Dear Shareholders,

On behalf of the Board of Hanking Gold International Limited, I am pleased to present to you the annual report of the Group for the year ended 31 December 2025.

A TRANSFORMATIONAL YEAR MARKED BY STRATEGIC CLARITY

The year 2025 was a pivotal and transformational year for the Group. Against a backdrop of heightened global uncertainty but structurally supportive gold market fundamentals, the Board undertook a comprehensive review of the Group’s strategic positioning, asset base, and long-term value creation pathway. Following careful consideration, we made a decisive strategic choice: to focus the Company’s technical and management expertise, and financial resources on the development of our gold business to become a middle-tier gold producer.

We firmly believe that accelerating our transition into a gold producer at the Group level will enable us to unlock greater long-term value for the Shareholders, better align capital allocation with resource potential, and enhance strategic execution efficiency. This strategic realignment allows us to focus our financial, technical and managerial resources on the rapid development of our Australian gold assets, while maintaining stable cash flow support from our established iron ore and high-purity iron businesses.

HIGH VALUE AND HIGH GROWTH GOLD BUSINESS

The Group has over a decade of operational and management experience in gold projects in Australia, having successfully developed and operated multiple gold projects. During the year, we achieved major milestones across our two core Australian gold projects — Mt Bundy and Cygnet.

At Mt Bundy project, the updated definitive feasibility study has significantly enhanced project robustness. Based on conservative assumptions, the project demonstrates a longer mine life, increased total gold production, and optimized operating costs. Importantly, all key regulatory approvals, including mining licences and environmental permits, have been secured, and the Group has obtained sufficient equity financing to support project development. Preparatory works have commenced, with construction of the processing plant and supporting infrastructure scheduled to begin in the third quarter of 2026, and first gold production targeted for the first quarter of 2028.

At Cygnet project, the completion of the Phase I pre-feasibility study marked a critical step forward. The project has now been consolidated into a scalable, district-level gold system following the acquisition of the Corinthia deposit. Ongoing drilling continues to demonstrate strong exploration upside, and we remain confident that further optimisation and resource expansion will materially enhance project economics prior to final investment decision.

As a result of these advances, the Group’s JORC Code gold reserves increased by over 50% to approximately 2.62 million ounces, while total gold resources expanded to approximately 5.54 million ounces, significantly strengthening our development pipeline and long-term production profile.

STABLE PERFORMANCE FROM IRON ORE AND HIGH-PURITY IRON BUSINESSES

While advancing our international gold strategy, the Group continued to benefit from the resilience and cash-generating capacity of its iron ore and high-purity iron operations in China.

Despite softer commodity pricing, our iron ore business maintained stable production underpinned by high-grade resources, industry-leading product quality and disciplined cost control. Unit cash operating costs declined for the third consecutive year, reinforcing our low-cost operating advantage.

Our high-purity iron business achieved a particularly notable turnaround in 2025, returning to profitability on the back of improved operational efficiency, lower input costs and expanded customer penetration. Leveraging our strong position in premium ductile iron products and the growing demand from the renewable energy sector, we recorded robust volume growth while continuing to upgrade production facilities and environmental performance.

Collectively, the Group’s domestic operations delivered steady revenue and profitability, providing a solid financial foundation to support our gold development strategy.

CAPITAL STRENGTHENING AND CORPORATE RESTRUCTURING

To support our strategic transformation, the Group successfully completed multiple equity financing transactions during the year, significantly enhancing balance sheet strength and funding visibility. At the same time, we completed a series of corporate restructuring initiatives, including the acquisition of minority interests in our Australian gold subsidiaries and thereby simplifying ownership structure. To support our strategic goal of becoming a middle-tier gold producer, share options were issued to key staff of the gold business, improving alignment of interests and attracting new talents.

In February 2026, following approval by the Shareholders, the Company was officially renamed “Hanking Gold International Limited”, reflecting our strategic focus and growth ambition as an emerging mid-tier gold producer. During the same period, the Board strengthened senior management leadership to drive the next phase of the Group’s development.

LOOKING AHEAD

Looking forward, the Board remains cautiously optimistic about the Group’s prospects. While metal prices and operating conditions will inevitably fluctuate, we believe the fundamentals of the gold market remain supportive, and the Group is well positioned to capitalise on this cycle through disciplined execution and prudent risk management. Our priorities in 2026 are clear:

‧ advance Mt Bundy mine construction safely, on schedule and within budget;

‧ continue to unlock value at Cygnet project through exploration, optimisation and permitting;

‧ maintain stable and efficient operations of the iron ore and high-purity iron businesses to underpin financial resilience of the Group; and

‧ uphold the highest standards of corporate governance, sustainability and stakeholder engagement.

APPRECIATION

On behalf of the Board, I would like to express my sincere appreciation to the Shareholders for their continued trust and support, to our employees for their dedication and professionalism, and to our partners and stakeholders for their collaboration. Together, we are building a stronger, more focused and future-ready Hanking Gold.

We look forward to progressing steadily on our strategic journey and delivering sustainable, long-term returns for our Shareholders.

Yours sincerely,

Dr. Qiu Yumin

Executive Director, Chief Executive Officer and President

Hanking Gold International Limited