GEM Co., Ltd.
Announcement on fire in partial auxiliary workshops of one
subsidiary

The Company and all members of the Board of Directors guarantee that theinformation disclosed is accurate, authentic, and complete without false records,misleading statements, or material omissions.

Note: The time mentioned below all refer to Beijing Time (UTC+8)

The auxiliary workshops recovering and purifying manganese and copper in
GEM (Jiangsu) Cobalt Industry Co., Ltd., a subsidiary of GEM Co., Ltd. (hereinafterreferred to as "GEM" or the "Company"), caught fire at around 12 o'clock on January
7, 2023. The local fire emergency department quickly arrived at the site to carry out
the rescue and put out the fire. At the same time, the Company immediately launched
the emergency plan, established an on-site emergency leadership team, andcooperated with the local fire emergency department to extinguish the fire. With thehelp of the local fire emergency department, the fire was extinguished later on thesame day. The cause of the accident is under investigation.
There is no casualty during the fire. According to on-site environmental
monitoring, atmospheric indicators are within the normal range. The Company has
properly disposed of the flammable substances to ensure that there will be nosecondary pollution. The core process of manufacturing cobalt products, the leading
product of the GEM (Jiangsu) Cobalt Industry Co., Ltd., was not affected, nor wasother core equipment in the park. The production and operation of other subsidiariesof the Company are normal. The Company has insured the equipment and hasreported the case to the insurance company, and the loss verification work isprocessing with steady steps. The fire has limited impact on the Company's current
operation and performance, and the specific losses are under investigation.
The Company will seriously learn from the fire accident, put safety production in
the first place, and further strengthen the safety management of the Company and its

subsidiaries. After the fire, the Company immediately carried out a large-scale safetyrectification for the whole Company and its subsidiaries in order to eliminate safety
hazards. Furthermore, we make the determination to prevent similar accidents fromhappening again, and protect the employees’ safety and ensure the global investors’rights. GEM (Jiangsu) Cobalt Co., Ltd. will seriously accept the rectification under
the leadership of the local safety supervision department and fire department,complete the rectification quickly, and resume production as soon as possible. At thesame time, the Company will make great efforts to implement the upgrading of GEM(Jiangsu) Cobalt Co., Ltd. Park, eliminate outdated technology, implement green
intelligence and high-quality development, and unswervingly build a global ESG
factory under the guidance of ESG values.
In 2022, the Company has achieved historical and brilliant development, withsales and performance hitting record highs, and on the way of new era of "great
release of production capacity and great growth in performance". In 2023, thecompany will continue the general trend of high-speed growth, and the dual-track
business of "new energy material manufacturing and urban mining" is under good
momentum. The main business plans are: the Indonesian Nickel Resource Projectplans to produce MHP containing 25,000 tons of nickel metal, the first shipment ofMHP containing 1,200 tons of nickel metal is scheduled before Jan 15, and it’splanned to ship MHP containing 5,000 tons of nickel metal for the first quarter of2023; It’s planned to sell ternary precursors more than 200,000 tons, tricobalt
tetroxide more than 15,000 tons, and power battery recycling business more than 2billion RMB. At the same time, the Company will fully promote the industrializationof sodium electric materials, and make every effort to speed up the construction of thesecond phase of the Indonesian Nickel Resource Project.
The Company will perform its information disclosure obligations timely
according to the progress of the accident investigation, and investors are reminded topay attention to investment risks.

The announcement is hereby given.

Board of directors of GEM Co., Ltd.
January 08, 2023