PROJECT ANLING

The proposed transaction is the transfer of 49% of shares in Lingyuan Iron & Steel Group Corporation Limited (Lingyuan Steel or Target) to An Steel Group Corporation Limited (An Steel or Acquirer) from the State-owned Assets Supervision and Administration Commission of the Chaoyang Municipal Peoples Government (Chaoyang SASAC or Transferor) (Proposed Transaction). Both companies are state-owned enterprises in China. An Steel is owned by the Central State-owned Assets Supervision and Administration Commission (Central SASAC) and State Council of Peoples Republic of China (State Council), while Lingyuan Steel is owned by the Chaoyang SASAC and the Liaoning Provincial Department of Finance. An Steels main business activities are within China, and its main business is in the iron and steel sector. An Steel is engaged in the full process of iron and steel production, including sintering, ironmaking, steelmaking, steel rolling, coking and refractory. Its main products are hot-rolled steel, cold-rolled steel, galvanized steel, color-coated steel, cold-rolled silicon steel, heavy rail, seamless steel pipe, profile, wire, steel rope products, and stainless steel. In addition, An Steel also has a small portion of non-steel business, such as mining and ore dressing (but the products are mainly for An Steels captive use). As to An Steels business in Nigeria, An Steel only exported a little amount of hot rolled coils, titanium dioxide to the Nigerian market in 2022. Lingyuan Steels main business activities are within China in the iron and steel sector. Lingyuan Steels steel products portfolio mainly include hot rolled medium and wide band steel, rebar, round steel, welded steel pipe, etc. In 2022, Lingyuan Steel has no product exported to Nigeria. The Proposed Transaction is a concrete action to implement the spirit of General Secretary Xi Jinpings instructions on the revitalization of Northeast China and Liaoning in the new era and the spirit of the 20th Congress of the Chinese Communist Party, a powerful initiative to serve the construction of a new pattern of high-quality development in the steel industry, and a vivid practice to help Liaoning implement the three-year action of a new breakthrough in comprehensive revitalization. An Steel, as a state-owned enterprise, shoulders the political, economic and social responsibility of driving local economic development. The Proposed Transaction is an opportunity to further deepen the cooperation between the central government and the local community, and will enable An Steel to contribute to building the western gateway of Liaoning's opening and cooperation in Chaoyang City. Neither the Acquirer nor the Target has subsidiaries in Nigeria.