Environmental, Social and Governance Report 2024

Integrate Resources, Create Values,

Build Benefits

And Contribute To The Society

Environmental, Social and Governance Report

About the Report 2

About Us 3

Chairman's Message 4

Board Statement 6

2024: Sustainable 7

Development Achievements

1. Creating Value by Advancing

   Responsible Management

   1. ESG Governance System 10

   2. Communication with 11

      Stakeholders

   3. Materiality Assessment 12

      for ESG Topics

   4. Anti-corruption 13

2. Protecting the Environment

   and Integrating Resources

   1. Energy and Resource 16

      Utilisation

   2. Pollutant Discharge 19

      Management

   3. Tailings Pond 21

      Management

   4. Environment and Natural 22

      Resources Management

   5. Coping with Climate 25

   Change

   
   
   

3. Caring for

   Employees and

   Communities

   Contributing to Society

   and Contingency Management		4.3	Management Intellectual Property
   3.3 Staff Employment and Employee Rights and	36		Protection and Technological Innovation
   Interests
   3.4 Employee Training and Development	37
   3.5 Community Investment	39

   1. Occupational Health and Safety

4. Enhancing Product Responsibility

Management to Create Benefits

32 4.1 Product Responsibilities 44

Appendix

Table of ESG KPIs 51

35 4.2 Supply Chain

HKEx ESG Reporting Code

52

46 Index

48 Readers' Feedback 54

2

Environmental, Social and Governance Report 2024

This Report is the ninth environmental, social and governance ("ESG") report (hereinafter referred to as the "Report") issued by Wanguo Gold Group Limited (the "Company", "we", and together with our subsidiaries collectively, the "Group"). The report presents our ESG management practices and performance in fulfilling our environmental and social responsibilities in 2024.The Board believes that in addition to business growth, the Group should also continuously strive for excellence in environmental protection, social responsibility, corporate governance and other areas. The Group also aims to enhance the transparency of its operations to achieve and boost its sense of social responsibility.

Reporting period and scope

This Report covers the period from 1 January to 31 December 2024 (the "reporting period"). The Report sets out the Group's policies and practices in aspects such as working environment, operational management, public welfare and environmental protection. It is designed to give shareholders, investors and the public a more comprehensive and profound understanding of the Group's corporate governance and culture. Since Jiangxi Province Yifeng Wanguo Mining Company Limited ("Yifeng Wanguo") and Gold Ridge Mining Limited ("GRML") were the Group's two operating entities during the reporting period, our ESG report is based on Xinzhuang Mine owned by Yifeng Wanguo and Gold Ridge Mine owned by GRML.

Major references in the Report

The Group primarily adopts the principles and basis of the Environmental, Social and Governance Reporting Code set out in Appendix C2 to the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") as the disclosure standards for the Group. Additionally, we have incorporated our own actual circumstances, aiming to establish a robust ESG framework. Furthermore, we have responded to the United Nations' 2030 Sustainable Development Goals (SDGs) and the World Gold Council's "Responsible Gold Mining Principles" (RGMPs).

Reporting principles

Materiality:

We use a materiality assessment to identify major ESG topics, relevant processes and results in the ESG report.

Quantitative:

We established and continuously optimise the tool used by the Company and its subsidiaries to collect data related to ESG indicators, and we regularly compile statistics for key disclosure indicators specified in the ESG Reporting Guide.

Balance:

This Report strives to provide objective, fair and true disclosures that demonstrate the effectiveness and describe the practices of the Group in respect of environmental and social affairs during the reporting period, and disclose the problems encountered and corresponding improvements that have been made in a responsible manner.

Consistency:

No significant adjustments to the disclosure scope of this Report were made compared with ESG reports in previous years, and the statistical and calculation methods used in previous years' reports were also used for this year's report.

Access and response to the Report

This Report has been published online in both English and Chinese versions. Stakeholders may access this report on the website of the Hong Kong Stock Exchange (https://www.hkexnews.hk). In case of discrepancies between the Chinese version and the English translation, the Chinese version shall prevail. We welcome readers from all segments of society to give suggestions and comments on this Report or the Group's ESG work using the Group's contact information.

3

Wanguo Gold Group Limited

Wanguo Gold Group Limited ("Wanguo Gold") principally engages in the mining and ore processing of non-ferrous metals, and it was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on 10 July 2012 (Stock Code: 3939.HK). After years of hard work and development, and adhering to the concept of "benefiting society with precious resources", Wanguo Gold now has two mining projects in progress and one prospecting license: the Yifeng Xinzhuang Mine (which has a mining and beneficiation capacity of over 1 million tons/year) located in Jiangxi Province, China; the Gold Ridge Mine located in the Solomon Islands (which has a mining and beneficiation capacity of over 3 million tons/year); and the prospecting rights to a lead silver mine in Walege, Changdu County, Tibet Autonomous Region, China. Products of the Xinzhuang Mine primarily include copper concentrates, iron concentrates, zinc concentrates, sulphur concentrates, lead concentrates and by-products of gold and silver. The products of Gold Ridge Mine include gold doré and gold concentrate, and the Walege Mine has a significant volume of lead and silver resources. Wanguo Gold adopts a development strategy that focuses on production and resource growth for the existing mines and horizontal expansion through the acquisition of new mines. Wanguo Gold derives its competitiveness from its rich reserves of mineral resources, advanced mining and beneficiation technologies, talented professionals and efficient exploration platform.

4 Environmental, Social and Governance Report 2024

Chairman of the Board of Wanguo Gold

Gao Mingqing

5

Wanguo Gold Group Limited

Dear Stakeholders,

Over the past year, Wanguo Gold has forged ahead against challenges, achieving remarkable accomplishments. Guided by the corporate spirit of "unity, development, dedication and efficiency", we actively fulfilled our social responsibilities, deepened our sustainable development strategy, and drove innovation to advance toward the goal of becoming a world-class mining company. On behalf of the Board of Directors, I extend our most sincere gratitude and highest respect to all friends who have cared for and supported the development of Wanguo Gold.

As a mining enterprise, our operations and growth rely on precious natural resources and a harmonious, stable social environment. We are fully aware of the significant responsibility we bear in protecting the environment, promoting community harmony, and driving sustainable socio-economic development. To this end, we have continuously optimized our production processes, promoted the use of renewable energy, reduced energy consumption, and worked toward a win-win balance between economic, environmental, and social benefits. Over the past year, we have made notable progress in ESG management: establishing a comprehensive ESG management system, setting clear goals, and strengthening information disclosure and communication.

In terms of environmental protection, we have always adhered to the philosophy of "protection while pursuing development and development supported by protection". Following the overall requirements of "friendly to the mining environment, characterised by scientific mining methods, clean mining and dressing processes, efficient resource utilisation and standardised corporate management, and conducive to a harmonious mining community", we have established a complete wastewater treatment and recycling system, strictly controlled emissions of air pollutants, and transformed solid waste utilization from being "inefficient, low-value, and scattered" to "efficient, high-value, and scaled." We are committed to making the "green waters and green mountains" even more vibrant and the "gold and silver mountains" even more valuable!

In fulfilling our social responsibilities, we have always put people first, cared for employee growth, addressed issues raised by staff, and improved incentive and promotion mechanisms. We have strengthened training and education for employees, enhancing their professional competence and safety awareness. At the same time, we have worked to achieve harmonious coexistence between high-quality mine operations and community environments, maintaining good communication with surrounding communities, paying close attention to community needs, and striving to create better living conditions for residents.

Looking ahead, we will continue to advance our ESG work and promote sustainable corporate development. We will increase investment in environmental protection technology and innovation to enhance our green competitiveness. We will improve the mechanization and intelligence of mining operations, building a smart mine system characterized by "replacing workers with machinery, reducing workers through automation, and eliminating workers through intelligence," and drive the transformation and upgrading of mines toward fully unmanned and green-low-carbon operations. Additionally, we will strengthen collaboration with governments, industry associations, communities, schools, and other stakeholders, contributing the wisdom and strength of Wanguo Gold.

With decades of expertise in gold and copper, backed by advanced technologies, skilled craftsmanship, and a strong talent pool, Wanguo Gold is poised to seize unprecedented opportunities for development. With unwavering confidence, a pragmatic approach, and innovative thinking, we will courageously pursue our dreams, strive as pioneers, and forge new frontiers. Looking to the future, we are dedicated to creating a more green, harmonious, and mutually beneficial Wanguo Gold. Let us join hands, with passion and determination, to create an even brighter tomorrow!

Thank you for your support.

Chairman of the Board of Wanguo Gold Gao Mingqing

April 2025

6

Environmental, Social and Governance Report 2024

As the highest decision-making body for the Group's ESG-related work, the board of directors (the "Board") undertakes full responsibility for the Group's ESG strategy and reporting. The Board and all directors of the Group guarantee that there are no false records, misleading statements or material omissions in this Report, and we will bear individual and joint liabilities for the authenticity, accuracy and integrity of the contents of the Report.

The Board of the Group is responsible for overseeing and implementing the Group's ESG strategy, and ensuring proper disclosure in compliance with the Environmental, Social and Governance Reporting Code of the Hong Kong Stock Exchange. The Board is also responsible for reviewing the annual materiality assessment of ESG risks, and reviewing the internal procedures and system for the maintenance and generation of appropriate and accurate KPI data.

The Group attaches great importance to ESG management and has established the ESG Committee. The ESG Committee comprises one independent non-executive director, one vice manager or executive director from each of the operating mines, and the company secretary, and it is responsible for collecting relevant policies and information on ESG aspects for the preparation of this Report. The ESG Committee reports to the Board at least once a year and is responsible for reviewing, assessing and enhancing the Group's ESG policies, strategies and performance, and ensuring that the Group is in full compliance with ESG requirements.

The Group is committed to continuously improving its ESG governance system and management process to ensure the establishment of an appropriate and effective ESG operating mechanism. For details, please refer to the section headed "Creating Value by Advancing Responsible Management" in this Report.

The Board reviewed and approved the Group's Environmental, Social and Governance Report for the year ended 31 December 2024 at the Board meeting held on 28 April 2025.

7

Wanguo Gold Group Limited

We closely monitor global trends in ESG-related guidelines and standards, assess their impact on our operations, and actively respond in our reports. This year's ESG report references the United Nations' Agenda 2030 for Sustainable Development, incorporating 16 out of the 17 United Nations Sustainable Development Goals (SDGs). Additionally, we align with the World Gold Council's Responsible Gold Mining Principles (RGMPs), which include 10 overarching principles. During the reporting period, our achievements in line with these goals and principles are as follows:

Creating Value by Advancing Responsible Management

Principle 1 - Ethical conduct Principle 2 - Understanding our

impacts

• A comprehensive integrity education system has been established, spanning from the board level to grassroots employees.

Protecting the Environment and Integrating Resources

Caring for Employees and Communities Contributing to Society

Principle 8 - Environmental stewardship

Principle 9 - Biodiversity, land use and mine closure

Principle 10 - Water, energy and climate change

Principle 2 - Understanding our impacts

Principle 4 - Safety and health Principle 5 - Human rights and

conflict

Principle 6 - Labour rights Principle 7 - Working with

communities

• The GRML utilized the Tinahulu River to construct a 12 MW hydropower station.

• Yifeng Wanguo applied greening and hardening measures to unused land, completing the rehabilitation of 15,000 square meters of mine sites and tailings ponds.

• Proper collection, storage, and disposal of waste have been implemented.

• Local employees account for 66% of the total workforce in the Group.

• Percentage of employees receiving training: 87.2%. Average training duration per employee: 24.5 hours.

• Total investment in community development: approximately RMB25.79 million. Beneficiaries exceed 16,000 people.

  
  
  
  
  
  
  
  
  

  Enhancing Product Responsibility Management to Create Benefits

  Principle 3 - Supply chain • Total R&D investment: approximately

  
  
  

  RMB25.241 million.

  • Suppliers who provide eco-friendly products or low-carbon, energy-efficient alternatives have been selected.

01

ESG Governance System

Communication with Stakeholders

Materiality Assessment for ESG Topics Anti-corruption

1. Creating Value by Advancing Responsible Management

   The Group primarily adopts the principles and basis of the Environmental, Social and Governance Reporting Code set out in Appendix C2 to the Listing Rules as its standards for ESG management. The Group adheres to the principles of materiality, quantitative, balance and consistency. If there are any inconsistencies in this regard, we will explain them in detail.

   The Group pays close attention to the harmonious development of the Company and society as a whole, and it is gradually integrating the ESG management philosophy with all aspects of the Company's production and operations. We strive to earnestly fulfil our economic, social and environmental responsibilities, and we accept the supervision of the government, shareholders, employees, management, partners, consumers, the public and other stakeholders. The Group is also steadily working to strengthen communication with stakeholders, enhance operational transparency, raise awareness of social issues and recognition of the Group's sustainability efforts, and form a pattern of mutual development and mutual benefit between the Company and its stakeholders. At the same time, in light of its own development, the Group is constantly improving its corporate governance structure and internal risk management, to further the Group's healthy, sustainable and stable high-quality development.

   ESG Governance System

   The Group has established an ESG Committee. The ESG Committee comprises one independent non-executive director, one vice manager or executive director from each operating mine, and the company secretary, and it is responsible for collecting relevant policies and information on different ESG aspects for the purpose of preparing this Report. In addition, the ESG Committee reports to the Board at least once a year and is responsible for reviewing, assessing and enhancing the Group's ESG policies, strategies and performance, and ensuring that the Group fully complies with ESG requirements. The ESG Committee also examines and evaluates the Group's performance in respect of the environment, production safety, labour standards, and product responsibilities, among other ESG aspects.

   ESG oversight responsibilities of the Board

   • Overseeing and executing the Group's ESG strategy

   • Reviewing and ensuring proper disclosure and compliance with the Environmental, Social and Governance Reporting Code

   • Reviewing the annual materiality assessment of ESG risks

   • Reviewing the internal procedures and system for the maintenance and generation of appropriate and accurate KPI data

   
   
   

   Responsibilities of the ESG Committee

   • Collecting relevant policies and information for preparing this Report

   • Presenting and regularly reporting to the Board on ESG performance

   • Making recommendations to enhance ESG strategies and practices

   
   
   

   Communication with Stakeholders

   Stakeholders

   Demands and expectations

   Communication and engagement

   The Group's response

   Based on its business model and internal and external communication, the Group has identified the categories of key stakeholders that have an impact on its corporate operations, and it has determined the Group's ESG focuses by analysing the stakeholders' demands and considering the ESG impacts of the Group's operations.

   Governments and regulators	- - -	Compliance with laws and regulations Drive technological advancement Serve the national economy and people's livelihood	- - - -	Inspection and reception Document submission Company website Negotiations regarding cooperation	Strictly abide by relevant laws and regulations, promote technological advancement, and vigorously advocate energy conservation and emissions reduction
   Shareholders	- - -	Good business performance Operational compliance Information disclosure	- - - -	Corporate announcements Special reports Reception of visitors Public WeChat account	Strive to improve performance, make profits, improve environmental and social responsibility management, and make truthful and full disclosures
   Customers	- -	Provide high-quality products and services Meet customers' diverse demands	- - -	Daily communication with customers Customer satisfaction survey Handle customer complaints and feedback	Provide adequate, reliable and environmentally friendly products and services to fully meet customer needs
   Employees	- - - -	Safeguard employee rights and interests Protect occupational health and safety Training and development Work-life balance	- -	Employee conference Platform for employee feedback	Strictly observe provisions of employment contracts, improve the remuneration and employee protection system, and provide opportunities for career development and staff training
   Suppliers and business partners	- - -	Open, fair and just procurement Contractual compliance Mutual benefits and win-win results	- - -	Contract execution according to law Public tender Project collaboration	Actively perform contracts and agreements, adhere to open and transparent business principles and procedures, and increase visits and communication
   Community	- - -	Participate in community development Support community services Contribute to educational initiatives	- -	Community engagement Visits and exchanges	Carry out and actively participate in a wide range of public service initiatives to build a harmonious and civilised community

   Materiality Assessment for ESG Topics

   The Group has identified and selected ESG topics that are relevant to its operations by engaging in various forms of exchange and communication with stakeholders in accordance with the requirements of the Environmental, Social and Governance Reporting Code of the Stock Exchange of Hong Kong Limited and other relevant principles, as well as ESG topics that are of general concern in the industry. With reference to the Global Reporting Initiative ("GRI") procedures on materiality assessment, the Group collected topics of concern to its key stakeholders through questionnaires and interviews, recorded the results of the materiality assessment, and then ranked the selected topics based on the importance attached to them by internal and external stakeholders. Finally, the Group arrived at the following material (important) ESG topics:

   Topics	No.	Topics	No.
   Pollutant discharge management	1	Contingency management	10
   Energy and resource utilisation	2	Employee training and development	11
   Coping with climate change	3	Responsible Supply chain management	12
   Environment and natural resource management	4	Product responsibility	13
   Tailings pond management	5	Intellectual property protection and technological innovation	14
   Green mine	6	Business Ethics	15
   Staff employment and employees' rights and interests	7	Community Relations and Development	16
   Labour standards	8	Promoting regional development	17
   Occupational health and safety	9

   5

   13

   9,10

   2

   4

   6,7

   8

   1

   12

   11

   14

   3

   15

   17

   16

   Relevant

   Important

   Highly important

   
   
   

   Importance to stakeholders

   Importance to business management

   Going forward, we will continue to pay attention to the concerns of various stakeholders, and steadily review and update the material topics, to fully and adequately understand the demands of different parties and provide guidance and direction for the development of corporate operations and ESG-related work.

   Anti-corruption

   The Group strictly abides by the Criminal Law of the People's Republic of China, the Anti-money Laundering Law of the People's Republic of China , and other laws and regulations related to anti-corruption and anti-money laundering, and gives high priority to the construction of anti-corruption and anti-bribery systems. To this end, we have formulated the "Anti-fraud Policies and Procedures". Corruption is one the of the fraud that will disrupt operation of the Group and violates the laws. The Company's policies and regulations are set out in the Group's Employee Handbook.

   We encourage employees to abide by laws and disciplinary rules and act with integrity and morality in their daily work and interactions. The Group takes measures to help employees properly handle conflicts of interest and temptations of unjust enrichment that they may encounter in their work. We advocate for legal compliance, disciplinary compliance and integrity and provide related information to all stakeholders that are directly or indirectly related to the enterprise in any form, including external stakeholders (customers, suppliers, regulators and shareholders). In terms of anti-corruption with suppliers, we carefully screen our suppliers and sign Integrity Agreements with core suppliers to clarify the responsibilities and obligations of both parties in combating corruption and bribery.

   Once any corruption, fraud and other unethical activities are detected, employees can report them to the management in real name or anonymously through online and offline means, including face-to-face appointments and on-site reception. The Board adopted a written whistle blowing policy on 15 March 2023. For whistle blowers who report their suspicions under this policy, the Group guarantees that it will protect them from unfair disciplinary action or from being retaliated against because of their true reports. Generally, the whistle blower can report to the chairman of the Audit Committee in writing; send a report to the Group's Hong Kong office in a sealed envelope clearly marked "For the addressee only"; or email wb@wgmine.com. Our process includes confidential registration, preliminary verification, categorized handling, and feedback on results.

   The Group arranges ethics and anti-fraud training for employees, and periodically sends publicity materials prepared by the Hong Kong Independent Commission Against Corruption and the local anti-corruption authority to employees to help prevent conflicts of interest or inducements. Our Group has established a comprehensive integrity education system from board members to frontline employees, adopting tiered and categorized training design, diverse teaching methods, and strict assessment mechanisms. Our Group conducted anti-corruption related training in 2024, with a total duration of 1,402 hours. In 2024, we did not receive any complaints about corruption and did not violate any laws and regulations.

   02

   
   
   Protecting the Environment and Integrating Resources

   Energy and Resource Utilisation Pollutant Discharge Management Tailings Pond Management

   Environment and Natural Resources Management

   Coping with Climate Change

   
   
   
2. Protecting the Environment and Integrating Resources

Energy and Resource Utilisation

Energy management

The Group strictly abides by the Energy Conservation Law of the People's Republic of China, the Cleaner Production Promotion Law of the People's Republic of China, the Interim Measures for Cleaner Production Audit, the Energy Conservation Design Specifications for Non-ferrous Metal Mines, the Administrative Measures for Water Abstraction Permit , the Groundwater Management Regulations , and other relevant laws and regulations. GRML abides by the Electricity Act and other laws and regulations related to energy in the Solomon Islands, and it has formulated energy-related systems and regulations accordingly, including the "Power Energy Management System", the "Diesel Power Station and Substation System", the "Power Station Management Regulations", the "Power Station Unit Operation Regulations", etc.

Yifeng Wanguo's primary energy consumption types are electricity and diesel. Electricity is used for ore dressing plant machinery and equipment, underground hoisting systems, drainage systems, and filling systems; diesel is mainly used for ore transport vehicles, loaders, and emergency power generation. GRML has established a Mobile Energy Department to manage its own diesel power stations and power supply systems. The main energy types required for GRML's operations are electricity or diesel. GRML has built its own diesel power station to provide power security for mining area production and living activities. GRML has adopted renewable energy alternatives:

Hydropower Station Construction

Hydropower Station Construction: In 2024, an investment of $47.27 million USD was made to build a 12 MW secondary hydropower station utilizing water from the Tinahulu River for power generation, replacing diesel units. The expected annual power generation is 50,200 MWh, which is equivalent to reducing greenhouse gas emissions by approximately 50,000 tons of CO2 per year.

Photovoltaic Power Planning

Photovoltaic Power Planning: Chinese photovoltaic developers have been introduced to explore solar energy as a supplementary power source.

Energy conservation and consumption reduction

Yifeng Wanguo has set up a team that is responsible for production cost control, energy conservation, and consumption reduction, with the mine manager as team leader, and representatives from the function department, the production department, the ore drawing workshop, the processing plant, the corporate management department and the financial department as team members. The team has formulated energy saving requirements and plans with yearly goals, and assessments are carried out at the end of each year. Yifeng Wanguo implements energy conservation management as part of its daily production, adopting measures such as off-peak power consumption, refined management of production costs, and product loss reduction.

GRML is advancing full-process automation in mining by adopting intelligent mining equipment (such as automated transportation systems and high-efficiency crushers), striving to reduce overall energy consumption. The energy-saving projects planned by GRML include: retrofitting the 5.5x8.65 Metso ball mills at the beneficiation plant with 4,700 kW permanent magnet motors, constructing a hydroelectric power station, and developing photovoltaic projects. Additionally, GRML is building a new dam at elevation 510, utilizing gravity potential energy for self-flow water supply and power generation to achieve energy-saving effects. The dam is expected to be operational by 2025, further improving energy utilization efficiency and increasing the proportion of renewable energy use.

In the future, we will strengthen energy conservation and consumption reduction management, continue to expand the proportion of renewable energy use, commit to green development concepts, and reduce energy consumption through various means such as technological innovation, efficiency improvement, and equipment upgrades.

Water management

In terms of water management, the Group strictly abides by the Water Law of the People's Republic of China, the Administrative Measures for Water Abstraction Permit, the Groundwater Management Regulations, the Law of the People's Republic of China on the Prevention and Control of Water Pollution, the Discharge Standards for Lead and Zinc Industrial Pollutants , the Discharge Standards for Copper, Nickel and Cobalt Industrial Pollutants , and other laws and regulations. GRML abides by the requirements of the National Water and Sanitation Implementation Plan 2017-2033, the National Water Resources and Sanitation Policy , and other relevant laws and regulations of the Solomon Islands. The Group does not face challenges in accessing suitable water sources.

The water resource utilization at Xinzhuang Mine includes both production water and domestic water. The objectives of Xinzhuang Mine in terms of water resource protection are to maximize the reuse of treated wastewater while ensuring it meets production standards, with a total reuse rate of no less than 85%. During the reporting period, approximately 4,696,000 cubic meters of production water was used, of which about 4,112,000 cubic meters was recycled water, achieving a reuse rate of 88%. A portion of the production water was sourced from mine inflow water, which met the surface water quality standard of Class III. Domestic water was entirely sourced from the Xinzhuang Town Waterworks in Yifeng County, with an additional backup water source from the Cunqian Town Waterworks in Gao'an City.

During the reporting period, the production water consumption at Gold Ridge Mine was approximately 5,822,000 cubic meters, of which about 3,001,000 cubic meters was recycled water, achieving a reuse rate of 52%. Gold Ridge Mine mainly derives water for production from the natural (atmospheric rainfall) water supply, from backwater ahead of the processing plant, and from backwater in the tailings pond. Gold Ridge Mine has two dams for reserving water with storage capacities of 2,000 m³ and 50,000 m³. Water use risk within Gold Ridge Mine's scope of business comes from the short supply of water from reservoirs during the dry season. GRML has taken the following measures to save water:

When water is required for production, the backwater ahead of the processing plant (recycled water) should be prioritised, followed by the water from the source area, and finally water in the tailings pond. Meanwhile, water consumption should be strictly controlled for mineral processing. Without compromising product quality, water consumption within each operation should be minimised to reduce the unit load of each piece of equipment, which is based on pulp volume, and to reduce the flow water level of each operation.

To improve the backwater recycling efficiency of the mineral processing system, a new tailings dry stacking process has been adopted. The project is divided into three stages. First, the 27m thickening pond is able to recycle 25%-30% of backwater and recover 30% of tailings following the installation of a 1,000m³/h ceramic pump. Second, the first dry stacking system has been put into use, and it recycles 50-55% of backwater and recovers 50-55% of sand; the system is now operating. Finally, the second dry heap filter press system has been put into use, and it recycles 70% of backwater and recovers 70% of sand. Eventually, about 20% of water and tailing sand will flow into the tailings pond. If 80% of backwater is recycled, an expected volume of 9.504 million m³ of backwater will be recycled each year.

Chemicals management

The Group strictly abides by the Regulations on the Safety Management of Hazardous Chemicals, the Measures for the Public Security Management of Explosives , the Regulations on the Management of Poisonous Chemicals , and other laws and regulations related to hazardous chemicals. For the use and management of chemicals, Yifeng Wanguo has formulated the "Management System for Hazardous Chemicals", the "Management System for the Procurement, Warehousing, Requisition and Return of Pyrotechnic Materials of Yifeng Xinzhuang Copper, Lead and Zinc Mines" (explosives and detonators), and other relevant management systems.

Xinzhuang Mine uses chemicals mainly in the mining, mineral processing, chemical analysis and water treatment processes. The chemicals used include explosives, hydrochloric acid, sulfuric acid, nitric acid, caustic soda, flotation reagents and thallium removers. Among them, explosives, hydrochloric acid, sulfuric acid, and nitric acid are all hazardous chemicals subject to control by the Public Security Bureau.

Hazardous chemicals are purchased by designated personnel and declared in the public security system. The manufacturers are required to entrust professional transportation companies to deliver the hazardous chemicals to the factory. The mine has a special storage warehouse for hazardous chemicals such as sulfuric acid, nitric acid and explosives. Designated personnel are responsible for their warehousing and unloading. And the monitoring of anti-theft facilities have been installed.

To reduce the use of chemicals or replace them altogether, the processing plant at Xinzhuang Mine uses safer and more environmentally-friendly organic acids in place of nitric acid. Deep hole blasting is adopted instead of shallow hole blasting for some underground blasting operations, as the former is more efficient and uses less explosives.

GRML has developed a Job Instruction Manual for the Reagent Operator (Dosage Position) and a Chemical Safety Management Program. The procurement, transportation, storage, and use of chemicals strictly comply with the relevant regulations outlined in the Material Safety Data Sheet (MSDS) and GRML's internal safety management procedures. When procuring chemicals, GRML prioritizes the procurement of chemicals with lower toxicity.

GRML strives to minimize the use of toxic substances in its production processes. Since the 2022 expansion and renovation, GRML has adopted a combined gravity separation + flotation process without the use of cyanide, known as the cyanide-free mineral processing joint process. This eliminates the need for cyanide-based reagents such as sodium cyanide, thereby reducing the risk of chemical pollution. Additionally, this process does not require residue treatment or subsequent discharge procedures, making it more environmentally friendly compared to traditional gold recovery methods.

Packaging material management

The primary products of Gold Ridge Mine are gold ingots and gold concentrates. The packaging material for gold ingot products consists of reusable dedicated packaging boxes provided by customers. For gold concentrates, they are transported in bulk via containers, which does not involve any packaging materials. Gold Ridge Mine only uses packaging materials such as cartons, protective films, metal frames, and wooden crates during the procurement of raw materials and spare parts. GRML has established a comprehensive system and set of regulations for the management of packaging materials. This management system covers four aspects: procurement management, warehousing management, usage management, and quality control. Meanwhile, the management regulations include procurement management, warehousing management, usage management, and disposal management. Xinzhuang Mine mainly produces bulk concentrates which do not involve any packaging materials.

Pollutant Discharge Management

The Group strictly abides by the Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, the Law of the People's Republic of China on the Prevention and Control of Water Pollution, the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution Caused by Solid Wastes, the Law of the People's Republic of China on the Prevention and Control of Noise Pollution , and other relevant laws and regulations. GRML strictly abides by the ENVIRONMENT BILL2023 in the Solomon Islands.

GRML has established the Department of Safety and Environment, which is a first-tier functional department responsible for environment-related matters in the mining area. It has established strict emissions standards and conducts regular monitoring and testing to ensure that emissions are within the allowable range and meet the requirements of relevant laws and regulations. The department actively fulfils its declaration and reporting obligations, submits necessary emissions data and reports to the regulatory authority.

Exhaust gases

The exhaust gases from Yifeng Wanguo primarily originate from the transportation, crushing, and screening processes of mineral raw materials. The types of exhaust gases generated are mainly dusty emissions. The exhaust gas treatment facilities utilize baghouse dust collectors. During the reporting period, Yifeng Wanguo installed spray systems at the crushing points, further enhancing dust removal efficiency and reducing exhaust gas emissions. Yifeng Wanguo hires a third-party organization quarterly to conduct tests on exhaust gas emission points.

GRML strictly controls the emissions of atmospheric pollutants such as dust, sulfur dioxide, and nitrogen oxides generated during mining, ore beneficiation, and other production processes, ensuring compliance with relevant regulations, including the Comprehensive Emission Standards for Air Pollutants . This approach effectively reduces the impact on the surrounding atmospheric environment.

Wastewater

Xinzhuang Mine's wastewater mainly comes from that generated from filtering the tailings slurry of the processing plant in the filter press workshop. The wastewater is first discharged into the tailings pond for sedimentation and clarification, with part of it being reused by the processing plant. The remaining wastewater is treated through water treatment facilities and discharged after meeting standards under online monitoring.

Gold Ridge Mine's wastewater mainly comes from that generated by the processing plant. The wastewater is discharged into the backwater system of the tailings pond, and most of it is recycled for use in the processing plant. Only a small part of the treated water is discharged in the rainy season after meeting discharge standards. GRML is committed to achieving zero discharge or minimizing the discharge of production wastewater by establishing a comprehensive wastewater treatment and recycling system. After treatment, the wastewater is reused in production processes (such as ore washing and grinding in mineral processing), thereby reducing the consumption of freshwater resources. GRML regularly monitors tailings wastewater and submits environmental reports to the government to ensure compliance with local regulations. The environmental department of GRML conducts sentinel monitoring of surface water and well water near the plant, taking samples and sending them for testing on a regular basis. We also hire third-party testing institutions to measure the levels of arsenic and cadmium in surface water and well water to ensure compliance with standards.

Solid waste

Our Group places emphasis on the management of solid waste, implementing measures such as recycling and resource utilization, and optimizing treatment processes to reduce the generation of solid waste at the source. Additionally, we strictly control the handling of hazardous waste.

Non-hazardous waste from Xinzhuang Mine is mainly waste rock from underground excavation and tailings from mineral processing. Among these, the waste rock is first backfilled in the underground goaf or sold, and the remaining rock is sent to the waste rock yard for stacking. In terms of tailings, 66% are for underground backfilling, and the remaining 34% are discharged into the tailings pond. Hazardous waste mainly includes waste engine oil generated from the maintenance of waste oil extraction and separation machinery, barrels stained with waste oil, and waste liquid generated from the online wastewater monitoring system. The disposal of hazardous waste is systematically recorded by the department responsible for supervising environmental protection and entrusted to qualified agencies for central disposal.

Gold Ridge Mine generates non-hazardous waste, including tailings and waste rock, which are managed by enhancing their comprehensive utilization rate. Through technological means, these materials are applied in the production of building materials, land reclamation, and other fields, reducing the volume of waste stockpiles and lowering the occupation of land resources. Gold Ridge Mine also generates hazardous waste, including heavy metal-containing slag and waste engine oil. GRML strictly adheres to relevant regulations, such as the Pollution Control Standards for the Storage of Hazardous Wastes , to collect, store, transport, and dispose of hazardous waste, ensuring its safe and standardized handling. In October 2024, GRML launched the "Production of Construction Bricks Using Flotation Tailings" project. This project involves crushing, screening, shaping, and mixing waste rock from mineral processing with flotation tailings to produce construction bricks. This initiative improves the comprehensive value of coarse ore dressing materials and promotes the utilization of solid waste, transitioning from "low-efficiency, low-value, and scattered" practices to "high-efficiency, high-value, and large-scale" operations.

Noise control

The Group generates noise in accordance with the Emission Standard for Industrial Enterprises' Noise at Boundary (two standard limits in functional areas specified in GB12348-2008), and the individual exposure complies with the Occupational Exposure Limits for Hazardous Agents in the Workplace Part 2: Physical Agents . Moreover, the Group has formulated the "Management System for Noise and Hazardous Solid Waste Protection", the "Regulations on Strengthening the Management of Occupational Health in the Mine" and other systems.

To control noise emissions, Xinzhuang Mine has replaced mineral processing equipment with low-noise equipment, and it regularly monitors noise levels and the intensity of employee noise exposure. To minimise employee noise exposure, the workshop has a duty room to reduce the time employees are exposed to noise, and employees are asked to wear protective equipment to reduce the intensity of noise exposure.

The Gold Ridge Mine production area is in a remote location and far away from residential areas, and therefore it has little impact on community members. The environmental protection department regularly uses relevant instruments to detect noise. Meanwhile, employees of GRML are equipped with relevant labour protection equipment to protect them while they are working.

Tailings Pond Management

The Group strictly abides by the Work Safety Law of the People's Republic of China, the Safety Regulation for Tailings Ponds (GB 39496-2020), the Regulations on the Safety Supervision and Management of Tailings Storage Facilities, the Law of the People's Republic of China on Prevention and Control of Water Pollution, the Law of the People's Republic of China on Prevention and Control of Atmospheric Pollution and other laws and regulations related to tailings pond management. Xinzhuang Mine has formulated the "Safety Management System for Yifeng Xinzhuang Copper, Lead and Zinc Mine Tailings Pond", and the "Environmental Monitoring Management System for Yifeng Xinzhuang Copper, Lead and Zinc Mine Tailings Pond". Meanwhile, Gold Ridge Mine has formulated the "Emergency Plan, Emergency Response and Emergency Guarantee Management System" to guide the safety and environmental protection management of tailings ponds.

There are two tailings ponds in Xinzhuang Mine: the Yifeng Xinzhuang Copper, Lead and Zinc Mine Tailings Pond (Level 4 Tailings Pond) and the Yifeng Xinzhuang Copper, Lead and Zinc Mine Yinkeng Tailings Pond (Level 5 Tailings Pond). Currently, the Yifeng Xinzhuang Copper, Lead and Zinc Mine Tailings Pond is in use, while the Yifeng Xinzhuang Copper, Lead and Zinc Mine Yinkeng Tailings Pond is undergoing reconstruction and expansion. Both tailings ponds are normal tailings ponds. Xinzhuang Mine conducts safety risk assessments on the two tailings ponds every year and engages a third-party institution to conduct risk assessments every three years. In 2024, Yifeng Wanguo conducted a dam stability assessment on two tailings ponds.

For its tailings ponds, Xinzhuang Mine has 5 technicians and 6 workers who are on duty 24 hours a day. The water level, dam body, surrounding environment and operating process of the tailings ponds are inspected every day, while the saturation line and displacement of the tailings dam are monitored every month. Video and online monitoring facilities have been installed to monitor the reservoir water level, dam body displacement, the saturation line and other markers. In addition, the Tailings Pond Flood Control Plan for the flood season has been formulated, which sets out the requirements for reservoir patrols and flood control measures for the rainy season. Meanwhile, a flood control emergency drill is carried out once a year according to the company's emergency plan to ensure the tailings ponds are able to smoothly handle flood conditions. When a tailings pond is to be closed, we entrust a design institute to prepare a closure design and close the pond in strict compliance with the design requirements.

Tailings Pond Flood Prevention and Emergency Drill

The GRML tailings pond management team comprises a general manager ("GM"), project manager ("PM"), environmental manager ("EM") and three shift leaders. Among them, the PM is responsible for supervising the design and construction phase of the tailings pond, ensuring that environmental management considerations are reasonably reflected in the design and contractual documents, and ensuring that the project meets applicable environmental standards. The EM is responsible for supplementing the environmental management plan as necessary and for further improving the environmental management procedures. In the construction phase of tailings ponds, the EM assists the PM in implementing environmental protection measures. During the operational phase, the EM implements the required environmental management monitoring, response and reporting measures according to the environmental management plan. During the construction and operation of tailings ponds, the GM engages in overall supervision. During the reporting period, GRML had a total of two tailings ponds (one of which was under approval), one active tailings pond, and zero high-risk tailings ponds. During the reporting period, GRML invited a third-party institution to conduct monitoring and reviews of the existing tailings ponds, achieving an evaluation coverage rate of 100%.

GRML has begun constructing a dry tailings disposal system. By reducing the moisture content of tailings through a dehydration workshop, the risk of dam failure is decreased. Once the dry disposal system is fully developed, all tailings will be dried and stored in a newly constructed dry stacking facility. During the reporting period, GRML also initiated the construction of flood diversion channels and spillways, as well as the repair and construction of flood prevention facilities at the tailings ponds, to prevent environmental incidents caused by heavy rainfall.

Environment and Natural Resources Management

Ecological restoration

Adhering to the concept of "protection while pursuing development and development supported by protection", the Group carefully examines its impacts on the environment and natural resources and takes active responses. Mining operations may have certain impacts on the environment and natural resources, including increased road dust during ore transportation, land occupation due to tailings pond storage, dust generation during operations, rainwater erosion of tailings pond slopes affecting their stability, and increased emissions of pollutants such as COD and ammonia nitrogen from wastewater discharge. To address these potential impacts, Yifeng Wanguo has implemented the following measures:

Installed watering and dust suppression pipelines around the tailings pond and carried out grass planting and slope restoration to protect the stability of the tailings pond.

After the tailings pond is closed, it will be fully covered with soil and restored to greenery according to design requirements, ensuring seamless integration with the surrounding environment.

Constructed a new wastewater treatment system with additional biological treatment processes to ensure that discharged wastewater meets national and regional standards.

Purchased water sprinklers and vacuum cleaners to water and clean mine roads twice daily, maintaining cleanliness and reducing dust levels.

Yifeng Wanguo actively engages in ecological restoration and environmental management in the mining area to minimize its impact on the surrounding environment. Since 2020, Yifeng Wanguo has consistently been recognized as a "Green Mine" enterprise in Jiangxi Province.

During the reporting period, GRML carried out a mine appearance improvement project, advancing upgrades to office and living areas, warehouse renovations, road lighting, and mining area greening. It also established hygiene responsibility zones, conducting monthly inspections and notifications.

Mining resource management

GRML attaches great importance to the management of mineral resources, and has set up a geology department that is responsible for the discovery, exploration, and control of mineral resources and the supervision of mineral resource loss in the production process. The Group has formulated a grade control process and standard construction requirements, as well as an assessment method for violations of the requirements, with a view to saving mineral resources and reducing resource loss.

Yifeng Wanguo has formulated the "Mining Process Management System of the Yifeng Xinzhuang Copper, Lead and Zinc Mines" and the "Management System for Ore Loss and Dilution". The chief engineer is responsible for the overall control of mining, ore grades and other aspects of mineral resource management. Meanwhile, the production technology department and geological survey department are responsible for daily on-site management. Yifeng Wanguo mainly adopts the upward horizontal slicing and cemented filling mining method. This method can effectively control loss rates to within 10% and dilution rates to within 7% for irregularly shaped ore bodies. In addition, Xinzhuang Mine implements mining methods to separate copper iron ore and lead zinc ore, effectively improving the recovery rate of copper, lead and zinc ores. To recover low-grade copper ore, Yifeng Wanguo implements an ore blending system that aligns with the characteristics of the ore body, and beneficiates high-grade copper ore and low-grade copper ore in a certain proportion to effectively improve the overall recovery rate. In addition, Yifeng Wanguo actively undertook technological upgrades and collaborated with research institutes to explore methods for improving ore beneficiation recovery rates. By the end of the reporting period, the completed technical renovation project at the lead-zinc beneficiation plant had increased the recovery rates of lead-zinc ores and associated precious metals (such as silver and gold) by more than 10%.

GRML implemented a series of technical and managerial measures to conserve mineral resources and reduce resource losses:

1

Process Innovation and Low-Grade Ore Recovery

Heap Leaching Technology: For oxidized ores, heap leaching, sprinkling, and activated carbon adsorption techniques were applied to extract gold from low-grade ores, achieving efficient resource utilization.

Flotation Recovery Improvement: By continuously optimizing process parameters (e.g., reagent ratios and flow control), gold extraction efficiency was further enhanced.

2

Precision Mining and 3D Geological Modeling

Encrypted drilling and ore body capping: Through repeated geological surveys (e.g., the third survey conducted by the Ecology Brigade in 2024), Encrypted drilling was implemented at the ore body margins and deeper sections to accurately determine the spatial form of the ore body, reducing blind mining areas. For example, increasing drill hole density based on existing holes reduced design risks and ensured maximum resource utilization.

3D Modeling for Optimized Mining Planning: A 3D geological model was used to analyze ore distribution, optimize stope layouts, and blasting sequences, preventing the loss of high-grade ore bodies. For instance, in the North Zone sulfide ores, post-blast precision sorting improved ore grades.

3

Resource Comprehensive Utilization and Technological Innovation

Economic Utilization of Low-Grade Ores: New beneficiation technologies were introduced to lower the minimum recoverable grade of gold ores, enabling the recovery of previously discarded low-grade ores.

Tailings Dry Disposal Technology: Tailings dry disposal processes were introduced during the expansion and renovation of the beneficiation plant to recover residual metals from tailings, reducing resource waste.

4

Comprehensive Management and Community Collaboration

Skill Training and Localization: Local employees were trained through a "master-apprentice" program led by Chinese staff to improve operational skills and reduce resource losses caused by human error. For example, plans were made to collaborate with Hunan Non-ferrous Metals Vocational And Technical College to establish a vocational school for training skilled workers in fields like electrical engineering and mechanical work.

Community Resource Management: Collaborative efforts with local communities were made to restore infrastructure (e.g., flood diversion channels and tailings ponds) and prevent resource losses caused by natural disasters (e.g., heavy rainfall), meanwhile addressing the challenges posed by annual rainfall of 4,000 - 6,000 millimeters through optimizing the design of heap leaching.

Biodiversity conservation

Our Group strictly complies with laws and regulations such as the Land Administration Law of the People's Republic of China and the Law of the People's Republic of China on Soil Pollution Prevention and Control , as well as government documents like "Judicial Protection of China's Biodiversity". Yifeng Wanguo has established systems for soil pollution prevention and ecological greening. During the reporting period, Yifeng Wanguo commissioned a third party to conduct hidden danger investigation and treatment for soil and groundwater pollution. According to the investigation results, the soil environment in the mining area is normal with no significant abnormalities found. Meanwhile, Yifeng Wanguo strengthened greening and hardening efforts on unused land. During the reporting period, the hardening area was increased by 1,000 square meters, and 15,000 square meters of the mining area and tailings pond were successfully greened. By the end of the report period, there were no large exposed areas within the mining zone. After the mine's service life ends, Yifeng Wanguo will carry out unified reclamation and greening work.

The effect after site greening and hardening

Gold Ridge Mine is located in the Solomon Islands and complies with relevant local laws and regulations on the protection of the environment and biodiversity. During the reporting period, Gold Ridge Mine was in its initial stage of operations, having a relatively small adverse impact on the environment and ground surface. To maintain a healthy river ecosystem, GRML has an environmental protection department that is responsible for sampling river water each week on a random basis, to ensure the river water is of good quality and a healthy river ecosystem is maintained. Gold Ridge Mine collaborated with local governments and communities to hire third-party environmental auditors to monitor the mining area and its downstream regions, achieving positive results. In terms of soil remediation, GRML introduced heavy metal-tolerant plants, such as wetland pine, and soil improvement techniques, such as lime and organic fertilizers, to address soil contamination in the mining area.

During the reporting period, the Group did not have any owned or leased operating sites or developed projects in biodiverse areas, and no major events that damaged biodiversity occurred during the reporting period.

Environmental Training

To enhance employees' environmental awareness, ensure they fully understand relevant national laws and regulations, and prevent and reduce various environmental incidents, during the reporting period, departments of Yifeng Wanguo conducted a total of

8 environmental training sessions, covering all employees at Xinzhuang Mine. Additionally, two comprehensive environmental inspections across the entire mine were organized, attended by leaders of Xinzhuang Mine, department heads, and project department managers. Through these activities, we have effectively improved the environmental awareness of all staff and significantly enhanced the environmental conditions of the mining area.

Employee Environmental Training

Coping with Climate Change

Global warming and other abnormal climate phenomena continue to attract society's attention. As China continues to promulgate policies in this aspect, stakeholders are demanding more efforts in tackling climate change and promoting low-carbon development. We have set out our efforts and future direction for tackling climate change around the four thematic areas of governance, strategy, risk management, and metrics and targets.

Governance

In terms of governance, the Board is the highest decision-making body for ESG management. It is responsible for guiding the direction of the Company's sustainable development, and discussing and determining ESG risks and opportunities, including those involved in tackling climate change. We make reference to the Task Force on Climate-related Financial Disclosures (TCFD) framework to conduct current status reviews, strategy development, risk management, and identification and management of metrics and targets in response to risks and opportunities caused by climate change.

Strategy

Climate-related risks include those associated with the physical impacts of climate change (hereinafter referred to as "physical risks") and those related to the transition to a low-carbon economy (hereinafter referred to as "transition risks"). Physical risks include acute risks (e.g., droughts, floods, and other extreme weather events) and chronic risks (e.g., shifts in climate patterns such as prolonged high temperatures). Transition risks can be categorized into policy/legal risks, technological risks, market risks, and reputation risks.

Assessment and Response to Physical Risks:

Regarding transition risks, at the locations of our group's production mines - China and the Solomon Islands - the governments have already announced carbon neutrality targets. In this context, our group primarily faces policy and regulatory risks.

Transition Risk Impact Assessment and Response:

Climate Opportunity Impact Assessment and Response: