CMRU Proposed Issue 75,980,000 Subscription Shares to Hongkong Fule

Providing Capital for Future Development and Expansion

HONG KONG, April 16, 2018 /PRNewswire/ -- China Metal Resources Utilization Limited ("China Metal Resources" or "the Company") (Stock Code: 1636.HK), China's largest recycled copper products manufacturer, is pleased to announce that the Company, entered into the Subscription Agreement with Hongkong Fule International Investment Limited ("Hongkong Fule") and Mianyang Fule Investment Co., Ltd. ("Mianyang Fule") on 13 April 2018 ("the date of this announcement"). The Company has agreed to issue and Hongkong Fule has agreed to subscribe for 75,980,000 Subscription Shares at a Subscription Price of HK$4.80 per Subscription Share. The gross proceeds in cash from the Subscription are approximately HK$364,704,000 (equivalent to RMB294,700,000). The net proceeds from the Subscription, after deduction of related expenses, are estimated to be approximately HK$364,704,000, are intended to be used for the Company to reduce debt to equity ratio, to pay for consideration of any future acquisition opportunities to be identified by the Company and to purchase raw materials and copper products for the ordinary course of business.

The 75,980,000 Subscription Shares to be allotted and issued to Hongkong Fule represent approximately 3.08% of the existing issued share capital of the Company of 2,466,900,969 Shares as at the date of this announcement; and approximately 2.99% of the Company's issued share capital of 2,542,880,969 Shares as enlarged by the issue and allotment of the Subscription Shares. The Subscription Price of HK$4.80 was determined after arm's length negotiations between the Company and Hongkong Fule with reference to the recent trading prices of the Shares.  

The Subscription would allow immediate cash inflow into the Company without any interest burden. The net proceeds from the Subscription, estimated to be approximately HK$364,704,000 (equivalent to RMB294,700,000), approximately HK$150,000,000 for reducing the Company's debt to equity ratio; approximately HK$200,000,000 for paying consideration of any future acquisition opportunities to be identified by the Company; and the remaining amount for purchasing raw materials and copper products in order to increase the Company's production and trading business.

Hongkong Fule International Investment Limited is a company incorporated in Hong Kong, a direct wholly-owned subsidiary of Mianyang Fule, the principal activity is investment holding. Mianyang Fule is a wholly state-owned enterprise incorporated in the PRC, and its principal activities include property management services; assets management and other corporate management services; sales of non-ferrous metals, copper products, aluminum products and power cables.

Mr. Yu Jianqiu, Chairman of the Company, said, "The Subscription Agreement with Hongkong Fule International Investment Limited and Mianyang Fule Investment Co., Ltd. enable us to enhance the Company's capital structure and liquidity and to finance the Company's future development and expansion, but it will also significantly facilitate the Company to further consolidate its leading position in the scrap copper industry. We will continue to strive to maximize the return for our shareholders."

For further information about the Subscription Agreement of the Company, Hongkong Fule and Mianyang Fule, please refer to the corresponding announcement at the following link:
https://www.hkexnews.hk/listedco/listconews/SEHK/2018/0413/LTN20180413914.pdf

About China Metal Resources Utilization Limited

China Metal Resources Utilization Limited ("China Metal Resources" or "the Company") (Stock Code: 1636.HK) is a leading manufacturer in scrap copper industry. The Company has a fully integrated value chain with a production and service business model, with business consisting of scrap metal recycling, standard processing and metal deep processing products. By making use of the internet, the Company also provides a comprehensive platform combined with recycle metal information, warehouse logistics and financial services, providing services including recycled metal production, sale and related services. China Metal Resources is mainly involved in the sale of deep processed metal products and scrap metal value chain integrated services, in which deep processing metal includes the processing of recycled scrap copper, scrap aluminium, turning them into different copper and aluminium products such as copper rod, copper bar, copper wire as well as cable, wire and network cable; while scrap metal value chain integrated services include standard metal recovery processing, warehouse logistics, transaction settlement and financial services.