Jinchuan International Resources : OPERATIONAL UPDATE FOR THE THREE MONTHS ENDED 31 MARCH 2021

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JINCHUAN GROUP INTERNATIONAL RESOURCES CO. LTD 金 川 集 團國 際資源 有限 公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2362)

OPERATIONAL UPDATE

FOR THE THREE MONTHS ENDED 31 MARCH 2021

This announcement is made by Jinchuan Group International Resources Co. Ltd (the "Company", together with its subsidiaries, collectively the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors (the "Board") of the Company announces the unaudited operational update for the three months ended 31 March 2021 (the "First Quarter").

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OPERATIONAL UPDATE FOR THE THREE MONTHS ENDED 31 MARCH 2021

Operational Data

The Group's operational data of mining operations and the revenue generated from trading of mineral and metal products summarized and shown in the table below are derived from the management account and internal records currently available to the Group. Such operation data are intended to give investors an overview of the Group's operations in a timely manner which may differ from the actual data to be disclosed in future periodic report(s) of the Group.

		For the	For the
	three months	three months
		ended	ended
		31 March	31 March
	2021		2020
Mining operations
Production:	14,491
Copper (tonne)		17,209
Cobalt (tonne)	785		1,333
Product sold:	14,293
Copper (tonne)		14,664
Cobalt (tonne)	691		1,296
Revenue (including provisional pricing adjustment) -
approximate figures:
Copper (US$'000)	121,428		71,164
Cobalt (US$'000)		29,480		27,863
Mining operations revenue (US$'000)	150,908		99,027
Trading of mineral and metal products
Revenue - trading of externally sourced mineral and
metal products - approximate figures (US$'000)		15,244		133,813
Total revenue (US$'000)	166,152		232,840

Note: Pricing coefficients were considered in actual sales revenue

During the First Quarter, the Group's mining operations produced 14,491 tonnes of copper content included in copper cathode and copper concentrate (three months ended 31 March 2020: 17,209 tonnes) and 785 tonnes of cobalt content included in cobalt hydroxide (three months ended 31 March 2020: 1,333 tonnes).

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During the First Quarter, the Group's mining operations sold 14,293 tonnes of copper (three months ended 31 March 2020: 14,664 tonnes), representing a decrease of approximately 3% year-on-year compared to the corresponding period in 2020, and 691 tonnes of cobalt (three months ended 31 March 2020: 1,296 tonnes), representing a decrease of approximately 47% year-on-year compared to the corresponding period in 2020.

Out of the sales of copper and cobalt, the Group's mining operations generated revenue of approximately US$121.4 million and US$29.5 million in the First Quarter respectively (three months ended 31 March 2020: approximately US$71.2 million and US$27.9 million respectively), representing approximately 71% and 6% year-on-year increase compared to the corresponding period in 2020.

Moreover, the revenue generated from trading of externally sourced mineral and metal products amounted to approximately US$15.2 million, representing a decrease of approximately 89% as compared to approximately US$133.8 million in the corresponding period in 2020.

Provisional Pricing

The following table provides a summary of the metal that was sold but which remains provisionally priced at the end of March 2021 and the month that final average pricing is expected to occur at the time of final invoicing.

	Open pricing at 31 March 2021
	Apr 2021	May 2021	June 2021	Total
Copper (tonne)	3,116	1,058	1,899	6,073
Cobalt (tonne)	115	-	-	115

Analysis and Prospect

Copper and cobalt production volume in the First Quarter decreased by 16% and 41% as compared to the corresponding period in 2020 as the Group has processed ores with lower copper and cobalt grade in the First Quarter.

Despite the decrease in volume of copper and cobalt sold in the First Quarter, the total revenue generated from the mining operations had increased owing to materially higher prices for copper and cobalt in the First Quarter as compared to the corresponding period in 2020, with market copper and cobalt prices increased by approximately 50% and 30% respectively, leading to a significant increase in revenue. Also, as a result of higher commodity price, there has been an adjustment to the provisional sales price previously recognized.

The average benchmark London Metal Exchange ("LME") copper and Metal Bulletin ("MB") cobalt prices for the First Quarter were US$8,479 per tonne and US$21.4 per pound respectively, representing a 50% and 30% increase as compared to the average benchmark copper and cobalt price for the corresponding period in 2020 of US$5,638 per tonne and US$16.4 per pound respectively.

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LME copper price has increased by approximately 14% from the end of 2020 and reached US$8,851 per tonne by the end of March 2021. This has led to the increase in the Group's mining operation's revenue and profit in the First Quarter.

The trading of mineral and metal products segment recorded a significant decrease in revenue on trading of externally sourced commodities of 89% from US$133.8 million for the corresponding period in 2020 to US$15.2 million for the First Quarter. The decrease was due to the voluntary liquidation of Shanghai Jinchuan Junhe Economic Development Co., Ltd.*（上海金川均和經濟發展有限公司）, one of the principal trading arms of the Group. For details, please refer to the "Significant Events" section in the Company's annual report 2020.

The information contained in this announcement is based only on the preliminary assessment by the Board upon its review of the unaudited consolidated management accounts of the Group and the current information available to the Board which have not been audited nor reviewed by the Company's independent auditor.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company, and should note that undue reliance on or use of the above information may cause investment risks.

• for identification purposes only

By order of the Board

Jinchuan Group International Resources Co. Ltd

Wong Hok Bun Mario

Company Secretary

Hong Kong, 30 April 2021

As at the date of this announcement, the Board comprises two executive directors, namely Mr. Gao Tianpeng and Mr. Cheng Yonghong; three non-executive directors, namely Mr. Zhang Youda, Mr. Liu Jian and Mr. Wang Qiangzhong; and three independent non- executive directors, namely Mr. Wu Chi Keung, Mr. Yen Yuen Ho, Tony and Mr. Poon Chiu Kwok.

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