ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President; hereinafter “ITOCHU”) has invested US$10 million in Winsway Coking Coal in form of Convertible Bonds. Earlier this April, Winsway has agreed with Hopu Investment Management Co., Silver Grant International Industries Ltd and China Minmetals Corp to accept their capital investment into their company, and this time it has been agreed that ITOCHU will join this partnership.

Winsway specializes in processing, washing and transporting and the distribution of coking coal, both from Mongolia and other overseas sources, and is marketing those coals into mainland China. Winsway especially have its competitive edge in being able to provide logistics services through its own unique cross-border coal terminals that spread out in several border customs on the Mongolia-China and Russia-China borders. From 2004, Itochu and Winsway have cooperated in the transportation and marketing of Mongolian coking coal and have gradually grown the business to date.

Hopu Investment Management Co. is a $2.5 billion fund raised by Mr. Fang, Goldman Sachs Group Inc.’s China partner in a securities joint venture, and former Goldman banker Richard Ong. Hopu’s main investors include Singapore’s Temasek Holdings Pte. Ltd. and Goldman Sachs, and the fund is conducting investments to Chinese companies or to overseas projects which Chinese companies pursue. Last year, Hopu invested around US$300 million in Mongolia-focused Iron Mining International Ltd.

Silver Grant International Industries Ltd. Is a Hong Kong listed and a mainland China-backed investment company with property and industrial investments in Hong Kong and China.

China Minmetals Corp. is a large mainland China state-owned enterprise which specializes in metal product trading and mineral resource development, production and trade.

Minmetals is one of the four exclusive official coal export companies that holds license to export coal out of mainland China.

ITOCHU, together with Hopu, Silver Grant and Minmetals, aims to contribute to Winsway’s future growth plans, by cooperating in coal trade, both import to and export from, mainland China, and seeking coal related joint developments in infrastructure and resource projects, not only in Mongolia, but in other parts of the world as well. And by doing so, Itochu will secure coal tonnages mainly for the Japanese market.

Brief Introduction of Winsway Coking Coal Limited