HISTORY OF THE COMPANY

Lion Titco Resources Sdn Bhd (herewith the company) incorporated in 6th July 2010 under the Malaysia Company Act 1965 at Lot 2319 Kawasan Perindustrian Olak Lempit, Mukim Tanjung 12, 42700 Banting, Selangor, Malaysia.

The company was formed under the synergy effect conceptual between Slag Aggregate Sdn Bhd (SASB, a wholly owned subsidiary of Lion Industries Corporation Berhad), Tunner Industry & Trade Corp. (TITCO) and Bichain Trading Co. Ltd (Bichain) under a joint-venture agreement signed on 6th July 2010.

In principally, the company was incorporated for the purpose of undertaking a slag processing and metal extraction business at a plant to be constructed at the existing Lion Steel Complex located in Banting, Selangor to extract the iron metal from slag which can be re-introduced into the respective steel millers Electric Arc Furnaces (EAF) as scrap.

On one hand, the company can help to resolve the scrap management issues of LICB and on the other hand, the technology invented would help to minimize degradation of environment and conserve the use of energy and natural resources.

The JVA was signed on 6th July 2010 and in principally, the joint venture project agreed on :-

1. The Slag Processing Business involves a total investment cost of approximately USD9.5 million (approximately RM30.4 million) which will be used to construct a 45,512sqf plant and to purchase machinery worth approximately USD 3.3 million.
2. The initial capital contribution of RM18 million by the joint venture partners and the balance investment amount of RM12.4 million is expected to be sourced from bank borrowings or from shareholders advances.
3. Under the agreement, TITCO shall responsible to transfer the required technology know how to the company at no charge and the company has to have machinery to cut and crush down the slag to between 10mm 300mm whereby the iron metal (scrap) trapped inside the slag will be separated out.
4. On the agreement, LICB steel mills shall supply the slag to the company at no cost. The services performed by the company in recovering the iron metal shall be compensated by the steel mills at pre-agreed prices.