The board of directors of China Rare Earth Holdings Limited announced that Mr. Wang Guozhen (Mr. Wang), an independent non-executive Director, the chairman of the audit committee of the Board, a member of the remuneration committee of the Board, and a member of the nomination committee of the Board, passed away on 4 January 2021. Mr. Wang had been an independent non-executive Director since 2012. Following the passing away of Mr. Wang, there is a vacancy in the position of the chairman of the Audit Committee, and the composition of the Board comprises four executive Directors and two independent non-executive Directors and hence the number of independent non-executive Directors and members of Audit Committee has fallen below the minimum number required under Rules 3.10(1) and 3.21 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").