6 August 2010

MEDIA RELEASE

Singapore-Listed Sapphire Raises Stake In Steel Subsidiary to 70%

from 51% In Transaction Valued At S$33.5 Million

• Sapphire will be able to increase recognition of financial contribution from Sichuan-

based manufacturer of hot-rolled coils and vanadium pentoxide flakes

• Assuming acquisition had been completed on 1 January 2009, Sapphire would have
recorded EPS of 0.32 cent instead of 0.28 cent (based on weighted average number
of shares of 12,571,929,139) for the financial year ended 31 December 2009

Singapore, 6 August 2010 – Singapore Exchange Catalist-listed Sapphire Corporation

Limited (“Sapphire”) said today it has increased its direct stake in Neijiang Chuanwei
Special Steel Co., Ltd (“Special Steel”) (“ 内江川威特殊钢有限公司”) to 70% from 51%, in a
transaction valued at S$33.5 million which will deepen its penetration into the high-growth
specialized steel sector in the People’s Republic of China (“PRC”).

Sapphire’s 100%-owned Sapphire Mineral Resources (HK) Limited (“SMRHK”) will acquire
the remaining 27.15% stake in Hong Kong-based Lucky Art Holdings Limited (“Lucky Art”)
(“ 利祺控股有限公司”), which in turn holds a direct 70% in Special Steel, which became a
51%-held subsidiary of Sapphire in June 2009 and which has since become the latter’s core
revenue earner and main business activity.

SMRHK will fund the acquisition of the stake in Lucky Art through a bank loan from CITIC
Bank International. As announced on 27 July 2010, SMRHK has signed an agreement with
the latter to lead and arrange bank loans of an aggregate amount of US$65.0 million
(approximately S$91.0 million).

Special Steel, based in Sichuan Province, manufactures hot-rolled steel coils and vanadium
pentoxide (“V2O5”) flakes. For the financial year ended 31 December 2009 (“FY2009”) it
recorded a net profit after tax of RMB 70.0 million (approximately S$14.35 million).
Sapphire recorded net profit of S$43.5 million in FY2009, up sharply from S$1.1 million in
FY2008, lifted by seven months of profit contribution from Special Steel and the dilution gain
from the listing in Hong Kong of a 9.2%-held iron ore company, China Vanadium Titano-
Magnetite Mining Company Limited (“China VTM”) (“ 中国钒钛磁铁矿业有限公司”). (As at 8
July 2010, Sapphire’s stake in China VTM had risen to 9.5% through open market purchase).

Sapphire in April announced a transaction to allow it to hold directly its stake in China VTM,
freeing it up for possible sale. The 9.5% stake in China VTM is now worth approximately
S$102 million. Apart from Special Steel and China VTM, Sapphire also holds indirect stakes
内江博威燃化有
of 11.2% in fuel chemical company, Neijiang Bowei Fuel Chemical Co., Ltd (“
限公司”), and 10.88% in a steel company, Weiyuan Steel Co., Ltd (“威远钢铁有限公司”).
“Since 2008 we have embarked on a series of transactions to focus on steel and resource-
related businesses in the PRC. We are constantly enhancing and unlocking shareholder
value through operational efficiency and corporate actions such as the increase in our
holding of Special Steel,” said Mr Teo Cheng Kwee, the Chief Executive Officer of Sapphire.

“The prospects of Special Steel remain intact in view of the sustained economic growth in
the PRC and initiatives to increase urbanization and boost domestic demand. The PRC
Central Government recently announced plans to invest over US$100 billion in 23 new
infrastructure projects in the western region. The increased stake in Special Steel will allow
Sapphire to recognize a higher proportion of its financial performance in FY2010, when we
will record a full twelve months compared to seven in FY2009,” Mr Teo said.

The book value and NTA of Lucky Art as at 31 December 2009 were approximately S$149.5
million and S$142.8 million, respectively.

Sapphire is expected to release its results for the six months ended 30 June 2010 on 13
August 2010.

# ENDS #
This announcement has been prepared by the Company and its contents have been reviewed by the
Company’s sponsor, Stamford Corporate Services Pte Ltd (the “Sponsor”), for compliance with the
relevant rules of the SGX-ST. The Sponsor has not independently verified the contents of this
announcement.

This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes
no responsibility for the contents of this announcement including the correctness of any of the
statements or opinions made or reports contained in this announcement.
The contact person for the Sponsor is Mr. Bernard Lui.
Telephone number: +65 6389 3000 Email: bernard.lui@stamfordlaw.com.sg

Media & Investor Relations Contacts:

WeR1 Consultants Pte Ltd Sapphire Corporation Limited

29 Scotts Road 123 Genting Lane
Tel: (65) 6737 4844 Fax: (65) 6737 4944 Tel: (65) 6843 6802 Fax: (65) 6253 8585

Lai Kwok Kin laikkin@wer1.net Angeline Lim

Ng Chung Keat ngck@wer1.net Corporate Communications Manager
angelinelim@sapphirecorp.com.sg

About Sapphire Corporation

Sapphire Corporation Limited is principally engaged in the production of steel and vanadium products,
mainly hot rolled coils and vanadium pentoxide (“V2O5”) flakes and trading of minerals as well as
investments in mining and resource-related businesses.

The Group’s production operations are undertaken by its core subsidiary, Neijiang Chuanwei Special
Steel Co. Ltd (“Special Steel”) which is part of an integrated steel-making group.

The Group’s mineral trading arm procures strategic minerals for our steel plants as raw materials as
well as supplying to other customers in China.

Apart from Special Steel, the Group’s holds deemed interests of 11.2% in Neijiang Bowei Fuel &
Chemical Co. Ltd, a coke plant, 10.88% in Weiyuan Steel Co. Ltd, a steel plant, and a direct 9.5% in
China Vanadium Titano-Magnetite Mining Company Limited – an iron ore producer listed on the Hong
Kong Stock Exchange (stock code:HK893). All entities are part of the integrated steel group located in
Sichuan Province, PRC.

Sapphire has been listed on the Singapore Exchange since 1999. Based in Singapore, the Group
has subsidiaries and associate companies in China, Hong Kong and Malaysia.