Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 121

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 121
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 kilometers to Qingshan Town. The Qingxian Road passes through the southern part of the mine
and transportation is very convenient. Connectivity to water, electric and other necessary services will be addressed at the time of mine
construction and development.

Government Regulation of Mineral Exploration Activities

Under the Mineral Resources
Law of the PRC, all mineral resources in the PRC are owned by the state. Exploration and mining rights granted by the state permit recipients
to conduct exploration or mining activities in a specific mining area during the specified license period. Although Bayannaoer Mining
believes its exploration licenses will continue to be renewed as necessary, there can be no assurance that such will be the case or that
Bayannaoer Mining will be able to obtain a mining license in the future and exploit the entire mineral resources of the Moruogu Tong Mine
during its license period. If Bayannaoer Mining fails to renew its exploration rights upon expiry or if it cannot obtain a mining license
and effectively extract the resources within the license period, the operation and performance of Bayannaoer Mining will be adversely
affected.

Bayannaoer Mining’s
exploration permit entitles it to undertake exploration activities in compliance with applicable laws and regulations, within the specific
area covered by the license during the license period. The department in charge of examination and approval of mineral reserves under
the State Council or departments in charge of examination and approval of mineral reserves of provinces, autonomous regions and municipalities
directly under the Central Government shall be responsible for the examination and approval of the prospecting reports to be used for
mining construction designing and shall, within the prescribed time limit, give official replies to the units that submitted the reports.
Unless it is approved, a prospecting report may not be used as the basis for mining construction designing. A mining rights permit entitles
the holder to undertake mining activities, in compliance with applicable laws and regulations, within the specific area covered by the
license during the license period. Entities who mines mineral resources must pay resource tax and resource compensation in accordance
with relevant regulations of the PRC.

The competent department
of environmental protection under the State Council shall supervise and manage environmental protection work throughout the country in
a consistent manner. The competent departments of environmental protection of the local governments at the county level or above shall
supervise and manage environmental protection work within their respective administrative areas in a consistent manner.

The state practices
classified control over the environmental protection in construction projects based on the extent of environmental impact