yuanxing Energy: The production water consumption index of 3.5 million cubic meters/year of Alxa Trona Project has been obtained in 2020, and the water intake permit is being processed.

On May 31, some investors asked yuanxing Energy (000683) to answer the following questions truthfully. 1. Has the processing progress of 3.5 million cubic meters of water intake permit reached the stage of examination and approval of the feasibility study report? If not, what stage has it reached? 2. According to Article 37 of the Measures for the Implementation and Management of Water Rights of the Yellow River, in case of any of the following circumstances, the Yellow River Conservancy Commission and the Provincial (Regional) Water Resources Department may suspend or cancel the water rights transfer project: (1) If the water-saving project fails to pass the acceptance or the water-saving project is not put into use and the transferee takes water without authorization; whether the project has used the water of the Yellow River? If not, is 2.44 million cubic meters of self-exploited groundwater used?

The company replied, Dear investors, at present, the production water index of 3.5 million cubic meters per year of Alashan Trona Project has been obtained in 2020, and the water intake permit is being processed. Thank you for your interest in the company!