Ganfeng Lithium Industry: subsidiary Ganfeng International has completed the delivery of rights and interests of SRN Company.

On the evening of November 26th, Ganfeng Lithium (002460) announced that recently, the company has received notice from its wholly-owned subsidiary Ganfeng International Co., Ltd. (hereinafter referred to as "Ganfeng International") that Ganfeng International has completed the consideration payment and equity delivery of SRN's deliverable bonds. According to the agreement, the company has the right to convert its deliverable equity into a 25 per cent stake in FE Resources Pte.Ltd, a wholly owned subsidiary of SRN holding laterite nickel assets, six months after the investment takes effect.

It is reported that on May 28th, Ganfeng Lithium Industry agreed to invest US $15 million of its own funds in Singapore-listed Silkroad Nickel Ltd., (hereinafter referred to as "SRN") listed company-level negotiable bonds at an interest rate of 7% for a term of 3 years. The deliverable debt is FE Resources Pte., a wholly owned subsidiary of SRN holding laterite nickel assets. Ltd (hereinafter referred to as "FE Company") 100% equity interest as a guarantee. Six months after the investment takes effect, the company has the right to convert its 100% deliverable equity into a 25% stake in FE. At the same time of the conversion, the company has the right to increase its stake in FE to 50 per cent at an additional consideration of $15 million. If exercised, Ganfeng will acquire a 50 per cent stake in FE for a cumulative consideration of $30 million.

In addition, at the time of debt-to-equity swap, Ganfeng International has the option to sign a 10-year underwriting agreement with FE, which gives the company the right to underwrite 1 million tons of raw nickel ore per year; the company also has the option to obtain an additional 500000 tons underwriting right and to extend the agreement to 15 years.

The data show that SRN is a company registered under the laws of Singapore, and its wholly-owned subsidiary FE holds 100% of the assets of the laterite nickel project located in Indonesia, hereinafter referred to as "TAS". According to the due diligence report issued by SMG Consultants for the project, the laterite nickel ore resources of the laterite nickel project are about 146.6 million wet metric tons, of which about 56.8 million wet metric tons are defined as indicator resources. About 89.7 million wet metric tons are defined as inferred resources. Of the total resources, about 44.5 million wet metric tons are defined as possible ore reserves.

Ganfeng Lithium said that this investment in SRN negotiable bonds is conducive to the company's business expansion and enhance its core competitiveness, which is in line with the company's upstream and downstream integration and the development strategy of the new energy automobile industry.