CStone Pharmaceuticals — Capital/Financing Update 2023

Dec 8, 2023

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兗礦能源集團股份有限公司 YANKUANG ENERGY GROUP COMPANY LIMITED *

(A joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 01171)

Announcement on Confirmation of Transaction of

Bidding for Detailed Exploration Rights of Coal Resources

This announcement is made by the board of directors (the “ Board ”) of Yankuang Energy Group Company Limited* (the “ Company ”) on a voluntary basis.

On 19 October 2023, the Public Resources Trading Centre of Inner Mongolia Autonomous Region (內蒙 古自治區公共資源交易中心) published the “Announcement on the Listing for Sale of the Detailed Exploration Right of Coal Resources in No. 1 Coal Field of the Huolinhe Mining Area of Inner Mongolia Autonomous Region” (《內蒙古自治區霍林河礦區一號井田煤炭資源詳查探礦權掛牌出讓公告》), which stated that the Department of Natural Resources of Inner Mongolia Autonomous Region (內蒙古 自治區自然資源廳 ) engaged the Public Resources Trading Centre of Inner Mongolia Autonomous Region to implement the listing for sale of the detailed exploration right of coal resources in No. 1 Coal Field of the Huolinhe Mining Area of Inner Mongolia Autonomous Region. Upon consideration and approval by the Company’s general manager’s office meeting, the Company participated in the auction for the aforesaid exploration right, won the bid at a price of RMB3,716.71 million on 8 December 2023, and signed the ''Confirmation of Transaction of Listing for Sale of Mining Right'' (《礦業權掛牌出讓成 交確認書》) with the Public Resources Trading Centre of Inner Mongolia Autonomous Region.

The auction is within the scope of decision-making by the Company’s general manager’s office meeting and is not subject to the consideration by the Board or the general meeting of the Company.

The basic information of the exploration right is as follows:

(I) Name of the area for sale: Detailed exploration of coal resources in No. 1 Coal Field of the Huolinhe Mining Area of Inner Mongolia Autonomous Region;

• (II) Geographic location of the area for sale: Holingol, Tongliao;

• (III) Type of mineral to be explored: Coal;

• (IV) Term of sale: 5 years from the commencement date of the validity period of the exploration licence;

• (V) Area of exploration blocks for sale: 33.54 square kilometers;

(VI) Resource reserves: As at 31 October 2018, the total resource reserves of the region amounted to 1,040.96 million tons, with controlled economic base reserves (122b) of 221.74 million tons; inferred intrinsic economic resources (333) of 758.93 million tons; and predicted resources (334) ? of 60.29 million tons.

(VII) According to the "Approval of the Master Plan of Huolinhe, Inner Mongolia (Revised)" (《關於內蒙古霍 林河總體規劃（修編）的批覆》) (Fa Gai Neng Yuan [2012] No. 1372) by the National Development and Reform Commission, the No. 1 Coal Field of Huolinhe is planned to be constructed at a scale of 6 million tons per year.

For details, please refer to the “Announcement on the Listing for Sale of the Detailed Exploration Right of Coal Resources in No. 1 Coal Field of the Huolinhe Mining Area of Inner Mongolia Autonomous Region” (Nei Gong Kuang Jiao Gao [2023] No. 2) promulgated by the Public Resources Trading Centre of Inner Mongolia Autonomous Region and the relevant attachments.

The acquisition of the detailed exploration right of coal resources in No. 1 Coal Field of the Huolinhe Mining Area of Inner Mongolia Autonomous Region is in line with the development strategy of the Company, which will be conducive to increasing the coal resource reserve of the Company, enhancing the Company’s core competitiveness and sustained profitability, and ensuring the sustainability of the Company.

The auction results of the exploration rights will be shown in the public notice period from 9:00 a.m., 11 December 2023 to 17:00 p.m., 22 December 2023. The Company will enter into a contract on transfer of exploration right with the Natural Resources Department of the Inner Mongolia Autonomous Region, and conduct procedures such as the coal exploration licence and the transfer of exploration permit to mining permit after there is no objection at the expiration of the public notice period. There may be discrepancies between the Company's reserves and the quality of the exploration mines in the course of exploration and the detailed information in the region. The Company will fulfil the obligation to disclose relevant information in a timely manner according to the subsequent progress. Investors are advised to make rational investment and be aware of the investment risks.

Shareholders and potential investors of the Company are advised to pay attention to investment risks and exercise caution when dealing in the shares of the Company.

By order of the Board Yankuang Energy Group Company Limited Li Wei* Chairman of the Board Zoucheng City, Shandong Province, the PRC 8 December 2023

As at the date of this announcement, the Directors of the Company are Mr. Li Wei, Mr. Xiao Yaomeng, Mr. Liu Jian, Mr. Liu Qiang, Mr. Zhang Haijun, Mr. Su Li and Mr. Huang Xiaolong, and the independent non-executive Directors of the Company are Mr. Peng Suping, Mr. Zhu Limin, Mr. Woo Kar Tung, Raymond and Ms. Zhu Rui.

*For identification purpose only