Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 259

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 259
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(China) Limited (together, the “Sellers”), and the respective beneficial owner of the sellers, Mr. Li Feilie and Mr. Yao
Yuguang, to acquire 100% equity interests of Greatfame Investments Limited, which owns 100% equity interest in Williams Minerals (Pvt)
Ltd (“Williams Minerals”) (the “Acquisition”). Williams Minerals owns the mining permit for the Zimbabwean lithium
mine. The consideration to be paid by the Company for the Acquisition will be calculated by multiplying the qualified measured, indicated
and inferred resources quantity of lithium oxide proven to be in the mine by independent technical reports by a unit price of US$500
per ton, less certain due diligence costs and expenses incurred by the Company for the issuance of the independent technical reports.

According to the SPA, the Company issued a US$24,500 promissory note (Promissory Note No. 1)and a US$10,500 promissory note to Feishang Group and Top Pacific (China) Limited respectively on April 14, 2023 to proceed with the acquisition. The Company recognized a liability due to shareholders amounted to US$24,500 and other payable amounted to US$10,500 respectively for the present obligations of these two promissory notes with corresponding non-current assets amounted to US$35,000.

On
August 3, 2023, the Company entered into a set-off letter with Feishang Group, pursuant to the letter, the consideration of CNY95,761
liable to be paid by Feishang Group pursuant to the SPA for the disposal of the water treatment segment (Note 3) shall be set off against
Promissory Note No. 1 using the exchange rate CNY1.00 = US$0.1400 such that a sum of US$13,407 shall be deducted from the Principal Amount
as defined in Promissory Note No. 1. According to the letter, the Company derecognized the receivables from Feishang Group amounted to
CNY95,761 and a liability due to shareholders amounted to CNY95,761.

| (c) |     | Balances with related companies |

The
Group’s balances with related companies are unsecured and non-interest bearing. Feishang Enterprise and the Shareholder have provided
letters stating their continuous financial support to the Group and that they will not recall any amounts due to them until the Group
has sufficient liquidity to