MEDIA RELEASE 1 November 2009 Baosteel received approval from Australia for investment with Aquila -- FIRB approved the AUD $286.5m Investment from Baosteel Group to Aquila Resources-- Highlights: * Baosteel received approval from FIRB for AUD$285.6m investment * Share placement (carried out in two tranches) give 15% of Aquila shares to Baosteel of 43.95 million at $6.50 per share * Aquila shareholders has approved 9.7m share placement (second placement) * Baosteels Vice President Mr.

Zhihao Dai to Join Aquila Board * Chinese government approvals for Baosteel investment well advanced Baosteel Group Corporation ("Baosteel" or "the company") has been advised that the Foreign Investment Review Board (FIRB") has approved the investment with Aquila Resources Limited ("Aquila"), an Australian diversified mining company, to acquire a 15% stake in the Company for AUD$285.6 million (equivalent to RMB 1.65 billion).

Baosteel will become the second largest shareholder in Aquila. Baosteel Vice President, Mr Zhihao Dai, said Baosteel is extremely pleased with the approval by FIRB of the Companys investment into Aquila. "The approval from FIRB represents a significant step forward in Baosteels internationalization strategy, symbolizing a significant and solid step in the companys international development.

"We would like to thank the support of Australian government and Aquila for the co-operation and we look forward to working closely with Aquila. "The final step in the process is approval by the Chinese government and we understand that approval process is well advanced." Mr Tony Poli, Executive Chairman, Aquila Resources, commented "Aquila is very pleased to have FIRB approval and is extremely proud to have one of the worlds largest steelmakers, Baosteel Group, on board to fast-track Aquilas significant iron ore, coal and manganese projects.

This is a positive step forward for the development of important mineral assets in the Pilbara region of Western Australia" Baosteel has also signed a Memorandum of Strategic Cooperation with Aquila to further explore project-level investment. For further information please contact: Chao He Department of Public Relations Baosteel Group Tel: 86-21-68403906 Email: Media contact: China Jerry Zhu Professional Public Relations Tel: 86-10-65818586- 601 Email: Australia Karen Oswald Professional Public Relations Tel: 0423 602 353 Email: Background on Baosteel Baosteel Group Corporation is a state authorised investment institution approved by the State Council and a state-controlling company.

It is the most competitive steel complex in China at present.

In 2008, Baosteel registered a sales revenue of RMB 246.839 billion yuan, a total profit of RMB 23.813 billion yuan, a total assets of RMB 352.497 billion yuan and a net assets of RMB 219.435 billion yuan; the total employees of Baosteel are 108914 people; Baosteel has been enrolled in Global 500 for 6 years consecutively and ranked 220th this year. Aquila Resources Aquila Resources is focused on exploration, development and production of coal, iron ore and manganese assets situated in Australia and South Africa.
This message has been sent to you as a subscriber of the PPR mail service. If you no longer wish to be a part of the service, please email with the word "REMOVE" in the Subject line.
--------------------------------------------------------------------------- This email was sent by Karen Oswald, PPR (WA) Pty Ltd, Level 1, 588 Hay Street, Subiaco WA 6008 Western Australia to Unsubscribe: http://esp.gewru.com/download/forms/u/83d27c7/1499056218.html ---------------------------------------------------------------------------