Ganfeng Lithium Group Co., Ltd. — Capital/Financing Update 2019

Apr 29, 2019

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.

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

(Stock Code: 1772)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to the disclosure requirements under Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

According to the relevant regulations of the People’s Republic of China, GANFENG LITHIUM CO., LTD. (the “ Company ”) had published the following announcement. The following is a translation of the official announcement solely for the purpose of providing information.

By order of the Board GANFENG LITHIUM CO., LTD. LI Liangbin Chairman

Jiangxi, PRC April 30, 2019

As at the date of this announcement, the Board comprises Mr. LI Liangbin, Mr. WANG Xiaoshen, Mr. SHEN Haibo, Ms. DENG Zhaonan and Mr. XU Xiaoxiong as executive directors of the Company; Mr. HUANG Daifang as non-executive director of the Company; and Mr. GUO Huaping, Mr. HUANG Huasheng, Mr. LIU Jun and Ms. WONG Sze Wing as independent non-executive directors of the Company.

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Stock Code: 002460 Stock Name: Ganfeng Lithium Number: Lin 2019-046

Ganfeng Lithium Co., Ltd.

ANNOUNCEMENT ON EXPANDING CONSTRUCTION SCALE OF THE PROJECT WITH AN ANNUAL PRODUCTION OF 25,000 TONS OF BATTERY GRADE LITHIUM HYDROXIDE

The Company and all members of its board of directors warrant that the information contained in this announcement is true, accurate and complete and that there are no false representations or misleading statements contained in or material omissions from this announcement.

At the 34th meeting of the fourth session of the board of directors of Ganfeng Lithium Co., Ltd. (hereafter referred to as the “Company”) convened on April 29, 2019, the Company considered and approved the Resolution on Expanding Construction Scale of the Project with an Annual Production of 25,000 Tons of Battery Grade Lithium Hydroxide. Given the domestic and overseas market demands for high-end lithium salt products as well as the long-term orders of the Company, the board of directors of the Company, upon prudent demonstration, approved to improve the production capacity of the battery grade lithium hydroxide project from annual throughput of 25,000 tons to annual throughput of 50,000 tons and increase the investment from not more than RMB500,000,000 to not more than RMB765,850,000, which will be funded by the proceeds from the Company’s public issuance of A-share convertible corporate bonds instead of its self-owned funds. Particulars are as follows:

I. BASIC INFORMATION ON THE PROJECT

1. At the 26th meeting of the fourth session of the board of directors of the Company convened on September 25, 2018, the Company considered and approved the Resolution on the Construction of a Project with an Annual Production of 25,000 Tons of Battery Grade Lithium Hydroxide, approving the Company to invest not more than RMB500,000,000 in the construction of a project with an annual production of 25,000 tons of battery grade lithium hydroxide with its self-owned funds. For particulars, please refer to the announcement (No.: Lin 2018–099) of Ganfeng Lithium on construction of a project with an annual production of 25,000 tons of battery grade lithium hydroxide published by the

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Company on the Securities Times, Securities Daily and on the website of CNINFO on September 27, 2018.

1. At the 34th meeting of the fourth session of the board of directors of the Company convened on April 29, 2019, the Company considered and approved the Resolution on Expanding Construction Scale of the Project with an Annual Production of 25,000 Tons of Battery Grade Lithium Hydroxide. Given the domestic and overseas market demands for high-end lithium salt products as well as the long-term orders of the Company, the board of directors of the Company, upon prudent demonstration, approved to improve the production capacity of the battery grade lithium hydroxide project from annual throughput of 25,000 tons to annual throughput of 50,000 tons, and increase the investment from not more than RMB500,000,000 to not more than RMB765,850,000, which will be funded by the proceeds from the Company’s public issuance of A-share convertible corporate bonds instead of its self-owned funds. For particulars of the adjusted project, please refer to the Feasibility Study Report of Ganfeng Lithium on the Use of Proceeds from the Public Issuance of A-share Convertible Corporate Bonds published by the Company on the Securities Times, Securities Daily and on the website of CNINFO on April 30, 2019.

2. The external investment constitutes neither a related-party transaction nor a material asset restructuring as prescribed under the Administrative Measures on Material Asset Restructuring of Listed Companies.

II. EFFECT OF EXPANSION OF PROJECT CONSTRUCTION SCALE ON THE COMPANY AND RISKS THEREOF

The improvement of production capacity of the project with an annual throughput of 25,000 tons of battery grade lithium hydroxide will further expand the production size and market share of its high-end lithium salt product, ensures the delivery of long-term orders of the Company, and is beneficial to improving the economic benefits and core competitiveness of the Company, which is in line with the integration of the upstream and downstream development of the Company and the development strategies of the new energy vehicle industry in China. The expansion of project construction scale will not result in new related transactions and horizontal competition and will have positive effects on the financial position and business development of the Company.

Risks in respect of product market, project construction, operation, management, etc., are likely to arise from the external investment. Investors are advised to exercise caution and be aware of

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investment risks. The board of directors of the Company will keep a close eye on the progress

of such project and fulfil its obligation of information disclosure in a timely manner.

III. DOCUMENT AVAILABLE FOR INSPECTION

Resolution of the 34th meeting of the fourth session of the board of directors of the Company.

The board of directors Ganfeng Lithium Co., Ltd. April 30, 2019