posco AMERICA

Chairman Joon-yang Chung meets with the President of Colombia for discussions on POSCO Family`s advance into the market

Chairman Chung, following his visit to Bolivia, met with Colombia`s President Juan Manuel Santos Calderon on August 5th to discuss POSCO and its investing companies` advance into the market.

Minister Carlos Noriega of Mines and Energy, presidential senior advisor Catalina Crane, Proexport director Maria Lacouture and Korean ambassador Jong-yeon Chu to Colombia participated at the meeting.
When Chairman Joon-yang Chung expressed POSCO Family`s interest in resource development, infrastructure construction and investment in the steel sector, President Santos said to proactively seek ways for cooperation.

Prior to the meeting, Chairman Chung met Chairman Serafino Lacono of Pacific Rubiales, an iron ore, coal and petroleum resource development company, and discussed resource development, infrastructure construction and investment in the steel sector. He also met with Chairman Alberto Losada of Fanalca, a specialized company in automobile parts and public service industry such as waterworks, exchanged opinions and discussed ways of cooperation on businesses including steel, IT, etc. which can be entered together with POSCO Family companies.

POSCO expects to be able to sign a `Comprehensive Cooperation MOU` with Pacific Rubiales or Fanalca Group in September.

POSCO has been closely studying Colombia as a prospective investment region with its abundant underground resources including iron ores, coal, petroleum and natural gases, as well as the recent public security and stable economic growth. Colombia`s government and local companies are also hoping for POSCO`s participation in resource development and infrastructure construction, suggesting a bright prospect in POSCO Family`s joint entrance into the market.

Colombia is 4th in terms of economy scale in the South America region following Brazil, Mexico and Argentina, with a population of 48 million and approximately 5 times of Korean Peninsula.

Meanwhile, Chairman Chung visited Bolivia with Korea`s special envoy including Grand National Party`s Representative Sang-deuk Lee on July 30th and made an official call on President Juan Evo Morales Ayma. Besides, the Korean consortium, consisting of POSCO and the Korea Resources Corporation (KORES), signed an MOU for the lithium battery project with Bolivia

Chairman Chung then visited Brazil to sign an agreement on the joint steelworks construction being carried out with Dongkuk Steel and Brazil`s iron ore company Vale. This project is scheduled to complete construction of an annual 3 million-ton steelworks by 2015 in Seara, Brazil in its first phase. Once the first phase which starts on August 11th is complete, an additional annual 3 million-ton scale facility will be constructed, increasing the total annual production to 6 million-ton. 50% of the shares are held by Brazil`s Vale while Dongkuk Steel and POSCO hold 30% and 20% respectively.

Sangwook Oh sangwook@posco.com

- Chairman Joon-yang Chung visited Colombia on August 5th and met with President Santos to discuss POSCO Family`s resource development, infrastructure construction and investments in the steel sector.