Introduction

Steppe Cement Ltd is the Malaysian-incorporated holding company of the two operating companies, Karcement J.S.C., and Central Asia Cement J.S.C., that form the cement manufacturing complex at Karaganda in central Kazakhstan.

Steppe Cement was listed on the AIM in London in September 2005 and raised US$21 million by the issue of 14 million new shares in March 2006 in order to finance its the refurbishment of two large dry-process kilns.

Its subsidiary, Karcement J.S.C., completed the Line 6 refurbishment project in October 2008. Karcement J.S.C. received all the necessary licenses for commencement of commercial operations in the first quarter 2009. The 5-year tax exemption for its operations commences in February 2009.

In May 2009, Steppe Cement successfully raised £10 million before expenses by way of an Offer for Subscription ("Offer") of 40,000,000 new ordinary shares at 25 pence per share conditionally underwritten. The net proceeds of the Offer are principally used to repay a portion of the Company's bank loans and for working capital purposes. The Offer was oversubscribed by 217% and the Offer shares were admitted to AIM for dealing on 11 May 2009.

In July 2009, the merger between Steppe Cement Holdings B.V. and Central Asia Cement Holding B.V. was completed. The purpose of the merger is to rationalise the Dutch investment holding entities to achieve future cost savings as the Kazakhstan operations are consolidated under the Dutch investment holding company, Steppe Cement Holdings B.V.

In Nov 2010, Steppe Cement raised £10 million via the issuance of 25 million new ordinary at 40p per share shares in the Offer for Subscription. A major portion of the proceeds raised is used to partially redeem the bonds due in Aug 2011 and the remaining for working capital purposes. The offer was oversubscribed by 34%. The admission of the new shares commenced on 1 Nov 2010.

In Dec 2012, Steppe Cement raised £10 million via the issuance of 40 million new ordinary at 25p per share shares primarily to finance the refurbishment of Line 5. The offer was oversubscribed by 34% similar to the response received in 2010. The new shares commenced dealing on 10 December 2012. Upon completion, Steppe Cementís annual production capacity will be increased by an additional 1.2 million tonnes.