China Environmental Resources Group Limited (the “Company”) (1130), together with 四川源萊順稀土新材料有限公司 (“Sichuan YLS”) and 上海巿嘉定區安亭鎮人民政府 (“Anting Government”), entered into a non-legally binding memorandum of understanding (“MOU”) on March 3, 2026. The MOU sets out a potential cooperation on rare earth resources development projects at an industrial park in Anting Town, Jiading District, Shanghai.

Under the MOU, the Company is responsible for designing the park’s environmental protection plan and facilities, securing relevant approvals, and providing technology equipment and operational support. Sichuan YLS will invest in core patents and oversee construction and production of a rare earth motor production line, as well as introduce expert talent resources. The Anting Government will provide land, coordinate land approvals and infrastructure, and support relevant industrial and technological policy applications.

The projects include dismantling and recycling used rare earth motors, restoring magnetic steel, and customizing new energy vehicle motors. They also encompass establishing a marketing center and a technology innovation center for rare earth materials within the park. The MOU is not legally binding, and the final terms remain subject to formal agreements. The Company cautions shareholders and potential investors to exercise care when dealing in its securities.