Angang Steel : TERMINATION OF CONNECTED TRANSACTION

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(Stock Code: 0347)

TERMINATION OF CONNECTED TRANSACTION

This announcement is made pursuant to Rule 14A.35 of the Listing Rules.

Reference is made to the announcement dated 12 July 2018 (the "Announcement") of Angang Steel Company Limited* (the "Company") in relation to a connected transaction for the subscription of new shares to be issued by An Steel International Co., Limited (the "Subscription"). Unless otherwise defined, terms used herein shall have the same meanings as those defined in the Announcement.

TERMINATION OF TRANSACTION

As disclosed in the Announcement, Completion is conditional upon the fulfillment of certain conditions precedent, including but not limited to, the obtaining of the approval from the relevant PRC authorities in relation to the steel investment project in Indonesia by An Steel.

Considering the unavailability of financing and the adjustment to the overall planning for the utilization of the relevant land, together with the significant changes in Indonesia's domestic market environment, the Indonesian partner of the project has indicated its intention not to proceed with the project, resulting in the failure of the fulfilling of the conditions precedent for the Company's investment in An Steel. After arm's length negotiations among the parties, on 28 August 2020 (after trading hours), the Company and An Steel entered into a termination agreement (the "Termination Agreement"), pursuant to which the parties thereto have agreed to terminate the Subscription Agreement.

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Pursuant to the Termination Agreement, the Subscription shall be terminated with effect from the date of the Termination Agreement and the parties thereto agree that all unperformed rights and obligations (if any) will be terminated and cease to have any effect on the date of the Termination Agreement.

As at the date of this announcement, the Company has not subscribed any Subscription Shares.

The Board considers that the termination of the Subscription Agreement is in the interests of the Company and its Shareholders as a whole and has no material adverse impact on the existing business or finance position of the Group.

By Order of the Board

ANGANG STEEL COMPANY LIMITED*

Wang Yidong

Executive Director and Chairman of the Board

Anshan City, Liaoning Province, the PRC

28 August 2020

As at the date of this announcement, the Board comprises the following Directors:

Executive Directors:	Independent Non-executive Directors:
Wang Yidong	Wu Dajun
Li Zhen	Feng Changli
Li Zhongwu	Wang Jianhua
Ma Lianyong	Wang Wanglin

• For identification purpose only

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