China Polymetallic Mining : Announcements and Notices - Voluntary Announcement

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China Polymetallic Mining Limited 中國多金屬礦業有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 2133)

VOLUNTARY ANNOUNCEMENT

This is a voluntary announcement made by China Polymetallic Mining Limited (the "Company", together with its subsidiaries, the "Group").

Pursuant to the loan agreements signed on 27 June 2017 and 10 July 2017 and entered into between Yingjiang County Kunrun Industry Company Limited ("Kunrun") and Dehong Yinrun Mining Group Company Limited ("Yinrun") (both are indirect subsidiaries of the Company), and Ping An Bank Co., Ltd (the "Lender"), the Lender agreed to extend the bank loans granted to Kunrun and Yinrun in previous years and had advanced banking facilities to Kunrun and Yinrun in the principal sums of RMB379,000,000 (the "Kunrun Loan") and RMB90,000,000 (the "Yinrun Loan") (Kunrun Loan and Yinrun Loan are collectively called the "Ping An Loans") respectively. The Kunrun Loan was secured by the followings: (i) the charge of mining rights of Shizishan Mine, real properties, plants and machineries owned by Kunrun; (ii) the personal guarantee of Mr. Ran Xiaochuan ("Mr. Ran", a previous director of the Company), Ms. Luo Chaohua ("Ms. Luo", the wife of Mr. Ran) and the corporate guarantee of Yinrun, Mang City Xin Di Mining Company Limited ("Dakuangshan Company"), Nujiang Shengjia Chengxin Industrial Co., Ltd. ("Liziping Company") and Meng La Chen Feng Mining Development Company Limited ("Menghu Company") (all are indirect subsidiaries of the Company) and the Company. The Yinrun Loan was secured by the followings: (i) the pledge of 99% of equity interest in Kunrun, 90% of equity interest in each of Dakuangshan Company, Liziping Company and Menghu Company; (ii) the personal guarantee of Mr. Ran, Ms. Luo and the corporate guarantee of the Company.

The Company was recently informed by the Lender that the latest process for renewal of the Ping An Loans was as follows:

(i)due to the reasons including the adjustment of the state policy and enhancement of the supervision standard, the approval process of the renewal arrangement is still in process;

• (ii) one of the conditions for renewal of the loans requires Mr. Ran to re-execute the personal guarantee while the Company was recently informed that Mr. Ran is now being retained by the China Chengdu Supervision Commission to cooperate with the investigation for a case which is totally not related to the Company, Mr. Ran's position and behavior(s) during his tenure as a director of the Group and the current directors and therefore it is impossible to contact him and arrange for execution of the personal guarantee by him in front of the lawyer(s) retained by the Lender and handling the relevant notarization matters at this stage;

• (iii) as the approval process is still in progress, the Lender will inform the Company if there is any update for the renewal arrangement in the appropriate time.

Kunrun and Yinrun have duly performed their duties and obligations as required for renewal of the loans, including but not limited to their duly payment of aggregate sum of RMB70,010,000 in part payment of the principal of the Ping An Loans and payment of the relevant interests.

Ping An Loans are the only bank loans of the Group currently, and the Group does not have any other bank loans. The Group has all along maintained good cooperative relations with the Lender and the Group has not been unable to renew its loans with the Lender in the past years. The Company will continue to closely liaise with the Lender to proactively facilitate the approval process of the renewal arrangement.

As at the date of this announcement, the business and operations of the Group remain normal.

Further announcement(s) regarding the renewal arrangement of the Ping An Loans will be made by the Company as and when appropriate in accordance with the Listing Rules (if necessary).

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

China Polymetallic Mining Limited

Lei Dejun

Executive Director

Hong Kong, 6 August 2018

As at the date of this announcement, the Board comprises Mr. Lei Dejun as executive director; Mr. Yin Bo, Mr. Chan Suk Ching and Mr. Zhang Yonghua as non-executive directors; and Mr. Ma Shirong, Mr. Chi Hongji and Mr. Dong Tao as independent non-executive directors.