China Rare Earth Plans to Issue Shares to Acquire 51% Stake in Zhongxi Liangshan

China Rare Earth announced that the company plans to issue shares to acquire a 51% stake in Zhongxi (Liangshan) Rare Earth Co., Ltd., held by China Rare Earth Group, and to issue shares to no more than 35 specific investors to raise supporting funds. This transaction is expected to constitute a significant asset restructuring and related party transaction, but will not constitute a restructuring listing. As of the date of signing the summary of the plan, the audit and evaluation work of the target company has not yet been completed, and the transaction price has not been finalized; this transaction still needs to go through relevant decision-making and approval procedures.