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Foreign exchange inquiry:

Announcement of Donghai Securities on Cancellation of Baotou Steel's Share Warrants

http://www.sina.com.cn 04:32, January 15, 2007 China Securities Network - Shanghai Securities News

According to the Notice on Matters Related to the Creation of Baogang Warrants by Securities Companies issued by Shanghai Stock Exchange, Donghai Securities Co., Ltd. applied to Shanghai Stock Exchange for cancellation Baotou Steel The warrant has been approved and China Securities Depository and Clearing Corporation Limited Shanghai Branch has gone through the corresponding registration procedures. The number of Baotou Steel's share warrants approved to be cancelled this time is 2 million. The terms of the warrants are the same as those of the original Baotou Steel's share warrants (transaction abbreviation Baotou Steel JTB1 , transaction code 580002 and exercise code 582002).

This cancellation of the Company

Baotou Steel The effective date of the warrant is January 15, 2007.

It is hereby announced.

The East China Sea

negotiable securities company with limited liability

January 15, 2007

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