Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 169

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 169
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Energy Investment Co., Limited (“Feishang Energy”), for total consideration of CNY103.767 million (US$14.28 million). Rather
than receiving cash as a result of this transaction, the consideration offset amounts due to Feishang Energy under a series of creditor
right transfer agreements. Please see Note 28 of our audited consolidated financial statements in our Annual Report on Form 20-F for
Fiscal 2022 for more information. Feishang Energy is a wholly owned subsidiary of Feishang Enterprise, which is controlled by our principal
beneficial owner Mr. Li Feilie. Because of the transfer of the equity interests, Yangpu Lianzhong is no longer a subsidiary of the Company.

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Acquisition and Sale of PST Technology

On July 27, 2021, the
Company entered into the Sale and Purchase Agreement with Mr. Li Feilie pursuant to which the Company issued three million restricted
shares of the Company’s common shares, and transferred its 120 million shares of Feishang Anthracite, as well as approximately
CNY10.3 million (US$1.4 million), to Feishang Group in exchange for all outstanding shares of PST Technology and the transfer to the
Company of approximately CNY130.0 million (US$17.9 million) of PST Technology’s outstanding debt previously owed to Mr. Li, which
debt was eliminated upon consolidation. PST Technology, through its wholly owned subsidiaries, owns a 51% equity interest in Shanghai
Onway Environmental Development Co., Limited (“Shanghai Onway”). Shanghai Onway is principally engaged in the development
of rural wastewater treatment technologies, the provision of equipment and materials for rural wastewater treatment, undertaking EPC
projects and PPP projects in relation to rural wastewater treatment, and the provision of consulting and professional technical services.
The total value of the consideration that the Company provided to Mr. Li was approximately CNY104.1 million (US$14.3 million), which
amount was a 20% discount to the valuation (including the assigned debt) of PST Technology provided by an independent valuation firm.

On July 28, 2023, the
Company entered into a Sale and Purchase Agreement (“PSTT SPA”) with Feishang Group, pursuant to which Feishang will pay
the Company CNY95,761,119 (approximately $13.2 million, the “Base Purchase Price”) in exchange for all outstanding shares
of