Non-conflict mineral resources

Due diligence management system management review summary report
After more than 20 years of continuous accumulation and development, the company has taken a leading position in terms of reproduction scale and technological development. We have always been committed to serving the world's most famous consumer electronics manufacturers with a full range of high-quality tantalum niobium products, and through continuous creativity, we meet the ever-changing diverse needs of frontline consumers. Southern Tantalum and Niobium never forget our original intention. While providing satisfactory products to our customers, we have never forgotten our social responsibility. Southern Tantalum and Niobium strictly abide by relevant laws and regulations in China and international rules. Based on these rules, we have developed a due diligence management system.

1、 Review purpose:

Conduct internal audits and corrections on the due diligence management system to ensure that it effectively identifies all raw material purchases from high-risk areas.

2、 Review content:

1. The current qualifications of the company's raw material suppliers.

2. Due diligence on the integrity and adaptability of the internal control system

3. Does the CAHRA identification program identify financial and humanitarian risks, potential future risks, human rights risks, and conflict risks.

3、 Review time and location

Review date: May 6th, 20223

Location: Meeting room on the second floor of the company


General Manager: Jiang Kunlin

Production Department Director: Zhang Lin

Procurement Department: Jiang Zeying

Warehouse Manager: Li Yu

Technical Department: Hu Jinlang

Sales Department: Ge Hua

4、 Overview of Review Situation

The due diligence management system of the company is based on its unique business model, which means that all of the company's raw materials (tantalum oxide/scraps/ingots) come from China. Currently, our three raw material suppliers are all RMI certified non conflict mineral smelters. Please refer to the following for details:

1. Jiujiang Jinxin Nonferrous Metals Co., Ltd. CID000914

2. Yanling Jincheng Tantalum and Niobium Co., Ltd. CID001522

3. Jiujiang Yihong New Materials Co., Ltd. CID002842

These three suppliers are currently operating normally and have all passed RMI's audit in a timely manner, with no other abnormal phenomena.

The CAHRA recognition program has covered the following four aspects:

1. Financial and humanitarian risks, using tools (Know your country)

2. Potential future risks, using tools (risk control world map)

3. Human rights risks, using tools (Huma free index)

4. Conflict risk, (Heidelberg Conflict Barometer)

As our raw materials are all purchased from within China, CAHRA will conduct risk identification in China. Currently, our three raw material suppliers are located in Hunan and Jiangxi provinces, which do not involve any related risks.

5、 Summary:

1. The due diligence management system developed by the company meets the standard requirements and is applicable to the current raw material procurement of the company. All raw materials purchased by the company come from low-risk areas.

Date: May 6th, 2023