Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 55

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 55
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 operations may be materially and adversely affected. In addition, according to the Labor
Contract Law and its implementing rules, if we intend to enforce the non-compete provision with an employee in a labor contract or non-competition
agreement, we have to compensate the employee on a monthly basis during the term of the restriction period after the termination or ending
of the labor contract, which may cause extra expenses to us. Furthermore, the Labor Contract Law and its implementing rules require certain
terminations to be based upon seniority rather than merit, which significantly affects the cost of reducing workforce for employers.
In the event we decide to significantly change or decrease our workforce in the PRC, the Labor Contract Law could adversely affect our
ability to enact such changes in a manner that is most advantageous to our circumstances or in a timely and cost-effective manner, thus
our results of operations could be adversely affected.

If the chops of our PRC subsidiaries are not kept safely, are stolen or are used by unauthorized persons or for unauthorized purposes, the corporate governance of these entities could be severely and adversely compromised.

In China, a
company chop or seal serves as the legal representation of the company towards third parties even when unaccompanied by a signature. Each
legally registered company in China is required to maintain a company chop, which must be registered with the local Public Security Bureau.
In addition to this mandatory company chop, companies may have several other chops which can be used for specific purposes. The chops
of our PRC subsidiaries are generally held securely by personnel designated or approved by us in accordance with our internal control
procedures. To the extent those chops are not kept safely, are stolen or are used by unauthorized persons or for unauthorized purposes,
the corporate governance of these entities could be severely and adversely compromised, and those corporate entities may be bound to abide
by the terms of any documents so chopped, even if they were chopped by an individual who lacked the requisite power and authority to do
so. In addition, if the chops are misused by unauthorized persons, our PRC subsidiaries could experience disruption to our normal business
operations. We may have to take corporate or legal action, which could involve significant time and resources to resolve while distracting
management from our operations.

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Risks Relating to Our Mine Exploration Activities in Inner Mongolia

The Moruogu Tong Mine is in the exploration stage.

One of our operating
subsidiaries, Bayannaoer Mining, is in the exploration stage at the Moruogu