Saudi Arabian Mining Co. — Capital/Financing Update 2011

Sep 26, 2011

SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES THE BEGINNING OF COMMERCIAL PRODUCTION OF CAUSTIC MAGNESIA AND RESCHEDULING THE BEGINNING OF COMMERCIAL PRODUCTION OF INERT MAGNESIA

1211 · 26/09/2011 16:24:20 · Announcement #22720 · View on Saudi Exchange

SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES THE BEGINNING OF COMMERCIAL PRODUCTION OF CAUSTIC MAGNESIA AND RESCHEDULING THE BEGINNING OF COMMERCIAL PRODUCTION OF INERT MAGNESIA

Further to the its announcement on 1/5/1432 corresponding to 5/4/2011, Saudi Arabia Mining Company (Maaden) announces commercial production of Caustic Calcined Magnesia starting on 1/10/2011. Production has exceeded 13,000 tons to date out of the 39,000 tons designed annual capacity. Caustic Calcined Magnesia is used for agricultural and construction applications and in some environmental products and fuel additives. Note that the financial effect will be shown in Maadens financial results for the fourth quarter of the 2011 fiscal year.

Also, Maaden announces the rescheduling of the start of commercial production of Dead Burned Magnesia to the first quarter of 2012 instead of the third quarter of 2011 when it is envisaged that stable production operations for this product will be achieved. The project is expected to be completed within the estimated project cost.

Maadens Magnesite Project belongings to Maaden Industrial Minerals Company, a wholly owned subsidiary of the Saudi Arabian Mining Company, Maaden.

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