HONG KONG SAR - Media OutReach - 9 January 2023 - Recently, the Longmenshan phosphate ore mineral processing technology research project in the Tianjinggou section of the Longwangmiao phosphate mining area in Mianzhu, Sichuan Province, passed the expert review in Changsha, Hunan Province. The project mainly studies the technology of direct production of phosphoric acid at low cost from the unique siliceous carbonate phosphate ore in Longmenshan. The on-site review expert group includes academician Jiang Tao from the Chinese Academy of Engineering, Central South University, Professor Xia Jingyuan from the National Engineering Research Center for Phosphorus Resources Development and Utilization, Professor Ge Yingrong from Wuhan University of Technology, Professor Zhang Ligang from Changsha Research Institute of Mining and Metallurgy Co., Ltd., and Tong Yongshuang from North China Huanqiu Co., Ltd. The review experts agreed that the technology reached the international advanced level, which is of great significance for the development of phosphate ores in Longmenshan Area, Deyang.

With the iteration of new energy vehicles and the implementation of the national energy storage plan, the lithium iron phosphate battery market has broad prospects, which drives the demand for phosphate ore. Ko Yo Chemical (Group) Co., Ltd. (Stock code: 00827; "Ko Yo Group" or "the Group") has leaped to become a resource-based head of the domestic new energy industry with over 100 million tons of phosphate ore resources.

Ko Yo Group, as one of the two enterprises with legal mining permits for phosphate ore, has significant regional monopoly advantages with phosphate ore reserves up to 115 million tons, according to relevant geological reports. In order to complete the strategic layout of phosphate ore resources and improve the Group's mineral processing technology, the Group has set up a professional team to actively invest research and development funds in the Longmenshan phosphate ore project development. The project team members overcame the impact of the epidemic on the entry of various materials, equipment and personnel, as well as the transportation inconvenience caused by special geographical conditions and other difficulties, and constantly compared, screened, developed, and tested the new mineral processing technology. Finally the mineral processing technology was developed successfully thanks to the whole team's efforts. The project team mined low-grade ore to make phosphoric acid with a proprietary process, reducing processing steps and lowering processing costs, which is expected to bring tens of billions of potential earnings benefits to the Group. This project is in line with the strategic development layout of Ko Yo Group, which can further promote the diversified and in-depth development and utilization of phosphorus resources, provide high-quality and stable phosphorus concentrate resources for fine phosphorus chemical and new energy battery material industries, and help accelerate the transformation and upgrading of the company's industrial structure. The project not only provides a reliable resource guarantee for the Group's layout of the new energy industry, but also creates excess profits and high returns for the company's shareholders at home and abroad, and provides industrial blood for the sustainable development of Deyang's phosphorus chemical industry.

Statistics show that Deyang is one of the four major phosphate ore bases in China, with more than 90% of the ore distributed in Jiudingshan Nature Reserve and Giant Panda National Park. There are many phosphorus and titanium chemical enterprises gathered under the mountain due to the rich mineral resources of Jiudingshan. Data show that in 2016, there were 58 phosphorus and titanium chemical enterprises in Mianzhu, producing 4 million tons of phosphate ore with a total output value of 16.5 billion yuan. By taking the upstream mining into consideration, the total output value of Mianzhu's phosphorus and titanium chemical industry reached 23.48 billion yuan, accounting for 44.33% of the total industrial output value.

Since 2017, the Jiudingshan Nature Reserve in Deyang, Sichuan Province, has carried out a comprehensive clean-up to restore the ecological environment of the mining area. Up to now, 46 mining rights in the Jiudingshan Nature Reserve have basically completed the task of rectification, and a total of 243 mines have been closed.

In the next step, Ko Yo Group will continue to improve the company's mineral processing technology, continuously optimize related technologies, and strive to help the national new energy and low-carbon construction in the future new energy boom.

Hashtag: #KoYoGroup

The issuer is solely responsible for the content of this announcement.