Inside Information: Successful renewal of mining rights

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NAN NAN RESOURCES ENTERPRISE LIMITED یی༟๕ྼุϞࠢʮ̡

(Incorporated in Bermuda with limited liability)

(Stock Code: 1229)

INSIDE INFORMATION

SUCCESSFUL RENEWAL OF MINING RIGHTS

This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

References are made to the announcements of Nan Nan Resources Enterprise Limited (the "Company") dated 27 December 2017, 13 April 2018 and 25 April 2018 (the "Announcements") respectively. Unless otherwise defined herein, capitalized terms used in this announcement shall have the same meaning as those defined in the Announcements.

SUCCESSFUL RENEWAL OF MINING RIGHTS

The Company is pleased to announce that on 28 May 2018, the Kaiyuan Company has successfully renewed and is granted a mining permit* (મᘤ஢̙ᗇ) (the "Mining Permit") by the Department of Land and Resources of Xinjiang Uygur Autonomous Region* (อᖛၪ шဧІطਜ਷ɺ༟๕ᝂ). The Mining Permit is valid for 1 year from 26 December 2017 to 31 December 2018 to conduct mining activities at the Kaiyuan Mine.

RENEWAL OF THE WORK SAFETY PERMIT

As stated in the announcement of the Company dated 25 April 2018, the suspension of production at Kaiyuan Mine was attributable to the expiry of the Mining Rights and the Work Safety Permit. Since the Kaiyuan Company has successfully renewed the Mining Rights, the Company immediately on 29 May 2018 applied to the Xinjiang Coal Mine Safety Supervision and Administration Bureau* (อᖛ๩ᘤτΌ္࿀҅) (the "Coal Mine Safety Bureau") for the renewal of the Work Safety Permit.

According to the PRC legal opinion obtained by the Company, based on past experience, the renewal application of the Work Safety Permit shall be approved in approximately thirty business days upon receipt of the renewal application by the Coal Mine Safety Bureau. However, due to the local situation and the priority to deal with the social stability of the local area, the Xinjiang government has been highly occupied with stability maintenance work, which made it difficult to estimate the processing time of the renewal application of the Work Safety Permit.

Once the renewal application is approved and the Company is granted the Work Safety Permit, the Company shall promptly apply to the Production Safety Supervision and Administration Bureau* (τΌ͛ପ္ຖ၍ଣ҅) of the Xinjiang Zhundong Economic and Technological Development Zone* (อᖛࡘ؇຾᏶Ҧஔක೯ਜ) (the "Safety Bureau of the Zhundong Development Zone") for resumption of production at the Kaiyuan Mine. The PRC lawyer further opined that, the Company can only resume production at the Kaiyuan Mine once the Safety Bureau of the Zhundong Development Zone has approved the application.

The Company shall keep the shareholders and potential investors of the Company informed of the progress of the renewal application of the Work Safety Permit.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

Made by the order of the Board, save for Ms. LO Fong Hung who could not be contacted as at the date of this announcement.

By order of the Board

Nan Nan Resources Enterprise Limited

Kwan Man Fai

Chairman and Managing Director

Hong Kong, 31 May 2018

As at the date of this announcement, the Board comprises three executive Directors, namely Mr. Kwan Man Fai, Ms. Lo Fong Hung and Mr. Wang Xiangfei; three independent non-executive Directors, namely Mr. Wong Man Hin, Raymond, Mr. Chan Yiu Fai, Youdey and Mr. Pak Wai Keung, Martin; and one alternate Director, Mr. Wong Sze Wai (alternate to Mr. Wang Xiangfei).

*

For identification purposes only