Increase the layout of gold mining ADD NEW ENERGY (02623) plans to issue approximately 46.78 million shares of consideration shares to acquire 14.46% equity of HRZ. Resumption of trading in the afternoon.

ADD NEW ENERGY (02623) announced that on March 30, 2026, the company intends to acquire 37.7 million shares of HRZ from Golden Crane and Ocean Wing (representing approximately 14.46% of the issued share capital of HRZ as at the announcement date) for a total consideration of AUD 40.716 million. The acquisition will be settled by the company issuing and distributing approximately 46.78 million shares at an issue price of HKD 4.70 per share to the vendors. The company has applied to the Stock Exchange for the resumption of trading in the shares from 1:00 p.m. on March 30, 2026. According to information released by HRZ, as of February 2026, the estimated mineral resource owned by HRZ is approximately 34.32 million tons, with an average gold content of 1.7 grams per ton, totaling around 1.88 million ounces of gold. This is supported by its key assets located in Boorara and Burbanks in Western Australia. The Burbanks project is a significant gold asset with an estimated gold resource of approximately 6.05 million tons, with an average grade of 2.4 grams per ton, totaling around 465,500 ounces of gold, including: (1) an underground resource of approximately 1.19 million tons, with a grade of 4.40 grams per ton (i.e. 167,920 ounces); and (2) an open-pit resource of approximately 4.86 million tons, with a grade of 1.90 grams per ton (i.e. 297,650 ounces). Due to its high gold grade and the majority of resources being surface mineable, as well as the higher gold concentration in the deeper underground part compared to the regional average, the project has significant potential. HRZ has identified significant exploration potential in the Burbanks project, as only a limited area has been tested and exploration work has shown high-grade gold mineralization, indicating a large exploration growth potential and the potential to extend the mine life beyond current forecasts. In addition, HRZ estimates the ore reserve to be approximately 4.33 million tons, with an average gold content of 1.54 grams per ton, totaling around 214,000 ounces of gold. Considering HRZ's substantial mineral resources and reserves, as well as its plan to transform into a vertically integrated center for gold production in Western Australia to enter the gold industry, and the comprehensive pre-tax and after-tax losses in the past two financial years mainly attributed to HRZ's high-intensity "construction" phase in the past few years (involving significant exploration costs and the merger and integration of several mineral assets in the region), combined with its ability to generate significant cash flow (with the gold sales of the key asset Boorara project contributing revenue of approximately AUD 591 million for the six months ended December 31, 2025), and HRZ has recently further reduced financial risks by selling non-core assets to achieve a debt-free financial position, the Board believes that the strategic investment in HRZ will bring long-term profitability to the group. The Board has decided to increase its equity in HRZ through the acquisition to establish a solid foundation for the group's mining investment portfolio. The Board will continue to explore other investment and/or acquisition opportunities that could enhance and support the group's diversification plans, with the aim of enhancing shareholder value.