At 10:00am on May 16^th (local time of South Africa), the handover ceremonywas held grandly in local place for CAPM Tau Mine Proprietary Limited(hereinafter referred to as “CAPM-TM”), a South African subsidiary owned by Pengxin International Mining Co.,Ltd. (hereinafter as “Pengxin Mining”) to acquire the Gold Plant located inOrkney gold mining area (hereinafter as “West Gold Plant”) of West Gold PlantProprietary Limited under Heaven-Sent. Mr. Xiao Bingbing, Chinese generalmanager of CAPM and representative of CAPM-TM, received the share certificateforwarded by Mr. Philip, the representative of Heaven-Sent Gold Group Company Limited. (hereinafter as “Heaven-Sent”) , original holdingcompany of West Gold Plant, and signed the confirmation of share certificatehandover.  It indicates that CAPM-TM hasformally controlled and owned West Gold Plant. It signifies that Pengxin Mininghas taken a key step for implementing its strategy of “large-scale exploitationof large mines” on Orkney gold mine of South Africa.

At beginning of handover ceremony, Mr. Xiao Bingbing,Chinese general manager of South Africa CAPM, first welcomed and thanked allthe guests and expressed his appreciation to the win-win results of PengxinMining and Heaven-Sent about merger and acquisition of West Gold Plant. Mr. Xiao Bingbingsaid that as for Pengxin Mining, acquisition of West Gold Plant was of greatstrategic significance to CAPM-TM and would greatly speed up its implementationof strategy in precious metal industry. It will help the company to accelerateexploitation of Orkney gold mine on a large scale, increase the company’sgold resource reserves, speed up the company’s gold production capacity andenhance its comprehensive competitiveness. Through merger and acquisition ofWest Gold Plant, CAPM-TM will open up the gold industry chain of ‘mining-oredressing-smelting’ and provide sufficient ore processing capacity for the nextlarge-scale exploitation of No.6 pit and No.7 pit of Orkney gold mine andsubsequent exploitation of Tau Lekoa Mine (including Weldvredorm and Goedgenoegmines) that was previously announced to acquire on February 16.

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In thefuture, Pengxin Mining will continue to implement the principle of “UnifiedPlanning, Large-scale Exploitation of Large Mines, Implementing Step by Stepand Moving Forward Stably” .  As acompany with world-class scale gold mines, CAPM strives to achieve thepreliminary strategic goal of one ton gold production in 2022, three tons ofgold production in 2023 and ten tons of gold in 2024.

ChenGuohua, deputy general manager of Pengxin Mining, Liu Yuxiang, general managerof planning and operation department, Xiao Bingbing, general manager of SouthAfrica CAPM Company, Ye Jianyun, deputy general manager of CAPM, Wang Anfu,director of CAPM-TM, management team of West Gold Plant and the representativesof Heaven-Sent have attended the handover ceremony of West Gold Plant.