09:50     YANION INT'L<00082> - Announcement & Resumption (10)                

    in the 12 months preceding the date of this                               
    announcement.                                                             
                                                                              
    INFORMATION ON THE CONSIDERATION SHARES AND THE                           
    PLACING SHARES                                                            
    (1)     Shareholding Percentages                                          
    The Consideration Shares                                                  
    The Consideration Shares will represent                                   
    approximately 22.7% of the Enlarged Share Capital.                        
    It is currently expected that 600,000,000                                 
    Consideration Shares will be allotted and issued to                       
    the Vendors. In the event that the 600,000,000                            
    Consideration Shares represent less than or account                       
    for more than 22.7% of the Enlarged Share Capital,                        
    the number of Consideration Shares to be allotted and                     
    issued to the Vendors should be adjusted accordingly                      
    so that the actual number of Consideration Shares,                        
    in aggregate, shall represent 22.7% of the Enlarged                       
    Share Capital. Assuming that 600,000,000                                  
    Consideration Shares are allotted and issued, such                        
    Consideration Shares represent approximately 96.5%                        
    of the existing issued share capital of the Company.                      
                                                                              
    The Placing Shares                                                        
    On the basis that 600,000,000 Consideration Shares                        
    will represent approximately 22.7% of the Enlarged                        
    Share Capital, the number of Placing Shares required                      
    to be offered under the Placing so as to have such                        
    a dilutive effect on the Consideration Shares will                        
    represent not less than 228.1% of the Company's                           
    existing issued share capital and not less than 53.7%                     
    of the Enlarged Share Capital.                                            
                                                                              
    (2)     Ranking of the Consideration Shares and the                       
    Placing Shares                                                            
    Subject to completion of the Acquisition taking place                     
    in accordance with the terms of the Sale and Purchase                     
    Agreement, the Consideration Shares and the Placing                       
    Shares shall be issued simultaneously as fully paid                       
    and shall rank pari passu in all respects with the                        
    Shares in issue immediately prior to their issue.                         
                                                                              
    (3)     Listing on the Stock Exchange                                     
    The Company will make an application to the Stock                         
    Exchange for the listing of, and permission to deal                       
    in, the Consideration Shares and the Placing Shares.                      
                                                                              
    CAPITAL INJECTION, THE ACQUISITION, THE PLACING AND                       
    THE CAPITAL INCREASE                                                      
    The relationship between the Capital Injection, the                       
    Acquisition, the Placing and the Capital Increase is                      
    as follows:                                                               
                                                                              
    (1)     the Capital Injection on the part of Yingkou                      
    Middle Plate Factory will be made in accordance with                      
    the terms of the relevant joint venture contract while                    
    the Capital Injection on the part of Guohua                               
    International will be completed after the Company                         
    having received the net proceeds from the Placing;                        
                                                                              
    (2)     completion of the Acquisition and completion of                   
    the Placing will take place at the same time; and                         
                                                                              
    (3)     pursuant to the Sale and Purchase Agreement, the                  
    Company has undertaken that the net proceeds from the                     
    Placing shall be applied by Yingkou Steel JV to                           
    finance its committed portion of the Capital                              
    Increase.                                                                 
                                                                              
    The Capital Injection on the part of Yingkou Middle                       
    Plate Factory referred to in sub-paragraph (1)