IRC Limited — Capital/Financing Update 2017

Jun 20, 2017

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)

K&S successfully operates at over 80% production capacity More than 800,000 tonnes of premium iron ore sold since inception

Tuesday, 20 June 2017: IRC Limited (“IRC” or the “Company”, together with its subsidiaries, the “Group”; Stock Code 1029) is pleased to announce that K&S is stepping up its ramp-up program with the plant successfully operated at over 80% of its designed capacity. To-date, K&S has sold more than 800,000 tonnes of iron ore concentrate and is making cash contribution to IRC. IRC continues to aim at operating K&S at full capacity in the second half of 2017.

While K&S continues with its ramp-up programme, more loading tests have been conducted. During the tests, the plant successfully achieved its highest daily production volume to-date by operating at over 80% of its designed capacity. The tests also revealed some operating issues for which the site team is currently addressing. These issues should not significantly affect the overall commissioning timeline. The success of the loading tests was the result of K&S having successfully resolved some of the technical issues and the mining contractor managing to provide better quality ore for processing. As announced previously, to keep up with the pace of K&S’ production, additional mining fleet was deployed on site in early June and the mining contractor is currently operating at a higher capacity. K&S is gradually increasing its production volume and as of today, more than 800,000 tonnes of iron ore concentrate have been sold.

Commenting on the news above, Yury Makarov, Chief Executive Officer of IRC said:

“I am proud to report that K&S’ 800,000th tonne of iron ore concentrate has been sold. Even though we see some volatility in iron ore price, the price margin percentage between the 65% and 62% iron ore is increasing. As the product that K&S produces is of the 65% grade, the price variance works in K&S’ favour. K&S continues to be cash-positive under the current market price environment and continues to strengthen the cashflow position and the balance sheet of IRC.”

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Conveyor belt in K&S processing plant

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Iron ore concentrates at wet-concentrate storage

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

Hong Kong, People’s Republic of China Tuesday, 20 June 2017

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), Mr Raymond Kar Tung Woo and Mr Cheng Chi Kin. 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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