Sichuan Development Lomon Co.Ltd(002312) : description of the listed company on the purchase and sale of assets within 12 months before the transaction

Sichuan Development Lomon Co.Ltd(002312)

Description of assets purchased and sold within 12 months before the transaction

Sichuan Development Lomon Co.Ltd(002312) (hereinafter referred to as “the company”) intends to issue shares to Sichuan Development Mining Group Co., Ltd. (hereinafter referred to as “Chuanfa mining”) to purchase 80% equity of Sichuan development Tianrui Mining Co., Ltd. (hereinafter referred to as “the target company” and “Tianrui mining”) Issue shares to Sichuan Salt Industry Corporation (hereinafter referred to as “Sichuan salt industry”) to purchase 20% equity of Tianrui mining (hereinafter referred to as “this transaction”). After the completion of this transaction, Tianrui mining will become a wholly-owned subsidiary of the company.

According to the provisions of the measures for the administration of major asset restructuring of listed companies (hereinafter referred to as the “measures for the administration of restructuring”), if a listed company purchases or sells the same or related assets continuously within 12 months, the corresponding amount shall be calculated based on the cumulative amount. Asset transactions that have prepared and disclosed a major asset restructuring report in accordance with the measures for the administration of restructuring need not be included in the scope of cumulative calculation. Where the CSRC has other provisions on the cumulative period and scope of major asset restructuring specified in paragraph 1 of Article 13 of the measures for the administration of restructuring, such provisions shall prevail. If the underlying assets of the transaction are owned or controlled by the same transaction party, or belong to the same or similar business scope, or under other circumstances recognized by the CSRC, they can be recognized as the same or related assets. As of the issuance date of this note, the company has not purchased or sold assets related to this transaction in the past 12 months, and there is no situation that needs to be included in the cumulative calculation scope of this transaction.

It is hereby explained.

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(there is no text on this page, which is the signature page of Sichuan Development Lomon Co.Ltd(002312) instructions on purchasing and selling assets within 12 months before this transaction)

January 14, 2002

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