Report of Pengxin’s fight againstCOVID

June 1, 2022

Atthe end of March, Shanghai adopted stringent lockdown regulations, whichseverely affected the company's operations and employees' lives. Every employeeis deeply concerned about the trends in epidemic situation, the company’soperation and their own health. The leaders of thecompany decided to let employees work from home in line with the government’sepidemic prevention and control policies, formulated homeworking plans, andmade related work arrangements so that homeworking would be more efficient andthe company’s homeworking policies would be more considerate.

Workingfrom home

Inline with the epidemic prevention and control policies, the company worked outhomeworking plans immediately, and adjusted the form of convening meeting andemployees’ reporting, to help all employees adapt to homeworking as soon aspossible. Besides, the company took a series of measures to ease employees'anxiety and promote the progress of all work.

Datashow that in April and May, more than 50 and 60 online company-level meetingswere held online respectively, and the number and duration of the meetings weretwice the average of previous months. All departments of the company cooperatedwith each other and completed the company's 2021 annual report (including theannual social responsibility report) and the disclosure of the corporateperformance in the first quarter of 2022. Meanwhile, the company’s overseasbusiness units made every effort to advance the progress of their projects. Inthe middle of May, the acquisition and handover of the Heaven-Sent SouthAfrican Gold Ore Dressing Plant (West Dressing Plant) was completed, which wasa key step in the implementation of the strategy of "opening a bigmine" of CAPM in South Africa.

2021Annual Report                                             2021Annual Social Responsibility Report                2022First Quarter Report

             Acquisitionand Handover of Heaven-Sent South Africa Gold Ore Dressing Plant (West DressingPlant)

Trainingand learning

Thecompany advocates continuous learning. Although the epidemic situation haschanged the form of working of employees, it has not blunted their passion forlearning.

InApril and May, the company enhanced training for employees who worked from homeduring this period. The company organized a series of online training on timemanagement, legal knowledge, confidentiality and basic knowledge of the miningindustry. To reduce employees’ anxiety caused by prolonged lockdown, thecompany invited experts from other companies to give a special lecture of“Mental Health during the Epidemic” to mitigate employees’ worry. More than 98%of the employees attended these lectures. These training sessions provided anopportunity for employees to communicate with each other, and was well received,which not only improved employees’ working skills and ability, but alsoenhanced their performance and resilience.

Consideratemeasures

Thecompany has taken considerate measures in this difficult times. The suddenlockdown during the epidemic has had a serious impact on the life of everyemployee. In the early stage of the lockdown, almost everyone was concernedabout their insufficient daily necessities. Concerned about every employee, thecompany contacted daily necessity suppliers and logistics service providersthrough various channels to provide urgently needed necessities for itsemployees. All the employees were deeply appreciative of the company’sconsiderate help during such a difficult period of time.

Inaddition to suffering life difficulties caused by insufficient material supply,some employees also suffered problems of nucleic acid test abnormalities,confirmed infections and forced quarantine. During this difficult period oftime, the company's senior managers and the human resources department and theadministration department kept abreast of employees’ health conditions, stayedin touch with the residents' committee of the employees, prepared luggage foremployees before their quarantine, cared for their physical and mental healthduring their quarantine, and sent greetings to employees' families, so thatemployees in quarantine or hospitals would feel the kindness of the company andovercome all difficulties more easily.

Duringthis period of time, the company was concerned about the single employeestrapped in Shanghai for various reasons, and provided them with urgently-needednecessities. In addition, the company was concerned for its retired oldleaders. The management made phone calls with the retired leaders to show theirsolicitude and greetings, and purchased supplies for them. The company alsokept in touch with its customers…

Emergencysupport

Thelockdown lasts longer than we expected, and the company suffered unprecedentedproblems in operation. The human resources department and the administrationdepartment made every effort to support the company’s normal operation throughall available channels.

Atthe end of March, a batch of emergency spare parts for the production line inCongo, which were originally planned to be consigned from Shanghai PudongAirport to the Democratic Republic of the Congo, were still kept in thecompany's warehouse because the company’s original plan was scuppered by thesudden lockdown. With the assistance of our brother units, the human resourcesadministration department, despite all difficulties, completed the packing ofmaterials, transportation, consignment at the airport and all other relatedwork, and successfully transported the goods to Congo, thus ensuring the normalimplementation of the project.

Toensure the orderly progress of all work, employees of various departments ofthe company put forward actual requirements for the materials, documents andtools stored in the company. According to the emergency plan of epidemicprevention and control, the operators on duty handled the related work onlinefor the employees working from home in compliance. Meanwhile, the company sentthe urgently needed materials to employees concerned through logistics andexpress delivery for 16 times to ensure the efficiency of their remote work.

InApril, an employee suffered power failure at home for more than 10 hours, andhis mobile phone was running short of power. The company learned about theemployee's problem from the chat information in the company's working groupchat. To ensure the employee’s communication with the company and hisattendance at the company meeting the next day, the company immediatelycontacted one of his colleagues who lived nearby, and sent two power banks tothe employee through express delivery at 2 a.m., so that the employee would notmiss the company meeting the next day.

Duringthe lockdown period, the company actively contacted the related aviation departmentand embassies, and coordinated flight dispatch and visa-related work to meetemployees’ needs for working on-site overseas. In the first ten days of May,the employees’ trip to Congo was severely affected by the epidemic and therewould be a lack of personnel for the key posts of the Congo project. Throughcommunication with related communities, hospitals and aviation departments, thecompany completed the necessary nucleic acid testing and yellow fevervaccination on time and in compliance, and confirmed the details oftransportation on a strange land, so that the employees concerned succeeded inboarding the flight from Shanghai Pudong Airport to Congo to ensure the normalprogress of the company’s production in Congo.

Thecompany also paid great attention to the epidemic situation in its overseasbusiness units. To handle the possible 5th wave of epidemic outbreak in Congo,the headquarters of the company actively contacted personnel in Congo to keepabreast of employees’ needs for epidemic prevention and control materialsthere. At present, the company is purchasing and transporting epidemicprevention and control materials and drugs according to the procurement list.

Inmiddle and late May, the company needed to complete an important business ontime. However, due to the lockdown in Shanghai, it was extremely difficult tocomplete the business task. The company sought help from relevant governmentdepartments and contacted the residents' committees of relevant communities,banks and hotels, and completed license collection, document transmission andtrans-district transportation. Thus, the nearly impossible business task wascompleted on time.