CHINA NATURAL RESOURCES, INC. (Nasdaq: CHNR), a company incorporated in the British Virgin Islands, today announced that Bayannaoer Feishang Copper Company Limited, the Company's indirect 60%-owned subsidiary based in the People's Republic of China, had entered into a series of agreements relating to a RMB250 million (approximately US$36.59 million) bank loan from The People's Bank of China, Shenzhen Branch. Feishang Copper is principally engaged in the smelting and refining of blister/anode copper and sulfuric acid for distribution in the PRC. The purpose of the bank loan is to finance the operation of Feishang Copper.

The principal amount of the loan is to be repaid in RMB50 million (approximately US$7.32 million) installments, during the period from October 1, 2010 through July 1, 2013, when the then outstanding principal amount of the Bank Loan is due and payable. Interest on the loan is payable quarterly, commencing September 21, 2009, at the base lending rate of The People's Bank of China from time-to-time in effect (currently 5.76% per annum). The bank loan is secured by all of the land, building and plant and machinery of Feishang Copper, and repayment of the loan has been guaranteed by Mr. Li Feilie (the Company's Chairman, Chief Executive Officer and principal beneficial owner), Feishang Copper and by Anhui Wuhu Port Storage and Transportation Co. Ltd., a related party through common control by Mr. Li Feilie. The primary borrower under the loan agreements is Shenzhen Feishang Enterprise Co. Ltd. ("Shenzhen Feishang"), a related party through common control by Mr. Li Feilie. Shenzhen Feishang has agreed to serve as primary borrower in order to meet the bank's lending policies, and will disburse the loan for use by Feishang Copper.

Mr. Feilie Li, the Company's Chairman, commented on the loan: "Following the PRC government's unveiling of a RMB4 trillion economic stimulus package in November 2008, it is generally expected that the prospects for the PRC copper market will soon be revived. This loan, which bears a relatively lower interest cost, signifies the bank's recognition of the Company's copper smelting business and relatively low debt position. We will continue our acquisitions strategy in coal and non-ferrous metal/ iron projects."