11:26 CHALCO<02600> - Announcement (2) individuals and institutional investors (including qualified foreign institutional investors recognised in the PRC) having A Share accounts with the Shanghai Stock Exchange), except those prohibited under PRC laws and regulations (4) Nominal value: RMB1.00 per A Share (5) Issue price: The issue price will be determined in accordance with market principles based on the PRC securities market condition at the time when the Proposed A Share Issue takes place, and in compliance with relevant regulatory requirements. (6) Use of proceeds: The amount to be raised from the Proposed A Share Issue is currently expected to be not more than RMB8,000 million. The Directors currently intend to use the net proceeds as follows: 1. approximately RMB1,974 million will be used to fund an alumina brownfield project of the Company's Henan branch; 2. approximately RMB538 million will be used to fund an alumina production-line project of the Company's Zhongzhou branch; 3. approximately RMB1,724 million will be used to fund an alumina brownfield and environmental enhancement project of the Company's Guizhou branch; 4. approximately RMB450 million will be used to invest in Shanxi-Huaze Aluminum and Power Company Limited, which investment is expected to be used to fund and develop its aluminum and power generating project; 5. approximately RMB2,000 million will be used to fund the third phase of an alumina brownfield project of the Company's Guangxi branch; 6. approximately RMB98 million will be used to fund a greenfield project of pseudoboehmite production of the Company's Shandong branch; 7. approximately RMB105 million will be used to fund a greenfield project of zeolite production of the Company's Shandong branch; 8. approximately RMB150 million will be used to fund a limestone improvement project of the Company's Shanxi branch; 9. approximately RMB150 million will be used to fund an alumina improvement project of the Company's Shanxi branch. The Company's proposal regarding its use of proceeds from the Proposed A Share Issue (including the specific projects to be invested, the priority and the relevant amounts required) shall, as to be approved and proposed to be authorised by the Company's shareholders at the AGM, be adjusted and finalised by the board of Directors by reference to the then budgeted financing needs of such projects and the relevant industry and regulatory approval requirements and other relevant circumstances. If the proceeds from the Proposed A Share Issue are insufficient to fund all or any of the intended projects, it is the Directors' current intention that any deficit will be funded out of the Company's internal resources. Any balance of the proceeds will be used as the Company's general working capital. Ancillary matters relating to the Proposed A Share Issue Undistributed retained profits In accordance with the relevant regulations, the Directors have resolved that subject to approval by the Company's shareholders at the AGM, following completion of the Proposed A Share Issue, the Company's shares currently in issue and the new A Shares will rank equally in respect of all of the Company's undistributed retained profits at the time when the Proposed A Share Issue takes place. Authorisation to be given to the board of Directors Subject to approval by the Company's shareholders at the AGM, the board of Directors shall be authorised to make such decisions, sign such documents, carry out such procedures and take such other actions as are in its discretion necessary to effect and complete the Proposed A Share Issue (including the proposed listing of the A Shares on the Shanghai Stock Exchange). Shareholders' approvals to be sought at the AGM The Proposed A Share Issue (including its structure as particularised above, the Company's intended use of proceeds, the authorisation to be given to the board of Directors, and related matters) is subject to approval by way of special resolutions by the Company's shareholders at the AGM. Such resolutions will, in compliance with and as legally required under relevant PRC laws and regulations, be effective for a period of 12 months from the date of the AGM.