Iron goods (01029) procurement of mining equipment

Zhitong Finance App News, Iron Goods (01029) issued an announcement. On October 29, 2026, the buyer (a wholly-owned subsidiary of the Company) signed a contract replacement agreement with the seller and the original buyer. According to this, the original buyer agreed to replace and the buyer agreed to assume all of the original buyer's rights and responsibilities under the purchase agreement (including payment of the total unpaid price of about 1,258 million rubles (tax included, equivalent to about US$15.5 million)) to purchase mining equipment.

The Group plans to purchase additional machinery to enhance its overall operating capacity to cope with the Group's current and future projects. The purchase of mining equipment under contract replacement agreements is in line with the Group's strategic goal of integrating its own mining fleet and undertaking drilling and excavation projects on its own, thereby gradually reducing dependence on external mining contractors. By purchasing its own mining equipment, the Group will be able to gradually take over the mining project currently outsourced to the contractor and fully grasp the operational and economic benefits brought by the Sutara mine. It is anticipated that this strategic move will enable the Group to achieve long-term cost control and strengthen operational control over its mining activities.

In particular, the directors noted that mining equipment was highly specialized, manufactured to order, and not easily available on the open market. The directors know, know and are convinced that manufacturing new mining equipment usually requires a delivery period of more than 12 months. The purchased mining equipment can be deployed and used immediately and meets the technical requirements required to meet the Group's immediate and short-term operating needs at the Sutara mine. Therefore, entering into a contract replacement agreement allows the Group to shorten the lengthy procurement cycle and meet its current operating needs immediately.