China Polymetallic Mining : Announcements and Notices - Voluntary Announcement - Latest Progress of Aung Jiujia Mine

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China Polymetallic Mining Limited 中國多金屬礦業有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 2133)

VOLUNTARY ANNOUNCEMENT

LATEST PROGRESS OF AUNG JIUJIA MINE

This is a voluntary announcement made by China Polymetallic Mining Limited (the "Company", together with its subsidiaries, the "Group") to keep the shareholders and potential investors of the Company informed of the latest business development of the Group.

The board (the "Board") of directors (the "Directors") of the Company is pleased to announce that Aung Jiujia Mine of the Group, which is located at the lead-zinc rich region of Myanmar to which Harbor Star Mining Company Limited (an indirect non-wholly owned subsidiary of the Group) owns the mining rights, has made the following progress.

Increase in lead ore resources and metal volume

Since the acquisition of Aung Jiujia Mine in 2015, the Company has been consistently conducting production exploration works within the area of the mining rights of Aung Jiujia Mine to implement our production and increase our resources reserves as well as the resources categories.

As at the date of this announcement, after the first stage of exploration and verification, a summary of the estimated retained resources reserves of Aung Jiujia Mine within the area of 150 meters in-depth of the ore body in accordance with the Chinese Standard is set out as follows:

Resources Reserves Category	Mineral Resources of Lead (tonne)	Average Grade of Lead (%)
Measured resource	339,447	7.88
Indicated resource	125,775	7.80
Inferred resource	288,121	7.87
Total	753,343	7.87

The amount of lead metal in Aung Jiujia Mine has been increased by around 5% as compared with 721,000 tonnes of lead metal resources as stated in the geological report as at the acquisition of the project, and the resources reserves categories have been increased significantly with the measured resource increased 339,447 tonnes, and its proportion to the resources reserves has increased to around 45%. At the same time, the Group is also planning to gradually carry out in-depth exploration work in the mining area, and is continuing to explore other lead-zinc resources potential within the areas of the mining rights and its surrounding region, and is committed to increasing the existing resources reserves.

The mining and processing of Aung Jiujia Mine has entered into commercial production

Since 2018, the Group continued to carry out the open pit mining construction project in Aung Jiujia Mine and a multi-layered mining working platform of around 140 meters in length and around 25 meters in width has been built up and a medium-large sized open pit is gradually formed. In addition, the underground tunnel mining project with 70 meters depth below is also in process. As at 30 November 2018, the Group has completed a total of 176,822 tonnes of mining at the Aung Jiujia Mine, an increase of around 399% over the corresponding period of 2017.

The Group is committed to enhancing the mining and processing capacity of Aung Jiujia Mine. Since June of 2018, the construction of an additional 1,000 tpd processing plant has been successfully completed and the commercial production has come into operation. The processing capacity of Aung Jiujia Mine has been increased significantly, with a stable daily processing amount of 1,000 tonnes. As at 30 November 2018, the processing plant of this project has completed a total of 176,882 tonnes of mineral processing, an increase of around 391% over the corresponding period of 2017.

The Group is primarily engaged in mining, ore processing and the sale of lead-silver concentrates and zinc-silver concentrates. The Group will make constant effort to optimize the operation of Aung Jiujia Mine and further enhance the production efficiency in order to broaden and strengthen the Group's revenue base.

The Company will issue further announcement in relation to the Aung Jiujia Mine in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as and when appropriate (if applicable).

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

China Polymetallic Mining Limited

Lei Dejun

Executive Director

Hong Kong, 17 December 2018

As at the date of this announcement, the Board comprises Mr. Lei Dejun as executive director; Mr. Yin Bo, Mr. Chan Suk Ching and Mr. Zhang Yonghua as non-executive directors; and Mr. Ma Shirong, Mr. Chi Hongji and Mr. Dong Tao as independent non-executive directors.