China Nonferrous Gold Limited (AIM:CNG), the gold producer with the operational Pakrut Gold Project (‘the Pakrut Project’) in the Republic of Tajikistan, today announces its interim results for the six-month period ended 30 September 2022

China Nonferrous Gold Limited 中国有色黄金有限公司

('CNG' or the 'Company')

Interim Results for the Six-Month Period Ended 30 June 2022

China Nonferrous Gold Limited (AIM:CNG), the gold producer with the operational Pakrut Gold Project ('the Pakrut Project') in the Republic of Tajikistan, today announces its interim results for the six-month period ended 30 June 2022.

The results below are available on the Company's website at www.cnfgold.com.

Highlights

• From January to June 2022, a total of 302,590 tons of ore was extracted from the Pakrut gold mine; 274,453 tons of ore was processed at a grade of 2.58 g/t; and 16,330 oz. gold ingots were poured.
• From January to June 2022, the Group sold 16,484 oz. of gold ingots, achieving sales revenue of US$30.71 million.

For further information please visit the Company's website (www.cnfgold.com) or contact:

China Nonferrous Gold Limited

Zhang Hui, Managing Director

Tel: [phone]

WH Ireland Limited (NOMAD & Broker)

Katy Mitchell, Andrew de Andrade

Tel: [phone]

BlytheRay (PR)

Tim Blythe, Megan Ray

Tel: [phone]

Project Summary

The Pakrut Gold Project, of which CNG has 100 per cent ownership, is situated in Tajikistan approximately 120km northeast of the capital city Dushanbe. Pakrut is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and Western China, and which hosts a number of multi-million ounce gold

deposits.

CNG entered steady state production from January 2019.

About Tajikistan

Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States and the Shanghai Cooperation Organization. Tajikistan hosts numerous operating precious metal mines as well as the largest aluminum smelter in Central Asia. CNG's management team has extensive experience in the mining industry in Tajikistan.

CEO's Statement

As CEO of the board, it gives me great pleasure to present the CEO's statement of the Interim Results for the Six-Month Period Ended 30 June 2022. Despite the global pandemic, Pakrut took pandemic prevention and protection measures, and continued producing during the first half of the year, making the group an important gold producer in Tajikistan.

From January to June 2022, a total of 302,590 tons of ore was extracted from the Pakrut gold mine. During that same six month period:

• 274,453 tons of ore was processed;
• the average grade of the raw ore was 2.58 g/t;
• the recovery rate of processing was 92.08%;
• 9,288.31 tons of concentrate was produced from the processing plant; and
• 9,104.48 tons of concentrate was treated in the smelter (the comprehensive recovery rate of smelting was 92.58%) and 16,330 oz. gold ingots were poured.

From January to June 2022, the Group sold 16,484 oz. (30 June 2021:17,288 oz.) of gold ingots, achieving sales revenue of US$30.71million (unaudited) (30 June 2021:$30.87million), with an average sales price of US$1,863.02 / oz.(30 June 2021:$1,785.62 / oz.)

Financial Results

The Company continued its production and operation work during the first six months of 2022. Administration expenditure was US$10,032,340 (30 June 2021: US$9,055,372). The largest increases are bank fees and tax being mainly due to the increase of interest expense and the increase of the Tajikistan imposed Resource Tax due to the increase of ore grade from 91.01% to 92.08%. The operating profit for the period under review was US$4,910,000

(30 June 2021: US$4,848,000) and the loss before tax from the period was US$946,000 (30 June 2021: US$644,000). Cash and cash equivalents at the end of the period amounted to US$11,791,206 (30 June 2021: US$2,140,259). As at 30 June 2022, the Group had net liabilities of $31,304,559 (30 June 2021: net liabilities $21,518,316).

Given the limited production and cash balances the Group continues to be reliant on support from its major shareholder, CNMC, and its associates. In January 2022, the Group executed a loan agreement with CNMC Trade Company Limited ("CNMC Trade") for a loan of up to USD $34.55 million (the"CNMC Loan"). As announced in January 2022, this CNMC Loan has been used to repay the existing China CITIC Bank Corporation Limited ("CITIC") bank facilities of USD $34.55m (being USD20m advanced in January 2021 ("First Loan") and USD14.55m advanced in March 2021 ("Second Loan").

In addition, on 24 January 2022, the Group executed a foreign currency working capital loan agreement with China CITIC Bank Corporation Limited (Zhuhai Branch) ("CITIC") for a loan facility of up to US$20 million (the "new CITIC Loan"), with an annual interest at 3.00% over 6 month LIBOR, which was used to repay US$20m of the CNMC Loan.

The Company currently has total debt facilities (including banking facilities), before interest, of c.US$319 million.

Additional Tajik Tax

During August 2022, the Tajik Revenue Authority conducted a routine tax inspection and concluded that the Tajik subsidiary (Pakrut LLC) had generated a taxable profit of USD $4 million for the financial year ended 31 December 2021 (this was higher than the taxable profit originally recognized by the Company for its subsidiary). Therefore, pursuant to Tajik tax regulations, an associated tax charge of approximately 12% of the total net profit was due. This was USD$500,000, which had not been previously provided for by the Company. This has been provided for in these interim financial statements.

Outlook

The Company remains confident in its ability to achieve the internal production target of 700,000 tons of ore set at the beginning of this year. This is considered an achievable target.

The Company continues to seek to improve its production capacity through technological innovation. Whilst improving production, the Company is also focusing on perfecting and improving the smelting process by reducing production costs, increasing recovery rates and improving competitiveness.

Whilst the Company has taken big strides in the production and operation of the Pakrut gold mine and achieved much, there are still challenges to overcome and targets to meet, such as: further high ore grade, improvement of internal controls and improved warehouse management. And due to the insufficient capacity of the flotation tailings pond, compared with the same period in 2021, the progress of production tasks lags behind to a certain extent. In the second half of the year, the production and engineering construction organization are under great pressure and the task is heavy, all of which we will look to address in the coming months.

Uncertainty created by the COVID-19 pandemic with regards to future production and operations still exists in Tajikistan, and the long term effects are difficult to predict and estimate but there does appear to be indications that the global community is bringing the situation under control, and the epidemic situation in Tajik is stabilizing. The Company will continue to monitor the situation, conduct regular nucleic acid inspection for all staff to ensure their

health and make every effort to meet pandemic prevention and control requirements, as well as stabilizing the production and operation of Pakrut gold mine.

I would like to take this opportunity to thank all our employees, management and advisers for their continued hard work in 2022. I would also like to extend my thanks to all our stakeholders for their continued backing over the years. I very much look forward to updating our shareholders further on the mine developments, production levels, new strategy and direction.

Zhang Hui

CEO

29 September 2022

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2022

	Unaudited	Unaudited	Audited
	Six months	Six months	Year ended 31
	ended 30 June	ended 30 June	December
	2022	2021	2021
Note	US$'000	US$'000	US$'000
Revenue	30,710	30,865	71,992
Cost of sales	(15,469)	(14,595)	(37,256)
Gross profit	15,241	16,270	34,736

Other Operating income	8	-	-
Administrative and other expenses	(10,032)	(9,055)	(19,879)
Loss on foreign exchange	(280)	(143)	(1,855)
Other operating expenses	(27)	(2,224)	(2,416)

Operating profit	4,910	4,848	10,585
Interest income	-	6	6
Finance costs	(5,856)	(5,498)	(10,826)
Loss before Tax	(946)	(644)	(235)
Income tax	(3,971)	(731)	(6,012)
Loss for the period attributable to owners	(4,917)	(1,375)	(6,247)
of the Company
Other comprehensive income	-	-	-
Total comprehensive income for the period
attributable to owners of the Company	(4,917)	(1,375)	(6,247)

Earnings per Share

Basic and diluted (cents)	3	(1.29)	(0.35)	(1.63)

All of the activities of the Group are classified as continuing.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2022

Unaudited	Unaudited	Audited
30 June 2022	30 June 2021	31 December
US$'000	US$'000	2021US$'000

Non-Current Assets

Property, plant and equipment

4

359,111

368,036

364,337