Yulong Holdings signed an agreement with Dalian Rongke to enter the field of all-vanadium liquid flow battery energy storage

Shandong Yulong Gold Co., Ltd. focuses on gold mining, new energy and new materials mining and industry chain extension investment, and has a professional and mature management team in the field of mineral development. On December 27, 2022, the company signed the "Equity Transfer Agreement" to acquire 67% of the equity of Shaanxi Shanjin Mining Co., Ltd. (hereinafter referred to as "Shaanxi Shanjin"). The proven resources + controlled resources + inferred resources of the Loufanggou vanadium mine project of Shaanxi Shanjin's core asset are 46.1029 million tons of vanadium ore, 499,882 tons of vanadium pentoxide resources, and an average grade of vanadium pentoxide of 1.08%, creating favorable conditions for the company to enter the field of new energy and new materials minerals.

Founded in 2008, Dalian Rongke is a world-leading manufacturer and technical service provider of all-vanadium liquid flow battery energy storage, high-purity vanadium chemicals and alloy materials. It has a full industrial chain ecological layout from vanadium chemical oxide material processing, high-performance electrolyte production, battery stack manufacturing, battery system integration to all-vanadium liquid flow battery energy storage power station design, construction and maintenance.

In view of the highly complementary resource reserves and professional technical advantages of both parties, the two parties are willing to establish a strategic cooperative relationship, become strategic partners, and jointly promote the healthy development of the all-vanadium liquid flow battery energy storage market.

Main contents of the strategic cooperation agreement

Party A: Shandong Yulong Gold Co., Ltd.

Party B: Dalian Rongke Energy Storage Group Co., Ltd.

Given that:

In order to give full play to the complementary advantages of resources of both parties, cooperate around the layout of the entire industrial chain of vanadium ore resources, and jointly promote the healthy development of the all-vanadium liquid flow battery energy storage market, after friendly consultation between the two parties, based on the principle of mutual benefit and win-win, the two parties are willing to establish a strategic cooperative relationship and become strategic partners. The following agreement has been reached on comprehensive strategic cooperation:

1. Principles of Cooperation

1. Party A will make use of its accumulated resources, talents and operational advantages in the field of new energy and new material mineral mining and selection, and take the development of the Loufanggou vanadium mine project in Shangnan County, Shaanxi as the entry point to lay a solid foundation for future cooperation between the two parties.

2. Party B possesses the core technologies related to all-vanadium liquid flow battery energy storage and has the ability to mass-produce all-vanadium liquid flow battery power units and capacity units. Party B will leverage its own advantages in industrial technology and market share to promote extensive cooperation between the two parties in the field of new energy storage.

(II) Cooperation methods

1. Investment and development of vanadium ore resources

Party A will actively cooperate with Party B to participate in Shaanxi Shanjin Mining Co., Ltd. through equity investment to improve the comprehensive utilization and development level of the downstream industries of the Loufanggou vanadium mine project. The two parties will continue to cooperate in the development of high-quality vanadium ore resource projects at home and abroad in the future to provide resource guarantees for the healthy development of the all-vanadium liquid flow battery energy storage industry.

2. Product and service cooperation

Party A and Party B will regard each other as one of the important supply chain partners. Both parties will give each other certain preferential treatment based on the market demand and price of vanadium products, combined with their own production scheduling, construction period and procurement plans, and according to the specific supply cooperation model agreed upon by both parties.

3. Industrial layout

According to the market development and policy requirements of all-vanadium liquid flow battery energy storage and vanadium materials, the two parties intend to give play to the synergy of the upstream and downstream industrial chains, and adopt various methods including the establishment of joint ventures, technology licensing or product OEM, to carry out various cooperation in the fields of all-vanadium liquid flow electrolytes, high-purity vanadium products, and energy storage equipment manufacturing.

4. Energy storage market development

Parties A and B will leverage their respective advantages in customer information, professional technology, etc. to jointly promote the application of all-vanadium liquid flow batteries in auxiliary services such as new energy power generation, grid peak regulation, and industrial and commercial users, advance the business development of both parties, and enhance the market influence and competitiveness of all-vanadium liquid flow batteries in energy storage.

(III) Others

1. This agreement is a framework agreement for the strategic cooperation between the two parties. Specific cooperation matters involved must be signed in a separate agreement.

2. During the implementation of this Agreement, if any dispute arises or there is a need to modify or supplement the relevant terms of the Agreement, the two parties shall resolve it through consultation. The supplementary agreement and this Agreement have the same legal effect.

3. This cooperation agreement shall come into effect from the date of both parties' seals and shall be valid for three years. Three months before the expiration of the agreement, both parties may negotiate and determine whether to extend this agreement.