Commencement of iron sand production

18 December 2013

Tricor plc 

("Tricor" or the "Company")

Commencement of iron sand production

Tricor (AIM: TRIC), the investment company focussed on the resources sector with investments in iron sand and sand trading operations in the Philippines, announces that Tricor Minerals Pte Ltd ('TM'), which is 72 per cent owned by Tricor, has completed the commissioning of its inaugural iron sand production plant and commenced commercial production.

The plant, which has an annual production capacity of approximately 200,000 metric tonnes, is located at the Porac site, one of three concession areas where the exclusive economic and production rights are held by Tricor Environmental Pte Ltd ('TEPL'), which is 100% owned by Tricor. Subject to timely grants of the necessary permits, TM expects to sell its first shipment of iron sand by the end of February 2014 to KGGD Pte Ltd ('KGGD'), via the five year supply agreement it has entered into with KGGD, further details of which were announced by Tricor on 29 May 2013.

Commenting, Chan Fook Meng, Chairman and CEO of Tricor, said:

"The management teams of TM and TEPL have been working hard to secure a number of concession areas with abundant replenishable resource, ensuring all necessary infrastructure and equipment is in place and establishing off-take agreements and it is very pleasing to see our investment be able to formally commence iron sand production.

Trading iron sand is a high margin business that offers exciting profit potential. We are pleased that TM has successfully and speedily executed the first step in its strategy to build and own multiple iron sand separation plants on each of the three concession areas."

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