1.         INTRODUCTION

The Board of Directors of PMAH wishes to announce that the Company had on 29 August 2023 entered into a Memorandum of Understanding (“MOU”) with Xi’an Jiaotong University (“XJTU”) (the Company and XJTU to be collectively referred to as “the Parties”) to conduct collaborative research in flue gas collection and analysis, and increase CO2 feedstock concentration, capture, and utilisation to be undertaken at PMAH’s smelting plants ("Project").

The duration of the Project is expected to commence from 1 September 2023 until 31 August 2026 or such other extension as may be mutually agreed in writing by the Parties.

2.         INFORMATION ON XJTU

XJTU is a key university which is directly administered by the Chinese Education Ministry and is one of the oldest current institutions of higher education in China. The predecessor of XJTU was Nanyang College, which was founded in 1896 in Shanghai and renamed Jiaotong University in 1921. In 1956, the main body of Jiaotong University was moved to Xi'an according to the decision issued by the State Council, and was formally named Xi'an Jiaotong University in 1959, which was listed as a national key university.

XJTU is a top university in China, which provides the experiment and simulation infrastructure. The group has conducted 13 scientific research projects and presided over the first batch of original projects of National Natural Science Foundation of China related to carbon dioxide capture, and enterprise projects such as CO2 capture in China National Oil Offshore Company and CO2 capture in Enfield Industrial Flue Gas. The group has published 60 papers in international journals, granted by 10 patents in CO2 capture field. The group won the Excellent Doctoral Dissertation Award of Shaanxi Province and the Excellent Advisor Award of Chinese Mechanical Engineering Society.

3.         RATIONALE

The MOU has been entered into to drive research and development efforts in carbon capture and utilisation. This collaboration aims to develop an economically viable carbon capture and utilisation model towards a greener and more sustainable future for PMAH group.

4.         SALIENT TERMS OF THE MOU

Under the terms of the MOU, the Parties agreed, inter-alia, on the following:

(a) Develop the partnership between the Parties through well-planned research projects;

(b) Prompt collaborative research between the Parties through conducting joint research projects;

(c) Conduct collaborative research with PMAH in flue gas collection and analysis, increasing CO2 feedstock concentration and conduct CO2 capture and utilisation; and

(d) The total grant to be contributed by PMAH is RMB12.0 million based on successful milestones including system design, research fee, professional training programs, resources, transfer of knowledge etc.

5.         VALIDITY AND COOPERATION AGREEMENT

The MOU is effective from the date of the MOU and shall remain in force and effect for a valid term of six (6) months. Any extension shall be subject to seven (7) calendar days’ notice in writing to the other party before expiration of the MOU.

Both Parties agree to work towards the drafting and signing of a formal and legally binding cooperation agreement within six (6) months from the date of the MOU or such other extension as mutually agreed between the Parties.

6.         FINANCIAL EFFECTS

The MOU is not expected to have any material effect on the earnings, net assets and gearing of the Company and of the Group for the financial year ending 31 December 2023.

The MOU will not have any effect on the issued and paid-up share capital of the Company as well as its directors’ or its substantial shareholders’ shareholdings.

7.         APPROVAL REQUIRED

The MOU is not subject to the approval of the shareholders of PMAH or any other relevant authorities.

8.         DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the directors, major shareholders and/or persons connected with a director or a major shareholder of the Company, have any interest, direct or indirect, in the MOU.

This announcement is dated 29 August 2023.