IRC : Announcements and Notices - IRC Successfully Achieves Debt Service Holiday Allowing for Significant Cash Generation

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Hong Kong with limited liability)

This announcement is made pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules") and the Inside information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). As noted in the announcements of the Company dated 1 December 2016, 2 December 2016, 21 December 2016, 28 December 2016, 4 January 2017, and 19 January 2017, the Group has been in discussions with ICBC regarding further proposals for a restructuring, amendment or waiver under the US$340 million project finance facility dated 13 December 2010 between K&S and ICBC (the "Project Finance Facility").

The board of directors of the Company is pleased to announce that the Company has been informed that, subject to the fulfilment of certain conditions precedent, ICBC has agreed to restructure the repayments under the Project Finance Facility as follows: (i) two repayment instalments, originally due for payment on 20 June 2017 and 20 December 2017 and in an aggregate amount of US$42,500,000 (approximately HK$330 million) have been waived; and

(ii) in respect of the five subsequent repayment instalments under the Project Finance Facility, each repayment instalment has been increased by US$8,500,000 (approximately HK$65.9 million) to US$29,750,000 (approximately HK$231 million), with the aggregate amount of the increase being equal to US$42,500,000 (approximately HK$330 million). The restructuring of the repayments shall be effective upon fulfilment of the conditions precedent and shall continue to be effective until 20 June 2020, subject to the on-going satisfaction of certain conditions.

IRC is now working with all parties involved to ensure that all conditions precedents can be, and in the case of certain conditions precedent will continue to be, fulfilled. Further announcement will be made in due course.

Commenting on the news above, Yury Makarov, Chief Executive Officer of IRC said "I would like to thank ICBC for their continued support of IRC and the K&S project. I would also like to thank my team for completing this lengthy negotiation process successfully at the same time as ramping up production at K&S.

IRC is now well positioned to generate significant cashflows for shareholders in 2017."

By Order of the Board

Chief Executive Officer

Hong Kong, People's Republic of China Monday, 27 February 2017

As at the date of this announcement, the Executive Directors of the Company are Mr Yury Makarov and Mr Danila Kotlyarov. The Non-Executive Directors are Mr George Jay Hambro, Mr Cai Sui Xin (Benjamin Ng as his alternate), Mr Raymond Kar Tung Woo and Mr Cheng Chi Kin. The Independent Non-Executive Directors are Mr Daniel Bradshaw, Mr Simon Murray, CBE, Chevalier de la Légion d'Honneur, Mr Chuang-Fei Li and Mr Jonathan Martin Smith.

6H, 9 Queen's Road Central Hong Kong

Tel: +852 2772 0007

Email: ir@ircgroup.com.hk

Website: www.ircgroup.com.hk

For further information please visit www.ircgroup.com.hk or contact:

Manager - Communications & Investor Relations Telephone: +852 2772 0007

Mobile: +852 9688 8293

Email: sc@ircgroup.com.hk