Zijin Mining : Announcement in relation to Guiding Opinion on the Work for the Next Three Years (2020-2022)

Announcement in relation to Guiding Opinion on the Work for the Next Three Years

(2020-2022)

Important notes: This guiding opinion on the work is solely formulated based on the current situations of the economy and mining industry and current status of Zijin Mining Group Co., Ltd.* (the "Company", "Zijin" or "Zijin Mining"), which is an internal guiding opinion on the work for operations management of the Company. The forward-looking statements contained therein, including future development plans, goals, etc., do not constitute the Company's forecast on the future, and their realisations are subject to macroeconomic situation, policy environment, market price of products, fluctuation of exchange rates, construction progress of projects, operations management and other factors, where considerable uncertainties exist. They do not constitute any actual commitment of the Company to investors. There are possibilities that the Company may make appropriate adjustments to this guiding opinion based on actual situation and development needs. Investors are advised to understand the difference among the plan, forecast and commitment and be aware of investment risks.

The years 2020-2022 serve the crucial period for the Company to strive for a leaping growth to reach the overall goal of becoming an extra-large international mining group with high technology and efficiency. In accordance with the Company's strategic development goal, the Company formulated the Production Volume Plan of Major Products for the Next Three Years (2020-2022), which was approved at the 13th extraordinary meeting of the sixth term of the board of directors of the Company (the "Board") convened on 12 November 2019. Based on the abovementioned, the seventh term of the Board analysed the current situations of the economy and mining industry and the actual development of the Company, studied on the goals, tasks and key working directions and measures for the next three years and proposed guiding opinion. Guiding Opinion on the Work of the Company in 2020-2022 was considered and approved at the 1st extraordinary meeting of the seventh term of the Board convened on 31 January 2020. Its summary is as below:

I. Analysis of domestic and international situations and the Company's current status

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(1) Domestic and international situations

World multi-polarisation and economic globalisation progress in a winding way. Trade protectionism and unilateralism of major developed countries in the West and other anti-globalisation trends intensify. It is highly possible that slowdown of economic growth will occur. Information technology, intelligentisation technology, etc. have a rapid development, changing our daily lives, continuously bringing new economic and industrial conditions, and having a big impact on the efficiency increase of manufacturing industry. As a base industry, mining is still the main material source of the means of production of energy, industry and agriculture. It is expected to maintain a relatively steady condition. Uncertainties in economy, geopolitical turmoil and rising investment and cost to obtain mineral resources draw a fundamental value baseline for mineral resource prices. Gold is expected to open up a rising market trend for a medium to long term. The supply and demand of copper enter into a tight-balance period, with the possibility of price increase. Zinc price may drop due to insufficient support.

The economy of China is transforming from the phase of high-speed development to high-quality development. From the perspective of per capita consumption, the demand of China may further elevate. The restriction heightens by policies regarding mineral resources and environmental protection in China. Production volume of major mineral products in China demonstrates a decreasing pattern, and the local market highly depends on foreign supply. Consensus is reached in the industry that domestic and foreign resources shall be exploited and Chinese mining corporations having the potentials shall adopt the "going out" strategy.

(2) The Company's current status

The Company is a mixed ownership enterprise with partial ownership held by the state. Its ownership and management are basically separated. It has highly-efficientdecision-making, energetic operational mechanism, and sound corporate governance and management structures. Management discharges their duties conscientiously, faithfully and diligently. The main business of the Company, namely gold, copper and zinc, is outstanding. The resources reserve volumes and production volumes of gold, copper and zinc rank top in China, close to those of the first-tier global metal mining corporations, and have a relatively high degree of internationalisation. The Company has prominent technological and management capacities in the aspects of geological prospecting, hydrometallurgy and large-scale development of low-grade resources, and has obvious comparative advantages in investment and cost control, innovative construction, etc. It becomes one of the few mining companies in the world possessing management capability in autonomous system technology. In recent years, the Company has pushed forward global talent recruitment, introduction and training. The number of internationalised talents gradually increased and a management and technological team in high spirit is initially formed, constituting the core driving force for the leaping development of the Company.

The Company owns over 57 million tonnes of copper, approximately 2,200 tonnes of gold (including gold

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of the Buriticá gold mine in Colombia) and approximately 10 million tonnes of zinc (lead), providing a solid resource foundation for its leaping development. The production momentum of overseas projects is consistently released, where the overseas resource volume and production volume of gold surpass those of China. The Kamoa copper mine in construction in the Democratic Republic of the Congo (the "DR Congo"), the Timok copper mine in Serbia and the Buriticá gold mine in Colombia to be acquired are world-class,super-large scale high-grade mines, which are expected to exert crucial impact on increasing the resources reserve volume, production volume of mineral products and profit of the Group.

Nevertheless, the Company's internationalised operational and management systems are still not yet formed comprehensively. After over twenty years of high-speed development, the Company starts to have "big enterprise disease", which lowers its efficiency. The ore grades of certain mines are declining while the depth and difficulty of mining increase. The high-quality talents in overseas projects still cannot satisfy the demand for development, and there is a lack of high-quality industrial technicians. Certain key projects are situated in areas with relatively high risks. The Company shall strive to solve the abovementioned problems seriously.

1. Guiding opinion on the work for the next three years (2020-2022)
   (1) Guiding theory
   "Deepening reform, leaping growth and continuous development" shall be set as the overall working direction. Oriented at marketisation transformation, a new internationalised management system with high compatibility shall be developed, in order to prioritise the conversion of resource advantage into economic efficacy, realise a leaping growth for the corporation and significantly elevate the Company's value. The autonomy of capital, resources and talents shall be fully raised and technological and informatisation capabilities shall be enhanced, so that the core competitiveness and sustainable development ability of the Company will be invigorated.

(2) Key goals

It is the Company's goals to realise substantial increase in the production volume of major mineral products and to further enhance the capabilities of refining, processing, trading and capital operation. By 2022, under an overall stable market condition, the Company shall strive to substantially raise its sales income, net profit attributable to owners of the parent, net operating cash flows and other indicators. The Company shall strive to further increase the retained resources reserve volumes, optimise the financial indicators significantly and elevate its industrial status.

Production volume plan for major products 1. Mining

Name of product	2019	2020	2021	2022	Compound
(actual)	annual growth
		3

					rate
Mine-produced gold	40.8	44	42-47	49-54	6.3%-9.8%
(tonne)
Mine-produced copper	370	410	500-560	670-740	21.9%-26.0%
(thousand tonnes)
Mine-produced zinc	370	400	370-410	380-420	0.9%-4.3%
(thousand tonnes)
Mine-produced silver	263	246	236-262	242-269	-
(tonne)
Iron ore (million tonnes)	3.53	3.32	2.99-3.32	2.99-3.32	-

Note: 1. The production volume of mine-produced gold in 2020 includes that of the Buriticá gold mine in Colombia to be acquired;

1. The production volume of iron ore includes the production volume on equity basis of Fujian Makeng Mining Company Limited, in which the Company owns 41.5% interest.

1. Refining

	2019				Compound
Name of product	2020	2021	2022	annual growth
(actual)
				rate
Refined copper (thousand	500	600	580-730	610-760	6.9%-15.0%
tonnes)
Refined zinc (thousand	230	250	260-320	260-320	4.2%-11.6%
tonnes)

(3) Management measures and focuses in implementation

1. Deepen reform and build an internationalised management system with high compatibility

Taking marketised reform as the core, the Company shall strive to achieve the goals of improving the concise, standardised and highly-efficient internationalised management system, reasonably delegate the responsibilities and clarify the rights among the Company's headquarters, business department and subsidiaries. Organisational reform at the headquarters and building of a public service platform shall be pushed forward. The Company shall strive to fundamentally realise the transformation from the focus on domestic management system to a management system of a sizable multinational mining company in the next two to three years. The Company shall endeavour to strengthen technological research, focus on research on applicable technologies, break crucial technological bottlenecks, solve a series of problems in key technologies and application problems constraining the industry and enterprise. The Company shall comprehensively carry out "Five-year Development Plan for Informatisation", achieve a deep integration of informatisation, production and operational management, strive to form a unified informatised operational and management platform in the Group by 2023, and fully upgrade corporate management by enhancing

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applicable informatisation technologies and intelligentisation technologies.

2. Fully strive to convert resource advantage to economic efficacy and achieve a leaping growth of the corporation

A series of key construction projects is expected to enter into a crucial stage in 2020. Victory in the first battle is crucial and the Company defines 2020 as the year for project construction. All positive factors shall be mobilised to achieve production commencement and reach the production capacity and indicators as soon as possible.

The Timok copper-gold mine in Serbia and the Kamoa-Kakula copper mine in the DR Congo possess resources for building world-classhigh-quality mines. Efforts shall be made to aim to realise production commencement by 2021, and meet 30%, 70% and 100% of the designated production capacity by 2021, 2022 and 2023 respectively. At the same time, the Company shall aim to accelerate technological upgrade and expansion of the Bor copper mine in Serbia, and aim to make mine projects including the Bisha zinc-polymetallic mine in Eritrea, the Kolwezi copper (cobalt) mine in the DR Congo and the Duobaoshan copper mine reach the production capacity and indicators. The Company shall endeavour to actively carry out the acquisition and stable transition of the Buriticá gold mine in Colombia and strive to achieve completion of construction and production commencement by the first quarter of 2020. Development of low-grade refractory gold resources of Norton Gold Fields Pty Ltd. in Australia shall be pushed forward to aim to significantly raise its gold production volume and efficacy. The approvals and constructions of two large-scale gold mine projects, Shanxi Zijin and Longnan Zijin, shall be speeded up. The Company shall endeavour to stabilise and improve the operation and technological upgrade of gold mine projects including Porgera, Altynken and Zeravshan, in order to realise a steady increment of mine-produced gold.

Cost control and value creation shall be the basic elements and major assessment indicators for management. The Company shall aim to utilise the relatively fine market environment at present, strive to tap into potentials, and take effective measures to firmly contain the rising trend of unit cost. The Company shall foster an innovative atmosphere, boost the motivation for innovation and achieve value creation by way of technological innovation and project management. Budget management shall be enhanced and assessment for economic accountability system shall be innovated respectively. Types of cost shall be specified and control on the total amount shall be stressed. Construction project management shall be fully strengthened, and construction technologies and a new construction model with Zijin characteristics shall be developed.

3. Insist on advancing the autonomous abilities of productivity factors and boost the sustainable development level of the Company

The Company shall insist on the strategy of prioritising mineral resources. In accordance with the strategic goal, the Company shall aim to further increase the total volume of mineral resources with significant value.

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The focus is gold, copper and ore types of which China is in great need for import. The Company shall hold the principles of value creation and marketisation, formulate an assessment standard and incentive mechanism based on the evaluation principles of value creation and marketisation. The Company shall strive to comprehensively upgrade the effective coordination between its stakeholders, build an effective coordination system with equality, mutual trust, cooperation and win-win situation, and develop a long-term, friendly, close but uncorrupted cooperation relationship.

The Company shall uphold the idea of "life comes first, giving priority to environmental protection" and the belief of "green mountains and clear water are our invaluable assets", continue the efforts to pursue for fundamental safety, and strive to realise the targets of "zero work fatality, zero environmental incident and zero occupational disease". Outsourced contractors and units shall be included in the enterprise's system for management purpose. The Company shall benchmark against the advanced Western safety management system in order to raise the Group's safety management and occupational health level to that of the international advanced mining corporations. Eco-mining development requirements shall be fully met in order to build the Group's international brand of eco-development.

4. Fully strengthen the highly-efficient coordination of the Group's high-level organisations, enterprise culture development and supervision

A positive coordination mechanism comprising the Party Committee, the Board, supervisory committee and management shall be built and enhanced, in order to form a corporate governance system with high coordination which can ensure scientific decision-making, effective execution and efficient supervision. Setting mineral resources including gold, copper (zinc) as the main focus, the Company shall endeavour to strengthen its strategical planning and research on strategy execution in order to guarantee a correct strategic direction, in-place strategy execution and highly-efficient achievement of strategy. The Company shall put more efforts on the research of capital market and improve the effective coordination with investors and investor relations management. Development of social responsibility system comprising environment, society and corporate governance shall be emphasised to promote the Company's value in the capital market.

The Company shall strengthen enterprise culture development. Zijin's enterprise culture shall be passed down and promoted, and be combined well with the locality of the project sites under objective and practical situation, in order to form an innovative Zijin team with ideals, beliefs and strong competitiveness. A high-handed posture of anti-corruption shall be kept. The Company shall fully strengthen and improve the supervisory work, insist on the relative independence of the supervisory system, fortify the effectiveness of supervision and innovate the supervisory work mechanism to achieve precise supervision.

The Board is of the view that Zijin Mining is currently in the eve for a new and groundbreaking growth. Subject to the impact of country, community, situations, policies, licenses, management and other factors,

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there are uncertainties in the construction, production commencement, achievement of production capacity, operations management, etc. The Company will insist on the direction of internationalisation development, comprehensively deepen reform to strive for a leaping growth and promote sustainable development of the enterprise. The Company believes that by implementing innovation with enthusiasm and diligence in the next three years, it will be able to present a new Zijin Mining with abundant development vitality to the society and the industry, and compose an important new chapter for realising Zijin's global mining dream.

The future operation and financial figures (if any) in this announcement are the goals of the Company and shall not constitute a profit forecast of the Company. There is no guarantee that the Company will be able to achieve such goals or not. In light of the risks and uncertainties, the inclusion of forward-looking statements in this announcement should not be regarded as or constitute any representations or actual commitment by the Board or the Company to investors that the plans and objectives in the guiding opinion will be achieved, and investors should not place undue reliance on such statements. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information in this announcement, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The announcement is written in both Chinese and English. In the case of any discrepancies, the Chinese version shall prevail over its English version.

Investors and shareholders are advised by the Board to exercise caution when dealing in the securities of the Company.

2 February 2020, Fujian, the PRC

*The Company's English name is for identification purpose only

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