EQS-News: CHINA HANKING(3788.HK):GOLD RECOVERY RATE INCREASED TO 91% AT THE RUSTLERS ROOST OPEN PIT GOLD MINE

CHINA HANKING(3788.HK):GOLD RECOVERY RATE INCREASED TO 91% AT THE RUSTLERS ROOST OPEN PIT GOLD MINE

China Hanking Holdings Limited is pleased to announce that, through its subsidiary Hanking Australia Investment Pty Ltd ("Hanking Australia"), it has increased the gold metallurgical recovery from 85% to 91% at the flagship Rustlers Roost open pit deposit of the Company's Mt Bundy Gold Project in the Northern Territory of Australia. Currently 80% of the Ore Reserves of the Mt Bundy Gold Project is in the flagship Rustlers Roost open pit. The new metallurgical test results have significant positive impacts on the annual gold production, unit cost and economics of the project. Mt Bundy Gold Project is located approximately 1 hour's drive from the capital city (Darwin) of the Northern Territory of Australia, along a public highway and contains 3.2 Moz (approximately 100 tons) of gold Resources.

The exciting new recovery rate was achieved in the latest metallurgical tests conducted at ALS Lab in Perth, as part of the on-going optimisation studies. These studies are part of the progress the

Company is making toward a Definitive Feasibility Study ("DFS") after completion of a successful

Pre-Feasibility Study led by well-known gold processing plant design firm GR Engineering (ASX:

GNG). The tests were conducted on representative samples from 10 drill holes located at the different part of the designed open pit and from different depths and returned very consistent results with an average gold recovery of 91.8%, reflecting the uniform and bulk mineable nature of the large orebody at Rustlers Roost.

This increased metallurgical recovery will result in an increase in the Carbon-in-Leach residence time from 30 to 36 hours and an increase in blanking agent on gravity concentrate from 2,500g/t to 4,000g/t. These changes will be reflected in the DFS.

It is estimated that the new metallurgical results will result in negligible capex increase (<1%), but

will reduce the operating cost per ounce by approximately 4%, and increase the gold production by approximately 4%. These result in a material positive impact on the economics of the Rustlers Roost open-pit operation and overall Mt Bundy Project. The full impact of the new recovery rate, including the potential for an increase in Ore Reserves, will be assessed as part of our on-going optimizations for the DFS.

Commenting on the new results, Dr. Qiu Yumin, an executive director and the vice president of the Company and the managing director of Hanking Australia, said that "these latest optimised

metallurgical test results demonstrate the significant upside of the Mt Bundy Gold Project. The high gold recovery means lower gold production cost per ounce and higher gold production. It will benefit not only the shareholders of Hanking, but also the Northern Territory Government as it will receive taxes and royalties. With a more than 15 years mine life without considering new discoveries as part of the planned exploration, there is also space to increase the size of processing plant to further increase the annual gold production and project economics".

The Mt Bundy Gold Project was recently awarded with the "Major Project Status" presented by the Northern Territory Government of Australia. As part of the award of Major Project Status, the

Northern Territory Government has established a task force with Primary Gold Pty Ltd, a subsidiary of Hanking Australia, to coordinate and facilitate the permitting of the Mt Bundy Project. Recent works completed on site by Hanking Australia as part of preparation for mine development include the construction of a new bridge at Rustlers Roost, the commencement of dewatering of the Rustlers Roost open pit, and the repair of the Rustlers Roost haul road.