Wescast Industries Inc. has provided an updat on the proposed acquisition of Wescast by Sichuan Bohong Industry Co., Ltd. of China set out in the previously-announced Memorandum of Understanding between the parties. Wescast announced on September 20, 2011 that Bohong had not delivered a deposit of C$2.0 million as required under the MOU. Although such deposit has not been delivered and Wescast has not waived this breach of the MOU by Bohong, the MOU has not been terminated and the parties have continued to work towards entering into a definitive and binding arrangement agreement providing for the Acquisition. Such agreement would supercede the MOU. Among other things, the parties are expected to discuss and consider the timing, terms and conditions of Bohongs financing for the Acquisition and certain governmental approvals. Wescast understands that the proposed source of Bohongs financing, China Development Bank, has continued its due diligence and evaluation of the Acquisition. According to Westcast, there are no assurances that the parties will enter into a definitive and binding arrangement agreement providing for the Acquisition, or that Bohong will obtain the necessary financing for the Acquisition and/or that the Acquisition will occur. The entering into of any such definitive and binding agreement providing for the Acquisition would be subject to, among other things, the approval of Wescasts Board of Directors.
Wescast Industries Inc. is a major supplier of cast exhaust manifolds for passenger cars and light trucks. In addition to other products, Wescast designs, casts, machines and assembles exhaust system components, primarily exhaust manifolds, turbo charger housings and integrated turbomanifolds for automotive original equipment manufacturers (OEMs) and Tier 1 customers for the car and light truck markets in North America, Europe, Asia, Africa, South America and Australia. Wescast employs approximately 2,000 people in 7 production facilities and 5 sales and design centres in Canada, Hungary, the United States, Germany, Japan and China.

www.wescast.com