PDF《2018》

2018 MINES INFORMATION MINERAL RESOURCES AS OF

31 DECEMBER

2018 Project name Classification Quantity (kt) Ni Grade (%) Cu Grade (%) Ni metal (t) Cu metal (t) Project No.

20 Measured Indicated 1,330 0.71 0.24 9,430 3,150 Inferred 1,260 0.69 0.25 8,660 3,160 Sub-total 2,590 0.70 0.24 18,090 6,310 Project H-989 Measured Indicated 3,390 0.49 0.23 16,540 7,750 Inferred 2,370 0.51 0.19 12,100 4,390 Sub-total 5,760 0.50 0.21 28,640 12,140 Grand total Measured Indicated 4,720 0.55 0.23 25,970 10,900 Inferred 3,630 0.57 0.21 20,760 7,550 Total 8,350 0.56 0.22 46,730 18,450 Project name Classification Quantity (kt) Zn Grade (%) Pb Grade (%) Zn metal (t) Pb metal (t) Project Baiganhu Measured Indicated 1,730 6.57 4.13 113,540 71,440 Inferred 2,150 6.42 3.96 137,910 85,140 Total 3,880 6.49 4.03 251,450 156,580 Project name Classification Quantity (kt) Au Grade (g/t) Au metal (t) Project Huangjinmei Measured ― ― ― Indicated

430 3.61 1.5 Inferred

716 3.63 2.7 Total 1,146 3.62 4.2

5 Huili Resources (Group) Limited ・ Annual Report

2018 MINES INFORMATION (CONTINUED) ORE RESERVES AS OF

31 DECEMBER

2018 Project name Reserve classification Ore Quantity (kt) Ni Grade (%) Cu Grade (%) Ni metal (t) Cu metal (t) Project No.

20 Proved Probable 1,099 0.64 0.21 7,071 2,362 Project name Reserve classification Ore Quantity (kt) Zn Grade (%) Pb Grade (%) Zn metal (t) Pb metal (t) Project Baiganhu Proved Probable 1,055 5.95 3.73 62,773 39,352 Note: The report on mineral resources and ore reserves of the Project No. 20, Project H-989 and Project Baiganhu are prepared based on the independent technical report of Minacro-Mine Consult, an independent technical consultant, for determining mineral resources and ore reserves, while the report on mineral resources Project Huangjinmei are prepared based on Xinjiang Engineering &

Research Institute of Nonferrous Metals Co., Ltd (新疆有色冶金设计研究院有限公司). The presentation of the data in round figures may result in minor computational discrepancies. Such discrepancies are deemed to be insignificant whenever this occurs.

6 Huili Resources (Group) Limited ・ Annual Report

2018 MINES INFORMATION (CONTINUED) EXPLORATION PERMITS Project name Type of ore under exploration Exploration Area (km2 ) Permit expiry date (month/year) Project Baiganhu Gold Au 0.64 July

2018 (Note) Project H-989 Cu, Ni 0.96 July

2018 (Note) Project Huangshan Cu, Ni 3.49 March

2019 MINING PERMITS Project name Type of ore under mining Mining Area (km2 ) Permit expiry date (month/year) Project No.

20 Cu, Ni 0.22 June

2019 Project Baiganhu Pb, Zn 0.96 September

2021 Project Huangjinmei Au 0.12 February

2021 Glossary: Au: Gold Cu: Copper Ni: Nickel Pb: Lead Zn: Zinc Note: The Group is in the progress to renew these permits. CAPITAL EXPENDITURE AND EXPLORATION EXPENSES The Group did not carry out any ore production during the years ended

31 December

2017 and 2018. For the years ended

31 December

2017 and 2018, no capital expenditure was incurred for the development and mining activities which mainly represented construction of mining structures and explosive storage of the mines. For the years ended

31 December

2017 and 2018, no exploration expenses were charged to the consolidated income statement.

7 Huili Resources (Group) Limited ・ Annual Report

2018 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW Huili Resources (Group) Limited (the Company ) and its subsidiaries (collectively, the Group ) mainly participate in non-ferrous ore mining and processing.The diversified non-ferrous metal minerals covered by the Company'