On 17th June, 2022 CNNC Treasury Management Co. Limited entered into a loan agreement (the "Loan Agreement") with CNNC International Limited (the Company), pursuant to which CNNCTM agreed to provide a revolving loan for a maximum principal amount of USD 50,000,000 (the "Trade Loan") to the Company with a drawdown period of one year, during which the Company can make multiple drawdowns in accordance with the terms of the Trade Loan. CNNCTM is a subsidiary of China National Nuclear Corporation, which in turn is the ultimate controlling shareholder of the Company holding an indirect interest in approximately 66.72% of the issued share capital of the Company.
Under the terms of the Loan Agreement, the interest rate of any amount drawn down from the
Trade Loan shall be subject to an interest rate charge of LIBOR + 1.60% per annum, which is
the same as the interest rate under similar bank facilities the Group had obtained in recent years
(prior to the repayment in full of its last outstanding trade loan in November 2020), and shall
be utilized solely for the purpose of the Group's uranium trading business. No financial or other
covenants are required to be given by the Group, and the Trade Loan would not be secured by
assets of the Group.