Mr. Chris Thomas reports

JINHUA CLOSES FIRST TRANCHE OF PREVIOUSLY ANNOUNCED NON-BROKERED PRIVATE PLACEMENT FOR GROSS PROCEEDS OF $1,220,999.96

Jinhua Capital Corp., further to its news release dated Nov. 6, 2023, relating to a private placement, has closed the first tranche of the offering on Nov. 14, 2023, and has received gross proceeds of $1,220,999.96 by the issuance of 11,916,666 flow-through units (FT units) and 10.12 million non-flow-through units (NFT units). FT units were issued at six cents per FT unit, and NFT units were issued at five cents per NFT unit.

Each FT unit consists of one flow-through common share of the company as defined in the Income Tax Act (Canada) and one-half of a common share purchase warrant. Each whole FT warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the company at a price of 10 cents per FT warrant share for a period of 18 months from the closing of the offering, subject to acceleration of the expiry date to 15 days in the event that the price of the company's common shares close at or above 25 cents for 10 consecutive trading days. Each NFT unit will consist of one non-flow-through common share in the capital of the company and one share purchase warrant. Each NFT warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the company at a price of five cents per NFT warrant share for a period of six months from the closing of the offering.

The first tranche's gross proceeds raised from the issuance of the FT units will be used by the company to incur exploration expenditures on the company's resource claims in the province of Quebec and will constitute Canadian exploration expenses as defined in the Income Tax Act (Canada). The first tranche's net proceeds raised from the issuance of the NFT units will be used by the company for exploration and development activities, and for working capital and general corporate purposes.

The company has paid $21,920 in finders' fees to eligible finders in connection with the first tranche, being 8 per cent of the aggregate proceeds from the sale FT units and NFT units to subscribers introduced by such finders. The company has also issued 485,467 finders' warrants and 485,467 finders' shares, each representing 4 per cent of the aggregate proceeds from the sale of FT units and NFT units to subscribers introduced by such finders. Each finder's warrant shall entitle the holder thereof to purchase one additional common share at a price of 10 cents for 12 months from the closing of the offering.

The securities issued in the offering are subject to a four-month-and-one-day hold period, expiring on March 15, 2024.

About Jinhua Capital Corp.

Jinhua is a mineral exploration company focused on exploring the Pluto gold and base-metals property located in the Dolomieu and Daubree townships of Quebec, and the Indigo graphite project in the Saint-Michel-des-Saints municipality of Quebec. From time to time, the company may also evaluate the acquisition of other mineral exploration assets and opportunities.

We seek Safe Harbor.