Shandong Gold Mining : Overseas Regulatory Announcement- SD Gold Announcement on the Maximum Daily Limit for the year 2021 for Entrusted Wealth Management of Subsidiary

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SHANDONG GOLD MINING CO., LTD.

ʆ؇රږᘤٰุ΅Ϟࠢʮ̡

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1787)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Set out below is the Announcement of Shandong Gold Mining Co., Ltd. on the Maximum Daily Limit for the year 2021 for Entrusted Wealth Management of Subsidiary published by Shandong Gold Mining Co., Ltd. (the "Company") on the website of the Shanghai Stock Exchange atwww.sse.com.cn, for information purpose only.

By order of the Board

Shandong Gold Mining Co., Ltd.

Li Guohong Chairman

Jinan, the PRC, 30 March 2021

As at the date of this announcement, the executive directors of the Company are Mr. Liu Qin, Mr. Wang Shuhai and Mr. Tang Qi; the non-executive directors of the Company are Mr. Li Guohong, Mr. Wang Lijun and Ms. Wang Xiaoling; and the independent non-executive directors of the Company are Mr. Wang Yunmin, Mr. Liew Fui Kiang and Ms. Zhao Feng.

Stock Code: 600547 Stock Abbreviation: SD GOLD Announcement No.: Lin 2021-028

Announcement on the Maximum Daily Limit for the year 2021

for Entrusted Wealth Management of Subsidiary of Shandong Gold Mining Co., Ltd.

The Company and all members of its board of directors guarantee the truthfulness, accuracy and completeness of the contents of this announcement, and severally and jointly accept the responsibility in case there are false representations and misleading statements contained in, or material omissions from, this announcement

Important Notes:

• • Trustee of entrusted wealth management: the trustee of entrusted wealth management is a financial institution with legal business qualifications (including financial institutions such as commercial banks, trust companies, securities companies, fund companies, insurance companies, etc.); entrusted wealth management will be conducted by SD Gold Capital Management Co., Ltd. (hereinafter referred to as the "SDG Capital Co.") and its subsidiaries (hereinafter collectively referred to as the " SDG Capital") within the scope of approval of the board of directors of Shandong Gold Mining Co., Ltd. (hereinafter referred to as the "Company").

• • Investment Amount: SDG Capital will use their own funds with a maximum balance not exceeding RMB5 billion in a single day for entrusted wealth management in 2021. Such funds can be recycled within limit of such quota, and the income obtained from such investments can be reinvested.

• • Scope of investment: includes bank financial products, brokerage financial products, trust financial products and other types of products (such as public fund products and private fund products).

• • Authorization term: 12 months from the date of consideration and approval by the board of directors of the Company.

• • Deliberation procedures: the Company held the fourth meeting of the sixth session of the board of directors on 30 March 2021, and reviewed and passed the "Resolution on the Maximum Daily Limit for the year 2021 for Entrusted Wealth Management". The matter is not a connected transaction and does not need shareholders' approval at a general meeting.

1. Summary of Entrusted Wealth Management

(i) Purpose

The Company intends to use its own fund for entrusted wealth management with manageable investment risks. The Company will improve the efficiency of capital utilization, so as to secure better investment returns for the Company and its shareholders.

(ii) Investment Amount

SDG Capital will use their own funds with a maximum balance not exceeding RMB5 billion in a single day for entrusted wealth management in 2021. Such funds can be recycled within limit of such quota, and the income obtained from such investments can be reinvested.

(iii) Scope of investment

The trustee of entrusted wealth management is a financial institution with legal business qualifications (including financial institutions such as commercial banks, trust companies, securities companies, fund companies, insurance companies, etc.) or a private equity fund with the qualification to issue related wealth management products. The wealth management products include investments within the main business of SDG Capital such as bank financial products, brokerage financial products, trust financial products and other types of products (such as public fund products and private fund products).

(iv) Authorization term

Authorization term: 12 months from the date of consideration and approval by the board of directors of the Company.

2. Source of Funds

The funds for entrusted wealth management are from funds of SDG Capital and such source of funds is legal and in compliance with the law.

3. Implications of Entrustment Financial Management on the Company

The Company's main financial indicators in the past year are as follows:

Unit: RMB 10-thousand

As of 31 December 2020, the Company's monetary fund balance was RMB3.291 billion, the balance of entrusted wealth management products was RMB2.448 billion, and the total balance of the Company's monetary funds and entrusted wealth management products was RMB5.739 billion. The Company's entrusted wealth management authorization totals RMB5 billion, that is, the principal amount of investment at any point in time does not exceed RMB5 billion, accounting for 15.80% of the Company's net assets in the most recent year.

The Company's use of its own funds for wealth management this time is conducted on the premise of ensuring the daily operation and financial security, and will not affect the Company's daily capital turnover needs and the normal development of the Company's main business. It is conducive to improving the efficiency of the use of self-owned funds, and can obtain a certain investment income, which is in the interest of all shareholders. It will not have a major impact on the Company's future main business, financial status, and operating results.

According to the financial instrument standards, the wealth management products purchased by the Company are listed as "trading financial assets", and the wealth management income obtained is listed as "investment income". The specific audit results shall prevail.

4. The Company's Internal Control over the Risks Associated with Entrusted Wealth Management

The Company understands the importance of safeguarding the Company and its shareholders' interests, and will uphold the principles of "safety of funds, strict risk control and standardized operation". On the basis of strengthening market analysis and research, the Company selects investment targets, strengthens internal control and risk prevention, and standardizes the investment operation process so as to obtain corresponding investment returns while strictly controlling investment risks. The Company's risk management department will analyze and track the investment direction of wealth management products and the progress of the project in a timely manner. If it finds that there are risk factors that may affect the Company's fund safety, it will take corresponding measures in time to control investment risks. The Company's independent directors and board of supervisors have the right to inspect the Company's investment in financial products, and can hire professional institutions to conduct audits when necessary. The internal audit department audits and verifies the use of funds from time to time.

5. Implementation of Decision-Making Procedure and Opinions of Independent Directors

(i) Implementation of decision-making procedure

The Company held the fourth meeting of the sixth session of the board of directors on 30 March 2021, and reviewed and passed the "Resolution on the Maximum Daily Limit for the year 2021 for Entrusted Wealth Management". The matter is not a connected transaction and does not need shareholders' approval at a general meeting.

(ii) Opinion of the independent directors

The independent directors believe that under the condition of strictly controlling investment risks and not affecting the Company's daily operations, SDG Capital's utilization of its own funds for entrusted wealth management will not cause financial pressures on the SDG Capital Co. and its subsidiaries. It will be beneficial to the increase in investment income of SDG Capital and will not affect the normal production and operation of the Company and its subsidiaries. It will not prejudice the interests of the Company and all its shareholders, especially small and medium shareholders. Therefore, the resolution was approved.

6.Details of Usages of SDG Capital's Own Funds for Entrusted Wealth Management in the Last

Twelve Months as of the Aate of This Announcement

Unit: RMB 10-thousand

Note: In the above table, the highest single-day investment amount in the last 12 months includes the amount that SDG Capital Co. has used from its own funds for entrusted wealth management and subsisting amounts before SDG Capital Co. is consolidated into the Company's financial statements. Such entrusted wealth management has fulfilled the relevant internal review procedures of SDG Capital Co.

Announcement is hereby made.

The board of directors of Shandong Gold Mining Co., Ltd.

30 March 2021