HUNAN SILVER CO.,LTD.

Hunan Silver Co., Ltd. (002716), also known as Chenzhou City Jingui Silver Industry Co., Ltd., is a high-tech enterprise listed on the Main Board of the Shenzhen Stock Exchange since 2014. The company specializes in the synthetic recovery of various nonferrous metals, including silver, lead, gold, bismuth, antimony, zinc, copper, and indium, primarily from lead concentrates and waste materials generated during lead smelting. Hunan Silver is recognized for its advanced silver smelting and processing technologies, positioning itself as a significant player in China's silver production and export market. The company's main business lines focus on silver smelting and the comprehensive recovery of valuable metals, with major products including silver, electrolytic lead, and gold. Hunan Silver has developed a robust industrial chain that encompasses the entire process from resource recovery to deep processing of silver products. The company has also made strategic acquisitions of mining rights to secure high-quality upstream resources, enhancing its operational efficiency and reducing raw material procurement risks. Supported by local government policies, Hunan Silver aims to strengthen its market position and expand its production capacity, further solidifying its role as a leading integrated service provider in the global silver industry.

1. Leading technology of silver smelting and comprehensive recovery of resource a) Jingui Silver is one of the national new and high technology enterprises, and the research and development center of company is the state-level enterprise technology center. We have successfully developed 91 patented technologies centering on our main business, including 68 patents for invention, and the technology of non-ferrous metal smelting of arsenic solid waste management and cleaning utilization won the second prize of National Science and Technology Progress Award. 2. Acquisition of mines and aiming at the upstream resources a) Jingui Silver has purchased 66% of the stock rights of Tibet Jinhe Mining Co. Ltd and 100% of the stock rights of Tibet Junlong Mining Co. Ltd. After the acquisition, we are now aiming at mine resources of good quality and lowering the risk of raw material purchasing and then realizing the improvement of business performance and raising the whole value of our company. The mining industry will be a new profit growth of us. 3. Assistance of local government and increasing scale advantages a) Chenzhou is the Silver City of China with its pillar industry of nonferrous metals, and the local government introduces many supportive policies including industry guiding capital, preferential tax policies, land policies and many other policies of different aspects. The silver production of Jingui Silver broke through 1000 ton in 2016 and made us rank at the front row of national silver smelting enterprises. When the 2000t/a Cleaning and Expansion of High Purity Silver Project reaches the target output, our silver production are going to break through 2000 ton, being at the front row of the world. Jingui Silver will integrate the local silver resources of Chenzhou under the support of government, which will largely enhance the scale advantages of silver of our company. Also, the discourse power and influence of our company in the industry will be increased to a great extent.