CHINFMINING (01258) announced that the company has noted recent media articles making allegations regarding the tailings dam breach incident at the Group's subsidiary, Chambishi Hydrometallurgy Limited (Chambishi Hydrometallurgy) in Zambia. Regarding this incident, the company has already made disclosures in the "Notes to Interim Condensed Consolidated Financial Information" section of its interim results announcement. The company now provides further clarification on the relevant circumstances of this incident:

On February 18, 2025, a tailings dam at Chambishi Hydrometallurgy collapsed due to theft of anti-seepage membrane and continuous heavy rainfall (rainfall in Zambia during January-February 2025 approached the maximum levels for the same period in nearly 20 years), resulting in partial tailings leakage. The breach was sealed at 3:30 AM on February 19, and the accident source was effectively controlled.

Following the incident, the company immediately communicated actively with relevant Zambian government departments, mobilized resources for full emergency response, and conducted water restoration work.

On August 7, 2025, the Zambian government's chief spokesperson made a statement through Facebook live broadcast at a joint press conference with the Lusaka Disaster Risk Reduction Committee and multiple departments, stating that the situation has basically returned to normal and the government is confident in ensuring the safety of people in affected areas. Laboratory test results showed that water pH levels have returned to normal, heavy metal concentrations continue to decline, and local water supply companies resumed full normal operations on February 24.

The Zambian government stated that no major health problems or epidemic outbreaks directly related to this pollution incident have been discovered to date, and no deaths caused by pollution have occurred since the February pollution incident.

On September 10, 2025, Zambian Vice President and officials from the Ministry of Water Resources, Ministry of Environmental Protection, and Copperbelt Province visited Chambishi Hydrometallurgy for on-site research. The Vice President delivered a speech affirming Chambishi Hydrometallurgy's timely incident response and environmental treatment results, with the Copperbelt Provincial Governor live-streaming the entire event through his official Facebook account.

Regarding this incident, China's Ministry of Foreign Affairs spokesperson also responded at a press conference on September 18, 2025.

For the tailings dam incident, Chambishi Hydrometallurgy has fully fulfilled its restoration and treatment obligations according to government instructions and has completed compensation work for individual farmers in accordance with the damage compensation report issued by the Zambian government.

In the future, the company will continue to work closely with the Zambian government to fully advance environmental impact assessment and restoration treatment work.

Recently, it is alleged that over 100 local residents (reportedly only 11 people were actually authorized) filed a petition with the court. The petition registered (but not accepted) by the local court demands that the Chinese enterprise involved establish an environmental restoration trust account with a deposit of $80 billion (approximately HK$624 billion) to be managed by the Zambian government for environmental restoration and full compensation, and requests an additional $200 million as emergency relief and health/environmental assessment funds. The company believes the aforementioned claims clearly lack basis.

Regarding this compensation incident, the company has engaged a local professional legal team to actively respond and legally protect its legitimate rights and interests.

The company believes this incident has not caused material impact on the Group's operations or financial condition and therefore does not constitute inside information. Despite the aforementioned unfounded allegations, timely remedial work and positive responses from local government to the incident both demonstrate that the incident has not caused any material impact on the surrounding environment and communities.