Project Description

HUANGPU MINING IS A COBALT MINING COMPANY WITH PIONEERING EXPERIENCE

Huangpu Project Description

Location	Huangpu, Guangdong, People’s Republic of China.
Historic Estimate*	Inferred Resource on the property of 3.1 million tonnes at 0.38% Co, 0.34% Cu ( using CuEq cutoff of 1.0% )
Highlights	The Huangpu Project is a large cobalt-copper deposit with room for further development. The Project is near well-established mining, transportation, and processing facilities, as well as a competent workforce, in Guangdong's regional centers. Exploration work to the north and east of the known mineralized structure has the potential to expand the known mineralized structure and provide further upside. Preliminary hydrometallurgical tests have shown that saleable cobalt and copper concentrates can be recovered.
Project Status	Exploration & Drilling

Huangpu, Guangdong, China, Huangpu Project, Project localization

Future Progress

The Project offers an excellent opportunity to buy a major cobalt asset with the potential to develop mineralization in close proximity to a processing solution and good regional infrastructure. More infill drilling will be done to improve drill spacing and test for prospective extensions at depth and along the strike, which the company believes might result in a significant increase in the existing resource size. Additional drilling will result in greater modeling consistency and a higher level of confidence in the conversion of the present reported "inferred resource" category to Indicated and/or Measured under reporting requirements. At current and future predicted cobalt prices, cobalt is the dominant economic metal within the deposit and the company will remodel the deposit on a cobalt-equivalent basis.

The region is a well-mineralized, well-established mining jurisdiction with considerable regional infrastructure and a number of world-class copper, gold, cobalt, and lead-zinc-silver mines and deposits. There are only a few mining leases in the project. The tenements are in good condition and have no reported impediments.

Initial Phase

The goal of the 1,141-meter drilling campaign was to confirm earlier estimates of cobalt mineralization reported by the operating partner and to evaluate up-dip continuity at the project deposit. Drilling results are consistent with prior deeper drilling, with extensive zones of cobalt and copper mineralization delineated closer to the surface. The drilling operation is actually completed. News releases contain analysis and reporting on past drill findings.

Rock chip sampling was also carried out to look for further zones of cobalt and copper mineralization along the projected trend, particularly along the northern strike extension, where similar host rock units and high soil geochemical anomalies were discovered. This zone is approximately one kilometer north of the currently recognized resource. The findings point to a number of high-priority targets for future research in order to increase the known resource region.

The existence of anomalous cobalt and copper in rock chip samples, as well as geology that is similar between the resource area and the northern expansion, suggest that this area should be investigated further.

The Company will analyze the data set and complete additional drilling and modeling work to verify the historic estimate as a current mineral resource or mineral reserve, in order to upgrade this work from a historical estimate to a current mineral resource.

Recent drilling and exploration have generated remarkable, high-grade intercepts, and the historic estimate as developed has a lot of room to grow. Mineralization is interpreted to extend across a strike length of 1,600 meters and to approximately 280 meters below the surface, based on earlier assessments. The mineralized zone remains open at depth and to the north along the strike, with multiple high-grade opportunities awaiting further exploration.

Responsibility

Health and safety

We believe that safety is a way of life, and is everyone's responsibility at all times.

Promoting a safety culture

Our approach allows us to identify, evaluate and manage risks throughout the operation.

Environment

Our commitment is to minimize our environmental footprint

Community investment

Motivate and mobilize communities to take responsibility for their own future.

History

Drilling program included peak cobalt results with 8 metres at 0.35% Co in MIRC023 and 4 metres at 0.51% Co in MIRC013.

Other intercepts included:

19 m at 0.38% Co, 1.27% Cu, 0.70 g/t Au, ( 4.12% CuEq ) in Q-012;
24 m at 0.15% Co, 0.23% Cu and 0.09 g/t Au ( 1.17% CuEq ) in MIRC013;
including 4 m at 0.51% Co, 0.46% Cu and 0.16 g/t Au ( 3.64% CuEq ),
12 m at 0.19% Co, 0.57% Cu and 0.19 g/t Au ( 1.85% CuEq ) in MIRC014;
including 4 m at 0.30% Co, 0.44% Cu and 0.14 g/t Au ( 2.33% CuEq ),
40 m at 0.07% Co, 0.32% Cu and 0.13 g/t Au ( 0.82% CuEq ) in MIRC017;
including 5 m at 0.15% Co, 0.82% Cu and 0.21 g/t Au ( 1.90% CuEq ); and
33 m at 0.16% Co, 0.66% Cu and 0.34 g/t Au ( 2.11% CuEq ) in MIRC023;
including 8 m at 0.35% Co, 0.08% Cu ( 2.19% CuEq ).

Recent drilling and exploration have generated remarkable, high-grade intercepts, and the historic estimate as developed has a lot of room to grow. Mineralization is interpreted to extend across a strike length of 1, 600 meters and to approximately 280 meters below surface, based on earlier study. The mineralized zone remains open at depth and to the north along strike, with multiple high-grade opportunities awaiting further exploration.