China Natural Resources Consummates Acquisition of Coal Mining Company in Guizhou Province, PRC

July 17, 2009 Filed Under: Coal Mining, Mining Investment, Mining Stocks  

CHINA NATURAL RESOURCES, INC. announced that, on July 10, 2009, it consummated the acquisition of (a) all of the issued and outstanding capital stock of Pineboom Investments Limited and its wholly-owned subsidiaries (the “Coal Group”) and (b) the outstanding indebtedness owing by the Coal Group to the related-party seller on the closing date.

Pineboom, through its operating subsidiary, Guizhou Dayun Mining Co., Ltd. (”Guizhou Dayun”), a company established under the laws of the PRC with a registered capital of RMB4,000,000 (US$585,000), owns exploration rights to Huajuejingtian North Sector Coal Mine (”Exploration Rights”), a coal mine located in Jinsha County, Guizhou Province, the PRC, which covers a total area of 16.93 square kilometers. The permit for the Exploration Rights is valid from February 1, 2008 to February 1, 2010.

Additional details of the transaction are contained in the Company’s Current Reports on Form 6-K filed with the Securities and Exchange Commission on July 15, 2008 and July 17, 2009.

Mr. Feilie Li, the Company’s CEO and Chairman commented: “Pineboom is the second coal mine acquisition in our continued development of CHNR’s coal business. We will continue our coal resources acquisition strategy in Guizhou Province, as well as our continued acquisition of other non-ferrous/iron metal assets.”

For the convenience of the reader, amounts in Renminbi (”RMB”) have been translated into United States dollars (”US$”) at the rate of US$1.00=RMB6.8320 quoted by The People’s Bank of China as at July 13, 2009. The RMB is not freely convertible into foreign currencies and no representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate, or at all.