Extension to Loan Agreement

Extension to Loan Agreement

China Nonferrous Gold Limited

China Nonferrous Gold Limited

(''CNG '' or the '' Company '' )

Extension to Loan Agreement

China Nonferrous Gold Limited 中 (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, is pleased to announce that the Company has extended the repayment period for the loans that are in place with CNMC Trade Company Limited (“CNMC Trade”) and CNMC International Capitals Company Limited (“CNMC International”). The loans in place with CNMC Trade and CNMC International, are USD $146.5 million and USD $70 million respectively.

The Company has total debt facilities (including banking facilities) of c. US$328m at this current time (unaudited).

The current loans provided by CNMC Trade, which were detailed in the announcement dated 15 July 2020, are set out below, along with the new repayment date. The Company have also agreed a lower interest than under the previous arrangement. No other changes have been made to the loan agreements:

• A loan of US$126.5m. This was due to be repaid on 20 December 2020 but the Company have signed an extension agreement pursuant to which the repayment date for this loan will be extended to 20 December 2022. Annual interest is reduced to 3.25% over 3 month LIBOR (it was previously 3.70% over 6 month LIBOR). Interest will be payable on 31 March, 30 June, 30 September and 31 December each year;
• A loan of US$20m. This was due to be repaid on 26 November 2020. It had been informally extended on a month by month basis. The Company have now signed an extension agreement pursuant to which the repayment date for this loan will be extended to 26 November 2022. Annual interest is reduced to 3.25% over 3 month LIBOR (it was previously 3.70% over 6 month LIBOR ). Interest will be payable on 31 March, 30 June, 30 September and 31 December each year;

The current loan provided by CNMC International, which was detailed in the announcement dated 2 March 2021, is set out below, along with the new repayment date and lower interest than previous. No other changes have been made to the loan agreements:

• A loan of US$70m. This was due to be repaid on 8 December 2020 but the Company have signed an extension agreement pursuant to which the repayment date for this loan will be extended to 8 December 2022. Annual interest is reduced to 3.25% over 3 month LIBOR (it was previously 5.80%). Interest will be payable on 31 March, 30 June, 30 September and 31 December each year;

CNMC Trade and CNMC International are wholly owned subsidiaries of China Nonferrous Metals Mining (Group)Co., Ltd (“CNMC Group”) which is also the parent company of China Nonferrous Metals Int’l Mining Co.,Ltd(“CNMIM”), a substantial shareholder of the Company.

The Company continues to engage with commercial banking partners to explore a wider refinancing of the business and will update shareholders in due course.

Related Party Transaction

As CNMC Trade and CNMC International are wholly owned subsidiaries of CNMC Group, which in turn is the parent company of China Nonferrous Metals Int’l Mining Co.,Ltd (“CNMIM”), a substantial shareholder of the Company the extension of the CNMC Trade and CNMC International Loans are deemed to be related party transactions pursuant to AIM Rule 13 of the AIM Rules for Companies. The Company’s board of directors (excluding Yu Lixian, Zhang Hui and Feng Delin, who are appointees of CNMIM) considers, having consulted with CNG’s Nominated Adviser, WH Ireland Limited, that the terms of the extension of the Loans are fair and reasonable insofar as the shareholders of CNG are concerned.

For further information please visit the Company’s website (www.cnfgold.com) or contact:

China Nonferrous Gold Limited

Zhang Hui, Managing Director

Tel: [phone]

WH Ireland Limited (NOMAD & Broker)

Katy Mitchell, James Sinclair-Ford

Tel: [phone]

Blytheweigh (PR)

Tim Blythe

Tel: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

Project Summary

The Pakrut gold project, of which CNG has 100 per cent ownership, is situated in Tajikistan approximately 120 km northeast of the capital city Dushanbe. Pakrut is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and Western China, and which hosts a number of multi-million ounce gold deposits.

CNG is currently continued full production despite COVID-19, and the operation of Pakrut gold mine is remaining stable overall.

About Tajikistan

Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States and the Shanghai Cooperation Organisation. Tajikistan hosts numerous operating precious metal mines as well as the largest aluminium smelter in Central Asia. CNG's management team has extensive experience in the mining industry in Tajikistan.

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