Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 214

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 214
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 rate at the lease commencement date because the interest rate implicit in the lease
is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
a change in the lease term, a change in lease payments (e.g., a change to future lease payments resulting from a change in an index or
rate) or a change in assessment of an option to purchase the underlying asset.

| F-19 |

| 2.5 |     | MATERIAL ACCOUNTING  
 POLICIES (CONTINUED) |

| (f) | Leases (continued) |

Group as a lessee (continued)

(3) Short-term leases

The Group applies the short-term lease
recognition exemption to its short-term leases of buildings (that is those leases that have a lease term of 12 months or less from the
commencement date and do not contain a purchase option).

Lease payments on short-term leases are
recognized as an expense on a straight-line basis over the lease term.

| (g) | Exploration and evaluation costs |

Exploration and evaluation assets include
topographical and geological surveys, exploratory drilling, sampling and trenching and activities in relation to commercial and technical
feasibility studies, and expenditure incurred to secure further mineralization in existing bodies and to expand the capacity of a mine.
Expenditure incurred prior to acquiring legal rights to explore an area is expensed as incurred.

Once the exploration right has been acquired,
exploration and evaluation expenditures are charged to the statement of profit or loss as incurred, unless a future economic benefit is
more likely than not to be realized. Exploration and evaluation assets acquired in a business combination are initially recognized at
fair value. They are subsequently stated at cost less accumulated impairment.

When it can be reasonably ascertained that
a mining property is capable of commercial production, exploration and evaluation costs are transferred to tangible or intangible assets
according to the nature of the exploration and evaluation assets. If any project is abandoned during the evaluation stage, the total expenditure
thereon will be written off.

| (h) | Impairment of non-financial assets |

Where an indication of impairment exists,
or when annual impairment testing for an asset is required (other than inventories, financial assets, deferred tax assets and contract
assets), the asset’s recoverable amount is estimated. An