reach full capacity during the fourth quarter subject to outstanding committed funding being advanced on a timely basis. As a result of this delay we are expecting significant liquidated damages from the contractor.

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There is a bright light on the horizon for the Russian Far East, North-East China and all IRC stakeholders from the ongoing commissioning of IRC’s K&S mine which we believe should be one of the lowest cost iron ore mines in the world.’’

APPENDIX 1

Recent photographs from site at K&S.

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Conveyor commissioning with belts installed

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Primary Crushing unit is ready for cold commissioning

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Works on underground piping is actively in progress

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Trestle for technological communication linkage completed

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Exterior photograph of K&S Plant showing railway connection

By Order of the Board G. JAY HAMBRO Executive Chairman

Hong Kong, People’s Republic of China Friday, 5 June 2015

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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.

IRC Limited

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

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

Shirly Chan

Assistant Manager — Communications IRC Limited Telephone: +852 2772 0007 Email: sc@ircgroup.com.hk

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