(Unofficial translation provided by BHRC)

“Zangge Mining Responds to Production Halt at Chaerhan Salt Lake Lithium Extraction Project: Mining Right Renewal and Amendment Process Underway,” Sina Finance, August 4, 2025

Zangge Mining stated that the mining license for the Chaerhan Salt Lake mining area is set to expire on August 9, 2025. The company attaches great importance to this matter and is actively communicating with the competent authorities and submitting the necessary documentation. In accordance with the principle of step-by-step reporting and approval, Zangge has submitted applications for the renewal and amendment of the mining rights to the Dulan County Bureau of Natural Resources, the Haixi Prefecture Bureau of Natural Resources, the Qinghai Provincial Department of Natural Resources, and the Ministry of Natural Resources. Currently, the county, prefecture, and provincial levels have all completed their reviews and issued favorable review opinions; the company is awaiting the review opinion from the Ministry of Natural Resources. Once the Ministry of Natural Resources issues its review opinion, Zangge will be able to apply for a new “Mining License” in accordance with the Ministry’s approval. The final date for the mining license renewal to take effect will depend on when the competent authorities complete their approval of the proposal.

Previously, on July 17, Zangge Mining announced that its wholly-owned subsidiary, Golmud Zangge Potash Fertilizer Co., Ltd. (hereinafter referred to as “Zangge Potash Fertilizer”), received on July 16, 2025, a notice issued by the Haixi Prefecture Natural Resources Bureau and the Haixi Prefecture Salt Lake Administration, titled “Notice Ordering the Immediate Cessation of Lithium Resource Development and Utilization Activities”. The notice requires the company to strictly comply with national laws and regulations, earnestly fulfill its corporate responsibilities, immediately cease illegal mining activities, actively rectify violations, and complete the necessary legal procedures for lithium resource exploitation. Once these procedures are legally compliant, the company must apply to the Haixi Prefecture Salt Lake Administration for resumption of production, which will only be permitted upon approval of the application. Upon receipt of the “Notice,” the Company’s wholly-owned subsidiary, Golmud Zangge Lithium Co., Ltd., has suspended operations as required. Meanwhile, the Company is actively advancing the processing of lithium resource mining permits. Once these permits are finalized, the Company will promptly apply to the Haixi Prefecture Salt Lake Administration Bureau for resumption of production.