Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 223

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 223
---
 and any expense not yet recognized for the award is recognized immediately.
This includes any award where non-vesting conditions within the control of either the Group or the employee are not met. However, if a
new award is substituted for the canceled award, and is designated as a replacement award on the date that it is granted, the cancelled
and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

The dilutive effect of outstanding options
is reflected as additional share dilution in the computation of earnings per share.

| (s) | Borrowing costs |

Borrowing costs directly relating to the
acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its
intended use or sale are capitalized as part of the cost of those assets. The capitalization of such borrowing costs ceases when the asset
is substantially ready for its intended use or sale. All other borrowing costs are expensed in the period in which they are incurred.
Borrowing costs consist of interest and other costs that an entity incurred in connection with the borrowing funds.

| F-26 |

| 2.5 |     | MATERIAL ACCOUNTING  
 POLICIES (CONTINUED) |

| (t) | Income taxes |

Income tax comprises current and deferred
tax. Income tax relating to items recognized outside profit or loss is recognized outside profit or loss, either as other comprehensive
income or loss, or directly in equity.

Current tax assets and liabilities are measured
at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantially enacted by the end of the reporting date, taking into consideration interpretations and practices
prevailing in the countries in which the Group operates.

Deferred tax is provided, using the liability
method, on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes.

Deferred tax liabilities are recognized for
all taxable temporary differences, except:

| · | When the deferred tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences; and |

| · | In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary