IRC Limited — Capital/Financing Update 2016

Apr 6, 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)

K&S – HOT COMMISSIONING OF FINAL PHASE OF CRUSHING & SCREENING FACILITIES ALLOWING PRODUCTION OF PRE-CONCENTRATE

Wednesday, 6 April 2016: IRC Limited (“IRC” or the “Company”, together with its subsidiaries, the “Group”; Stock Code 1029) is pleased to announce the full hot commissioning of the second and final phase of the crushing and screening facilities at its flagship mine, K&S. This is a major milestone in the hot commissioning timeline as it allows the production of Pre-Concentrate.

KEY HIGHLIGHTS

• Hot commissioning of second and final phase of crushing and screening facilities successfully completed allowing production of Pre-Concentrate

• The crushing and screening facilities upgrade the 33% Fe run-of-mine (ROM) ore to a 40% Fe product, defined as a Pre-Concentrate

• The last major component of the K&S project, the Processing Plant, is scheduled for handing over to IRC by the end of June 2016. The Plant will upgrade Pre-Concentrate to IRC’s premium high grade 65.8% Fe concentrate for commercial sales

• The commissioning of the Processing Plant is going on schedule with water supply from tailings started today, allowing for cold commissioning tests to begin

The remaining steps of hot commissioning are the Processing Plant and the Drying Unit. As confirmed by the main contractor, CNEEC, the Processing Plant will be handed over to IRC by 30 June 2016 and the Drying Unit by 31 August 2016.

While the hot commissioning of the Processing Plant will allow production of final product, the Drying Unit is only essential during winter time, therefore the completion of it in a later time will not affect K&S’s timeline of first production and shipment of product.

– 1 –

Commenting on the news, Yury Makarov, Chief Executive Officer of IRC said: “The hot commissioning of the final crushing and screening facilities is very encouraging and we are now just one step away from the maiden production of K&S. We are focusing every effort on the Processing Plant and all key equipment has now been on site for some while and the procedures for installation, wiring and automation are advanced. Also today we have commenced the water supply from the fully operational tailings facility, allowing CNEEC to start performing cold tests of the Processing Plant. We are reliant on our main contractor to maintain work rates which is especially important at this time and we are working with them to ensure prompt handing over of the Plant to IRC by the end of June this year.”

==> picture [223 x 167] intentionally omitted <==

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

==> picture [240 x 167] intentionally omitted <==

Pre-concentrate produced by the Second & Final Stage Crushing & Screening facilities

• 1CS – 1st stage crushing & screening Commissioned

• 2CS – 2nd stage crushing & screening Commissioned

• • PP – Processing Plant Work in progress • R – Railway Commissioned

The Processing Plant is scheduled to be handed over to IRC by 30 June 2016. The Drying Unit (DU), to be handed over to IRC by 31 August 2016, 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 Wednesday, 6 April 2016

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.

– 2 –

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 –