Nan Nan Resources : Announcement in relation of the renewal of mining rights

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NAN NAN RESOURCES ENTERPRISE LIMITED یی༟๕ྼุϞࠢʮ̡

(Incorporated in Bermuda with limited liability)

(Stock Code: 1229)

ANNOUNCEMENT IN RELATION TO THE 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).

Nan Nan Resources Enterprise Limited (the "Company") through its subsidiary, Mulei County Kai Yuan Coal Company Limited* (˝ᓍጤ௱๕๩ލϞࠢப΂ʮ̡) ("Kai Yuan Company"), owns mining rights (the "Mining Rights") in the Kaiyuan Open Pit Coal Mine* (௱๕ᚣ˂๩ᘤ) located in Xinjiang, the People's Republic of China (the "PRC"). The Department of Land and Resources of Xinjiang Uygur Autonomous Region* (อክၪшဧІ طਜ਷ɺ༟๕ᝂ) (the "Xinjiang Land Department") has granted Kai Yuan Company the Mining Rights for ten years from June 2008 to June 2018 (the "Valid Period"). Although the Mining Rights was granted for ten years, according to the relevant laws and regulations of the PRC, Kai Yuan Company is still required to renew the Mining Rights during the Valid Period and the current Mining Rights just expired on 26 December 2017.

On 9 November 2017, Kai Yuan Company already applied to the Xinjiang Land Department for the renewal of the Mining Rights. However, the Xinjiang Land Department is still in the process of reviewing the renewal application.

According to the legal opinion issued by the PRC legal adviser of the Company, Kai Yuan Company should be able to obtain the renewal of the Mining Rights according to the relevant PRC rules and regulations, and could still conduct normal production at the Kaiyuan Open Pit Coal Mine* after the expiry date of the Mining Rights on 26 December 2017 until completion of issuance of the renewal permit of the Mining Rights.

*

For identification purposes only

The Company will keep the shareholders and potential investors of the Company informed of the progress of the renewal application of the Mining Rights.

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 (the "Board") of directors (the "Directors") of the Company, 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, 27 December 2017

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).