Ann: Response to ASX Price Query , page-12

The USD$5b Acu steel plant is still in FS stage atm, my contacts denied what the media said.

Iron ore project is totally different with steel plant project, you should see the clear Brazil investment strategy of Wusteel. So far, they already invested $400m on MMX in Brazil, and they are seeking more Brazil iron ore projects atm.

Personaly, I wish they can stop the $5b steel plant and invest more on iron ore projects in brazil.

CBS's 15Mt/year target, if it is feasible, I believe Wusteel will have strong interests on it, even if the grade is a bit lower than 30%, the regional peers can well balance the investment risk.

15Mt/year port access right,in other country like Aus,costs them at least $1billion, in CBS case, it's NIL.

I am waitting more drilling results before next contact with Wusteel officals, I may also introduce CBS to Mr Liu, chief Aus representatve of Anshan Steel--World No 4, (Wusteel is No 5), sould I get supports from CBS board.

I will spend more time on CBS projects after the AGM and I will further discuss the development strategy of CBS with CBS board.

I will try my best and I have strong confidence that CBS can generate cash flow through other busines oportunities.