Share Purchase Agreement Terminated

At the 8th Meeting of the 7th Board of Directors, held on 25 Sept 2008, the following proposals were examined and approved:

1. to terminate a 120 mln share purchase agreement signed with Baosteel Group Corporation on 30 Nov 2007
2. to revise the 1H Profit Distribution Scheme.
Pursuant to the revised scheme, the company plans to allot three bonus shares and pay a cash dividend of RMB 0.335 for every 10 shares held based on 2,388,795,202 total shares outstanding, totaling RMB 796,663,200. The remaining undistributed net profit of RMB 2,587,979,674 will be reserved for distribution in the following year.

3. to issue up to RMB 10 bln worth of subordinated bonds for five to ten years
4. to issue up to RMB 10 bln equivalent financial bonds for one to ten years
5. to issue up to RMB 8 bln in mixed capital bonds for over 15 years or more
6. to convene the 1st 2008 Extraordinary General Meeting of Shareholders on 15 Oct 2008, at which proposals 2, 3, 4, and 5 will be examined and considered for approval
7. to sell the second and third batches of non-performing assets for up to RMB 1.59 bln and RMB 1.086 bln respectively

Board of Directors
26 Sept 2008


Source: Securities Times

Date: 26 Sept 2008

CN01/BJ/JL/BT/KM