Core Viewpoint - The company has signed a mining rights transfer contract, expanding its mining operations and increasing production capacity significantly [1] Group 1: Mining Rights and Contract Details - The company's wholly-owned subsidiary, Zhongqi (Guangxi) Mining Co., Ltd., has obtained mining rights for the Lamalong quartzite mine in Luocheng County, Guangxi [1] - The mining area has been expanded from 3.02 square kilometers to 4.96 square kilometers [1] - The mining elevation has been adjusted from +850 meters to +300 meters to +940 meters to +300 meters [1] Group 2: Production Capacity and Resource Details - The annual production capacity has been increased from 200,000 tons to 400,000 tons [1] - The disposed quartzite mineral resources within the mining area amount to 7.486 million tons, while the undeveloped resources are 771,000 tons [1] Group 3: Financial Obligations - The company is required to pay the mining rights usage fee by July 1 each year during the validity period of the mining rights [1] - The company must also pay the mining rights transfer revenue on time and in full [1]

Core Viewpoint - Guangxi Huaxi Nonferrous Metals Co., Ltd. has completed the change registration of the mining rights for the Tongkeng Mine, which is expected to enhance the company's resource availability and extend the service life of the mine, providing a resource guarantee for long-term sustainable development [1][4]. Mining Rights Change Situation - The mining rights change involves merging the exploration rights of the "Deep Zinc Polymetallic Mine Exploration" into the existing mining rights of the Tongkeng Mine, with the new mining license issued by the Ministry of Natural Resources of the People's Republic of China [1][2]. - The previous mining rights included a production scale of 2.376 million tons per year and a mining area of 15.7786 square kilometers, valid until May 23, 2030 [1]. Mining Rights Continuation Contract - The mining rights contract has been signed between the Ministry of Natural Resources and Guangxi Huaxi Mining Co., Ltd., with a mining area of 15.7786 square kilometers and a registration period of 27 years [3]. - The mining rights transfer revenue from the unutilized resources from September 30, 2006, to April 30, 2023, amounts to RMB 64.218 million, with the first installment of RMB 9.8708 million already paid [3]. Impact on the Company - As of September 30, 2020, the confirmed resource reserves within the mining rights area include 73.0414 million tons of ore, with main metal reserves of tin at 81,873 tons and zinc at 2,055,925 tons [4]. - The completion of the mining rights change is expected to increase the company's exploitable resources and support long-term sustainable development, although it will not have a significant short-term impact on the company's operating performance [4].