CITIC Australia Trading Limited ABN 84 092 595 741 ASX Release 17 August 2006 CITIC signs iron ore offtake contract with Aztec CITIC Australia Trading Limited (ASX code: CAL) is pleased to announce that its operating subsidiary, CITIC Australia Commodity Trading Pty Ltd, has signed a long term offtake contract with Aztec Resources Limited (ASX and AIM code: AZR) (“Aztec”). Aztec is redeveloping the Koolan Island iron ore project in the North West of Western Australia. The agreement with CAL is Aztec’s first long term sales contract for its Koolan Island project. This is also CAL’s first long term iron ore supply contract. Given that CAL exported approximately 3.5 million tonnes of iron ore to Chinese customers during 2005, this contract will further strengthen CAL’s iron ore trading line. Securing such offtake contracts is in line with CAL’s strategy of developing longer term arrangements with both suppliers and customers. Broad terms of the offtake contract include: • Nominal annual sale of 1.5 million tonnes at full production rate of 4 million tonnes per annum for up to 15 years or the life of the mine, whichever is less. At production rate of less than 4 million tonnes per annum sales are prorated. • Prices are based on the annual benchmark price negotiated by the major Pilbara producers for equivalent iron ore products. CITIC Australia Trading Limited Chairman Mr Chen Zeng said CITIC was pleased to be the first party to sign an offtake contract for iron ore from the Koolan Island Project. “The average grade of Koolan Island iron ore at over 64% iron is attractive to the Chinese market, and we are pleased to be the first to conclude a long term sales contract with Aztec. We also wish to acknowledge the professional approach from Aztec’s management in concluding these important negotiations and enhancing the great relationship between CITIC and Aztec,” Mr Zeng said. Chairman Ian Burston said the first sales contract was a significant milestone to date in the rebirth of Koolan Island. “CITIC has been closely involved with Aztec from the earliest stages of the Koolan Island iron ore project. This support has culminated in the signing of Aztec’s first long term sales contract and represents an important step in the development of Australia’s next iron ore mine,” Mr Burston said. Background on Aztec Resources Limited Aztec is redeveloping the Koolan Island iron ore project in the North West of Western Australia, which has a resource of 53 million tonnes of high quality iron ore. With construction already underway, Koolan Island is set to become Australia’s next iron ore mine. Production is forecast to commence in December 2006 with first shipments in early 2007 and is expected to grow to four million tonnes per annum by 2009. Further exploration drilling is expected to enhance the life of the project. About CITIC Australia Trading Limited CITIC Australia Trading Limited (CAL) is an international commodity trading company, focusing on trade between China and Australia. Based in Australia, it has the full support of the Chinese multinational CITIC Group. CITIC Resources Australia Pty Ltd, a subsidiary of CITIC Group, is CAL’s majority shareholder. CAL is well positioned to continue to profitably grow its trading activities in the Company’s target markets. While trading can be volatile in its nature, CAL’s experienced trading team consistently and continuously strive to identify and capture profitable trading opportunities that balance minimum risk and maximum returns for shareholders. The Company is also actively seeking to enter into strategic arrangements complementary to current and potential new trading lines in order to generate long-term, profitable growth. For further information please contact: Mr Yuheng Wu Michael Arter Managing Director Director and Company Secretary Phone: +61 3 9614 8000 Phone: +61 3 9614 8000 Or visit: www.citictrading.com.au
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