CHI KINGSTONE (01380) plans to expand the production capacity of the Zhangjiaba mine.

CHI KINGSTONE (01380) announces that in relation to the Company's interim report for the six months ended June 30, 2026, the Company disclosed in that report that limestone mining at the Zhangjiaba Mine (a beige marble mine located in Zhenjiang Village, Xiangshui Town, Jiangyou City, Sichuan Province, China) had been temporarily deferred pending renewal of the mining licence. Following the successful completion of the renewal of the mining licence for the Zhangjiaba Mine on August 10, 2026, the Group has been actively resuming mining operations and advancing its strategic plan to expand the production capacity of the Zhangjiaba Mine. Following an on-site verification by the Jiangyou City Emergency Management Bureau of Sichuan Province, approval was granted on September 9, 2026 for the orderly resumption of production at designated operating areas within the currently approved elevation range of the Zhangjiaba Mine. Under the relevant regulatory requirements, the Group is permitted to conduct mining operations at such approved elevation, but may not extend mining operations to deeper areas of the Zhangjiaba Mine until the required safety facilities have been completed and approved, and the corresponding new safety production licence has been obtained. As mining operations at the currently approved elevation are about to reach the limits stipulated in the existing safety facility design, further mining operations at the Zhangjiaba Mine remain suspended pending completion of the necessary safety facility upgrades and regulatory approvals. To facilitate the continued development of resources in deeper areas of the Zhangjiaba Mine, the Group is actively advancing its capacity expansion plan. The Group currently holds a valid safety production licence for the Zhangjiaba Mine, valid until March 26, 2027, with an approved capacity of 750,000 tonnes per year. To align with the Group's long-term development strategy, the Group has resolved to undertake an expansion project to increase the annual production capacity of the Zhangjiaba Mine from 750,000 tonnes to 3.5 million tonnes, subject to obtaining the relevant regulatory approvals. As this strategic expansion involves a substantial increase in production capacity and the extension of mining operations to deeper elevations, it constitutes a major upgrade to the mine's safety facilities and operating scale. Accordingly, the Group is proceeding to apply for an updated safety facility design approval and the corresponding new safety production licence in respect of the proposed capacity expansion. To facilitate this expansion, the Group has commenced relevant preliminary work with the Sichuan Provincial Emergency Management Department, and the relevant application was submitted on October 30, 2026. The Group currently expects to obtain approval of the updated safety facility design by the end of January 2027. Upon obtaining such design approval, the Group will commence construction of the 3.5 million tonne expansion project, with an expected construction period of approximately 3 to 4 months. The Group aims to complete the relevant acceptance procedures and obtain the new safety production licence for the expanded capacity by June 2027, subject to the relevant regulatory approval procedures and construction progress. During this period, while the application, construction and licensing procedures are underway, the Group will manage the operational transition in an orderly manner. The Board considers that this transition period is a necessary and prudent step that will help the Group achieve its long-term strategic goal of further developing the Zhangjiaba Mine. The Board believes that implementation of the capacity expansion plan will be beneficial to the long-term development of the Zhangjiaba Mine. Upon completion of the relevant regulatory procedures and construction works, the expanded production scale is expected to enhance the Group's operating capability, economies of scale and overall market competitiveness, thereby creating sustainable long-term value for all shareholders.