Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 117

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 117
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 responsible for engaging the exploration team for the northern part of Moruogu Tong Mine and providing
the required funding. During the field exploration process, Bayannaoer Mining did not have its own exploration equipment. The exploration
equipment – drilling machines – used at the Moruogu Tong Mine was provided and operated by third-party contractors until drilling
work was done. Drilling machines at the mine were mainly powered by a diesel generator set, and a state power substation near the mine
area. To date, the exploration program at the northern part of Moruogu Tong Mine has primarily involved the completion of mine geological
surveying and mapping at 1:2000 covering an area of 3.22 square kilometers, which included trenching exploration works totaling 2,291.88
cubic meters in 16 trenches and 76 drilling holes (of which 55 predate the Collaboration Agreement) for a total of 22,272.86 meters. 1,641
different samples, including basic analysis samples, chemical analysis samples, spectra samples and aqueous analysis samples, etc., have
been collected thus far during the exploration program.

Initial results of
the northern part exploration program indicate the presence of lead and silver, with the prospect that further surveying and exploration
may indicate the presence of other ores such as copper. The exploration report was completed and approved by the government. The report
reviews the geology of the mine and the previous exploration work, and evaluates the resources of 13 ore bodies in the mine, which are
confirmed to contain lead and silver. 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 current exploration
work stage of the northern part of Moruogu Tong Mine has been completed. The future amount for the exploration project, including drilling
expenses, site construction costs, grassland compensation fees and simple infrastructure construction costs in order to apply for a mining
rights permit, is anticipated to be approximately CNY11.38 million (US$1.57 million). Bayannaoer Mining and Jijincheng Mining intend
to seek other investors to play roles similar to those of Jijincheng Mining in order to proceed with the further exploration and analysis
of the northern part of Moruogu Tong Mine, with an aim to apply for a mining rights permit. This exploration project is expected to be
financed by