The New Year’s Message from the Chairman

As the seasons change and a new chapter unfolds, we stand at this beautiful moment of bidding farewell to the old and welcoming the new. On behalf of the management of Hainan Mining, I extend our highest regards and warmest greetings to all our hardworking employees around the globe, who have tirelessly strived over the past year. I also convey our sincere gratitude and best wishes to the governments at all levels, shareholders, and friends from all walks of life, who have long been concerned about and have supported the development of Hainan Mining.

Looking back on the past year, in the face of an external environment filled with uncertainties, Hainan Mining maintained strategic composure, focused on its core resource business, and achieved stable operating results while completing the transformation and upgrading of its industrial layout.

This year, the iron ore and oil and gas businesses have advanced in tandem, laying a solid foundation for the company. The production of Shilu Iron Mine has remained stable, and the magnetization roasting technical transformation project has been basically completed, with the intelligent mine construction continuously advancing. The oil and gas production of ROC has maintained steady growth, with the daily output of the Bajiaochang Field reaching a peak of over 2.6 million cubic meters, and the development project of the West Area of the Weizhou 10-3 West Oilfield has fully entered the construction and implementation phase.

This year, key projects in the new energy sector have accelerated and are about to become new growth points for the company's revenue. The lithium hydroxide project in Yangpu, Hainan, has completed all construction and equipment installation and is now in the "final sprint" stage before production. The Bougouni Lithium Mine project in Mali, Africa, not only overfulfilled its annual mining and stripping plan during the year of construction but also has seen its concentrator plant enter the debugging phase.

This year, we have accelerated our "going global" pace and continuously consolidated our global industrial layout of "minerals + energy." In September, ROC made a cash acquisition offer to all shareholders of Tethys Oil AB, thereby acquiring the company's oil field interests in four blocks in the Sultanate of Oman. The settlement of the offer shares has now been completed. In December, the company plans to acquire two in-production zircon and titanium mines in Mozambique through the issuance of shares and cash payment, further enriching the types of our strategic metal mines.

This year, the company has continuously improved its governance level, strengthened shareholder returns, and remained committed to achieving sustainable high-quality development. We strictly adhere to compliance standards, continuously improve corporate governance, enhance the quality of information disclosure, and place a high value on communication with investors and shareholder returns. In 2024, a total of 556 million CNY was allocated to share repurchase and cash dividends. For the first time since its listing, the company has received an A rating for information disclosure from the Shanghai Stock Exchange and has won the "Best Practice Case for Sustainable Development of Listed Companies" from the China Listed Companies Association for two consecutive years.

Facing the year 2025, which is full of both challenges and opportunities, Hainan Mining will focus on strategic resources, promote international layout, and seize development opportunities and meet risks and challenges based on a stable business strategy and lean operation management.

In terms of industrial operations, the iron ore business will focus on promoting the magnetization roasting technical transformation project and the construction of intelligent mines to enhance core competitiveness. The oil and gas business will continue to increase reserves and production through technical means, striving to reach new highs in oil and gas production. The new energy business will make every effort to promote the early production of projects and contribute to economic benefits.

In terms of industrial investment, while promoting the implementation of the zircon and titanium mine merger and acquisition project in Mozambique, the company will continue to pay attention to emerging market industry opportunities and energy and mineral targets worldwide, in line with the national development strategy. It will implement investment and mergers and acquisitions at the right time to expand the layout of strategic resources.

Looking back at the road we have travelled, our steps have been resounding; looking at the present, the journey ahead is as splendid as a rainbow!

The year 2025 is an important year for the Hainan Free Trade Port to achieve closed customs operations and a key year for the implementation of the company's "14th Five-Year" strategic plan. As a listed company rooted in Hainan, the company will seize the opportunities of the times, gather momentum, strive to be enterprising, and build a better future with high-quality development, making due contributions to writing the Hainan chapter of China's modernization.

Mingdong Liu, Chairman and Party Secretary of Hainan Mining

December 31, 2024