TO: ALL MEMBERS, CERTIFIED DELIVERY WAREHOUSES (LEAD), CERTIFIED ASSAYERS (LEAD), AND QUOTATION FORWARDERS

FILING SERIAL: SQBF [2013] NO. 106

It is decided upon consideration that following adjustments have been made to the quality premium and discount of lead ingot pursuant to the Delivery Rules of the Shanghai Futures Exchange, the Notice on Supplementary Provisions of Quality Premium and Discount, Storage and Packaging of Lead Ingot , and the Notice on Implementing Inspection Rules for Surface Quality of Lead Ingot for Futures Delivery (Trial), in order to standardize the storage procedures of lead ingot and improve the environment the storage and circulation of lead ingot.

The following specifications for quality premium and discount will be temporarily enforced according to the white rust on the surface of lead ingot:

1. A warehouse receipt will be made according to the par quality of the lead ingot with no white rust on its surface.

2. A warehouse receipt will be made according to the quality discount of RMB 50 per ton for the lead ingot with white rust on its surface.

The above specifications will come into force from December 18, 2013. All members and certified delivery warehouses are required to inform their customers thereof and carry out risk control procedures.