Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 186

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 186
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EF rules to apply to both PFICs. U.S. Holders should be aware
that there can be no assurance that the Company has satisfied or will satisfy the recordkeeping requirements that apply to a QEF or that
the Company has supplied or will supply U.S. Holders with information such U.S. Holders require to report under the QEF rules in the
event that the Company is a PFIC for any tax year.

Alternatively, if we
are a PFIC and the Common shares constitute “marketable stock,” a U.S. Holder may avoid the adverse PFIC tax consequences
discussed above if such U.S. Holder, at the close of the first taxable year in which it holds (or is deemed to hold) Common shares, makes
a mark-to-market election with respect to such shares for such taxable year. Such U.S. Holder generally will include for each of its
taxable years as ordinary income the excess, if any, of the fair market value of its Common shares at the end of such year over its adjusted
basis in its Common shares. The U.S. Holder also will recognize an ordinary loss in respect of the excess, if any, of its adjusted basis
of its Common shares over the fair market value of its Common shares at the end of its taxable year (but only to the extent of the net
amount of previously included income as a result of the mark-to-market election). The U.S. Holder’s basis in its Common shares
will be adjusted to reflect any such income or loss amounts, and any further gain recognized on a sale or other taxable disposition of
its Common shares will be treated as ordinary income. Currently, a mark-to-market election may not be made with respect to Warrants.

The mark-to-market election is
available only for “marketable stock,” generally, stock that is regularly traded on a national securities exchange that is
registered with the SEC, including Nasdaq (on which Common Shares are listed), or on a foreign exchange or market that the IRS determines
has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. However, there is no assurance
that the Common Shares will remain “regularly traded” for this purpose. Moreover, a mark-to-market election made with respect
to Common Shares would not apply to a U.S. Holder’s indirect interest in any Subsidiary PFIC in which we own an equity interest.
U.S. Holders should consult their tax advisors regarding the availability and tax