China Nonferrous Gold Limited

(“CNG” or the “Company”)

Execution of Short-term Loan Agreement

China Nonferrous Gold Limited (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, is pleased to provide the following update:

Short-term Loan from CNMC Trade Company Limited

The Company has today executed a loan agreement with CNMC Trade Company Limited (“CNMC Trade”) for a loan of up to USD $19.50 million (the “CNMC Loan”). The CNMC Loan will be used to repay the existing China CITIC Bank Corporation Limited (“CITIC”) loan facility of USD $20m, which is due for repayment on 24^th January 2023 (see announcement dated 22 January 2021 and 24 January 2022 for further details). The outstanding balance of US$0.5m of the CITIC bank loan will be repaid from the Company’s existing cash resources.

The CNMC Loan is repayable within 3 months from the date of drawdown. The terms of the CNMC Loan includes an annual interest at 0.5% over 3 month LIBOR. There are no extra fees payable to CNMC Trade for this arrangement.

Approximately US$19.50 million (all) of the CNMC Loan is expected to be drawn down immediately.

Summary of Current Financial Position

At the current time, excluding the loans outlined above, loans drawn down by the Company amount to c. USD$318.48 million, this includes US$85m of banking facilities (unaudited).

Related Party Transaction

The Company’s major shareholder is China Nonferrous Metals International Mining Co., ltd (“CNMIM”), which holds 38% of the issued share capital of the Company and China Non-ferrous Mining Corporation (“CNMC”) is the major shareholder of CNMIM and CNMC Trade. Accordingly, CNMC Trade is deemed to be a related party to the Company under the AIM Rules.

The directors of the Company with the exception of (i) Yu Lixian who is the chairman of the board of CNMIM and; (ii) Zhang Hui who is CEO of CNMIM, and (iii) Wang Xiaohua who is the director of Finance Department of CNMIM, consider that having consulted with WH Ireland, the Company’s nominated adviser, the terms of the CNMC Loan agreement are fair and reasonable insofar as the Company’s shareholders are concerned.

For further information please visit the Company’s website (www.cnfgold.com) or contact:

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

View source version on businesswire.com: https://www.businesswire.com/news/home/20230124005542/en/

Copyright Business Wire 2023