China Daye Announces 2012 Annual Results

                   China Daye Announces 2012 Annual Results

Further Enhances Production Output and Achieves Sustainable Business
Development

PR Newswire

HONG KONG, March 27, 2013

HONG KONG, March 27, 2013 /PRNewswire/ --

Results Highlights:

  oRevenue was approximately RMB28,878 million, up of 6.4% year-on-year.
  oGross profit was approximately RMB863 million, down 6.3% year-on-year.
  oProfit attributable to equity holders was RMB157 million, up 5.3%
    year-on-year.
  oBasic earnings per share were RMB0.96 cent.

China Daye Non-Ferrous Metals Mining Limited ("China Daye" or the "Company")
(Stock Code: 00661.HK) announced its audited consolidated annual results of
the Company and its subsidiaries (the "Group") for the year ended 31 December
2012 (the "Period").

In 2012, the production and operations of the Group have changed
significantly, and they managed to maintain stable and rapid development
through various enhancements. In March 2012, the Groups completed its reverse
takeover of Daye Nonferrous Metals Co., Ltd. ("Daye Metal"). This was a major
strategic move by China's Daye's parent company, Daye Nonferrous Metals
Corporation Holdings Limited (the "Parent Company"). It floated the premier
assets of the Parent Company through its listing platform, China Daye. The
Parent Company injected its four mines located in the Hubei province, PRC
(being, Tonglvshan Mine, Fengshan Mine, Tongshankou Mine and Chimashan Mine)
to the Group. This lays a solid foundation for the robust growth of the
Group's operations. In the second half of 2012, the Group entered into a
memorandum of understanding (the "MOU") in which the Parent Group proposed
within the next three to five years, to inject the interest in four existing
mines currently held by the Parent Group into the Company. During the Period,
the Group's revenue increased by 6.4% year-on-year to RMB28,878 million; gross
profit decreased by 6.3% year-on-year to RMB863 million. Profit attributable
to equity holders rose by 5.3% to RMB157 million, and basic earnings per share
decreased from RMB0.43 cents to RMB0.96 cents.

Mr. Zhang Lin, Chairman of China Daye, said, "In 2012, the prices of
non-ferrous metal products dropped while the prices of energy resources
remained at high level and labor cost increased substantially. They were
impacted by the unstable and deteriorating European debt crisis, persistent
depression of global economy and slowdown in the economic growth of China.
During the Period, the Group managed to overcome the adverse impact brought by
the stringent macro-economic environment and completed reorganization. The
Group continued to improve its production facilities, operations and
management, thereby ensuring smooth running and rapid growth of the Group. It
also implemented projects for prospecting of replacement resources in the
State's old mines and re-exploration of its mines. It also made new
achievements in mineral resources exploitation. In addition, we exceeded our
prospecting targets for the whole year. The Ausmelt furnace ancillary facility
was smoothly constructed and commenced operation during the Period.

Optimized production process to achieve production targets

During the Period, the Group optimized its production process and achieved its
expected production targets with operations running at full capacity. For the
year ended 31 December 2012, the output of all products reported an increase.
The Group produced a total of approximately 22,000 tonnes of mined copper, up
approximately 6.1% year-on-year. Copper cathode production amounted around
275,200 tonnes, up 1.7% year-on-year. Precious metal production was
approximately 397.12 tonnes (including approximately 7,754 kg of gold, 389.14
tonnes of silver, 13 kg of platinum and 201 kg of palladium), up approximately
9.7% year-on-year. Chemical production was approximately 790,800 tonnes
(including sulfuric acid), up approximately 14.3% year-on-year. Iron
concentrate production was approximately 271,000 tonnes.

Continuous strong support from the Parent Company with re-injection of premier
assets

In November 2012, the Company and Daye Nonferrous Metals Corporation Holdings
Limited (the "Parent Company", together with its subsidiaries, the "Parent
Group") entered into a MOU. The Parent Group has proposed injecting the
interest in four existing mines currently held by the Parent Group into the
Company within the next three to five years. These mines include a Guokesu
gold mine in the Republic of Kyrgyzstan, a Jilongshan gold mine in Hubei
Province, a Lini lake copper-iron mine in Hubei Province and a multi-metal
mine at Zedang in Tibet. In addition, the Company will be injected two new
mines in Hubei Province that proposed to be acquired by the Parent Group from
the relevant government authorities in China, including a rutile mine in
Zaoyang and niobium and cerium rare-earth mine in Miaoya, Zhushan. The signing
of the MOU is in the best interests of the Company and its shareholders. It is
also a major strategic move by China Daye's parent company to float the
premier assets of the Parent Company.

An analysis of the Group's revenue by major product and service categories:

                                         For the year ended 31 December
(RMB'000)                                2012            2011           change
                                                         (restated)
Sales of goods                           28,711,872      26,938,291     +6.6
Copper cathodes                          20,091,529      19,170,117     +4.8
 Other copper products               588,689         663,502        -11.3
Gold and other gold products             4,862,223       3,958,785      +22.8
 Silver and other silver products    2,514,869       2,396,505      +4.9
 Sulphuric and sulphuricconcentrate 226,041         268,159        -15.7
 Iron ores                           232,107         300,387        -22.7
 Others                              196,414         180,836        +8.6
Rendering of services                    166,251         206,468        -19.5
Copper processing                        152,709         197,384        -22.6
Others                                   13,542          9,084          +49.1
Total Revenue                            28,878,123      27,144,759     +6.4

Business outlook

The global economy remains uncertain while China economy is undergoing
structural adjustments. The slowdown in economic growth coincides with soaring
costs. The global economy is unstable and shows few signs of recovery, which
we believe will bring greater challenges to the Group. The market expects the
non-ferrous metal industry to show signs of stability with an upward trend in
production growth and improvement in efficiency in 2013. The prices of
non-ferrous metals are expected to increase as compared to 2012. According to
the '12th Five-year Development Plan' of China, the launch and implementation
of the 'Energy-saving Subsidy Program' is expected to lead to further
increases in consumption demand for non-ferrous metals, in particular, the
products refined and processed from non-ferrous metals.

Mr. Zhang Lin concluded, "Looking ahead, the Group will push ahead with its
five core development strategies, i.e. 'resources enhancement, scale
expansion, structural optimization, efficient use of capital markets and
growth of talent'. It will continue to optimize its production process,
enhance production efficiency, optimize marketing and trading operations, and
improve its efficiency. Meanwhile, we will enhance our market analytical
abilities, and actively expand the market. We will also push vigorously
forward with project construction so as to increase the competitive strengths
of our various business segments. More importantly, we will continue to
exercise stricter cost control and use resources more efficiently, achieving
continuous growth of our business and creating greater returns for
shareholders."

About the Parent Company

Daye Nonferrous Metals Corporation Holdings Limited ("Daye Nonferrous Metals")
was founded by the State-owned Assets Supervision and Administration
Commission of Hubei Provincial People's Government and China Nonferrous Metal
Mining (Group) Co., Ltd. After several years of development, it evolved into a
leading state-owned integrated copper enterprise with a value chain
encompassing exploration, mining, smelting, chemicals, rolling processing,
waste heat power generation, waste recycling, research and design, geological
survey, shaft engineering, construction and installation, machinery repair and
manufacturing and transportation. In 2010, it was selected as a major
enterprise promoted by the government in the demonstration zone for the
materials industry and newly industrialized enterprises in the central China.
Daye Nonferrous Metals has a global business network that is spread around the
world. It currently has over 20 wholly owned subsidiaries, associates and
holding companies in southeastern Hubei, the Yangtze River Delta, the Pearl
River Delta, Hunan, Xinjiang, Hong Kong, Kyrgyzstan and Mongolia.

About China Daye

China Daye and its subsidiaries are mainly engaged in exploration, mining and
trading of non-ferrous metals.

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SOURCE China Daye Non-Ferrous Metals Mining Limited