APENDIX

PRESS CLIPPING FOR NEWS

CONCERNING GIKIL

Prepared by GIKIL Corporate Communications Team

LUKAVAC, DECEMBER 2010

Sodalive, trvtk.ba, graĉanica.net, Port.ba, bih-rss.net, mojatuzla.com

Engine drivers strike threatens Global Ispat Coke Industry

Lukavac

15% production decrease in GIKIL

Railway traffic that has been suspended since December 12th, has caused serious consequences to the Global Ispat Coke Industry Lukavac, and

forced the plant to significantly decrease its production. The stabilization of the production and the export of high quality coke to the world market

has been in danger again after 10 months.

Worried about the difficult situation where the company business is at

stake, the management of the Global Ispat Coke Industry has sent open letters to the director of the Railway Company in the Federation of Bosnia

and Herzegovina, warning that the engine drivers strike has completely endangered the production of coke.

According to the letters, the strike has lead to the sudden production

decrease, and all the coke that has been produced is technologically useless- the waste. It is hard to assume the amount of the damages, but

they are enormous in any case. The letters also report that if the situation remains unchanged, GIKIL will continue with the reduced production until

the technical minimum that will only keep the battery alive, considering that the coal supplies in GIKIL are sufficient for the 24-hour production

only.

The railway traffic halt has severely endangered the continuance of the coke production and sale, and the contracts which have finally in 2010

lead to the stabilization of this company. It is a paradox that the railroad

company workers put one of their biggest business partners in danger, directly and for a long term putting their own future in danger.

The traffic blockade has stopped the shipment of coal and the sale of

coke, which directly endangered the sustainability of the contracts, which can ensure the future for 1,150 employees in GIKIL but also for the

railroad company workers who put themselves in even harder position with the blockades.

***

BMG, December 14th, 2010

The railroad company workers strike threatens Global Ispat Coke

Industry Lukavac

Alarming situation in GIKIL – the production decreases by 31%

The railway traffic blockade in the Federation of Bosnia and Herzegovina

has caused severe consequences to the Global Ispat Coke Industry Lukavac, and this company is forced to decrease the production drastically

by 31% suffering the enormous and long term damages. If the railway

traffic does not start GIKIL will continue with the decreased production,

reaching the technical minimum.

GIKIL Management is seeking for a way out of this situation, and the

calculation of damage caused by the strike has continuously been in progress. Part of the facilities has already been out of function, and the

ships traveling to the Port of Ploĉe in order to load the coke from the GIKIL Company will have to stay in the port until further notice.

The management is continuously holding meetings and they have

expressed worries because of the sales lost in the first quarter of 2011. In order to at least partially alleviate the consequences of the situation,

about one hundred trucks have been involved to bring the coal in order to maintain the production at the minimum capacity, considering the fact

that 7000 mt of coal have been trapped on the railways, according to GIKIL.

Because the coal can’t be brought from Ploĉe, the quality of the produced

coke is below the contracted level because some of the component, like

sodium base and sulphur acid, are missing. That the situation is worrying shows the fact that the fertilizer plant has been threatened ,too, because

they have only four-day supplies of the amonimum and N-butane left. The production blockade in GIKIL, the fertilizer plant and the impossibility to

deliver coke to the plant puts the survival of the factory and the future of 1,150 employees in danger.

***

BMG, December 17th, 2010

The media announcing the call: Sodalive.ba, Sarajevo-x.com,

Tuzlarije, Tip.ba, ekapija.ba, Port.ba, Facetv.ba, hayat.ba, sutra.ba, Hercegovina.info, Depo portal, Bosnachat, mojevijesti.ba,

bih-rss.ba, biznis.ba, bitno.ba, rsg.ba, banjalukain.com

Urgent!!!

An invitation to the special press conference

Lukavac giant GIKIL to face extinguishment

The management of Global Ispat Coke Industry Lukavac, will hold a special press conference at the GIKIL management meeting hall today,

December 17th, 2010 at 12.00 due to the alarming situation in this company caused by the blockade of railway traffic in the Federation of

Bosnia and Herzegovina.

The GIKIL plant has been performing on a technical minimum level and in

the following 24 hours the production will be extinguished of the trains don’t deliver the coal for coking. We remind you that once extinguished

coke battery can’t be started again, and that means that the plant stops

its work and 1,200 employees lose their jobs.

***

Nezavisne novine/Bizon.ba, December 17th, 2010

The most successful managers and “business champions” awarded

The most successful managers and “champions of business” for this year

are Nedžad Rešidbegović, the director of BH Telecom, Matan Žarić, the director of the Electric-Power Company HZHB, and Jagannadham

Guntupalli, the director of the Global Ispat Coke Industry. Traditionally, the 23rd time in a row, the announcement of the most

successful managers and companies in Bosnia and Herzegovina, and 25 businessman were awarded among 1,700 nominated entrepreneurs.

The “champions of business” for this year are: Amira Sipović, the directir

of “Standard” Sarajevo, Munever Ĉergić, the director of the lignite mine

Banovići and Mile Lakić, the director of the “Višegrad” Hydro-Electris Power Plant. Rešidbegović pointed out that “BH Telecom” had BAM 160

million profits and showed that it is the most profitable telecommunication company in Bosnia and Herzegovina.

This year’s most successful managers and entrepreneurs in the Big

Business category are: Sinan Merzić, the director of Hepok Mostar, Hasan

Nezić, the director of Eurotrans Gradaĉac, Miroslav Tešić, the director of

Turbina IPD Teslić, Emir Avdić, the director of Intrade Energy, Dubravka Bašić, the director of Lager Posušje, Ćamil Zaimović, the director of Lignite

Mine Breza.

The awarded in the area of middle business are: Said Karajlić, the director

of Koavn Graĉanica, Halil Kahrica, the director of BH Kabel Net Sarajevo, Veljko Golijanin, the director of Majnex Pale, Mustafa H. AĊulović, the

director of Gramont Gradaĉac, Muhamed Hrnjić, the owner and the director of HM Promet Maglaj and Mile Atlagić, the owner and director of

AM MeĊugorje Banja Luka.

The awarded for the small business category are: Aco Stanišić, the director and the owner of the Stanišić Company Pale, Dževad Civić, the

director of Civić Company Cazin, Tomislav Ladana, the director of Termo-Flux Jajce, Amir Bašagić, the director of Ingplast Cazin, Mahir Mujić, the

director of EZ Busovaĉa and Marko Vincetić, the director of Imo Junior Orašje. The manifestation “Manager of the year – economy person of the

year 2010” was held under organization of “Independent Agency” Zenica

and European Managers Association.

***

December 17th, 2010

Special press conference in GIKIL

The survival of the Lukavac Giant disputable

The management of Global Ispat Coke Industry held the special press

conference today due to the alarming situation that arose in this company with the blockade of railway transport in the Federation of Bosnia and

Herzegovina. As it was said at the press conference the basic production

in GIKIL is in danger, and that is coke produced in the coke battery which is unable to work without high caloric coal brought from abroad, via the

Port of Ploĉe to Lukavac.

According to Faik Buševac, the deputy manager in GIKIL, the technological process in the battery operates in a way that it is unlikely to

start the battery again if it stops working, because it is very expensive to do so.

“We are constantly decreasing our production. At this moment the capacity is 30%, and that is one of the technical minimums of the battery.

In 24 hours we will decrease the production for additional 7% after which we would have to stop the battery in order to avoid damage on the

facility”, said Buševac.

The GIKIL representatives said that they have had problems with the Railway Company in the Federation of Bosnia and Herzegovina in the last

six months because of the railway reconstruction so the shipment has

already been reduced. “All these times we only had the supplies for 2-3 days under the battery full capacity. The earlier GIKIL practice was to

have supplies for 15 days. We are maintaining contact with the Railway Company of the Federation of Bosnia and Herzegovina and we have

promises that the blockade will stop. At this moment we are shipping the

coal with trucks, and if we didn’t do that we would have terminated our

performing. This kind of industry has no sense without railways, because the road traffic is not suitable for this industry” said Buševac.

According to Sulejman Puĉić, ED for supply management chain, this plant

could lose its buyers. So the alloy plant in Macedonia could stop, because

GIKIL hasn’t been able meet the supply contract obligations. “This is a chain reaction problem.

It is hard to talk about the damages that have already arisen, because our

production has more than one component. We have lost BAM 500,000 only with electric power supply. But some of the things are yet to have

happened. The ships are waiting in the Ploĉe Harbor to take over the coke. Each day of waiting costs $ 30,000. those are the figures that the strike

organizers do not understand,” said Puĉić. The problem of this factory is too complicated to be solved in one day.

There were some solutions suggested to involve the railway companies

from Croatia or the Republic of Srpska. Besides the coke plant there are two other plants in danger, the fertilizer plant and AMK (malein acid

anhydride), lacking the ammonium and benzene, the basic raw materials.

At this moment there are about 1,000 workers in GIKIL and they might all stay without jobs due to the railway traffic blockade. Besides GIKIL, the

most endangered are Arcelor Mittal Zenica and Alumina plant. These enterprises are communicating intensively in order to find solution for the

problem.

***

FENA, Sarajevo-x …, December 15th, 2010

The suspension of traffic is illegal

The Railway Company in the Federation of Bosnia and Herzegovina gave the full support to the management

The Supervisory Board of the Railway Company of the Federation of Bosnia and Herzegovina (ŽFBiH) held a special session because, as alleged in the statement of the Committee, the Emergency Situations in the

company, caused by the illegal engine drivers strike on 12th December.

Supervisory Board at the meeting strongly supported the work of the

management of the Railway Company in the Federation of Bosnia and Herzegovina and their struggle for the establishment and normalization

of railway traffic on the lines of the company, which by the railway law and regulations is responsible for the safety of railway traffic, and

appealed to all employees, especially the engine drivers, to re-examine its position and distance themselves from illegal activities of informal groups

and observe the consequences of the illegal suspension of railway traffic, where their existence and their families’ existence is threatened.

In order to establish a normal course of rail transportation immediately,

the Supervisory Board has decided that the management allows the

introduction of work duties in these extraordinary circumstances and ordered taking all legal measures in order to enable the company’s normal

operation.

In the statement, the Supervisory Board of Railways said that they were surprised why the engine drivers stopped the railway traffic in other areas

not covered by the decision of Railways to introduce only one engine driver in the locomotive and reminds that it applies only to passenger

trains on the Sarajevo-Zenica- Doboj line. The Supervisory Board also believes that the real causes of the engine drivers strike are much deeper

and that informal groups that want to obstruct the efforts of the

management, and illegally reduce the current outstanding business results and to keep unfairly gained privileges for themselves.

***

FENA, Sarajevo-x.com, December 15th, 2010

The alarming warning of the collapse threat in “Aluminij”

Ivo Bradvica, “Aluminij”, Ltd. Acting Director and Samir Anic, the

president of the Independent Trade Unions of employees in “Aluminij” sent the alarming warning of the collapse threat in “Aluminij” to the

president and vice president of the Federation of Bosnia and Herzegovina,

the Government, Federal Ministry of Energy, Mining and Industry, the Ministry of Interior, Transportation and Communications, and to the

Management of the Railroad Company in the Federation of Bosnia and Herzegovina.

The warning says that the unreasonable behavior of the machinists strike

organizers in the Federation has completely stopped the anode production facility and jeopardized the entire operation of the “Aluminij” Mostar. "We

want a concrete and immediate reaction. This situation means the uncertain anticipation of the weekend for us, when we will spend all of the

resin, petrol coke and alumina supplies, without which the aluminum plant

ceases to exist.

Although we lose tens of thousands of euros a day because ships with our raw materials are waiting in the port, it is now negligible compared to the

catastrophe that awaits us if the Government of the Federation of Bosnia and Herzegovina and authority in general to neglect their duties and

obligations and do not stop the illegal blockade of railway operations ", said in the warning. Also, it is clarified that the law clearly lays down the

provisions on the behavior in the event of a strike, and prescribes that the Railway Company workers in the Federation shall not threaten the

survival of another business with their actions. The “Aluminij” Ltd. Mostar

demands from the Government of the Federation to promptly break the blockade and allow the traffic of trains to aluminum company to obtain the

necessary raw material without which, it is said, 900 workers will lose

their jobs.

***

Sarajevo-x.com, December 14th, 2010

Railroad workers strike: The pressure is rising in both machines and people

The Railway Company in the Federation does not operate. To be more precise, the engine drivers refused to work because they can’t guarantee

safety for the passengers and themselves. The management accuses the engine drivers that the strike is illegal, and that they misuse the business

image of the company. Two sides of one medal, who do we believe? Does

anyone doubt?

F.Boric

As far as the signatory of these lines is concerned, the situation can be, better than any words thrown, shown by the lyrics of the song by Darko

Rundek, from his first individual record “Apokalipso,” which was a script for a theatre play I don’t remember the name of.

“The Engine Drivers Strike” brings the lyrics that should be presented

completely: “I’m so hungry/I’m so angry/The night is cold/The way is long/Far away from the town/I’m still far away/At the border of sleep/.

Through the tunnels/Through the canyons/Steam in the front/Tons at the

back/I don’t know what to hope for/ Maybe the switchman knows/The pressure is growing in the engines/” and the revolutionary chorus “The

tears don’t come from the dry air/Nor the groan is from the coal/Raise the fist/Let it take us to the better days/Ay, all the pothouse knows/ That I’m

not a servant/The stolen strength/I’m not gonna kneel/Never until now/

Half a billion loses

In the meantime, the management is being strict over one of the

numerous unions existing in this company. That tells us about the status

of workers and the unions organized by the principle “split and rule.” When the engine workers are angry, call the switchmen, when the

switchmen scream, call the conductors. This time, as they say, they appear as one, the new details will be known during the day. The known

fact is that the railway workers are under pressure due to the imperative of shipment to Global Ispat Coke Industry Lukavac which, suffers great

losses, due to the market blockade. But that the workers who seek their rights do not like the company they work for, that is nonsense.

***

FENA, Sarajevo-x.com…Dnevni avaz, December 14th, 2010

The railway workers on strike on December 28th

After the meeting of all the representatives of railway workers in the

Railway Company in the Federation of Bosnia and Herzegovina, the decision on general strike on December 28th at 7.00 a.m., confirmed

Vernes Buljugija, the president of the engine drivers Union, for Sarajevo-x.com. He said that the list of demands was made demanding from the

Managing Board the withdrawal of illegal changes in collective contract, the withdrawal of amendments in the Ordinance on work in the Railway

Company in the Federation of Bosnia and Herzegovina, the withdrawal of

the decision on only one engine driver, and not to press any charges against the engine drivers who started the strike.

“If they don’t meet all our demands we will seek the Managing Board

members to be fired,” said Buljugija. Buljugija said that there were no negotiations with the General Director of the company because “He

doesn’t want to talk to anyone.” Buljugija said that there is no way that the Management of the company can make the workers to terminate the

strike. The Government of the Federation of Bosnia and Herzegovina invited the Unions of the company, on today’s session in Mostar, to

contribute to the termination of the illegal strike and to, in any case,

including the possible strike, act in accordance to the law. As it was stated from the session, the government concluded that there are exceptional

circumstances present after the engine drivers strike.

According to the Act on Railways of the Federation of Bosnia and

Herzegovina, the government of the Federation gives mandatory instructions to the management of the enterprise in exceptional

circumstances, so they delegated the company’s Supervising Board to, in accordance to the Law, the enterprise Statute and other regulations and

acts, take necessary measures in order to stop the strike and to start and normalize the railway traffic.

At the same time, the management of the company shall prepare and

conduct necessary measures to maintain the operational process and the safety of railway traffic in order to achieve the legal activities of this

system and meets the contracted obligations towards their clients, and in case of strike to ensure the legal minimum process of work, including the

shipment of cargo for the strategic partners and electric power system,

and to protect the objects and the property of the Federation of Bosnia and Herzegovina.

***

FENA, December 13th, 2010

Railway workers strike in Bosnia and Herzegovina

President of the engine drivers Union in the Federation of Bosnia and

Herzegovina Vernes Buljugija this morning stated for FENA that the railway traffic in the area of the Federation has been suspended since last

night and that the initiators of the suspension are all engine drivers, regardless of whether or not they are Union members. Buljugija confirmed

that such a decision was made after the suspension of ten engine drivers

who refused to run the trains with only one man driving the locomotive.

He also said that the meeting of all trade unions within the railroad companiy would be held tomorrow on which they will decide what to do

next.

"For our Director Osmanagic there are no regulations or collective

agreement for the railway workers in the Federation, but everything is as he says, and we think that such decisions threaten our lives," said

Buljugija. The Supervising board and the management of the Railway Company in the Federation of Bosnia and Herzegovina got the consent of

the Government to take other measures provided by the Law if the exceptional circumstances and serious disturbances in conducting business

occur.

***

***

Tuzlarije, Srna, Dnevni avaz…December 16th, 2010

Nedžad Osmanagic: Trains will leave, by hook or by crook

The Railroad Company in Federation of Bosnia and Herzegovina Managing Director Nedžad Osmanagic said that the trains would start moving, forced

or not, arguing that there is not an engine workers strike in this company, but an illegal work stoppage caused by several individuals’ own will,

according to "OsloboĊenje".

According to Osmanagic’s words, the decision that one machinist manages the locomotive at Doboj – Sarajevo route, as the engine drivers cited as

the reason for the strike, was rendered in a very responsible way. "The

experts estimated that the introduction of only one machinist handling the locomotive on that route will not affect the traffic safety," said Osmanagic,

adding that, as the first responsible person, he would never agree to something that threatens the safety of railway traffic. He warned that the

The Railroad Company in Federation of Bosnia and Herzegovina has

suffered extensive damage due to traffic blockade that will be calculated for days.

“Coke production in Lukavac has been challenged. A similar situation threatens to endanger the Electric Power Company in Bosnia and

Herzegovina and the coal mines, Arcelor Mittal, the cement plant in Kakanj and many others.

The Port of Ploce has been flooded with goods, and everything

hasstopped, "said Osmanagic for "OsloboĊenje." The railway traffic in the

Federation of Bosnia and Herzegovina has been suspended since Monday because of the machinists’ strike, which is why the FBiH Government

declared an emergency the day after and ordered the railway administration to take measures to normalize the railway traffic.

***

Ekapija.ba, D. Kozina, December 15th, 2010

Multimillion damages caused by the strike: the Anode Plant in “Aluminij” stops, GIKIL decreases production

The damages that the Bosnian economy has suffered since the railway traffic blockade cused by the engine workers in the Federation strike have

already been estimated to a few million, and if the situation does not stabilize the damages could lead to the complete stoppage in the

production of big companies like “Aluminij” Mostar, GIKIL and others.

The railway traffic in the Federation of Bosnia and Herzegovina has

stopped on Sunday, 12th December, and until today nothing has been done to solve the problem. The negotiations between the management of

the Railway Company in the Federation of Bosnia and Herzegovina and the engine workers have failed, and the big companies using the railway for

transport of products and raw materials desperately appeal to the autorities to find the way of solving these problems.

That’s why the “Aluminij” Mostar, a company using the railway to

transport the raw materials, has warned that this could lead to collapsing.

This company, one of the biggest Bosnian exporters, has warned that the

irresponsible behavior of the organizers of the engine drivers in the Federation work stoppage could lead to the complete stoppage of the

Anode facility and put the complete operation of this company in question.

The aluminum production endangered

They warn that until weekend all the supplies of raw materials needed for

the production (resin, petrol coke and alumina), without which they could immediately stop working.

Although we lose tens of thousands of euros a day because ships with our

raw materials are waiting in the port, it is now negligible compared to the catastrophe that awaits us if the Government of the Federation of Bosnia

and Herzegovina and authority in general neglect their duties and obligations and do not stop the illegal blockade of railway operations ",

stated from the “Aluminij”.

They point out that, the law clearly lays down the provisions on the behavior in the event of a strike, and prescribes that the Railway

Company workers in the Federation shall not threaten the survival of another business with their actions, i.e it is clear that in case of

emergency the railway traffic shall be provided, and there is no other way for us to bring the raw materials to Mostar.

The “Aluminij” demands from the Government of the Federation to

promptly break the blockade and allow the traffic of trains to aluminum

company to obtain the necessary raw material. Without raw materials our company’s 900 workers will lose their jobs, because in case of the

stoppage of the “Electrolysis” facility in this short period, those jobs will be permanently, not temporarily lost.

Big companies stay out of raw materials

“Aluminij” is not the only company with such problems. This move from

the engine drivers has caused serious consequences in Global Ispat Coke Industry, which is also one of the big exporters. The representatives of

this company point out that it is a paradox that the railroad company workers put one of their biggest business partners in danger, directly and

for a long term putting their own future in danger.

The traffic blockade has stopped the shipment of coal and the sale of

coke, which directly endangered the sustainability of the contracts, which can ensure the future for the employees in GIKIL but also for the railroad

company workers who put themselves in even harder position with the blockades. This company has already been forced to decrease the

production by 15% due to the blockade. They say that the production stabilization and high quality coke sale to the world market could be

endangered if the situation continues. “It is hard to calculate the amount

of the losses, but they are enormous in any case,” stated from the

company. they warned that they will continue with the reduced production until the technical minimum that will only keep the battery alive.