China Hanking : INSIDE INFORMATION ENTERING INTO THE 2018 SALE AGREEMENT WITH A MAJOR CUSTOMER

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CHINA HANKING HOLDINGS LIMITED 中國罕王控股有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock code: 03788)

INSIDE INFORMATION

ENTERING INTO THE 2018 SALE AGREEMENT

WITH A MAJOR CUSTOMER

This announcement is made by China Hanking Holdings Limited (the "Company") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company is pleased to announce that Shenyang Toyo Steel Utility Co.,

Ltd, a wholly-owned subsidiary of the Company, entered into the 2018 Iron Ore Concentrates Sale Agreement with a major customer, Fushun New Steel Co., Ltd. (撫順新鋼鐵有限責任公司). Given the greater economic value created by the Company's high-grade iron ore concentrates (at a grade of around 69%) for its customers, the mark-up rates of the prices in respect of the grade and other factors have been increased under the 2018 Iron Ore Concentrates Sale Agreement. Generally, the sale price of per metric ton of iron ore concentrates under the new agreement will increase by approximately RMB25 (tax-inclusive price) as compared with the agreed pricing method under the 2017 Iron Ore Concentrates Sale Agreement.

The Company will also revise the pricing method of iron ore concentrates sale with other customers, so as to reflect the greater economic value created by the Company's high-grade iron ore concentrates for its customers. The change of the pricing method of iron ore concentrates is expected to enhance the revenue and profitability of the Company in the iron ore concentrates segment as well as to strengthen the influence of the "Hanking" brand in the domestic iron ore concentrates market. In respect of the iron ore business, the Company will stick to the strategy of improving the comprehensive added value of its products, so as to create greater revenue for the shareholders of the

Company.

By order of the Board China Hanking Holdings Limited

Yang Jiye

Chairman and executive director

Shenyang, the PRC, 25 January 2018

As at the date of this announcement, the executive directors are Mr. Yang Jiye, Dr. Pan Guocheng, Mr. Zheng Xuezhi, Dr. Qiu Yumin and Mr. Xia Zhuo; the non-executive director is Mr. Kenneth Jue Lee; and the independent non-executive directors are Mr. Wang Ping, Dr. Wang Anjian and Mr. Ma Qingshan.