Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 102

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 102
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 and interest rates, and eventually result in changes in supply and demand dynamics and
price fluctuations in the markets we intend to serve. Industrial policies will more directly impact specific industries and to some extent
determine market access, market potential, intensity of competition and profitability.

Our metals exploration activities
are subject to government regulations in various aspects, including but not limited to laws, rules and regulations relating to exploration
activities; environmental protection; the use and preservation of dangerous substances; employment practices; as well as land use laws
and a variety of local business laws and rules. Our failure to comply with applicable government regulations could adversely affect our
operations and subject us to fines and other penalties including suspension or termination of our business permits. For further details
of the impact of governmental policies on our metals exploration activities, please refer to “Item 3.D. KEY INFORMATION –
Risk Factors – Risks Relating to Our Mine Exploration Activities in Inner Mongolia – We are subject to government regulations
in various aspects of our exploration activities and our failure to comply with applicable government regulations could adversely affect
us,” “Item 4.B. INFORMATION ON THE COMPANY – Business Overview – Government Regulation of Mineral Exploration
Activities,” and “Item 5.D. – OPERATING AND FINANCIAL REVIEW AND PROSPECTS – Trend Information”.

Similarly, if we are successful
in completing the acquisition of Williams Minerals, which holds the lithium mine in Zimbabwe, our ability to realize the anticipated
benefits of it may be affected by changes in the overall economic, political and regulatory environment, including but not limited to
applicable tax regimes, fluctuations in prices and foreign exchange rates, import and export regulations, local rules and regulations
in relation to exploration and mining activities, and a variety of other local business laws and rules. Our failure to comply with applicable
government regulations could adversely affect our operations and subject us to fines and other penalties including suspension or termination
of our business permits.

Liquidity and Capital Resources

The Company’s
primary liquidity needs are to fund operating expenses, capital expenditures and acquisitions. As of June 30, 2024, the Company financed
its working capital requirements and capital expenditures through internally generated cash from prior years, non-interest-bearing loans
from the Related-Party Debtholders, funds provided pursuant to the Cooperation Agreement, and the sale of 1,487,870 common shares and
associated warrants to purchase up to 1,115,903 common shares at an exercise price of US$3.00 per share in February