Southern Manganese (01091) announced that the Company's Board of Directors has noted the recent emergence of certain online materials concerning the Company, which involve its operational status. After making all reasonable inquiries, the Board is fully aware that the relevant circumstances are as follows: 1. The primary raw materials for the Company's core products, electrolytic manganese metal and electrolytic manganese dioxide, include manganese ore, sulfuric acid, and anode plates, the costs of which have increased over the past year. In this regard, the Company has continually reviewed and adjusted its cost structure and has implemented appropriate measures to control and reduce production costs. 2. The mining license for the Company's wholly-owned subsidiary, Southern Manganese Group Co., Ltd. - Tiandeng Manganese Mine Branch (Tiandeng Branch), expired on December 2, 2024. As of the date of this announcement, the application for the relevant mining license is still being processed. Given that a valid mining license has not yet been obtained, a portion of the manganese ore business at the Tiandeng Branch is currently suspended, resulting in significant losses. The Company is actively following up on the relevant application matters. 3. Due to persistently weak demand for manganese ore in the Zunyi region and high personnel costs, the operating performance of the Company's non-wholly-owned subsidiary, Guizhou Zunyi Huixing Ferroalloy Co., Ltd. (Zunyi Company), has shown severe losses. The Company is continuously evaluating feasible plans to improve the operating conditions of Zunyi Company.