Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 118

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 118
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 funds received pursuant to the Cooperation Agreement and/or any new or similar cooperation agreement, and loans from a related
party. While the results of preliminary prospecting suggest that the northern part of Moruogu Tong Mine contains mineable quantities
of lead and silver, until further exploration and analysis is completed, the Company cannot predict the nature and extent of minerals
contained at the mine or the commercial viability of pursuing a plan of extraction. It is possible that further exploration and analysis
will not confirm initial findings and that continued activities in furtherance of mining operations will cease.

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Exploration conducted in
2013 revealed geochemical anomalies associated with nickel and gold in the southern part of Moruogu Tong Mine but did not indicate any
concentration. No exploration work has been carried out since 2013 in the southern part of the mine area with nickel and gold anomalies.
Bayannaoer Mining plans to accelerate exploration progress and increase capital expenditures by another six drilling holes of 600 meters
deep with an expected initial investment of CNY2.16 million in the southern part of the Moruogu Tong Mine to continue to explore the presence
of nickel and other minerals.

Moruogu Tong Mine

The Moruogu Tong Mine is
a concealed deposit or an underground mine, with minimum depth of about 40 meters below ground.

The main outcrop strata
in and around the mine area are the third lithological member of Agulugou Formation of Zhaertaishan Group in the middle and upper Proterozoic,
followed by the quaternary Holocene strata. There is no magmatic rock in the exploration area, and Permian granodiorite is found locally.
In addition, gabbro dike, diabase dike and quartz dike are found in the area. The geotectonic location of the mine area is in the north
wing of the Wolf Mountain anticline, with frequent tectonic activities and multiple periods of magma intrusion. The strata of the mine
area are damaged by transformation, and the fold structure is not complete. The outcrop strata in the mine area are relatively simple,
which are a monoclinal structure with a northeast-to-southwest strike and a southeastern tilt.

The Moruogu Tong Mine is
located in the fault bundle of the Huogeqi dome at the north wing of the Haorige Mountain syncline. Monoclinal structures predominates
and the strike is north