PERSISTENCE RES(02489): Production at the Songjiagou underground mine has been temporarily suspended.

Persistence RES (02489) announced that the underground mining safety production permit of the Songjiagou North Mine in Yantai Zhongjia Mining Co., Ltd., a subsidiary of the group, expired on September 11, 2025. Yantai Zhongjia had already submitted relevant documents to the Shandong Provincial Emergency Management Department in August 2025 to apply for an extension of the Songjiagou underground mining safety production permit. Due to the fact that the Emergency Department may conduct surprise safety inspections of the mining area during the application process, Yantai Zhongjia has voluntarily decided to temporarily stop the main production activities at the Songjiagou underground mine from September 1, 2025, to allow the Emergency Department to conduct a comprehensive investigation of hidden dangers and to ensure better compliance with any safety improvement work proposed by the Emergency Department, in order to facilitate the renewal of the Songjiagou underground mining safety production permit. As of the date of this announcement, Yantai Zhongjia has not yet obtained the new safety production permit for the Songjiagou underground mine. Under normal circumstances, if all relevant documents are submitted on time, the Emergency Department will issue a new Songjiagou underground mining safety production permit to Yantai Zhongjia before the expiration of the current permit. However, due to the increased intensity of safety inspections carried out this year, the management of Yantai Zhongjia estimates that the Emergency Department will issue the new Songjiagou underground mining safety production permit to them by the end of October 2025. Currently, Yantai Zhongjia will continue to process the mined ore from the Songjiagou underground mine, and the operation of the Songjiagou open-pit mine will continue as usual, unaffected by the application for the new underground mining safety production permit for the Songjiagou mine.