In order to evaluate the operation and management performance of the top manager, and rationalize the compensation system of directors, supervisors and top managerment to protect the rights and interests of investors, the Board of Directors of CSC approved the “Organizational Regulations for the Compensation Committee of China Steel Corporation” in August in June 2007, based on Article 14-6, Section 1 of the Securities and Exchange Act and the “Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Stock Exchange or Traded Over the Counter”, as announced by the Financial Supervisory Commission on March 18, 2011.