Pingmei Co., Ltd. plans to sign a resource integration entrustment agreement

Pingdingshan Tian'an Coal Industry Co., Ltd. (hereinafter referred to as "the company" or "Pingdingshan Coal") plans to sign the entrustment service agreement on resource integration with China Pingdingshan Shenma energy and Chemical Group Co., Ltd. (hereinafter referred to as "China Pingdingshan Shenma Group") and entrust China Pingdingshan Shenma Group to apply for and obtain the company's production mine depth, Pingdingshan Tianan Coal Industry Co., Ltd. (hereinafter referred to as "the company" or "Pingdingshan Coal Industry Co., Ltd.", Pingdingshan Tianan Coal Industry Co., Ltd. ( Exploration right for the achievements of the project "exploration of coal resources in Tangjie, Jiazhai - Jiaxian County, Baofeng County, Henan Province". As the controlling shareholder of the company, China Pingmei Shenma Group holds about 1.281 billion shares of the company, accounting for 54.27% of the issued shares of the company, which is a related party of the company. According to the Listing Rules of Shanghai Stock Exchange, this transaction constitutes a connected transaction.

According to the detailed investigation report of Tangjie coal in Jiazhai Jiaxian County, Baofeng County, Henan Province issued by the mineral resources reserves evaluation center of Henan Province, the coal types of the minable coal seams in this area are mainly coking coal, 1 / 3 coking coal and fat coal, which can be used for coking coal and power coal. The detailed investigation report submitted resource reserves of 1446.94 million tons, of which a total of 1348.89 million tons of shallow resources of 1500 m were obtained within the exploration scope. According to Pingmei Co., Ltd., at present, part of the company's mines have few existing resource reserves, and the mining extends the northern boundary of the mine field. Its deep resources have not yet been developed and confirmed, and the resource boundary between some mines is not clear enough. These deep resource problems have affected the safe and efficient development of the company's mines, but also severely restricted the company's future coal production capacity improvement and production layout Optimization. Therefore, it is imperative to integrate the deep resources and lock the deep resources reserves in advance. It is pointed out in the announcement that after the completion of this transaction, it will help to lock in the deep resource reserves in advance, increase the company's coal resource reserves in the future, extend the production service life of some of the company's main mines, facilitate the company's long-term and stable sustainable development, and conform to the company's development strategy of coal based, bigger and stronger coal production and operation.