According to the notice dated 20 Jun 2008 issued by Baosteel Group Corporation, the controlling shareholder of the company, a discussion is currently ongoing between Baosteel Group Corporation, the State-owned Assets Supervision Administration Commission of Guangdong Province and the State-owned Assets Supervision Administration Commission of Guangzhou City.

The three parties plan to jointly establish Guangdong Iron & Steel Group Co. Ltd with a registered capital of RMB 35.86 bln, in which Baosteel Group Corporation will hold an 80% stake by investing RMB 28.688 bln, the State-owned Assets Supervision Administration Commission of Guangdong Province and the State-owned Assets Supervision Administration Commission of Guangzhou City will hold a 20% stake by jointly investing RMB 7.172 bln worth of the state-owned net assets of Guangdong Shaoguan Iron and Steel Group Co. Ltd and Guangzhou Iron & Steel Enterprises Group.

Baoshan Iron & Steel Co. Ltd
24 Jun 2008

Source: Shanghai Stock Exchange

Date: 24 Jun 2008

CN01/LZ/BT/KM