FENG HUA MINING INVESTMENT HOLDING (HK) LIMITED

In August 2012 Hawthorn Resources announced that it had entered into a Share Subscription Agreement with a group of Chinese investors, through Feng Hua Mining Investment Holding Limited (Feng Hua).

The arrangement saw new equity capital of approximately $15 million invested into Hawthorn in 2012, with an additional $2.25 million invested into the company through the capital raise of Hawthorn in 2017.

This strategic investment was a landmark for Hawthorn, and provided the impetus for an aggressive exploration/development of the Company’s gold projects.

The investment by Feng Hua – representing Chinese investors, three of which are state-owned entities (SOEs) – will also provide Hawthorn with access to their technical expertise, introductions to regional opportunities, and financial support through a combination of participation in future capital raisings and introductions to third party financiers and off-take customers.

Feng Hua is comprised of four investors:

• a wholly-owned subsidiary of Guangdong Feng Hua Advanced Technology (Holding) Co. Ltd. (GFAT);

• a wholly-owned subsidiary of Guangdong Rising Assets Management Co. Ltd (GRAM);

• a wholly-owned subsidiary of Guangdong Corporation of Geology and Mineral (GGM); and

• Lite Smooth Investment Limited (LSI).

Feng Hua is incorporated in Hong Kong.

ABOUT FENG HUA INVESTOR GROUP

GFAT is a publicly listed company on the Shenzhen Stock Exchange (Stock No, 000636).  GFAT is one of the largest electronic component producers in China. GFAT operates through several subsidiaries, each of which operate in separate market niches and carry out set strategies in the electronic components market.  GFAT products typically encompass electronics, multi-layer ceramic chip capacitors, chip resistors, chip inductors, electrolytic capacitors, transistors, integrated circuits and the production capability for computers, mobile phones and household appliances.

GRAM is a wholly state-owned limited liability company established on 30 December 1999, with a registered capital of RMB 1 billion, which is under the supervision of the Guangdong Provincial Government’s arm of the State-Owned Assets Supervision and Administration Commission.   GRAM’s role is that of a provincial asset portfolio manager.  It is one of three asset management companies created by the Guangdong Provincial Government for the purpose of holding various investments which the provincial government historically owned or inherited from the central government.

GGM is a wholly state-owned limited liability company established in 1988, which is under the direct supervision of the Guangdong Bureau of Geology. The registered capital of GGM is RMB 10,511,000. The business and operations of GGM include sales of mineral products, precious stones and precious stone products, sales and purchase of products made of gold, silver and platinum, development and consultancy concerning geological and mineral prospecting technology, hydrological geology and engineering geology prospecting, environmental geology prospecting and geological exploration engineering, mining investment, metal & non-metal mineral products trading, import & export of goods and technology.  GGM specialises in exploration and development of gold, silver, precious metals and precious stones. 

LITE SMOOTH INVESTMENT LIMITED (LSI) is a limited liability company incorporated in Hong Kong on 28 February 2012. LSI is 100% owned by Guangdong Jiarun Industrial Co. Ltd., which is a diversified investment group, with registered capital of RMB 30,000,000.  Since June 2012, LSI’s aim is to primarily engage in program investments, especially focusing on industrial investment and mineral resources investment. LSI is not a state-owned company and does not have any state-owned shareholders.