IRC Limited — Capital/Financing Update 2016

Aug 31, 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: K&S Celebrates First Shipment to China Commencing Commercial Sales with Regular Cash Inflows Soon

Wednesday, 31 August 2016: IRC Limited (“IRC” or the “Company”, together with its subsidiaries, the “Group”; Stock Code 1029) is pleased to announce the celebrated inaugural shipment from K&S to customer in China. The first shipment not only signifies the realisation of K&S maiden revenue but also paves a huge step for regular shipments soon.

On 30 August 2016, the first train with 66 wagons carrying 4,527 tonnes of iron ore concentrates produced during the trial production of the K&S processing plant departed from K&S. The Governor of the EAO Region in Russia Far East, Mr Alexander Levintal, was at K&S presiding at the ceremony for the departure of the first train. The train is going through the Trans-Siberian Railway to enter into China via Suifenhe for trial sales.

The Company and the customer in China have entered into a short-term commercial agreement for regular off-take of K&S products. The pricing formula is based on the international Platts TSI spot price of 65% Fe iron ore concentrates.

Commenting on the news above, Yury Makarov, Chief Executive Officer of IRC said “We are very excited and proud of K&S’ maiden shipment. It is a testimony to our hard-work and efforts in the past years. Whilst the revenue from this trial sale is modest, the milestone is significant. We are glad that this historic moment is witnessed by the Governor of the EAO Region, demonstrating the importance of K&S to the region. With the departure of the first train to our customer, we will now focus on the formal commissioning of the plant and ramping up K&S to full production capacity of 3.2 million tonnes per annum. We are aiming to commence regular shipments in a few weeks time which will provide a stable and continuous revenue stream and boost our cash inflows significantly.”

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First train carrying iron ore concentrates departing from K&S to China

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CEO of IRC, Yury Makarov (left) and Governor of the EAO Region in Russia Far East, Mr Alexander Levintal (right) overseeing the departure of the first train

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The K&S railway bridge (upper in photo) connecting to Trans-Siberian Railway (lower in photo)

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

Hong Kong, People’s Republic of China Wednesday, 31 August 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 (Mr 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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