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China Vanadium Titano-Magnetite Mining Company Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00893)

VOLUNTARY ANNOUNCEMENT VOLUNTARY WINDING-UP OF THE JOINT VENTURE

This is a voluntary announcement made by the Company for the purpose of providing the latest information on the business development of the Group to the Shareholders and potential investors of the Company.
The Board wishes to inform the Shareholders and potential investors of the Company that on 17 January 2014, the shareholders of the Joint Venture unanimously resolved to terminate the Cooperative Agreement and voluntarily wind-up the Joint Venture.

Reference is made to the announcement of the Company dated 30 August 2011 in relation to the Cooperative Agreement of a vanadium bearing titano-magnetite mine in the PRC. The Board wishes to inform the Shareholders and potential investors of the Company that on 17
January 2014, the shareholders of the Joint Venture unanimously resolved to terminate the
Cooperative Agreement and voluntarily wind-up the Joint Venture.

INFORMATION ON THE JOINT VENTURE

The Joint Venture was established pursuant to the Cooperative Agreement for the purpose of development of the Dashanshu Section, including the carrying out of the basic infrastructure construction works at the Dashanshu Section, namely those relating to the supply of water, electricity and roads, the construction of the processing plant, including providing funds, and production and sale of iron ore products from the Dashanshu Section. Lingyu, an indirect wholly-owned subsidiary of the Company, owns 51% equity interest in the Joint Venture at the investment cost of RMB10.5 million (equivalent to approximately HK$13.4 million).

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REASONS FOR THE VOLUNTARY WINDING-UP OF THE JOINT VENTURE

The Joint Venture has experienced severe delays in obtaining the necessary mining permit for its operation. After considering the uncertainty on the timing as to when the necessary mining permit will be obtained and that the Joint Venture would incur additional expenses to reach the stage of commercial production, the shareholders of the Joint Venture unanimously decided to terminate the Cooperative Agreement and voluntarily wind-up the Joint Venture.
The value of the total revenue of the Joint Venture for the year ended 31 December 2013 is less than 1% of the consolidated total revenue of the Company shown in the Company's latest published audited consolidated financial statements for the year ended 31 December
2012, and the total assets of the Joint Venture as at 31 December 2013 is less than 1% of the consolidated total assets of the Company shown in the Company's latest published audited consolidated financial statements as at 31 December 2012. According to the management accounts of the Joint Venture, the Joint Venture suffered a net loss of approximately RMB285,000 (equivalent to approximately HK$364,800) for the year ended 31 December
2013. The Board does not foresee that the voluntary winding-up of the Joint Venture will lead to any material adverse impact on the business of the Group.

DEFINITIONS

The following terms have the following meanings in this announcement unless the context otherwise requires:
"Board" the board of Directors
"Company" China Vanadium Titano-Magnetite Mining Company Limited(9=