Sonora - Ganfeng9 Oct 2025 10:24
Updates on Sonora Project in Mexico:
During the Reporting Period, the Secretary General of ICSID has registered the arbitration, and the tribunal was formally constituted in January 2025. In April 2025, the Claimants submitted their memorial on the merits, witness statements and expert reports to the ICSID tribunal. In the ICSID arbitration, Claimants are asking the tribunal to order Mexico to fully repair the effects of its treaty violations in the form of: (i) the restitution of the concessions and associated rights to develop the Project in Mexico, as well as compensation for the Project’s delays; or (ii) compensation for the entire fair market value of the Project. In July 2025, the Company’s subsidiaries in Mexico withdrew the constitutional and administrative lawsuits filed in Mexico. The withdrawal of these proceedings in Mexico coincides with Claimants’ pursuit of the restitution remedy in the ongoing ICSID arbitration and will not cause a significant adverse impact to the Company and its subsidiaries. The final decision of arbitration has not yet been issued. There is uncertainty in the amount of compensation. The final compensation amount shall be subject to the decision of arbitration. The Board will actively pay attention to the progress of the matter and fulfil its information disclosure obligations in a timely manner.