Pengxin Resources (600490) the comments on the operation of the board of directors in the first quarter of 2024 are as follows:

1. Description of the operation

The net profit belonging to the shareholders of the listed company during the reporting period is 28.0967 million yuanWinningatblackjack, an increase of 32.36% over the same period last year, mainly due toWinningatblackjack1) the company acquires TAU mine and generates 54.37 million yuan of M & An income; 2) the company acquires TAU mine and rushes back 29.77 million yuan of bad debt provision in the previous year. The net profit after deducting non-recurring gains and losses belonging to shareholders of listed companies during the reporting period was-11.33 million yuan, a decrease of 5444.45% over the same period last year, mainly due to a decrease in cathode copper revenue compared with the same period last year. During the reporting period, the operating income of listed companies reached 596 million yuan, a decrease of 70.27% over the same period last year. The main reason is: 1) the weak trade market and market opportunities led to a decrease of 1.181 billion yuan in trade revenue compared with the same period last year. 2) the income of cathode copper decreased by 243 million yuan compared with the same period last year.

During the reporting period, the main holding subsidiary Xitulu Mining Co., Ltd. mainly produces 5751 metal tons of cathode copper, 5560 metal tons of sales, 109 metal tons of cobalt hydroxide, 60128 tons of sulfuric acid and 34947 tons of sulfuric acid. During the reporting period, the main holding subsidiary CAPM, South Africa, mined 65061 tons of gold ore.

The company disclosed the notice received by the holding subsidiary on April 25, 2024 (announcement number: P.R. 2024-014). The company recently received a letter from its holding subsidiary CAPM African Precious Metal Pty Ltd (hereinafter referred to as "CAPM") informing it that CAPM had recently received the "data validation, 3D Modeling and Mineral Resources estimation Technical report and Resource reserves Joint Venture report" (hereinafter referred to as "Resource and reserves Joint Venture report") issued by Shango Solutions on Vaal, EB5, EB4-3 and VCR veins of OneGold Mine in South Africa (hereinafter referred to as "Resource and reserves Joint Venture report"), and joint venture report: Competent Person Report. It means that in accordance with the requirements of the 2016 version of the South African Code for reporting Exploration results, Mineral Resources and Mineral reserves, a report signed by a qualified person who has the definition of the specification is a joint venture report. Compared with the Minxcon 2015 CPR report, Shango's resource reserves renewal report comes from a three-dimensional geological model, adopts a more modern international calculation method of resource reserves and South Africa's SAMREC criteria, and puts forward comprehensive and pertinent opinions and suggestions on the conversion of resources to reserves, mining technology and mining rate, geological risk, priority of mining area, matters needing attention in the feasibility study stage, etc. It has guiding significance for the all-round development of the project.