Responsible Mineral Resources Supply Chain Stewardship Policy

Guangdong Brunp Recycling Technology Co., Ltd. (hereinafter referred to as "BRUNP") mainly uses nickel, manganese, lithium, and cobalt recycled from waste batteries to boost the development of a green circular economy in battery production. The company adopts the requirements of the "China's Guidelines for Responsible Management of the Supply Chain of Responsible Minerals" of the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC) and the "Guidelines for Responsible Management of the Supply Chain of Mineral Resources in Conflict and High-Risk Areas" of the Organization for Economic Cooperation and Development (OECD) to manage responsible minerals, and incoporates nickel, manganese, lithium, and cobalt into responsible minerals at the same time; secondly, requires suppliers to formulate policies to prevent the minerals contained in their manufactured products from coming directly or indirectly from high-risk areas, and to include them in contracts or agreements signed with suppliers of mineral resources.

This policy applies to Guangdong Brunp Recycling Technology Co., Ltd. and its holding subsidiaries (Hunan Brunp Recycling Technology Co., Ltd., Yichang Brunp Recycling Technology Co., Ltd., Yichang Brunp Contemporary Amperex Co., Ltd., Yichang Yihua-Brunp New Material Co., Ltd., Ningde Brunp Recycling Technology Co., Ltd., and Pingnan Contemporary New Material Technology Co., Ltd., etc.) and all suppliers.

Category A: Regarding serious violations of human rights

When conducting procurement or business activities in high-risk areas, BRUNP will neither tolerate nor benefit from, help, assist, or facilitate in any way any party's implementation of:

1. Worst forms of child labor;

2. Any form of torture, cruelty, inhuman and degrading treatment;

3. Any form of forced and compulsory labor;

4. Other serious violations and abuses of human rights; and

5. War crimes or other serious violations of international humanitarian law, crimes against humanity, or genocide.

Risk reduction

If we have reasonable grounds to believe that upstream suppliers have purchased or are associated with any party that has committed serious human rights violations, we will immediately suspend or discontinue cooperation with the supplier.

Category B: Regarding direct or indirect support for non-state armed groups

BRUNP will not tolerate any direct or indirect support for non-state armed groups through mineral mining, transportation, trading, processing or export. Providing "direct or indirect support" to non-state armed groups through mineral mining, transportation, trading, processing or export includes, but is not limited to, purchasing minerals from non-state armed groups or their affiliates, making payments to them, or otherwise providing them with logistical support or equipment.

Risk reduction

If we have reasonable grounds to believe that upstream suppliers are procuring from or associated with any party that provides direct or indirect support to non-state armed groups, we will immediately suspend or discontinue cooperation with that supplier.

Category C: Fraudulent Misrepresentation on Bribery, Money Laundering, and Origin of Minerals

BRUNP will not directly or indirectly offer, promise, conduct, or solicit any bribery, and will resist soliciting bribery. We will not falsify the origin of mineral resources or misrepresent the taxes, fees, and royalties payable to the government for activities such as mining, trading, processing, transportation, and export of mineral resources.

Risk Reduction

Based on our specific position in the supply chain, we commit to working with suppliers, central or local governments, international organizations, civil society, and affected third parties, as appropriate, to improve or track performance with the aim of preventing or reducing the risk of adverse impacts through measurable actions within a reasonable time frame. If risk reduction measures are ineffective, we will suspend or discontinue cooperation with upstream suppliers.

Category D: Occupational Health and Safety

When procuring or producing, BRUNP will not benefit from, assist, or facilitate any party that provides a life-threatening occupational environment for its direct and/or indirect employees and/or any personnel at its production sites, or procure from or be associated with such a party.

Risk Reduction

If we have reasonable grounds to believe that there is such a risk, we will immediately work with suppliers and other stakeholders to develop, adopt, and implement a risk management plan based on our specific position in the supply chain. We will take effective measures to prevent or reduce the risk of adverse impacts. If risk reduction measures are ineffective, we will suspend or discontinue cooperation with upstream suppliers.

Category E: Child Labor

When procuring or conducting business activities, BRUNP will not employ children below the minimum working age specified by the host country's laws or regulations. We will not benefit from, assist, or facilitate the employment of children below the minimum working age specified by the host country's laws or regulations. We will not procure from or be associated with any party that does so. If there are no relevant laws and regulations in the host country, the minimum working age is 16 years old.

Risk Reduction

If we have reasonable grounds to believe that upstream suppliers are procuring from or associated with any party that employs child labor, we will immediately suspend or discontinue cooperation with that supplier.

Category F: Land Rights, Emissions, and Artisanal Mines

We do not participate in, tolerate, nor benefit from the extraction of resources on land without the free, prior, and informed consent of local and indigenous peoples, including extractors who hold legal ownership, leases, concessions, or permits. We do not participate in, tolerate, nor benefit from mining operations where the culture and heritage of local and indigenous peoples are not respected and protected, or where the traditional culture of local people is damaged.

Risk Reduction

If we have reasonable grounds to believe that there is such a risk, we will immediately work with suppliers and other stakeholders to develop, adopt, and implement a risk management plan based on our specific position in the supply chain to prevent or reduce specific risks related to violations of land rights, significant adverse environmental impacts, or association with artisanal or small-scale miners.

Category G: Public or Private Security Forces

We agree to refrain from providing direct or indirect support to public or private security forces that illegally control mine sites, transportation routes, and upstream actors in the supply chain; illegally tax or extort money or minerals at mine entrances, along transportation routes, or at mineral trading points; or illegally tax or extort from middlemen, export enterprises, or international traders.

Risk Reduction

If we discover such risks to some extent, we will immediately develop, adopt, and implement a risk management plan for upstream suppliers and other stakeholders based on our specific position in the supply chain. If the risk management plan does not take effect after six months of implementation, we will temporarily suspend or discontinue cooperation with upstream suppliers.