OPP.L Regulatory News (OPP)

 4 March 2013

Origo Partners PLC

Investee Company Update

Origo Partners Plc ("Origo") announces that its portfolio company Celadon Mining Ltd ("Celadon" or the "Company") has made significant progress in developing its advanced Chang Tan West thermal coal project in Inner Mongolia ("Chang Tan West" or "the Project") with an increase in total coal resources to up to 1.05 billion tonnes, as well as the grant of a further back-up resource which could contain an additional 1.8 billion tonnes; and the receipt of initial Government approvals for the establishment of a coal to olefins project.

The Project, in which Celadon acquired a 23 per cent equity stake in mid-2012, has recently been included in the Inner Mongolian Government's 'Mining Permit Distribution Plan' (the "Plan"). The Plan sets out a list of priority coal mining projects that have been selected for the granting of mining licenses in the future. As part of its inclusion in the Plan, the Project's mining territory was expanded from 20.35 square kilometres to 30.81 square kilometres, increasing coal resources from 602 million tonnes to 1.05 billion tonnes. At the same time, the phase one mining permit to be allocated was increased from 4 million tonnes per annum to 6 million tonnes per annum.

The Project is located in the Ordos region of Inner Mongolia. The Ordos region contains one sixth of China's coal reserves and is the closest major coalfield to the coastal areas of Northern China and is well served by well-developed infrastructure links.

Celadon has also completed a feasibility study on and received approval from the Inner Mongolia Government to establish a Coal-to-Olefins Project ("CTO Project") which could utilise coal from Chang Tan West. The Company is now beginning work on receiving outstanding approvals as well as environmental and safety impact assessments, and is in discussions to acquire land on a developed industrial site, with access to the infrastructure and utilities required for the facility.

Subject to Celadon successfully developing its CTO Project, Chang Tan West has also been granted an additional 38 square kilometres of back-up resource on an adjacent license area which could contain up to 1.8 billion tonnes of coal. This back- up resource has been set aside for Celadon in the event its CTO Project is deemed to require additional feedstock for future phases of its development. Therefore, including the back-up resource the Project could eventually contain up to 2.8 billion tonnes of coal.

The CTO Project will convert coal into gas which is then transformed into olefins that are used in the production of chemicals such as polyethylene and polypropylene. Chinese Demand for chemical feedstocks from coal is growing as a result of shortages of several key feedstocks, in particular ethylene and propylene. In addition, the Government's target, under its current five-year plan, for 20 per cent of the country's ethylene production to come from sources such as coal has led to increased Government support for high-capacity, integrated coal-to-olefins plants such as the CTO Project.

Origo is the largest investor in Celadon, holding a 9.7 per cent equity stake which it acquired in 2011 for approximately £8 million.

Commenting on today's announcement Chris Rynning, CEO of Origo said:

"I am delighted with the progress Celadon is making in developing the Chang Tan West resource and the associated coal to olefins project. The significant scale of the resource at Chang Tan West together with the strong demand for olefins in China means this is an extremely attractive project. Celadon is at the core of Origo's investment strategy, supplying the energy needed for continued urbanization in China.

"Celadon has developed significantly in the two years we have been investors and the Company continues to progress the other areas of its business by completing feasibility studies and converting inferred resources to reserves at its other mines. I am confident that the Company is on track to deliver on the promise we identified when we made our original investment."

For further information about Origo please visit www.origoplc.com or contact:

Notes to editors:

Origo Partners:

·; Origo is an AIM-listed private equity investor and strategic consultancy business which provides its shareholders with exposure to China-linked investment opportunities.

·; Based in Beijing, Origo has a significant portfolio of investments in a range of industrial sectors, including metals and mining, agriculture, cleantech and technology, telecom and media.

·; Origo invests directly in high growth Chinese companies as well as in companies based around the world with significant exposure to Chinese export markets.