IRC Limited — Capital/Financing Update 2016

May 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.

==> picture [154 x 79] intentionally omitted <==

(Incorporated in Hong Kong with limited liability) (Stock Code: 1029)

IRC: K&S Successful First Iron Ore Concentrate Production Construction On Schedule for Maiden Commercial Production

Tuesday, 31 May 2016: IRC Limited (“IRC” or the “Company”, together with its subsidiaries, the “Group”; Stock Code 1029) is pleased to announce a successful trial production with the first test run of the processing plant facilities – a significant step towards the completion of the full hot commissioning of K&S, and a major milestone before K&S’s maiden commercial production.

KEY HIGHLIGHTS

• Successful test run of the new Processing Plant – the first trial product produced through the processing cycle.

• The test run yielded 65.5% Fe grade wet concentrate – in line with the original design estimates, on track to produce 65.8% Fe high grade premium product.

• K&S operational plant remains on schedule to be handed over to IRC by end of the first half year, and drying unit in the third quarter.

• K&S is expected to fully ramp up and deliver first commercial iron ore concentrate to customers in Q3 2016.

The introduction of the first ore into the processing plant for trial production has been concluded with success. It is the first time that the ore went through the whole processing cycle, and produced a maiden concentrate with 65.5% Fe content. The remaining steps for K&S to be fully operational are the completion of the automation systems’ tests and finetuning of some technological processes to allow the production of final commercial products which are expected to be completed approximately within a month’s time.

Commenting on the news, Yury Makarov, Chief Executive Officer of IRC said: “We are excited about the good progress for the test runs as it means that our goal of producing 3.2 million tonnes of premium iron ore concentrate per year will become reality soon.

CNEEC has been increasing the number of personnel on site while K&S is getting ready for its maiden commercial production. CNEEC reiterates that the operational plant is on schedule to be handed over to K&S, after which commercial production will commence. Production is expected to ramp-up to the design throughput of 3.2 million tonnes per annum in Q3 2016.”

– 1 –

==> picture [231 x 173] intentionally omitted <==

Iron ore concentrate on vacuum filter after processing.

==> picture [230 x 173] intentionally omitted <==

Wet iron ore concentrate after going through all stages of processing.

==> picture [232 x 173] intentionally omitted <==

K&S aerial view showing with annotations of hot commissioning milestones:

• 1CS – First stage crushing & screening (commissioned)

• 2CS – Second stage crushing & screening (commissioned)

• R – Railway (commissioned)

• PP – Processing plant (by 30 June 2016)

(DU – Drying unit is not essential for production until winter)

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

Hong Kong, People’s Republic of China Tuesday, 31 May 2016

– 2 –

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 Liu Qingchun and Mr Raymond Kar Tung Woo. The Independent NonExecutive 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 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

– 3 –