Jiujiang Janny New Material Co., Ltd. recognizes that there is a risk of significant negative impacts in mining, trading, processing and exporting minerals in conflict-affected and high-risk areas. We also recognize that we have an obligation to respect human rights, not to foster conflict, and not to bring negative impacts on the environment and society. It has adopted and widely promoted the following responsible mineral procurement policies in conflict-affected and high-risk regions and incorporated them into contracts and/or agreements with suppliers. This policy provides a basic reference for the whole process of mineral resources supply chain, conflict-sensitive procurement activities and supplier's risk awareness. We commit ourselves to abide by the relevant United Nations sanctions resolutions, to abide by the domestic laws applicable to the implementation of such resolutions, and to refrain from participating in any acts that would help or facilitate conflicts.

To this end, we undertake to identify and avoid the following risks in business activities:

一、Serious human rights violations

We will neither tolerate nor in any way benefit, facilitate, assist or facilitate the implementation of:

-  Any form of torture, cruel, inhuman and degrading treatment;

-     Any form of forced or compulsory labour. Forced or compulsory labor is the labor or service provided by any individual who is threatened by punishment and is not voluntarily provided by that person.

-  The worst forms of child labour;

-     Other serious violations and abuses of human rights, such as widespread sexual violence;

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

Risk reduction measures:

If we have reasonable grounds to believe that the upstream supplier has procurement by or is associated with any of the above serious human rights violations, we will immediately suspend or interrupt cooperation with the supplier.

二、Direct or indirect support for illegal organized armed groups and public or private security forces

We will not tolerate any direct or indirect support for non-state-owned organized armed groups through mining, transportation, trading, disposal or export of mineral resources. Providing "direct or indirect support" to non-state-owned organized armed groups through mining, transportation, trading, processing or export of mineral resources includes and is not limited to purchasing minerals from non-state-owned organized armed groups or their affiliates, paying for them, or providing logistical support or equipment for them in other ways. These armed groups or associated parties:

-     Illegal control of mining sites, or other means of control of transport routes, mineral resources trading points and supply chain parades as the main body;

-     Illegal taxation or extortion of money or mineral resources at the entrance to the mining site, along the transportation route or at the mineral resources trading point;

Lawful taxation or extortion of intermediaries, export enterprises, or international traders.

We will put an end to illegal taxation or demanding of money or mineral resources, or illegal taxation or extortion of public or private security forces from intermediaries, exporters or international traders at the entrance to mines, along transport routes or at mineral resource trading points, from those who illegally control mines, transport routes and upstream participants in supply chains. Provide direct or indirect support.

We recognize that the role of public or private security forces in mining sites and/or their surrounding areas and/or along transport roads is solely to uphold the rule of law, including the protection of human rights, the safety of miners, equipment and facilities, and the protection of mining sites or transport routes so that legitimate mining and trade are not affected and interfered with.

We will support or take measures to cooperate with local governments, international organizations and civil society organizations to avoid or minimize the adverse effects of the presence of public or private security armed forces at mining sites, especially by mining mineral resources in supply chains through small workshops or small-scale mining. Negative effects on small workshop miners.

Risk reduction measures:

If we have reasonable grounds to believe that the upstream supplier procures or is associated with any party that provides direct or indirect support to non-state-owned organized armed groups, we will immediately suspend or interrupt cooperation with that supplier.

When we identify the existence of such risks, we will immediately work with upstream suppliers and other stakeholders to develop, adopt and implement risk management plans in accordance with the specific location of the enterprise in the supply chain, so as to prevent or reduce the risk of providing direct or indirect support to public or private security forces. These security forces involve:

-     Illegal control of mining sites, transportation routes and upstream supply chains;

-     Illegally levying taxes or extorting money or mineral resources at the entrance of mining sites, along transportation routes or at mineral resources trading points;

-     Illegal taxation or extortion of intermediaries, export enterprises or international traders.

In this case, if the risk management plan does not work for six months, we will suspend or interrupt cooperation with upstream suppliers.

三、. Fraudulent dishonesty, corruption, money laundering and expenses paid to the government concerning bribery and bribery and the origin of minerals

We do not offer, promise, give or demand any bribes, and resist the temptation of corruption. We do not offer bribes in order to conceal or fake the origin of mineral resources and to falsely report the taxes, fees and royalties that should be paid to the government for mining, trading, processing, transportation and export of mineral resources.

We prohibit bribery in all business activities and transactions, including bribery by agents and other third parties, and establish standards and approval procedures for gifts and gifts.

If we have reason to believe that there is a risk of money laundering arising from or associated with the illegal taxation or extortion of mineral resources by mining, trading, processing, transportation or export at the entrance to the mining site, along the transport route, or at the upstream supplier's mineral resources trading site, we will support or take measures to effectively eliminate it. Money laundering contributes.

Risk reduction measures:

According to the specific position of enterprises in the supply chain, we are committed to cooperate with suppliers, central or local governments, international organizations, civil society and affected third parties as appropriate, and to take measurable measures within a reasonable time span to prevent or reduce the risk of adverse effects. Improve or track. If risk reduction measures do not work, we will temporarily suspend or interrupt cooperation with upstream suppliers.

四、 Transport

We will strictly abide by the international transport standards for seven categories of substances, and we will ensure that the disposal, storage and transportation of hazardous substances meet the requirements of relevant laws and regulations. We guarantee that there will be no leakage during transportation and production, so as to prevent adverse effects on the environment and human body.

Risk reduction measures:

In accordance with international standards, seven categories of goods and non-seven categories of goods are strictly distinguished, and seven categories

of goods are not purchased (the content of a single radioactive element exceeds 10 Bq/g).

We have a senior manager responsible for due diligence in the supply chain,everyone can provide us with information about emergencies that may be exposed.

Ms. ChenMiao Tel: +867928533982 E-mail: 361466917@qq.com

Jiujiang Janny New Material Co., Ltd.

August 20, 2018