Luan Environmental Energy: Won the coal exploration rights for the Sucun block in Xiangyuan County, Shanxi Province, for 8.222 billion RMB

On March 23, Shanxi Lu’an Environmental Energy Development Co., Ltd. (hereinafter referred to as the “Company”) announced that the Company participated in the public tender for the coal exploration right in the Su Village block of the Xiangyuan County area of Shanxi Province, and won the coal exploration right for RMB 8.222 billion.

The announcement mentioned that the Company successfully secured the coal exploration right for the Su Village block in Xiangyuan County, Shanxi Province. The block is adjacent to the Company’s headquarters location, and is close to the existing mining area of the Wuyang Coal Mine, with clear locational advantages. In the future, after the block is converted into a mining right, it can rely on the existing production system of the Wuyang Coal Mine to carry out extended and continuous mining. The block has strong resource endowments and favorable mining conditions, making it a high-quality continuation resource that the Company has long prioritized in its efforts to obtain. The acquisition of the exploration right is closely aligned with the direction of the Company’s primary business responsibilities and core business development, and is consistent with the Company’s long-term resource strategy. It will effectively increase the Company’s coal resource reserves, further improve the structure of its resource reserve portfolio, and continuously enhance the Company’s core assurance capabilities and overall competitive advantages. It is of great significance for promoting the Company’s high-quality development and achieving long-term stable and sustainable development. The Company’s management’s participation in the bidding for resources this time has obtained authorization from the Company’s Eighth Session of the Board of Directors at the 10th meeting. The scope of authority for the bidding and the amount of the bidding result are within the authorization granted by the Board of Directors. This bidding will not have an adverse impact on the Company’s financial condition, operating status, or existing businesses.

(Corporate announcement)