citic

HONG KONG STOCK EXCHANGE CITIC PACIFIC ANNOUNCEMENT OF INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2008 Capital Expenditure
In the first half of 2008, a total deposit of HK$1.5
billion was paid for the purchase of five vessels. The
construction of the infrastructure for the Iron Ore
Mining project in Australia is continuing. The latest
estimated capital expenditure for the first two phases
is US$3.5 billion, of which approximately 75% has
been committed. An additional amount of capital
expenditure of approximately US$0.35 billion will
be incurred in anticipation of the third phase of our
project (for another one billion tonnes of magnetite
resources). The Company is optimistic about the
preliminary drilling results for the third phase. Exercise
of options for the third to sixth phases of the project
(each for one billion tonnes of magnetite resources
totalling another four billion tonnes of iron ore on
the same mine site) is dependent upon the reserves
being proven.