At any time between now and May2, 2013, Baosteel can increase their holding to 14.15% by paying 1.16/share.

Starting on May2,2012, they can increase their holding to 19.9% at market or some other price we don't know about.

Based on the above, it would make little sense to exercise the warrants at 1.16 now, if they can do the same and more after May 2, probably for less.

Also, to Paliman, the fact that they have a member on the board does not preclude any other negotiations, only that they would be informed on them, and would likely have a right of first refusal, allowing them to trump whatever was negotiated.

Best regards

K