Gelonghui, December 22|China Jinshi (01380.HK) announced that the company and seller Mr. Song Tai are in discussions on the company's proposed acquisition and the seller's intention to sell no less than 50% of the shares in the target company Sino-South America Trading SPA to jointly develop the gold mine. The total area of the gold mine is about 400 hectares. To facilitate continued negotiations on possible acquisitions, the Company and the seller entered into a Memorandum of Understanding on December 22, 2023.

The Company shall pay the seller a goodwill payment within 14 days from the date of the Memorandum of Understanding. If a formal agreement is signed during the exclusive period, the goodwill money will be used to cover part or all of the cost of the possible acquisition.

The directors believe that the possible acquisition and the Pumilahue project are a good opportunity for the Group to enter the Chilean gold mining industry and provide the company with the potential to promote future development and consolidate its revenue base. The conclusion of the Memorandum of Understanding allows the Group to conduct further due diligence on the viability of the Pumilahue project, including but not limited to gold exploration.