Hengxing Gold Holding Company Limited reported unaudited operational results of Gold Mountain Mine for the second quarter of 2018. Based on the unaudited operational data of the Group and information currently available to the company, Gold Mountain Mine processed 1,925,568 tonnes of ore and produced 27,534 ounces (equivalent to approximately 856.4 kg) of gold during the second quarter of 2018, up 31% and 66% respectively from the same period last year. Other than processing current mined ore, the high pressure grind roller is as well reprocessing 1 million tonnes of the ore in the existing pad with an average grade of 0.4g/t in 2018 and is expected to achieve a gold production of 200 kilograms. Overall, the total stripping cost increased as well as some material costs increased. The Company took a proactive role to manage maintaining the all-in sustaining cost at a competitive level of RMB 149.2/gram (equivalent to USD 701/oz with exchange rate of RMB 6.6166/USD as at 30 June 2018).