09:24     HUA YI COPPER<00559> - Announcement (2)                             

    of the Share Consolidation will be aggregated and sold                    
    for the benefit of the Company. The issued                                
    Consolidated Shares will rank pari passu in all                           
    respects with each other and there will be no change                      
    in the relative rights of the Shareholders. The Share                     
    Consolidation is subject to (i) the approval by the                       
    Shareholders at the SGM and (ii) the granting of the                      
    listing of, and permission to deal in, the                                
    Consolidated Shares by the Stock Exchange.                                
                                                                              
    The Company will make an application to the Stock                         
    Exchange for the listing of, and permission to deal                       
    in, the Consolidated Shares.                                              
                                                                              
    Reasons for Share Consolidation                                           
    The Directors believe that the Share Consolidation                        
    is in the best interests of the Company and the                           
    Shareholders as a whole as the Share Consolidation                        
    will reduce the number of board lots in the market                        
    and will increase the nominal value and trading price                     
    of the ordinary shares of the Company and may thereby                     
    attract more investors including potential                                
    institutional investors and broaden the Company's                         
    shareholders base.                                                        
                                                                              
    The Share Consolidation will not, of itself, alter                        
    the underlying assets, business operations,                               
    management or financial position of the Company and                       
    its subsidiaries except for the payment of related                        
    expenses.                                                                 
                                                                              
    Change in Board Lot Size and Trading Arrangement                          
    Currently, the Existing Shares are traded in board                        
    lot size of 40,000 Existing Shares each. The Board                        
    proposes that the board lot size for trading on the                       
    Stock Exchange be changed from 40,000 Existing Shares                     
    to 2,000 Consolidated Shares upon the Share                               
    Consolidation becoming effective.                                         
                                                                              
    In order to facilitate the trading of odd lots of the                     
    Consolidated Shares arising from the Share                                
    Consolidation, the Company will procure an agent to                       
    arrange for the sale and purchase of odd lots on behalf                   
    of the Shareholders.                                                      
                                                                              
    Details of such arrangements will be disclosed in the                     
    circular of the Company to be despatched to the                           
    Shareholders.                                                             
                                                                              
    Shareholders should note that successful matching of                      
    the sale and purchase of odd lots of the Consolidated                     
    Shares is not guaranteed.                                                 
                                                                              
    Expected timetable                                                        
    2004                                                                      
    Despatch of circular together with notice of SGM                          
            on or before Monday, 13 December                                  
    Latest time for lodging the form of proxy                                 
      for the SGM   10:00 a.m. on Monday, 27 December                         
    SGM     10:00 a.m. on Wednesday, 29 December                              
    Effective date of the Share Consolidation                                 
            Thursday, 30 December                                             
    Existing counter for trading in Existing Shares                           
      in board lots of 40,000 Existing Shares                                 
      temporarily closes    9:30 a.m. on Thursday, 30                         
    December                                                                  
    Temporary counter for trading in Consolidated Shares                      
      in board lots of 2,000 Consolidated Shares (in the                      
      form of existing share certificates) opens                              
            9:30 a.m. on Thursday, 30 December                                
                                                                              
    2005                                                                      
    Existing counter for trading in Consolidated Shares                       
    in