Shandong Yulong Gold Co., Ltd. (SHSE:601028) intends to acquire 67% stake in Shaanxi Shanjin Mining Co., Ltd. on October 13, 2022. Mining Co., Ltd.. Shandong Yulong Gold Co., Ltd. (SHSE:601028) agreed to acquire a 67% stake in Shaanxi Shanjin Mining Co., Ltd. from Wu Changfu for approximately CNY 130 million on December 27, 2022. Shandong Yulong Gold Co., Ltd. (SHSE:601028) will acquire the target in cash in order to obtain the mining right of Loufanggou Vanadium Mine project in Shangnan county, Shaanxi province, which is the core asset of the Shaanxi Shanjin. Currently, Wu Changfu holds 76.30% stake in Shaanxi Shanjin. As on November 30, 2022, Shaanxi Shanjin had CNY 54.18 million of total assets and CNY -68.49 million of net assets. As on March 29, 2023, Shandong Yulong Gold has signed a "Supplementary Agreement" with Wu Changfu, Shanyang Oasis Palace Jade Factory, and Shaanxi Shanjin Mining Co., Ltd. As per the agreement, All parties agree to change the payment node for the first phase of the transaction price Within 5 working days after all the following conditions are met, Shandong Yulong Gold shall pay Wu Changfu, Shanyang County Lvzhou Gongyu Factory 30% of the total amount of equity transfer funds, that is CNY 39.195 million. (1) Wu Changfu, Shanyang Oasis Palace Jade Factory has released Shaanxi Shanjin Mining Co., Ltd.'s equity and mining rights from being sealed up by the court, and guaranteed that the project company's equity and assets (including but not limited to mining rights) do not have any mortgages other than those pledged to Shandong Lanjing Mining Co., Ltd. (2) 2) All parties have completed the industrial and commercial change registration procedures for all equity transfers, obtained a new business license and completed the engraving of new official seals and other seals, and Wu Changfu, Shanyang Oasis Palace Jade Factory has paid in all the registered capital of the project company (3) Wu Changfu, Shanyang Oasis Palace Jade Factory has cooperated with Shaanxi Shanjin Mining Co., Ltd. to clear up all other liabilities except the loan to Shandong Lanjing Mining Co., Ltd.; after the debts are cleared. All debts have been cleared and Wu Changfu, Shanyang Oasis Palace Jade Factory has paid in all registered capital. (4) After Wu Changfu, Shanyang Oasis Palace Jade Factory completes other obligations in the above items (1) and (2) except for the fully paid-in registered capital in place before March 31, 2023. (5) The paid-in contribution obligation of the entire registered capital of the project company (CNY 92.8 million) shall be unilaterally assumed by Wu Changfu, Shanyang Oasis Palace Jade Factory and all debts of the project company shall be cleared by Wu Changfu, Shanyang Oasis Palace Jade Factory and Shandong Yulong Gold shall not bear the corresponding capital contribution and debt repayment responsibilities.

Shandong Yulong Gold Co., Ltd. (SHSE:601028) completed the acquisition of 67% stake in Shaanxi Shanjin Mining Co., Ltd. on March 31, 2023.