Metallurgical Corporation of China Ltd. announced it is expected to record a loss in its annual operating results for the year ended December 31, 2012, with loss attributable to equity holders of the company of approximately RMB 7.2 billion. However, the company is estimated to record losses for the period as a result of the following factors: Based on the result of a valuation, the company made a provision for bad debt on receivables of approximately RMB 6.9 billion in MCC Huludao Nonferrous Metals Group Co. Ltd. As the company has transferred its equity interests in Huludao Nonferrous to China Metallurgical Group Corporation, the controlling shareholder of the company, on December 31, 2012, Huludao Nonferrous was no longer in the consolidated financial statements of the company.

The excess loss of approximately RMB 3.0 billion for the current year and previous years was therefore reversed. Pursuant to relevant regulations of the PRC Accounting Standards for Business Enterprises, the estimated total costs under the contract of the Western Australia SINO Iron Ore Project of CITIC Pacific undertaken by the company in excess of the project costs recognized by CITIC Group, being approximately RMB 3.1 billion, shall be provided for as estimated losses in the current period. The provision for the estimated loss under the contract will result in a decrease of approximately RMB 3.1 billion in the profit attributable to equity holders of the company in the annual consolidated financial statements of the company for 2012.

The provision for impairment will result in a decrease of approximately RMB 2.3 billion in the profit attributable to equity holders of the company in the annual consolidated financial statements of the company for 2012. The continuous weakness of the prices in the polysilicon market has resulted in substantial loss of Luoyang China Silicon Hi-tech Corporation, a subsidiary of the company, for the year of 2012.