Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 210

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 210
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 it to another market participant that would use the asset in its highest and best use.

The Group uses valuation
techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the
use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair
value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based
on the lowest-level input that is significant to the fair value measurement as a whole:

Level 1 – based on quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 –
based on valuation techniques for which the lowest-level input that is significant to the fair value measurement is observable,
either directly or indirectly;

Level 3 –
based on valuation techniques for which the lowest-level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized
in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy
by reassessing categorization (based on the lowest-level input that is significant to the fair value measurement as a whole) at the end
of each reporting period.

| F-16 |

| 2.5 |     | MATERIAL ACCOUNTING  
 POLICIES (CONTINUED) |

| (c) | Related parties |

A party is considered to be related
to the Group if:

| (1) | the party is a person or a close member of that person’s family and that person |

| (i)   | has control or joint control over the Group;                                          |
| (ii)  | has significant influence over the Group; or                                          |
| (iii) | is a member of the key management personnel of the Group or of a parent of the Group; |

or

| (2) | the party is an entity where any of the following conditions applies: |

| (i)    | the entity and the Group are members of the same group;                                                                                                                  |
| (ii)   | one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other entity);                                   |
| (iii)  | the entity and the Group are joint ventures of the same third party;                                                                                                     |
| (iv)   | one entity is a joint venture of a third entity and the other entity is an associate of the third entity;                                                                |
| (v)