China Metal Resources Utilization Limited — Capital/Financing Update 2017

Jun 5, 2017

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities.

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CHINA METAL RESOURCES UTILIZATION LIMITED 中 國 金 屬 資 源 利 用 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1636)

CLARIFICATION ANNOUNCEMENT PROPOSED ISSUE OF NEW SHARES UNDER GENERAL MANDATE

Reference is made to the announcement of China Metal Resources Utilization Limited (the ‘‘Company’’) dated 1 June 2017 (the ‘‘Announcement’’) in relation to the proposed issue of the Subscription Shares under the General Mandate. Unless otherwise defined in this announcement, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

Further to the information disclosed in the Announcement, the Company would like to clarify and supplement the following additional information:

The aggregate nominal value of the Subscription Shares is HK$7,407,407.40.

As disclosed in the Announcement, the net proceeds from the Subscription will amount to approximately HK$194,000,000, which the Company intends to use as working capital as follows:

• (i) approximately HK$85,000,000 for purchasing additional raw materials in order to increase the level of the Group’s production in the second half of the financial year;

• (ii) approximately HK$85,000,000 for purchasing additional copper products in order to enlarge the scale of the Group’s trading business; and

• (iii) approximately HK$24,000,000 for repaying part of the Group’s trade payable.

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As disclosed in the Announcement, the Company has applied the net proceeds of HK$242,500,000 from the issue of convertible bonds by the Company as disclosed in the announcement of the Company dated 9 April 2017 as general working capital of the Group. The following sets out the breakdown of the Company’s use of such proceeds as at the date of this announcement:

• (i) HK$128,500,000 was used for the redemption of convertible bonds by the Company upon maturity;

• (ii) approximately HK$23,000,000 (approximately RMB20,000,000) was used for purchasing raw materials in the ordinary course of business of the Group; and

• (iii) the balance of approximately HK$91,000,000 is being held in the bank accounts of the Company.

Save as disclosed above, the contents of the Announcement remain unchanged.

Shareholders and potential investors should note that the Completion is subject to the fulfilment or waiver of conditions under the Subscription Agreement and may or may not proceed. Shareholders and potential investors are reminded to exercise caution when dealing in the Shares of the Company.

By order of the Board China Metal Resources Utilization Limited Mr. YU Jianqiu Chairman

Hong Kong, 5 June 2017

As at the date of this announcement, the Board comprises of four executive directors, namely, Mr. Yu Jianqiu (Chairman), Mr. Kwong Wai Sun Wilson, Mr. Huang Weiping and Ms. Zhu Yufen; and three independent non-executive directors, namely, Mr. Lee Ting Bun Denny, Mr. Pan Liansheng and Ms. Ren Ruxian.

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