Referring to its subscription of exchangeable note issued by Rui Tong Limited, China Vanadium Titano-Magnetite Mining (China VTM Mining) said that, following the meeting of its board of directors on 16 December 2011, it was decided that China VTM Mining will not make a further payment of US$20 million (HK$155.6 million) for the further subscription on or before 31 December 2011.

Therefore, the total aggregate principal amount of the exchangeable note subscribed by China VTM Mining will remain as the sum of the initial subscription and the second subscription, being US$30 million (HK$233.4 million).