Shandong Gold Mining : UPDATE ANNOUNCEMENT IN RELATION TO CONDUCTING MINE SAFETY INSPECTIONS

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SHANDONG GOLD MINING CO., LTD.

ʆ؇රږᘤٰุ΅Ϟࠢʮ̡

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1787)

UPDATE ANNOUNCEMENT IN RELATION TO CONDUCTING MINE SAFETY INSPECTIONS

Reference is made to the announcement of Shandong Gold Mining Co., Ltd. (the "Company") dated 19 February 2021 (the "Announcement").

In early 2021, Shangdong Wucailong Investment Company Limited's Qixia Hushan Gold Mine (ʆ؇ʞ੹Ꮂҳ༟Ϟࠢʮ̡᳒ᒳ̹ᶐʆږᘤ) and Shangdong Zhaoyuan Caojiawa Gold Mine ʆ؇םჃ૎࢕၉ږᘤ (both of which are local companies and are not the Company's related companies) encountered safety incidents. In the rescue process of the aforesaid two incidents, the Company has shouldered responsibility and actively played a role as an industry leader and contributed substantially to the rescue.

Due to the impact from the aforesaid two safety incidents, the Company's gold mines in Shandong Province had to conduct safety inspection from February 2021 onwards in accordance with the request from local competent authority. All of the Company's gold mines in Shandong Province have conducted full inspection in accordance with the request, and maximized optimization on existing production organisation system and process flow within the period to accelerate the promotion of "world-class exemplary mine construction" (as referred in the Announcement).

Up to present, the gold mines of Shandong Gold Mining (Laixi) Co., Ltd. (ʆ؇රږᘤุ€ഺ ГϞࠢʮ̡) and Shandong Jinzhou Mine Industry Group Co. Ltd. (ʆ؇ږݲᘤุණྠϞࠢ ʮ̡) under the Company in Shandong Province have resumed to normal production: the main mining areas of 3 mines including Sanshandao Gold Mine (ɧʆࢥږᘤ), Xincheng Gold Mine (อ۬ږᘤ) and Jiaojia Gold Mine (ೊ࢕ږᘤ) have passed resumption acceptance, and the gold production of the aforesaid 3 mines accounted for 50.6% of the gold production of the Company in 2020, and their operating revenue accounted for 11.75% of the operating revenue of the Company; other 5 mines within the Province have been facilitating the resumption onwork and production, and the gold production of the aforesaid 5 mines accounted for 18.7% of the gold production of the Company in 2020, and their operating revenue accounted for 4.45% of the operating revenue of the Company.

Going forward, the Company shall take this safety inspection as an opportunity to further increase the input on safety and environmental protection; strengthen, modify and improve the construction of management system on risk classification control and hidden danger investigation; and consistently improve the safety level and take the initiative to practice green development concept.

By order of the Board Shandong Gold Mining Co., Ltd.

Li Guohong Chairman

Jinan, the People's Republic of China

26 March 2021

As at the date of this announcement, the executive directors of the Company are Mr. Liu Qin, Mr. Wang Shuhai and Mr. Tang Qi; the non-executive directors of the Company are Mr. Li Guohong, Mr. Wang Lijun and Ms. Wang Xiaoling; and the independent non-executive directors of the Company are Mr. Wang Yunmin, Mr. Liew Fui Kiang and Ms. Zhao Feng.