CHINA BAOLI TEC (00164) has made significant progress in deploying its dry grinding and dry selection operations in Mongolia.

CHINA BAOLI TEC (00164) announced that the group has made significant progress in its dry milling and dry selection (dry milling and dry selection) operations deployed in Mongolia. By continuously advancing its project reserves, the group is laying the groundwork for future development in the mineral processing sector while promoting more efficient and environmentally friendly resource development methods. After successfully providing consulting services to project partners, the Mongolian iron ore project has entered a critical development stage. This achievement marks an important milestone in the project's advancement and reflects the group's technical capabilities and its increasingly deep involvement in implementing dry milling and dry selection solutions. Project partners have completed the procurement of core project equipment, with some equipment having successfully completed customs clearance and arrived in Mongolia, where it will be deployed at the construction site. To support the installation, debugging, and operational readiness of the equipment, the company has sent a team of technical experts to the mining area to provide on-site assistance for calibrating and testing the equipment, ensuring optimal performance. With the completion of logistics, administrative, and technical preparations, the project has officially entered the construction phase, laying a foundation for all parties to work smoothly and collaboratively moving forward. The first batch of processed iron concentrate is expected to be produced soon, which will represent an important milestone for the group's operational development. The group has also made encouraging progress in its coal processing project in Mongolia. Infrastructure construction has been completed, including camp facilities, employee dormitories, and other necessary supporting infrastructure, and recruitment efforts for mainland China and local employees have commenced. The group believes that building a capable and locally integrated team is crucial for the successful execution and long-term operation of the project. Currently, procurement of processing equipment, necessary fuels, and other raw materials is underway. Although the existing foundational work is ready, the project still requires additional resources and funding and appropriate operational preparations before full production begins. The coal market has shown positive recent trends, with a significant rise in coal prices and an overall market exhibiting new upward momentum. Management believes that this favorable macro environment provides a timely opportunity to accelerate the development of the Mongolian coal project. The group will closely monitor market dynamics and assess appropriate actions to advance related projects in a rigorous and commercially viable manner. While advancing project development, the group has also engaged in discussions with several well-known suppliers, distributors, and industry companies involved in bulk trading of mineral products. These discussions aim to explore potential procurement arrangements, distribution channels, and long-term sales cooperation relationships for the groups processed coal and iron ore products. Some potential distributors have begun conducting due diligence and initiating warehousing activities with the group. This marks a significant step for the group in establishing downstream market partnerships and securing potential customers for future production. The group aims to establish reliable procurement channels for the processed coal and iron ore products produced at its Mongolian project, ensuring market access and supporting the commercial viability of the project as capacity increases. In addition to the existing Mongolian iron ore project, the group has also begun assessing potential iron ore projects across Africa. This move aims to identify projects with sufficient and suitable resource potential, development prospects, and strategic value to the groups dry milling and dry selection operations. By exploring opportunities in other regions, the group aims to diversify its resource base, expand its project reserves, and reduce reliance on any single market or jurisdiction. The board of directors believes that the dry milling and dry selection business offers significant growth opportunities for the group and aligns with global industry trends emphasizing sustainable and environmentally friendly mining practices. The board will continue to closely monitor the developments in this business segment and inform shareholders and potential investors of any significant progress in a timely manner in accordance with the securities listing rules of the Hong Kong Stock Exchange.