OREANDA-NEWS. July 16, 2014. The board of directors (the “Board”) of Chongqing Iron & Steel Company Limited (the “Company”) received written resignations from Mr. Zhang Guo Lin and Mr. Ran Mao Sheng, independent non-executive directors of the Company.

In accordance with the “Opinions on Further Regulation on Party and Political Leaders and Cadres Working Part-Time (Holding Office) in Enterprises” (Zhong Zu Fa No.18 of 2013) issued by the Organization Department of the CPC Central Committee, Mr. Zhang Guo Lin and Mr. Ran Mao Sheng have tendered their resignation to the Board to the effect that Mr. Zhang Guo Lin would resign from the positions as an independent non-executive director, the chairman of the salary and remuneration review committee, a member of the audit committee and a member of the strategic committee of the Company; and Mr. Ren Mao Sheng would resign from the positions as an independent non-executive director, the chairman of the audit committee, a member of the salary and remuneration review committee and a member of the nomination committee of the Company.

Following the resignation of Mr. Zhang Guo Lin and Mr. Ran Mao Sheng as independent non-executive directors, there would only be one independent non-executive director in the Board, which would fall below the requisite quorum under relevant regulations, namely one-third of the Board. As such, according to“Guidance regarding the establishment of independent non-executive director system in listed companies” issued by China Securities Regulatory Commission and the Articles of Association of the Company, the resignation application will take effect since new independent non-executive directors are elected at the shareholders’ general meeting of the Company to fill up the vacancy.

During this period, Mr. Zhang Guo Lin and Mr. Ran Mao Sheng will continue to perform their duties as independent non-executive directors and the positions above. The Company will arrange to nominate candidates for the new independent non-executive directors as soon as practicable, and after it is reviewed and approved by the Shanghai Stock Exchange, submit to the shareholders’ general meeting of the Company for consideration.

Mr. Zhang Guo Lin and Mr. Ran Mao Sheng have no disagreement with the Board of the Company and there is no matter relating to their resignation that needs to be brought to the attention of the shareholders. The Company would like to take this opportunity to express its sincere gratitude to Mr. Zhang Guo Lin and Mr. Ran Mao Sheng for their contribution to the development of the Company during their term of office.