Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 116

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 116
---
 |      |  8,372 |     |      |      * |     |      |      * |
| SHFE average price (CNY/ton)               |     |      | 57,970 |     |      | 70,120 |     |      | 66,120 |     |      | 68,970 |     |      | 73,800 |

———————

Source: International Copper Study Group, LME, SHFE.

*Certain data are not available yet.

| 68 |

Overview of Bayannaoer Mining

Bayannaoer Mining was established
in 2005 to engage in mineral exploration activities in Bayannaoer City, located in the Inner Mongolia Autonomous Region of the PRC. The
registered capital of Bayannaoer Mining is CNY59.48 million.

In 2005, Bayannaoer
Mining obtained 11 exploration rights from the Land and Resources Department of Inner Mongolia Autonomous Region. Following completion
of preliminary exploration activities and evaluation, management determined to retain exploration rights solely to the Moruogu Tong Mine;
and, to date, has received a series of license renewals. Total exploration expenses related to these 11 exploration rights (exclusive
of capitalized expenses that have not yet fully depreciated or amortized and administrative expenses) borne by Bayannaoer Mining incurred
to date amount to approximately CNY35.60 million (US$4.90 million). The current exploration permit for the Moruogu Tong Mine runs until
September 2026 and covers a site area of 7.81 square kilometers.

The Moruogu Tong Mine
is located in Wulatehouqi, Bayannaoer City, in the Inner Mongolia Autonomous Region of the PRC. In 2006, Bayannaoer Mining engaged the
Land and Resources Exploration and Development Institute of Inner Mongolia to carry out prospecting, including geophysical and drilling
works. To date, exploration expenses of approximately CNY23.54 million (US$3.24 million), inclusive of amounts paid by Jijincheng Mining,
have been incurred for the Moruogu Tong Mine, which were paid for by Bayannaoer Mining with self-owned capital, loans from a related
party, and funds received pursuant to its Cooperation Agreement with Jijincheng Mining of approximately CNY6.72 million (US$0.92 million).

Pursuant to the Cooperation
Agreement, Jijincheng Mining is