Saudi Arabian Mining Co. — Capital/Financing Update 2015

Jan 26, 2015

SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES DEVELOPMENTS REGARDING THE USE OF PROCEEDS FROM THE RIGHTS ISSUE SHARES SUBSCRIPTION

1211 · 26/01/2015 15:50:12 · Announcement #36903 · View on Saudi Exchange

SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES DEVELOPMENTS REGARDING THE USE OF PROCEEDS FROM THE RIGHTS ISSUE SHARES SUBSCRIPTION

Saudi Arabian Mining Company announces developments of the use of proceeds from its rights issue shares subscription which was held during 18-11-2014 to 02-12-2014 where the received gross proceeds amounted to (SAR 5.6) billion, and the net proceeds amounted to SAR 5,576,134,263 after deducting the offering expenses of SAR 23,865,737.

Expenses details and projects progress percentages compared with what was declared in the rights issue prospectus are as follows:

1. Offering Expenses:

Offering expenses were (SAR 23,865,737) as compared to (SAR 21) million stated in the rights issue prospectus. The reason for the increase in offering expenses was the increase of final advisory fees from what had been estimated.

2. Maaden Waad Al-Shamal phosphate company:

No amounts of the Rights Issue proceeds were contributed by Maaden to the Maaden Waad Al Shamal Phosphate Company until 31/12/2014G. As stated in the prospectus, the Company plans to use proceeds from the offering first to repay (SAR 1,263) million currently outstanding under its redrawable murabaha finance facility which was temporarily used to fund certain costs of incurred by Maaden Waad Al Shamal Phosphate Company. The remaining amount (SAR 3,799) is to finance the company equity.

The total amount to be used from the offering proceeds to fund the company equity investment in Maaden Waad Al Shamal Phosphate Company will be (SAR 5,062) million.

Construction progress reached the following levels as at 31/12/2014G:

Completed 14.4% of the Beneficiation Plant compared to 9.2% as at 30/8/2014G as mentioned in the prospectus.

Completed 36.4% of the Sulphuric Acid Plant compared to 25.7% as at 30/8/2014G as mentioned in the prospectus.

Completed 24.1% of the Phosphoric Acid Plant compared to 12.6% as at 30/8/2014G as mentioned in the prospectus.

Completed 37.7% of the Ammonia Plant compared to 14.6% as at 30/8/2014G as mentioned in the prospectus.

Completed 18.0% of the DAP Plant compare to 8.0% as at 30/8/2014G as mentioned in the prospectus.

3. Maaden Bauxite and Alumina company:

No amounts of the Rights Issue proceeds were contributed by Maaden to the Maaden Bauxite and Alumina company until 31/12/2014G. As stated in the prospectus, the Company plans to use (SAR 509) million of the proceeds from the offering to repay amounts currently outstanding under its redrawable murabaha finance facility which was temporarily used to fund certain costs incurred by Maaden Bauxite and Alumina Company and to fund the balance of its equity contribution to the project (SAR 7) million.

Completed 98.3% of the Maaden Bauxite and Alumina Company project compares to 94.69% completion as at 30/08/2014G as mentioned in the prospectus, and the commissioning of the alumina refinery commenced on Friday 19/12/2014G (corresponding to 27/02/1436 H).

Any other material developments will be announced in due course.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.