OREANDA-NEWS. January 21, 2013. The board of directors (the “Board”) of Chongqing Iron & Steel Company Limited (the “Company”) is pleased to announce that, on 10 January 2013, the Company entered into separate Contract for Grant of State-owned Land Use Rights (Contract Nos.: Yu Di (2013) (Changshou) No.2, Yu Di (2013) (Changshou) No.3 and Yu Di (2013) (Changshou) No.4) with the Land Resources Bureau of Changshou District of Chongqing, pursuant to which the Company will acquire the land use rights of three land parcels, i.e. CS-3-001, CS-3-005 and CS-3-006, at a price of RMB364,605,570, RMB88,435,560 and RMB41,358,495, respectively (the “Acquisition”).

As one of the applicable percentage ratios (as defined under Rule 14.04(9) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”)) in relation to the Acquisition exceed 5% but all such percentage ratios are less than 25%, the Acquisition constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to the reporting and announcement requirements.

 The Board is pleased to announce that, on 10 January 2013, the Company entered into separate Contract for Grant of State-owned Land Use Rights (Contract Nos.: Yu Di (2013) (Changshou) No.2, Yu Di (2013) (Changshou) No.3 and Yu Di (2013) (Changshou) No.4) with the Land Resources Bureau of Changshou District of Chongqing, pursuant to which the Company will acquire the land use rights of three land parcels, i.e. CS-3-001, CS-3-005 and CS-3-006, at a price of RMB364,605,570, RMB88,435,560 and RMB41,358,495, respectively.

The land transfer price for each of the Three Land Parcels was the outcome of the open biddings held by The Public Resources Transaction Centre of Changshou District, Chongqing City which was conducted in accordance with the relevant People’s Republic of China laws and regulations. The land transfer price will be funded from the Company’s internal resources.

— 3 — (b) the land parcel of CS-3-005 is RMB88,435,560, including a down payment of RMB17,690,000 which has been paid by the Company. The remaining balance of RMB70,745,560 is payable within 30 days from the date of the Contract for Grant of State-owned Land Use Rights (i.e. 10 January 2013).

(c) the land parcel of CS-3-006 is RMB41,358,495, including a down payment of RMB8,280,000 which has been paid by the Company. The remaining balance of RMB33,078,495 is payable within 30 days from the date of the Contract for Grant of State-owned Land Use Rights (i.e. 10 January 2013).

The land transfer price for each of the Three Land Parcels was the outcome of the open biddings held by The Public Resources Transaction Centre of Changshou District, Chongqing which was conducted in accordance with the relevant People’s Republic of China laws and regulations. The land transfer price will be funded from the Company’s internal resources.

After paying up all the land transfer price for the land parcel as agreed in the Contract for Grant of State-owned Land Use Rights, the Company shall apply for registration of grant of state-owned construction land use right by presenting the said contract, the consideration payment voucher, and other supporting documents. The total fixed assets investment of projects on the land parcel of CS-3-001, CS-3-005 and CS-3-006 shall be no less than RMB3,763,670,000, RMB912,880,000 and RMB426,930,000 respectively and the said contract shall take effect from the date of signing by the parties.

INFORMATION ON THE PARTIES
The Company is principally engaged in the manufacture and sale of steel products such as medium-gauge steel plates, steel sections and wire rods.

Land Resources Bureau of Changshou District of Chongqing is a governmental body of the People’s Republic of China. To the best of the knowledge, information and belief of the directors of the Company (the “Directors”) and having made all reasonable enquiries, the Land Resources Bureau of Changshou District of Chongqing and its ultimate beneficial owners are independent third parties not connected with the Company and its connected persons (as defined in the Listing Rules).