TONGGUAN GOLD (ASX: 00340) has announced that its board of directors resolved on June 16, 2026, to implement a share repurchase plan. Subject to market conditions and in accordance with the share buyback mandate approved by shareholders on May 29, 2026, the company will from time to time utilize a maximum total amount not exceeding HK$300 million to repurchase its own shares on the open market.

Under the approved buyback mandate, the company is authorized to repurchase up to 10% of the total number of issued shares as of the date of the Annual General Meeting held on May 29, 2026. This equates to a maximum of 531,369,222 shares. The authorization will remain effective until the conclusion of the company's next Annual General Meeting, at which point it will lapse, unless revoked or amended by shareholders in a general meeting.

The board has conducted a prudent review of the company's operational stability, sustainable profitability, and long-term development prospects, alongside its stock market performance and valuation. To safeguard the company's intrinsic corporate value and protect the interests of all shareholders, the board has proposed this buyback initiative. The plan aims to reinforce management's confidence in the company's future and highlight its positive business outlook.

The share repurchase program will be funded entirely from the company's internal resources, ensuring financial stability without reliance on external financing. The repurchased shares will be held as treasury shares. This provides flexibility for various corporate actions, including cancellation, allocation to employee incentive and benefit plans, re-issuance for financing purposes, use as consideration for mergers or asset acquisitions, fulfillment of obligations under convertible instruments, and other lawful corporate purposes as permitted by applicable laws and listing rules.