Safety Management System-ZANGGE MINING COMPANY LIMITED

Safety in production is the foundation on which an enterprise is built and developed. Zangge Mining is committed to continuously improving its safety management system and fostering a strong safety culture. By strengthening its safety governance structure, reinforcing accountability for safety targets, and enhancing full-process control, the Company systematically advances safety education and training as well as the cultivation of a safety-oriented culture. The Company continues to consolidate the foundations of production safety management, providing solid support for the safe and stable operation of its production and business activities.

Safety System Construction

Zangge Mining strictly complies with domestic and overseas laws and regulations on production safety and continues to improve its production safety management system covering the headquarters and its subsidiaries. In 2025, the Company revised and optimized a number of safety management policies, further clarifying safety responsibilities at all levels, strengthening full-process operational control and front-end risk prevention, and continuously enhancing the standardization of safety management. At the same time, the Company continued to improve its safety management mechanism by establishing the Safety, Environmental Protection, Security, Firefighting and ESG Committee, with the President serving as the primary person responsible for production safety, and by building a production safety management system that extends from the headquarters to frontline teams. As of the end of 2025, ISO 45001 occupational health and safety management system certification coverage for Zangge Potash and Zangge Lithium had reached 100%. The Company also carried out regular internal and external audits to promote closed-loop rectification of identified issues.

Management Structure

The company has established a three-level safety management structure

Based on the Company’s overall management objectives and management strategies, it formulates relevant policies and procedures, and organizes, coordinates, and promotes the implementation of production safety-related work.

Chaired by the President of the Company, the Committee coordinates production safety work, reviews production safety-related targets, risk management plans, and performance assessment mechanisms, and oversees the effectiveness of production safety management.

As the leading body for production safety at subordinate enterprises, it organizes, guides, and coordinates specific production safety management work; reviews annual production safety targets, safety management plans, emergency response plans, and major matters related to production safety; and reports relevant work to the headquarters as required.

Production Safety Office: Responsible for the day-to-day management, organization, and coordination of production safety at subordinate enterprises. Its responsibilities include implementing safety policies, conducting safety inspections, carrying out hazard investigation and rectification, organizing safety training, managing emergency response, and submitting relevant information. Dedicated Safety Management Personnel: Under the organization and coordination of the Production Safety Office, they are specifically responsible for on-site production safety management, supervision, and inspection. They participate in hazard management, accident investigations, safety education and training, and the implementation of safety measures, and assume direct management responsibility for production safety.

Objectives and Assessment

In 2025, Zangge Potash strictly formulated its annual occupational health and production safety targets. All employees were required to sign the Safety Target Responsibility Letter, and a production safety accountability assessment mechanism was established. Quarterly assessments were conducted for personnel responsible for production safety at all levels, with assessment results linked to quarterly safety bonuses.

The Company convenes annual Safety Committee review meetings. Based on the completion of annual targets and the effectiveness of day-to-day safety management, it implements rewards and penalties for production units, and incorporates violations identified during safety inspections, including non-compliant operations, breaches of command, violations of labor discipline, and failure to rectify identified hazards as required, into the production safety performance assessment system. In 2025, the Company did not experience any major or above production safety accidents, and production safety work generally achieved the annual targets set.

Contractor Management

In 2025, Zangge Mining continued to integrate contractor safety and occupational health management into its overall safety management system. The Company formulated and implemented policies such as the Safety Management Regulations for External Contractors and the Production Safety Management Agreement, applying standardized full-process management to key stages including contractor prequalification, pre-commencement preparations, operational supervision, and emergency response.

Before entering the worksite, contractors are required to complete procedures including agreement signing, safety training and assessment, safety commitments, and health examinations. They may only commence work after meeting the health and operational requirements of their positions. During operations, the Company strengthens contractor safety management through on-site supervision and inspection, hazard investigation and rectification, and continuous improvement of relevant management policies. In 2025, the Company signed the Production Safety Management Agreement with all contractors.

Whistleblowing

Reporting Hotline:+86-028-89992276

Reporting Email:jc@email.zanggekuangye.com

Mailing Address:Audit and Supervision Office, CAG Mining Co., Ltd., 19th Floor, Building 2, No. 1199 North Section of Tianfu Avenue, Chengdu High-tech Zone, China (Sichuan) Pilot Free Trade Zone, 610041

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