The board of directors of Hengxing Gold Holding Company Limited announced the operational updates for the first quarter of 2020 of its Gold Mountain Mine. The Company has always regarded the safety and health of employees as a top priority and strictly complied with the local government's control measures and travel restrictions since the outbreak of novel coronavirus (" COVID 19 ") in China in January 2020. Gold Mountain Mine basically returned to normal operation not until the end of March 2020. Therefore, the actual number of days of the mine in full operation was significantly reduced to 10 days, which resulted in a lower gold production and a higher cost in the first quarter of 2020 than those of the same period in year 2019. Based on the unaudited operational data of the Group and information currently available to the Company, Gold Mountain Mine produced 5,948 ounces (equivalent to approximately 185kg) of gold in the first quarter of 2020, which shows a decrease of approximately 61.7% as compared to that of the first quarter of 2019. The lower gold production led to an all-in sustaining cost of RMB 240/gram (equivalent to USD 1,053/oz calculated on basis of an exchange rate of RMB 7.0851/USD as at 31 March 2020), 71% higher than RMB140/gram from the same period last year. Ore Mined was 168 Kt against 908 Kt a year ago. Waste Stripped was 266 Kt against 1,854 Kt a year ago. Ore Processed was 192 Kt against 1,138 Kt a year ago. Feed-in Grade was 0.67 against 0.58 a year ago. Gold Produced was 5,948 ounces against 15,529 ounces a year ago.