China Keli Provides Corporate Updates on Take-Over Target PT Hydrotech Metal Indonesia

Vancouver, British Columbia--(Newsfile Corp. - September 14, 2022) - China Keli Electric Company Ltd. (TSXV: ZKL.H) (the "Company" or "China Keli") is pleased to provide a corporate update on PT Hydrotech Metal Indonesia ("HMI"), the acquisition target of the Company's proposed reverse take-over transaction (the "Transaction").

The Company announced in its press release dated March 14, 2022, that HMI had signed an agreement with its majority shareholder, PT Trinitan Green Energy Metals ("TGEM"), to commercialize HMI's Step Temperature Acid Leach ("STAL") Technology for the processing of nickel. At a Heads of Agreement signing ceremony on July 21, 2022, Widodo Sucipto, President and Director of TGEM and HMI, with the private operator of the Sorong Special Economic Zone, Gabriel Simanjuntak, President and Director of PT Malomoi Olom Wobok ("MOW"), announced that TGEM plans to build its own Class 1 Nickel (battery grade nickel) processing area, that will become an integrated Eco-Industrial Park in the Special Economic Zone ("SEZ") of Sorong, West Papua, Indonesia.

Also present at the ceremony were TGEM Chairman Richard Tandiono, Nurul Ichwan (Deputy Chairman for Investment Planning of the Indonesian Ministry of Investment/BKPM), Johny Kamaru (Regent Leader of Sorong), and other dignitaries and guests.

The project area, covering 250 hectares, is planned to be the first and largest integrated Eco-Industrial Park in Indonesia and will be known as the Indonesia Green Nickel Integrated Technology Ecopark ("IGNITE Ecopark").

IGNITE Ecopark will leverage HMI's STAL technology as its primary technology for extracting low-grade nickel, and will be supported by various specialty companies, including energy and gas supply and management, chemical management and supply, and residue and waste management. The IGNITE Ecopark will prioritize environmental sustainability and is targeting the goal of being the lowest industry-related carbon emitter in Indonesia.

The first phase for the IGNITE Ecopark will see the development of up to 20 STAL nickel-processing modules with a total production capacity of 49,000 tons of nickel per year. HMI will collaborate closely with TGEM and a selected consortium of other investors and partners who will take advantage of the mutual benefits and economies of scale of building multiple STAL smelters in the same location, enabling independent financing and management by each of the respective parties.

The Sorong SEZ offers the immediate benefits of land acquisition and licensing along with full government support and subsidies in an infrastructure-ready location. This includes ports, terminals, roadways, water supply, power plant access, and piped gas supply. The Sorong area has an abundant, readily available nickel ore feedstock supply nearby, sufficient to fulfill more than 45 STAL modules for 20+ years of operation.

Mr. Sucipto said of the project, "we hope that the presence of the IGNITE Ecopark in the future will be able to bring the name of Sorong and Indonesia into the global arena as the largest environmentally-friendly nickel-processing ecosystem in Indonesia to support the fulfillment of the nickel supply chain for global electric vehicles."

About China Keli

China Keli is currently without an active business and is listed on the NEX Board of the TSX Venture Exchange.

About HMI

HMI is an emerging technology company domiciled in the Republic of Indonesia, and a subsidiary of the Trinitan Group of companies. HMI's proprietary STAL Technology enables flexible and scalable processing of nickel in an innovative, highly-efficient, and environmentally-friendly manner. It operates at safer atmospheric pressure, eliminating the need for expensive high-pressure autoclaves and associated infrastructure, significantly lowering the capital intensity and operating costs compared to other current technologies. STAL Technology also provides a net zero waste solution, negating the current, and controversial, smelter waste disposal methods such as tailings dams, deep-sea tailings, and dry-stack tailings that are prevalent within today's nickel mining industry.

Developed over 15 years of research and development, HMI's STAL Technology is a Class 1 Nickel extraction breakthrough technology that produces Mixed Hydroxide Precipitate ("MHP") Nickel for use in the rapidly growing nickel-based, electric vehicle battery market. The industry is currently facing a rapidly growing supply deficit.

Indonesia has the largest untapped supply of nickel laterite deposits in the world. STAL Technology allows nickel mining and smelting operations to start small and expand easily due to its modular design that is ideally suited to Indonesia's low-grade laterite ore and small-scale mining operations. STAL Technology can easily be applied at nickel mines in other parts of the world to accommodate the growing demand for Class 1 Nickel production. HMI is also developing a robust Green PLUS certification program to ensure ESG compliance for all of HMI's nickel products across its value chain.

HMI was incorporated under the laws of Indonesia on August 5, 2020, and acquired the STAL Technology from PT Trinitan Metals and Minerals Tbk.

The Trinitan Group of companies is a global and socially conscious family-owned operation that spans multiple public and private entities involved in the metals, minerals, energy storage, solar, and renewable energy segments in Indonesia and around the world.

For further information, please contact:

CHINA KELI ELECTRIC COMPANY LTD.

Philip Lo, Chief Executive Officer
Tel. No.: (852) 5138 1632
Email: philip3336@126.com

Investors are cautioned that, except as disclosed in the management information circular or listing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/137065

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