Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 222

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 222
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collectedly with placement agent,
the “grantees”) of the Group receive remuneration in the form of share-based payments, whereby the grantees render services
in exchange for equity instruments (“equity-settled transactions”).

| F-25 |

| 2.5 |     | MATERIAL ACCOUNTING  
 POLICIES (CONTINUED) |

| (r) | Share-based payments (continued) |

The cost of equity-settled transactions
is recognized in administrative expense, together with a corresponding increase in equity, over the period in which the performance and/or
service conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at the end of each reporting period
until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of
equity instruments that will ultimately vest. The charge or credit to the statement of profit or loss for a period represents the movement
in the cumulative expense recognized as at the beginning and end of that period.

Service and non-market performance conditions
are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed
as part of the Group’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions
are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement,
are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate
expensing of an award unless there are also service and/or performance conditions.

For awards that do not ultimately vest
because non-market performance and/or service conditions have not been met, no expense is recognized. Where awards include a market or
non-vesting condition, the transactions are treated as vesting irrespective of whether the market or non-vesting condition is satisfied,
provided that all other performance and/or service conditions are satisfied.

Where the terms of an equity-settled award
are modified, as a minimum an expense is recognized as if the terms had not been modified, if the original terms of the award are met.
In addition, an expense is recognized for any modification that increases the total fair value of the share-based payments, or is otherwise
beneficial to the employee as measured at the date of modification.

Where an equity-settled award is canceled,
it is treated as if it had vested on the date of cancellation,