Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 285

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 285
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 reduction in share capital. The amount allocated to the issuance of investor warrants of CNY1,836 (US$255*) were expensed
and are included in administrative expenses. The Company recognized a fair value gain of CNY3,862 (US$ 531) on the derivative financial
liabilities (Note 5) from the closing date to June 30, 2024.

*As the changes in equity from this private
placement transaction are dominated in US$, all the amount in US$ of this disclosure paragraph are actual transaction amount and corresponding
amount in CNY were translated from US$ at the applicable exchange rate of the closing date.

| (b) | Other capital reserve |

Other capital reserves of the Company are
mainly for equity-settled share-based compensation, the exercise of stock options, the exercise of warrants, the business combination
and the deemed contribution from the Shareholder of the Company and related companies.

| F-109 |

| CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Amounts in thousands, except share and per share data) |

| 17. | SHARE-BASED PAYMENTS |

The issuance of warrants to the placement agent

As mentioned in Note 16(a), in addition
to fees and offering expenses paid in cash to the placement agent, the Group issued to the placement agent warrants to purchase an aggregate
of up to five percent (5%) of the aggregate number of Shares sold in the Registered Offering (the “Placement Agent Warrants”).
The Placement Agent Warrants shall generally be on the same terms and conditions as the Investors Warrants except that they will be exercisable
at a price of $2.20 per share. The issuance of the agent warrants is an equity-settled share-based payment for professional services received
from the placement agent. The Company recognized other capital reserves in an amount of CNY588 (US$82*), which represented the fair value
of agent warrants as of issuance date. The fair value of services recorded is not used since it cannot be reliably estimated. The amount
was allocated to the issuance of the common shares and investor warrants according to their relative fair values at the date of issuance
and CNY383 (US$53*) and CNY205 (US$29*) were charged to share capital and administrative expenses, respectively.

The fair value of the agent warrants
is estimated at the issue