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Message to Shareholders

MrSong MESSAGE

CHAIRMAN'S MESSAGE

March, 2019

There is an old saying in China: make the plans for the year in spring. Spring is a time of renewal and is also the best time to summarize our past and look to the future.

In 2018, the world faced challenging uncertainties and the global market changed rapidly. We adhered to the principle of sustaining growth through steady progress and outstanding performance. Our response to these changing times was to promote the company’s high-quality development and accelerate internationalization through a higher standard of social responsibility.

We grew production and focused on quality assurance. Safe and profitable production is the foundation of our value-added mine sites. We attach great importance to corporate social responsibility and ecological protection. Green development and harmonious communities are our consistent development objectives.

For many years our mines have been widely praised and recognized for our green initiatives by the local residents and various levels of government. We have gained an excellent reputation through our year after year significant investments in education, environmental protection research and community public welfare. We care about our employees, adhere to a diverse and considerate management style, provide employees with excellent working environment, balanced working atmosphere and comfortable living conditions. Our practices stimulate a strong sense of belonging among employees and greatly enhance team spirit, work ethic and a resulting efficiency.

In 2018, the company successfully entered the Shenzhen-Hong Kong Stock Connect and was selected into the Hang Seng Index, realizing trading on three main boards being the Toronto Stock Exchange, Shenzhen Stock Exchange and the Hong Kong Stock Exchange. This highlights the company’s standing as a strong international capital operation. We believe this is an important milestone in the company’s development and has greatly enhanced our position in the global capital market.

Our development can’t be separated from the support and assistance of our shareholders, directors, consultants, experts, contractors and suppliers. With the development of the company in 2019, in your consistent support and trust, we will try our best to make further progress. We express our heartfelt gratitude and most sincere respect to you!

Xin Song

Chairman of the Board, Executive Director

CEO MESSAGE

CEO'S MESSAGE

March, 2019

We bid farewell to 2018 with full of challenges and steady development.

In 2018, we overcame significant foreign exchange fluctuations, saw a decrease in product prices and achieved profitability in mine operations for the 11th consecutive year. The Company also almost reached a pre-tax net profit, which was adversely effected by the depreciation of RMB exchange rates causing a realized foreign exchange loss of US$15.82 million. The Jiama Mine’s Phase II expansion achieved full commercial production, which resulted in copper production reaching a record high and production capacity to continually increase. The CSH Mine completed the optimization of pit wall slope parameters, achieving pit wall stabilization and sustainable development. The CSH Mine is currently working on a study of inferred resources development.

We enter 2019 with hope and progress.

In 2019, we will continue to put more effort on production and operation at our Jiama Mine and CSH Mine. We will continue to improve the efficiency of our equipment and increase our recovery rate, maintaining the year-on-year growth of performance through increased production capacity records of copper. We will strengthen our efforts on resource exploration and environmental protection at the two mines and fully promote the sustainable development of the company. We are hopeful and optimistic about potential M&A opportunities. We will carefully evaluate potential projects and strive to inject new assets as soon as possible. Thanks to the support of shareholders and directors!

Thanks to all the members of the team for their contribution! With your strong support, and with the hard work and dedication of all employees, we will continue to move forward by successfully completing the goals of 2019 and creating better all around performance.

Liangyou Jiang

Chief Executive Officer