National Industrialization Co. — Capital/Financing Update 2016

Apr 3, 2016

ADDENDUM ANNOUNCEMENT FROM NATIONAL INDUSTRIALIZATION CO. RELATED TO LATEST DEVELOPMENTS ON THE ILMENITE SMELTER PROJECT

2060 · 03/04/2016 09:07:47 · Announcement #41863 · View on Saudi Exchange

ADDENDUM ANNOUNCEMENT FROM NATIONAL INDUSTRIALIZATION CO. RELATED TO LATEST DEVELOPMENTS ON THE ILMENITE SMELTER PROJECT

Further to the previous announcement which was published on Tadawul on July 9th, 2015G regarding the latest developments on the Ilmenite Smelter Project which produces Titanium Slag, The National Industrialization Company (Tasnee) announces that the technical work and testing for the project trial startup in Jazan Economic City is still ongoing because of the large size of the project and the nature of the technology which needs a long time to conduct the necessary tests to ensure safety and quality as per global standards in such plants. Therefore, it is expected that the project trial startup will be during the second half of 2016 and commercial production will start during the first half of 2017. The financial impact of this project on Tasnee consolidated result cannot be determined at this stage because of the current status of the Titanium industry and the period required by the trial startup, also the major of the production is used as a raw material for the Titanium Dioxide products been produced in the company's plant in Yanbu. Please note that this project is owned equally by Tasnee and Cristal (which owned 79% by Tasnee); if any major developments in the project will be announced in later dates.

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