The board of directors of China Polymetallic Mining Limited announced to shareholders and potential investors of the Company that, as disclosed in the 2015 interim report of the company, for the six months ended 30 June 2015, the total losses attributable to the shareholders of the Company were RMB 6.5 million. As the result of the continued depressed market condition including metal pricing in the second half of 2015 as per preliminary review of the unaudited management accounts of the Company, the total loss of the Group for the year ending 31 December 2015 is estimated to be approximately not greater than RMB 50 million, before consideration of the need for impairment. By comparison, the total profits of the Group for the same period in 2014 were approximately RMB 11.8 million.

The principal reasons for the unfavorable year-to-year downturn are as follows: the market conditions, including prices of products, declined sharply due to global depression of the downstream market throughout 2015; finance costs have increased significantly; and main mine, Shizishan Mine, had reduced its output in 2015 and halted production completely due to earthquakes, and flooding which breached the mine 1150 middle section. This resulted in extensive safety inspections conducted by the Company and the local authorities, which caused severe disruptions to the production. The Shizishan Mine is expected to resume production by the end of December 2015.

The management has been making considerable efforts to reduce costs and improve production efficiency so as to maintain its competitiveness in the nonferrous metals of lead and zinc mining sector. In parallel, the Group is also actively seeking acquisition opportunities of high quality resource projects and securing bank financing facilities to counter the unfavourable factors in the market.