IRC Limited — Capital/Financing Update 2016

Nov 21, 2016

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 the Hong Kong with limited liability) (Stock code: 1029)

IRC obtained US$10 Million Working Capital Facility for the operation of K&S

Monday, 21 November 2016: IRC Limited (“IRC” or the “Company”, together with its subsidiaries, the “Group”; Stock Code 1029) is pleased to announce that it has successfully obtained a working capital facility from Sberbank, one of the largest banks in Russia, Central and Eastern Europe, to finance the operation of K&S.

On 18 November 2016, the revolving working capital finance facility agreement (the “Facility”) between the Group and Sberbank became effective. The Facility is secured by certain assets of the Group and is agreed on an arm’s length basis with normal commercial terms. Pursuant to the Facility, Sberbank agrees to provide a loan to the Group of up to US$7,000,000 for the period from 18 November 2016 to 31 March 2017, and up to US$10,000,000 for the period from 1 April 2017 to 17 May 2018. The amount of loan drawdown is capped at the amount of outstanding accounts receivable due from K&S’s major customers with letter of credits and confirmed shipments.

Commenting on the news above, Yury Makarov, Chief Executive Officer of IRC said “We are pleased to have obtained the Sberbank facility as it signifies the trust and support from our banking partners. As K&S is ramping up its production capacity and our sales to the Chinese customers are picking up, the line of credit comes in the right time to support our increasingly busy operation. The facility further de-risks the operation of K&S and strengthens our cash flow position.”

By Order of the Board IRC Limited Yury Makarov Chief Executive Officer

Hong Kong, People’s Republic of China Monday, 21 November 2016

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As at the date of this announcement, the Executive Directors of the Company are Mr Yury Makarov and Mr Danila Kotlyarov. The Non-Executive Directors are Mr George Jay Hambro, Mr Cai Sui Xin (Benjamin Ng as his alternate) and Mr Raymond Kar Tung Woo. The Independent Non-Executive Directors are Mr Daniel Bradshaw, Mr Simon Murray, CBE, Chevalier de la Légion d’Honneur, 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

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

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