Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 59

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 59
---
 and even financial crisis, which will have significant and negative impacts
on the commodity markets. Therefore, demand and price volatility in the commodity markets may continue for a prolonged period or further
deteriorate, which may adversely affect our ability to sell minerals from the Moruogu Tong Mine on a profitable basis.

We are subject to government regulations in various aspects of our exploration activities and our failure to comply with applicable government regulations could adversely affect us.

Bayannaoer Mining,
our subsidiary that acquired exploration rights to the Moruogu Tong Mine, is and will continue to be subject to the regulations of various
aspects of its operations by a variety of laws, rules and regulations administered by the national and local Chinese government, including
laws, rules and regulations relating to: exploration activities; environmental protection; the use and preservation of dangerous substances;
employment practices; as well as land use laws and a variety of local business laws and rules. Our failure to comply with applicable laws,
rules, and regulations could adversely affect our operations and subject us to fines and other penalties including suspension or termination
of our business permits.

| 30 |

We do not have binding agreements with customers to purchase any future output of metals.

While we believe there
is a robust market for lead, silver and other metals not only in China but also in other countries (although our operations are currently
limited to the PRC and we are not currently producing any metals), we do not currently have any commitments from any customers to purchase
any future output of metals. As a result, we may not be able to sell any metals that we are able to successfully extract at prices that
are acceptable to us or at all.

ESG issues, including those related to health, safety, climate change and sustainability, may have an adverse effect on our business, financial condition, and results of operations, could damage our reputation, and may increase costs.

There is an increasing
focus from certain investors, customer, partners and other stakeholders concerning ESG matters. Additionally, public interest and legislative
pressure related to public companies’ ESG practices continue to grow and change, and may continue to shift based on political conditions
in the countries in which we operate and do business. If our ESG practices fail to meet regulatory requirements, our medium- and long-term
ESG commitments, or investors, customers, partners or other stakeholders’ evolving expectations and standards for responsible corporate
citizenship in areas including environmental stewardship, support for local communities, human capital management, employee health