Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 185

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 185
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’s taxable year in which the U.S. Holder recognized the gain or received the excess distribution, 
 or to the period in the U.S. Holder’s holding period before the first day of the first taxable year in which we were a PFIC,         
 will be taxed as ordinary income;                                                                                                    |
| · | the                                                                                                                                  
 amount allocated to other taxable years (or portions thereof) of the U.S. Holder and included in its holding period will be taxed    
 at the highest tax rate in effect for that year and applicable to the U.S. Holder; and                                               |
| · | an                                                                                                                                   
 additional tax equal to the interest charge generally applicable to underpayments of tax will be imposed on the U.S. Holder with     
 respect to the tax attributable to each such other taxable year of the U.S. Holder.                                                  |

In
general, a U.S. Holder may avoid the adverse PFIC tax consequences described above in respect of the Common Shares by making and maintaining
a timely and valid QEF election (if eligible to do so) to include in income its pro rata share of our net capital gains (as long-term
capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not distributed, in the
taxable year of the U.S. Holder in which or with which our taxable year ends. A U.S. Holder must make a QEF election for the Company and
each Subsidiary PFIC if it wishes to have this treatment. To make a QEF election, a U.S. Holder will need to have an annual information
statement from the Company setting forth the ordinary earnings and net capital gains for the year and the Company may not provide this
statement, in which case a QEF election cannot be made.

| 109 |

In
general, a U.S. Holder must make a QEF election on or before the due date for filing its income tax return for the first year to which
the QEF election will apply. Under applicable Treasury Regulations, a U.S. Holder will be permitted to make retroactive elections in
particular, but limited, circumstances, including if it had a reasonable belief that the Company was not a PFIC and filed a protective
election. If a U.S. Holder owns PFIC stock indirectly through another PFIC, separate QEF elections must be made for the PFIC in which
the U.S. Holder is a direct shareholder and the Subsidiary PFIC for the Q