The board of directors of Wai Hung Group Holdings Limited announced that on 30 June 2020 the Company entered into a framework cooperation agreement (the "Framework Cooperation Agreement") with Qianhai Baifu (Shenzhen) Industrial Co., Ltd., pursuant to which the parties propose to cooperate in the exploration, development and comprehensive utilization of resources such as boron, lithium and potassium in the People's Republic of China (the "PRC"). Qianhai Baifu is a company established in the PRC with limited liability and is principally engaged in mining, processing and sales of mineral products ("Mineral Products Business"). Qianhai Baifu intends to acquire 55% interest in the mining rights of Tibet Baqiancuo Salt Lake ("Baqiancuo Salt Lake") from Tibet Ali Liyuan Mining Development Co., Ltd. ("Tibet Ali"). Based on the information obtained from Qianhai Baifu, Tibet Ali is a company established in the PRC and engaged in Mineral Products Business. The Baqiancuo Salt Lake is located in Geji County, Tibet Autonomous Region, the PRC, covering an area of approximately 24.5 square kilometers, with approximately 108,100 tonnes of proven lithium chloride resource reserves. The Board is of the view that through cooperation with Qianhai Baifu, such will facilitate the Group to further diversify its business scope and source of income, and maximize the value for the Group and its shareholders as a whole.