380 Mln A-shares to be Issued

The company will issue up to 380 mln A-shares at a price of RMB 5.24 per share. Each share has a par value of RMB 1.00. Thirty percent of the shares will be issued on-line, and 70% will be issued off-line. Holders of common shares can exercise their rights of first refusal to subscribe two shares for every ten shares held, thus up to 270.72 mln shares can be sold to them. The figure accounts for 71.24% of the total newly-issued shares. Jinan Steel & Iron Co., Ltd., the controlling shareholder of the company, has pledged to exercise its right to subscribe all 185,956,556 of the shares that it can buy.

Holders of common shares can subscribe to the shares online using the stock code '700022' and the abbreviation 'Jigang Issuance', as well as via the stock code of '730022' and the abbreviation of 'Jigang Additional Issuance' for social investors. In addition, every social investor can subscribe up to 99.99 mln shares. Holders of restricted shares can only exercise their rights of first refusal through conventional means. Both on-line and off-line subscriptions will be conducted on 24 Oct 2008.

Institutional investors can subscribe to the shares both on-line and off-line. However, if an institutional investor subscribes off-line and holds common shares, the said investor can only subscribe to the shares when she/he exercises the right of first refusal. China Jianyin Investment Securities Co., Ltd., sponsor of the company, is the underwriter for the share issuance.

Board of Directors
21 Oct 2008


Source: Shanghai Stock Exchange

Date: 22 Oct 2008

CN01/SC/RL/NK/KM