China Natural Resources Reports Full Year 2022 Results.

HONG KONG: China Natural Resources Inc. (NASDAQ: CHNR) (the "Company") today announced its results of operations for the year ended December 31, 2022. For the convenience of the reader, amounts in Chinese Yuan ("CNY") have been translated into United States dollars ("US$") at the rate of US$1.00 = CNY6.8979 as quoted by www.ofx.com on December 31, 2022, except as otherwise disclosed.

Mr. Wong Wah On Edward, Chairman of the Company, commented, "We delivered over 8% annual revenue growth for the full year 2022, while reducing our net loss by 59%. Given the extremely challenging conditions we have been operating in, with supply chain closures and financing hurdles, we are pleased that our team remained focus on our business strategy and continued to execute toward our long-term goals."

We are even more excited about the business opportunities that are in front of the Company. Of greatest importance is the recently announced news of our strategic acquisition of mining rights to a lithium mine in Zimbabwe with maximum consideration contemplated to be US$1.75 billion. We have since completed our due diligence and are moving forward with what we expect to be a transformative milestone in the development of China Natural Resources. We are pleased with the favorable outcome of our due diligence investigation, and are focused on the next steps towards completion of the transaction. This is just one of the many opportunities that we are evaluating to leverage our mining expertise and sales and distribution platforms, as we continue to execute on our long-term business strategy and build value for our shareholders.

Financial Results for the Twelve Months Ended December 31, 2022

Revenue increased by CNY1.57 million (US$0.23 million) from CNY18.74 million for the year ended December 31, 2021 to CNY20.31 million (US$2.94 million) for the year ended December 31, 2022. The increase in revenues was mainly caused by the confirmed progress of services provided for construction projects commenced in the previous year.

Cost of sales decreased by CNY4.00 million (US$0.58 million) from CNY18.49 million for the year ended December 31, 2021 to CNY14.49 million (US$2.10 million) for the year ended December 31, 2022. This decrease was mainly due to the deferral in the execution of some new or ongoing projects during the first half of 2022 as a result of the then strict pandemic controls in Shanghai.

Selling and distribution expenses decreased by CNY0.22 million...