Recently, Northern Rare Earth announced that it planned to increase capital of about RMB54.22 million (USD8.39 million) in its holding subsidiary Northern Rare Earth (Anhui) Permanent Magnet Technology Co., Ltd. in cash for the establishment of Baotou branch company and construction of the 8,000-ton-per-annum high-performance NdFeB alloy sheet project. Earth-panda Advance Magnetic Material Co., Ltd., a shareholder of Northern Rare Earth (Anhui) Permanent Magnet Technology Co., Ltd., will increase capital in cash at the same ratio. After the capital increase, ownership ratio of Northern Rare Earth (Anhui) Permanent Magnet Technology Co., Ltd. will remain unchanged.

Located in Earth-panda's wholly-owned subsidiary Earth-panda (Baotou) Permanent Magnet Technology Co., Ltd., Baotou National Rare Earth Hi-tech Industry Development Zone, the 8,000-ton-per-annum high-performance NdFeB alloy sheet project with a construction period of one year receives a total investment of RMB90.36 million (USD13.98 million), including RMB73.22 million (USD11.33 million) for construction and RMB17.14 million (USD2.65 million) for initial working capital.