Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 56

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 56
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 Tong Mine located in the Inner Mongolia Autonomous Region
of the PRC, and, at this stage, we cannot predict whether ore can be mined on a profitable basis. During the exploration stage, a mine
incurs operating expenses but does not generate revenues. We intend to fund mine exploration on the southern part of Moruogu Tong Mine
through borrowings from related parties or cash on hand. Pursuant to Bayannaoer Mining’s mutual cooperation agreement (the “Cooperation
Agreement”) with Bayannaoer Jijincheng Mining Co., Ltd. (“Jijincheng Mining”), Jijincheng Mining is currently running
the exploration program for the northern part of Moruogu Tong Mine. To date, the exploration program of the northern part has indicated
the presence of lead and silver, with the prospect that further surveying and exploration may indicate the presence of other ores such
as copper. At this stage of exploratory activities, we cannot predict whether sufficient ore of acceptable quality will be found at the
Moruogu Tong Mine to warrant further exploration and/or extraction.

The northern part of Moruogu Tong Mine is currently being explored under an agreement that reduces our share in any future profits.

On August 20, 2017, Bayannaoer
Mining entered into the Cooperation Agreement with Jijincheng Mining, an unrelated third party. The Cooperation Agreement is intended
to provide for financial support for the operating expenses of the northern part of Moruogu Tong Mine during the exploration stage, and
the allocation of rights and responsibilities between Bayannaoer Mining and Jijincheng Mining. According to the Cooperation Agreement,
Jijincheng Mining is responsible for engaging the exploration team and providing the required funding. Pursuant to the Cooperation Agreement:
(i) Bayannaoer Mining contributed the existing exploration results for the northern part of Moruogu Tong Mine; (ii) Jijincheng Mining
provides the necessary funds for further exploration at the mine; (iii) Bayannaoer Mining enjoys full rights to any resources already
discovered and confirmed by its independent exploration work conducted prior to commencement of the cooperative exploration project; (iv)
Bayannaoer Mining and Jijincheng Mining will each receive a 50% interest in any newly discovered resources from the first 10 drilling
holes in the cooperative exploration project; and (v) Bayannaoer Mining and Jijincheng Mining will receive 30% and 70% interests