IRC : K&S OPERATION UPDATE AMUR RIVER BRIDGE TO COMPLETE IN 2020 IRON ORE PRICE REMAINS STABLE

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(Incorporated in Hong Kong with limited liability)

(Stock code: 1029)

K&S OPERATION UPDATE

AMUR RIVER BRIDGE TO COMPLETE IN 2020

IRON ORE PRICE REMAINS STABLE

Monday, 30 December 2019: IRC Limited ("IRC" or the "Company", together with its subsidiaries, the "Group"; Stock Code 1029) is pleased to announce that the K&S plant is currently operating at close to 100% capacity after some operating issues of the ball mills have been resolved. Shipment volume is, however, being restrained by the ramping up issues of the Drying Unit. After implementing the mitigating measures, it is expected that the Drying Unit will soon increase its capacity rate. The Amur River Bridge is expected to complete by the end of 2020 according to the media and the market iron ore price remains stable.

K&S Operation Update

K&S is currently operating at close to 100% capacity after resolving some operating issues with the ball mills in late November and early December. It is pleasing that production is now back to normal, although K&S's operation was affected during the time when the site team worked on the ball mills.

Shipment volume is, however, being restrained by the ramping up issues of the Drying Unit. The Drying Unit is used in winter to remove excessive moisture from the iron ore concentrate to prevent the product from freezing in cold weather conditions. Due to some technical issues, the capacity rate of the Drying Unit is currently limited to c. 65%, and the shipment volume of K&S is affected. The K&S site team is now investigating the issues and implementing different mitigating measures, and it is expected that the capacity rate of the Drying Unit and shipment volumes will soon be increased.

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Amur River Bridge to complete in 2020

The Russian-Chinese railway bridge over the Amur River, also known as Heilongjiang in China, is an important infrastructure project between the two countries. As reported in the local media, the construction of the railway bridge will be finished by the end of 2020, according to the Russian presidential envoy to the Far Eastern Federal District, Yury Trutnev. IRC expects that the Bridge can not only save the transportation cost of K&S by up to US$5 per tonne for shipments to the Chinese customers but can also alleviate any railway congestion of the region. Apart from shortening the shipment time to customers from 7-10 days to 3-5 days, logistic efficiency should also be improved as the time needed to turnaround the wagons will be reduced.

Stable Iron Ore Price Environment

The 65% Fe Platts Index remains stable and records a month-to-date average of over US$100 per tonne in December 2019. According to a market research report, the recent reduction in global iron ore shipments, caused by decreasing supplies from the Australian and junior iron ore exporters, provides support for the Fe price. The global economic outlook also looks more positive with the United States and China reportedly having reached consensus on the terms of a "phase one" trade deal.

As one of the major iron ore producers in the Far East Russia, IRC can benefit from the strong iron ore price environment, particularly the 65% iron ore market.

Commenting on the news, Yury Makarov, Chief Executive Officer of IRC said: "I am pleased that K&S is now producing at a high capacity after the issues with the ball mills have been rectified. Although the glitches of the Drying Unit temporarily affect our sales, our site team is addressing the issues and implementing mitigating measures.

I am also pleased that the Russian official has assured the completion date of the Amur River Bridge. The Bridge is a major infrastructure project of the Russian Far East and it is expected that it will enhance the cost and geographical advantages of IRC.

The stable iron ore price environment is encouraging. The future prices of 65% Fe look more resilient as the Fe forward curves show increasing price premiums over the 62% Fe. K&S is set to seize the opportunities to capitalise on its advantages and make a greater contribution to IRC."

By Order of the Board

IRC Limited

Yury Makarov

Chief Executive Officer

Hong Kong, People's Republic of China

Monday, 30 December 2019

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As at the date of this announcement, the Executive Directors of the Company are Mr Yury Makarov and Mr Danila Kotlyarov. The Non-Executive Directors are Mr Peter Hambro and Mr Chi Kin Cheng. The Independent Non-Executive Directors are Mr Daniel Bradshaw, Mr Chuang-Fei Li, Mr Simon Murray, CBE, Chevalier de la Légion d'Honneur, Mr Jonathan Martin Smith and Mr Raymond Kar Tung Woo.

IRC Limited

6H, 9 Queen's Road Central Hong Kong Telephone: [phone]

Email: [e-mail]

Website: www.ircgroup.com.hk

For further information please visit www.ircgroup.com.hk or contact:

Kent Lo

Manager - Communications & Investor Relations

Telephone: [phone]

Mobile: [phone]

Email: [e-mail]

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