Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 39

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 39
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. Any inability of the PCAOB to conduct
inspections of auditors in China makes it more difficult to evaluate the effectiveness of our independent registered public accounting
firm’s audit procedures or quality control procedures as compared to auditors outside of China that are subject to the PCAOB inspections,
which could cause investors and potential investors in our securities to lose confidence in our audit procedures, reported financial
information, and the quality of our financial statements.

| 19 |

Our common shares may be prohibited from trading in the United States under the HFCAA in the future if the PCAOB is unable to inspect or investigate our auditor for two consecutive years. The delisting of our common shares, or the threat of their being delisted, may materially and adversely affect the value of your investment.

Pursuant to the
HFCAA, the SEC will identify an issuer as a Commission-Identified Issuer if the issuer has filed an annual report containing an audit
report issued by a registered public accounting firm that the PCAOB has determined it is unable to inspect or investigate completely,
and will then impose a trading prohibition on an issuer after it is identified as a Commission-Identified Issuer for two consecutive
years. On December 16, 2021, the PCAOB issued a report to notify the SEC of its determination that the PCAOB was unable to inspect or
investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. The PCAOB identified our auditor
as one of the registered public accounting firms that the PCAOB was unable to inspect or investigate completely. In June 2022, we were
identified by the SEC as a “Commission-Identified Issuer” in their conclusive list of issuers identified under the HFCAA.
On December 15, 2022, the PCAOB issued a report vacating the previous determinations dated December 16, 2021. Accordingly, until such
time as the PCAOB issues any new determination, we are not at risk of having our securities subject to a trading prohibition under the
HFCAA because we do not expect to be identified as a Commission-Identified Issuer for a second consecutive year. If in the future the
PCAOB determines it no longer can inspect or investigate completely because of a position taken by an authority in the PRC, the PCAOB
will consider issuing a new determination.

Whether the
PCAOB will continue to be able to conduct inspections of our auditor is subject to substantial uncertainty and depends on a number of
factors out