Mr. Jia Qian reports

JINHUA ANNOUNCES THE COMPLETION OF THE ACQUISITION OF THE INDIGO GRAPHITE MINERAL LICENSES

Further to the news release dated Oct. 6, 2023, Jinhua Capital Corp. has completed the share exchange agreement to acquire 1440843 B.C. Ltd., which owns a 100-per-cent legal and beneficial interest in the Indigo graphite mineral licences. The Indigo claims are composed of 32 mining licences covering approximately 1,892.5 hectares in the Saint-Michel-des-Saints municipality, Quebec.

By way of consideration, the company will issue 8.5 million shares at a deemed price of seven cents per share to the vendor's shareholders in exchange for 100 per cent of the shares of the vendor.

The Indigo claims are subject to a 3-per-cent net smelter royalty in favour of an arm's-length party. One-third of the NSR, or 1 per cent, can be purchased by the company for $2-million.

In addition, in the event that Jinhua commissions a National Instrument 43-101 technical report to determine the size of a graphite resource, if any, on the Indigo claims, an arm's-length party will be entitled to cash consideration within 31 calendar days of completion of the technical report up to a maximum amount of $6.25-million.

For further details, please refer to the company's news release dated Oct. 6, 2023, and the TSX Venture Exchange bulletin issued on Oct. 26, 2023.

We seek Safe Harbor.