We believe that China Metal Resources Utilization (“CMRU”) is nothing more than a ‘zombie company’; an entity technically alive, but under such severe financial distress and laden with so many red flags, that insolvency seems inevitable. We believe CMRU’s Chairman/CEO may have reached the same conclusion: he has disclosed agreements indicating his intention to offload his entire personal stake in the company, which currently represents about 29.65% of the company’s outstanding shares.

Two days ago, China Metal Resources Utilization (“CMRU”) issued an announcement that responded to our earlier report, which was entitled “China Metal Resources Utilization: 100% Downside to This Zombie Company”. We appreciate the company’s response, but find that it failed to refute the findings of our research or our key conclusions that the company is (a) facing severe financial distress; (b) that trading in the company’s shares exhibits signs of manipulation; and (c) that its acquisition spree appears to exhibit signs of financial mismanagement and undisclosed related party transactions. In fact, we believe that as readers carefully compare CMRU’s response to our research, it becomes clear that instead of refuting our findings, the company instead largely confirmed, or in some cases simply side-stepped, our concerns.