Responding to the call of the state and the development of the times. In order to actively support and participate in the major layout of national new energy resources industry development, Shagang Group has recently completed strategic investment in Zangge Mining (000408) and Jiangsu Zangqing New energy Industry Development Fund partnership (limited partnership) "Zangqing Fund".The member enterprises of the group have become strategic shareholders of Zangge Mining and important partners of Zangqing Fund, which is an important exploration of Shagang Group to promote the development of emerging industries with investment based on steel and diversified development.

At present, the new energy industry represented by lithium batteries is experiencing explosive growth, and the continuous rise in sales of new energy vehicles has brought about a huge incremental demand for upstream lithium resources. Under the background of safe and controllable national strategic resources, the enterprises with high quality salt lake lithium resources in Qinghai and Tibet ushered in historic development opportunities.

The Zangqing Fund strategically invested by Shagang Group focuses on the acquisition and development of high-quality salt lake lithium resources worldwide. A few days ago, Zangqing Fund completed its controlling acquisition of The Mamicuo Salt Lake in Tibet. Mamicuo Salt Lake covers an area of 115 square kilometers, with a reserve of 2.5 million tons of lithium chloride, it’s a good resource endowment of lithium ion concentration more than 800mg/ L and low magnesium-lithium ratio, low development cost, fast production capacity release and large space. It is a high-quality lithium mineral resource with scarcity. At present, the Znagqing Fund's first phase project of annual production of 50,000 tons of lithium carbonate in Mamicuo Salt Lake, Tibet is in full progress.

Zangge Mining is a leading producer of extracting lithium from salt lake in China. It has a first-class technology development team and a mature plateau mining operation team. It has mastered a variety of lithium from salt lake and has the industrialization ability to directly extract battery grade lithium carbonate from ultra-low concentration brine. At present, Zangge mining has an annual output of 10,000 tons of lithium carbonate production line. Through investment, Zangge Mining launched the Establishment of The Zangqing Fund, which has sustainable development of high-quality salt lake lithium resource reserves. With the advantages of resources, technology, team and capital in the field of lithium extraction in salt lake, Zangge Mining is marching towards the world's leading supplier of lithium resources.

Zangge Mining is also one of the major potash fertilizer producers in China, with scarce salt lake potash resources in China and an annual output of more than 1 million tons of potassium chloride. Its cost curve is the lowest among global potash fertilizer producers, with high entry threshold and significant competitive advantages. In addition, Xizang Julong Copper Co., LTD., in which the company shares shares, has completed the first-phase project and put into production, with an estimated output of 120,000-130,000 tons in 2022.

Shagang Group, as an important shareholder of Zangge Mining, will promote Zangge Mining to continuously optimize its corporate governance structure, strengthen the construction of compliance system, improve the efficiency of operation and management, and promote the company to share operating results with shareholders, create long-term value for shareholders, achieve sustainable development of the company, and make contributions to the country and society.