Statement on Conflict Minerals

CMT Rare Metal Advanced Materials (Hunan) Co., Ltd. is a professional company of China Tungsten & High-Tech Materials Co., Ltd. (Stock Code: 000657) under China Minmetals Corporation to engage in the production, scientific research and operation of tungsten, molybdenum, tantalum, niobium and other rare metals and new materials. It is mainly engaged in the business of the series of "Diamond Brand” tungsten and molybdenum, tantalum and niobium products, etc.

We, CMT Rare Metal Advanced Materials (Hunan) Co., Ltd., hereby declare that raw materials containing tantalum, tungsten or other metals purchased by us don't originate from the Democratic Republic of the Congo (DRC) and nine adjoining countries.
As a responsible participant in the tungsten and tantalum industry and a member company of the ITSCI,ITIA and TIC, we agree with OECD Guidance (especially Annex II) and that we will carry out due diligence according to those standards by typical actions.
We are aware of the seriousness of conflict materials out of the Democratic Republic of the Congo (DRC) and nine adjoining countries.

To prevent conflict minerals getting into our supply chain, we have taken several steps as follows:

 1. First of all, we have held meetings to study the documents related to the management on raw materials containing tungsten or tantalum issued by the UN and various non-governmental organizations (NGOs) to meet the requirements in purchasing raw materials containing tungsten or tantalum. And we have kept informed about the related policies all directors, officers and employees engaging in

2. We require certificate of origin of mines and countries as one of our contract terms to be supplied with each shipment, vindicating the origin of the minerals. However, we recognize that it might not be the policy of some countries to issue such documents, or that no system exists there to do so at the moment. In these cases, we are going to do what we can to meet the spirit of certificate of origin of mine.

3. We are only developing and supporting the suppliers who have a sense of both social and environmental responsibilities with a marketing channel capable of tracing its upper source of materials.

4. We have been working closely with ITIA, TIC and EICC on the purchase of raw materials from miners and smelters, and we try to visit suppliers and mines and ask for required documents in an effort to locate the ore source of the materials.

5. We are respecting laws, honoring human rights, and striving to be a reliable and ethical supplier to EICC members and others.
  

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 General Manager