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.

ANNOUNCEMENT Capital Increase Agreement in Respect of Angang Cold Rolled Steel Plate (Putian) Co., Ltd.

The Company wishes to announce that, on 24 February 2012, the Board has approved the Company to enter into the Capital Increase Agreement with Sansteel MinGuang and Putian Investment. Pursuant to the Capital Increase Agreement, each of Sansteel MinGuang and Putian Investment shall contribute RMB150,080,100 in cash to the capital of Angang Putian which is currently a wholly-owned subsidiary of the Company. Upon completion of such capital contribution, (a) the registered capital of Angang Putian will be increased to RMB1,500 million; (b) each of Sansteel MinGuang and Putian Investment will hold 10% equity interest in Angang Putian; and (c) the Company’s equity interest in Angang Putian will be diluted to 80%.

The Capital Increase Agreement is scheduled for execution by the Parties on 27 February 2012.

Sansteel MinGuang and Putian Investment are parties independent of, and not connected persons of the Company as defined under Chapter 14A of the Hong Kong Listing Rules. As such, the transaction contemplated under the Capital Increase Agreement does not constitute a connected transaction under Chapter 14A of the Hong Kong Listing Rules. Based on the applicable ratios, the transaction contemplated under the Capital Increase Agreement does not constitute a notifiable transaction under Chapter 14 of the Hong Kong Listing Rules.

— 1 — Angang Steel Company Limited* (鞍鋼股份有限公司) (the “Company”) wishes to announce that, on 24 February 2012, its board of directors (the “Board”) has approved the Company to enter into an agreement (the “Capital Increase Agreement”) with Sansteel MinGuang Co., Ltd., Fujian (福建三鋼閩光股份有限公司) (“Sansteel MinGuang”) and Putian City State-owned Assets Investment Co., Ltd* ( 莆田市國有資產投資有限公 司) (“Putian Investment”). The Company, Sansteel Minguang and Putian Investment (collectively, the “Parties”) have appointed Fujian Zhongxin Accounting Firm Co., Ltd.* (福建中興會計師事務所有限公司) to audit the financial accounts of Angang Putian and the Parties have also appointed Beijing Zhongtong Huazi Valuation Co., Ltd.* ( 北京中同 華資產評估有限公司) to assess the value of the assets, liabilities and the shareholders’ equity of Angang Putian. The Parties have agreed to set the consideration for the capital increase base on the estimated asset value of Angang Putian. Pursuant to the Capital Increase Agreement, each of Sansteel MinGuang and Putian Investment shall contribute RMB150,080,100 in cash to the capital of Angang Cold Rolled Steel Plate (Putian) Co., Ltd.* (鞍鋼冷軋鋼板（莆田）有限公司) (“Angang Putian”) which is currently a wholly- owned subsidiary of the Company.

The transaction contemplated under the Capital Increase Agreement will enhance Angang Putian’s connection and synergy with the local government and the local enterprises in Fujian Province. Further, it will strengthen the influence of Angang Putian in Fujian Province, which, in return, will facilitate its business development. The transaction will also strengthen the cooperation between the Company and the Western Taiwan Straits Economic Zone.

The independent non-executive directors have expressed their views that the transaction (i) will facilitate the strengthening of the influence of Angang Putian in Fujian Province; (ii) is beneficial to the future developments of the Company, and (iii) is fair and reasonable and in the interest of the Company and its shareholders as a whole.

— 2 — The current registered capital of Angang Putian is RMB1,200 million which has been fully paid-up. Of the RMB150,080,100 contributed by each of Sansteel MinGuang and Putian Investment to the capital of Angang Putian, RMB150,000,000 will be booked as the contribution to the registered capital and the remaining RMB$80,100 will be booked as the contribution to the capital reserve. Upon getting the relevant approval and completion of relevant reporting, Sansteel MinGuang and Putian Investment shall complete their capital contribution by 30 April 2012 and 31 May 2012, respectively. Upon completion of such capital contribution, (a) the registered capital of Angang Putian will be increased to RMB1,500 million; (b) each of Sansteel MinGuang and Putian Investment will hold 10% equity interest in Angang Putian; and (c) the Company’s equity interest in Angang Putian will be diluted to 80%.

The Capital Increase Agreement is scheduled for execution by the parties on 27 February 2012.

FURTHER INFORMATION OF ANGANG PUTIAN

Angang Putian was incorporated as a wholly-owned subsidiary of the Company in Putian City, Fujian Province, the PRC on 5 February 2010 with a registered capital of RMB200 million. Its legal representative is Cao Pizhi (曹丕智) and its registered address is at Room 212, Government Finance Building, Xiuyu District, Putian City. Its registered capital was increased to RMB1,200 million as of 31 December 2011. It is established to be primarily engaged in the production and processing of cold-rolled steel products. The production facilities of Angang Putian are still under construction.

— 3 — BASIS OF CONSIDERATION

The book value of Angang Putian audited by Fujian Zhongxin Accounting Firm Co., Ltd.* (福建中興會計師事務所有限公司) and the assessed value of Angang Putian assessed by Beijing Zhongtong Huazi Valuation Co., Ltd.* ( 北京中同華資產評估有限公司), both as of 31 December 2011 are set out below:

Assessed Increase/ Percentage of Book Value Value Decrease Change Item A B C=B-A D=C/Ax100 (RMB) (RMB) (RMB) (%)

Current Liabilities 1 489,240,200 489,240,200 — — Non-current Liabilities 2 2,278,085,300 2,305,739,200 27,653,900 1.21 Of which: Long-term Equity Investment 3 — — — — Real Estate (for Investment) 4 — — — — Fixed Assets 5 — — — — Construction in Progress 6 2,227,484,800 2,233,520,500 6,035,700 0.27 Intangible Assets 7 50,600,500 72,218,700 21,618,200 42.72 Of which: Land-use Rights 8 50,600,500 72,218,700 21,618,200 42.72 Other Non-current Liabilities 9 — — — —

Total Assets 10 2,767,325,400 2,794,979,400 27,654,000 1.00

Current Liabilities 11 -92,331,300 -92,331,300 — — Non-current Liabilities 12 1,686,670,200 1,686,670,200 — — Total Liabilities 13 1,594,338,900 1,594,338,900 — —

Net Assets (Owner’s Equity) 14 1,172,986,500 1,200,640,500 27,654,000 2.36

— 4 — Beijing Zhongtonghua Asset Appraisl Co., Ltd.* ( 北京中同華資產評估有限公司) has assessed the market value of the rights and interest of shareholders of Angang Putian as of 31 December 2011 by using the cost method according to the relevant laws, rules, regulations, the relevant asset appraisal principles and the necessary appraisal procedures. As of 31 December 2011, assuming Angang Putian is a going concern, the assessed market value of the rights and interest of shareholders of Angang Putian was approximately RMB1,200 million, representing an increase of approximately RMB28 million, i.e. 2.36%, as compared with the audited net asset book value.

The Company has agreed with Sansteel MinGuang and Putian Investment to have the assessed net assets value of Angang Putian mentioned above as the basis of the consideration for the capital increase.

INFORMATION OF SANSTEEL MINGUANG AND PUTIAN INVESTMENT

Sansteel MinGuang is incorporated in Sanming City, Fujian Province, the PRC and its shares are listed on Shenzhen Stock Exchange. It currently has a registered capital of RMB534.7 million. Its legal representative is Wei Caiqing ( 衛才清) and its registered address is at Gong Ye Zhong Lu & Qun Gong San Lu, Mei Lie District, Sanming City, Fujian Province. It is mainly engaged in the production, processing and sale of coke, pig iron, steel billets and rolled steel. Fujian Province Sanguo (Group) Co., Ltd.* ( 福建 省三鋼(集團)有限責任公司) is the controlling shareholder of Sansteel MinGuang and Fujian Province Metallury (Holding) Co., Ltd.* (福建省冶金(控股)有限責任公司) is the controlling shareholder of Fujian Province Sanguo (Group) Co., Ltd.

Putian Investment is incorporated in Putian City, Fujian Province, the PRC. It currently has a registered capital of RMB900 million. Its legal representative is He Jinqing ( 何金清) and its registered address is at 3rd - 4th Floor, Foreign Economic Trade Mansion, Wen Xian Xi Lu, Putian City. It is wholly-owned by Putian City State-owned Assets Supervisory and Management Committee and is mainly engaged in investment activities for the state-owned funds.

— 5 — Sansteel MinGuang and Putian Investment are parties independent of, and not connected persons of the Company as defined under Chapter 14A of the Rules Governing the Listing of the Securities on The Stock Exchange of Hong Kong Limited (the “Hong Kong Listing Rules”). As such, the transaction contemplated under the Capital Increase Agreement does not constitute a connected transaction under Chapter 14A of the Hong Kong Listing Rules. Based on the applicable ratios, the transaction contemplated under the Capital Increase Agreement does not constitute a notifiable transaction under Chapter 14 of the Hong Kong Listing Rules.

By Order of the Board Fu Jihui Executive Director and Secretary to the Board

Anshan City, Liaoning Province, the PRC. 24 February 2012

As at the date of this announcement, the Board comprises the following directors:

Executive Directors: Independent Non-Executive Directors: Zhang Xiaogang Li Shijun Yang Hua Ma Guoqiang Chen Ming Kwong Chi Kit, Victor Yu Wanyuan Fu Jihui

* For identification purposes only

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