Chongqing Iron & Steel : ANNOUNCEMENT ON EXECUTION OF ASSET MANAGEMENT CONTRACT REGARDING THE THIRD PHASE OF EMPLOYEE SHARE OWNERSHIP PLAN

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ANNOUNCEMENT ON EXECUTION OF ASSET MANAGEMENT CONTRACT REGARDING THE THIRD PHASE OF EMPLOYEE SHARE OWNERSHIP PLAN

At the 15th meeting of the seventh session of the board of directors and the 18th meeting of the seventh session of the supervisory committee held on 20 March 2018, and the 2017 annual general meeting held on 15 May 2018 of Chongqing Iron & Steel Company Limited (the "Company"), the proposals including the Proposal in relation to the Employee Share Ownership Plan (draft) from 2018 to 2020 of Chongqing Iron & Steel Company Limited and its Summary《關 於< 重 慶 鋼 鐵 股 份 有 限 公 司2018 年

至2020 年 員 工 持 股 計 劃（草 案）>及 其 摘 要 的 議 案》and the Proposal in relation

to Management Measures on Employee Share Ownership Plan of Chongqing Iron & Steel Company Limited《關 於< 重 慶 鋼 鐵 股 份 有 限 公 司 員 工 持 股 計 劃 管 理 辦

法>的 議 案》were considered and approved.

At the 16th meeting of the eighth session of the board of directors and the 12th meeting of the eighth session of the supervisory committee of the Company held on 27 December 2019, the Proposal in relation to the Third Phase of Employee Share Ownership Plan of the Company 《( 關 於 公 司 第 三 期 員 工 持 股 計 劃 的 議 案》) was considered and approved.

At the first holders' meeting of the third phase of employee share ownership plan of the Company held on 22 January 2020, the proposals including the Proposal in relation to the Establishment of the Management Committee of the Third Phase of Employee Share Ownership Plan and Authorisation to the Management Committee to

be Responsible for the Management of the Employee Share Ownership Plan 《( 關 於 設 立 第 三 期 員 工 持 股 計 劃 管 理 委 員 會 並 授 權 管 理 委 員 會 負 責 員 工 持 股 計

劃 管 理 事 宜 的 議 案》) were considered and approved.

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For details of the above-mentioned matters, please refer to the relevant announcements of the Company published on the China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily and the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on 22 March 2018, 16 May 2018, 28 December 2019 and 23 January 2020, respectively.

Recently, Chongqing Iron & Steel Company Limited (on behalf of the third phase of employee share ownership plan and as asset entrustor), Huatai Securities (Shanghai) Asset Management Co., Ltd. (as asset manager) and China Merchants Bank Co., Ltd., Suzhou Branch (as asset custodian) executed the Asset Management Contract between Huatai Asset Management and Chongqing Iron & Steel Regarding Employee Share Ownership Plan No. 3 Single Asset Management Plan 《( 華 泰 資 管 重 慶 鋼 鐵 員 工 持 股 計 劃3 號 單 一 資 產 管 理 計 劃 資 產 管 理 合 同)》based on the principle of equality, voluntariness and good faith. The contract sets out detailed explanations and provisions on the condition and investment of the entrusted assets as well as the rights and obligations of the parties thereto. For details, please refer to the Asset Management Contract between Huatai Asset Management and Chongqing Iron & Steel Regarding Employee Share Ownership Plan No. 3 Single Asset Management Plan (Chinese version only) disclosed by the Company in the form of overseas regulatory announcement on the same date hereof.

The aforesaid contract does not constitute a notifiable transaction under Chapter 14 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and this announcement is made by the Company on a voluntary basis.

By order of the Board

Chongqing Iron & Steel Company Limited

Meng Xiangyun

Secretary to the Board

Chongqing, the PRC, 21 April 2020

As at the date of this announcement, the Directors of the Company are: Mr. Zhou Zhuping (Non-executive Director), Mr. Song De An (Non-executive Director), Mr. Zhang Shuogong (Non-executive Director), Mr. Li Yongxiang (Executive Director), Mr. Tu Deling (Executive Director), Mr. Wang Li (Executive Director), Mr. Xu Yixiang (Independent Non-executive Director), Mr. Xin Qingquan (Independent Nonexecutive Director) and Mr. Wong Chunwa (Independent Non-executive Director).

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