Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 184

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 184
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 tax on any indirect gain realized on the stock of a Subsidiary PFIC on the sale or disposition
of Common shares. Accordingly, U.S. Holders should be aware that they could be subject to tax even if no distributions are received and
no redemptions or other dispositions of Common shares are made.

The
determination of PFIC status is inherently factual, is subject to a number of uncertainties, and can be determined only annually at the
close of the tax year in question. Additionally, the analysis depends, in part, on the application of complex U.S. federal income tax
rules, which are subject to differing interpretations. There can be no assurance that the Company will or will not be determined to be
a PFIC for the current tax year or any prior or future tax year, and no opinion of legal counsel or ruling from the IRS concerning the
status of the Company as a PFIC has been obtained or will be requested. U.S. Holders should consult their own U.S. tax advisors regarding
the PFIC status of the Company.

Tax Consequences if the Company is a PFIC

If we are determined to be
a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of Common shares and, in the
case of Common shares, the U.S. Holder did not make a qualified electing fund (“QEF”) election or a “mark-to-market”
election (within the meaning of Section 1296 of the Code), such U.S. Holder generally would be subject to special and adverse rules with
respect to (i) any gain recognized by the U.S. Holder on the sale or other disposition of its Common shares and (ii) any “excess
distribution” made to the U.S. Holder (generally, any distributions to such U.S. Holder during a taxable year of the U.S. Holder
that are greater than 125% of the average annual distributions received by such U.S. Holder in respect of the Common shares during the
three preceding taxable years of such U.S. Holder or, if shorter, such U.S. Holder’s holding period for the Common shares).

Under the default PFIC rules:

| · | the                                                                                                                                  
 U.S. Holder’s gain or excess distribution will be allocated ratably over the U.S. Holder’s holding period for the Common             
 shares;                                                                                                                              |
| · | the                                                                                                                                  
 amount allocated to the U.S. Holder