News: PSC Zhejiang Huayou Cobalt's Unit To Buy Prospect Lithium Zimbabwe, Related Creditor's Rights, page-4

Important content reminder :
● The company intends to adopt the subsidiary Huayou International Mining (Hong Kong) Co., Ltd. (hereinafter referred to as "Huayou International Mining")Acquired the Australian listed company Prospect Resources Ltd (hereinafter referred to as “the former"Seller’s Guarantor" or "Seller’s Guarantor") Singapore Prospect Minerals Pte Ltd, a wholly-owned subsidiary“PMPL”)’s Zimbabwe Prospect Lithium Zimbabwe (Pvt) Ltd (hereinafter referred to as “previous"Jing Li Mining Company" or "Target Company") 87% equity and prospects under the "Intercompany Loan Agreement"

The company’s associated claims on Prospect Lithium Mining Company (hereinafter referred to as “associated claims”); at the same time, the company alsoIt is proposed to acquire the natural person Mr. Kingston Kajese's holdings through Huayou International Mining for US$44,244,733 Prospect Lithium Mining Company 6% stake and Tamari Trust family trust holds 7% of Prospect Lithium Mining Company shares.

The total amount of this transaction is 422 million US dollars. After the completion of the acquisition, Huayou International Mining will hold Prospect Lithium Mining Company100% equity and related claims under the "Intercompany Loan Agreement."

● This acquisition is not a related party transaction, nor does it constitute a major asset reorganization.
● Significant risk warning1.

This acquisition still needs the approval of the Chinese government and the Zimbabwe government and other relevant departments, and the prospective company’s shareholderThe approval of the meeting, whether it can be approved is still uncertain.2. The target of the acquisition is located in Zimbabwe.

The subsequent development and construction of the mine is affected by the local macro environment and operation of Zimbabwe.Industry policies, laws and regulations. If Zimbabwe has access to mineral qualifications, mine development and construction, environmental protectionChanges in policies regarding environmental protection, production safety, taxation, etc., will affect the target company’s future productionOperating and profitability.