Hong Kong Stocks Code：2112

August 2013

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Company Profile

Major

Businesses

Major

Businesses

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Major Markets

Major Markets

• Iron ore mining located in

Malaysia

• Business operations include iron

ore mining, processing & trading

• Sale of product with iron content

50%-62%

• Benefiting from low-cost open-pit operation method

and high-grade iron ore products

• Production capacity and profit in rapid growth phase

• Supported by well-developed roads and ports facilities

• Sustainable growth from acquisitions of iron ore

resources

• China：：：：Rizhao Steel

• Aosen Steel

• Bao Steel (Ningbo Steel)

• Malaysia：：：：• Eastern Steel (Shou Steel)

• Red Sun Fortune

� A major supplier of iron ore products and one of the largest iron ore concentrates producers in Malaysia

Competitive AdvantagesCompetitive Advantages

� Profit by the end of June 2013 with year-on-year growth of 226%

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Overview of Project in Production

Mt

未来产能增长计划

Capacity Compound Annual

Growth Rate：76.6%

Mine is located in Pahang, the

largest iron ore production

state in Malaysia, only 120km

from the port

Estimated Iron Ore ResEstimated Iron Ore ResEstimated Iron Ore ResEstimated Iron Ore Resourcesourcesourcesources

(Reported at a 35% Fe cut-off

grade )

152 Mt

ReservesReservesReservesReserves 105 Mt

Mine LifeMine LifeMine LifeMine Life Expected to exceed 27 years

Average Grade of Iron OreAverage Grade of Iron OreAverage Grade of Iron OreAverage Grade of Iron Ore 46.5%

Estimate ValuationEstimate ValuationEstimate ValuationEstimate Valuation USD 410,000,000

Average shipping time to ChinaAverage shipping time to ChinaAverage shipping time to ChinaAverage shipping time to China：4444----10days10days10days10days

Area Average shipping time to

China

Australia 9-12 days

India 12-15 days

South Africa 28-38 days

Brazil 40-45 days

JORC DataJORC DataJORC DataJORC Data：

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• Using low-cost open-pit operation method

• Mine has an average iron grade of 46.5%, has low levels of impurities, so relatively simple and low-cost magnetic processing methods can be used

• Average cash operating costs is USD53.7 per tonne in 2012

• Estimated average cash operating costs is USD 45.3 per tonne in 2013

Low-cost Operations

Low-cost open-pit operation method and high-grade iron ore products

2011 ( Actuals) 2012 (Actuals) 2013(Expected) 2014 (Expected) 2015(Expected)

(Unit：US$)

Mining cost 24.52 24.52 20.96 20.96 20.96

Total processing Cost 15.03 15.68 13.98 13.98 13.98

On and Off-site Management 0.39 0.39 0.39 0.39 0.39

Transport to port, port costs and

marketing13.16 13.16 9.97 9.97 9.97

Total Cash Cost 53.10 53.74 45.30 45.3 45.3

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2010~2013 Financial Data

Revenue

Profit before Tax

USD’000USD’000

Gross Profit

USD’000

6,865

27,220

54,323

47,130

Fr 2010.8.23 2011 2012 2013.6.30

664

7,650

22,076

27,931

Fr 2010.8.23 2011 2012 2013.6.30

15000

464,096

433,135

302,771

Fr 2010.8.23 2011 2012 2013.6.30

Volume of Turnover

Tonne

24,035

14,357

1,851-116

Fr 2010.8.23 2011 2012 2013.6.30

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2013~2016 Profit Forecast

2013 2014 2015 2016

Sales Quantity (T) 1,400,000 4,000,000 6,000,000 8,000,000

Sales Revenue

(USD’000））））151,200 440,000 672,000 912,000

Net Profit

(USD’000））））40,000 80,000 120,000 190,000

2013~2016 Profit Forecast

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New Iron Ore Resources in 2013

未来产能增长计划

Location Terengganu, Malaysia (about 90km to port)

Estimated Iron Ore Resources 280 Mt（geophysical exploration）

Average Grade of Iron Ore 37%

Mining Method Open-pit operation

Status Geophysical Exploration completed, Detailed Exploration is ongoing

Iron Mountain Mine：

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Thank You