Chile La Higuera Carmen 3345 Copper-Gold Mine
Mining Concession Pre-Assessment Report

1 Pre-Assessment Object and Scope

1.1 Pre-Assessment Object

The pre-assessment object is the "Chile La Higuera Carmen 3345 Copper-Gold Mine Mining Concession."

1.2 Pre-Assessment Scope

The Carmen 3345 Copper-Gold Mine is located in the Elqui Province, Coquimbo Region (IV Region), Chile, under the jurisdiction of La Higuera Commune. Geographic coordinates: 29°03′57″–29°08′43″S, 70°33′40″–70°36′54″W. Total area: 20.75 km², composed of two mining concessions (13 blocks in total). The mining concession is valid in perpetuity. Turning point coordinates are shown in the table below.

2 Pre-Assessment Purpose

The purpose of this pre-assessment is to determine the value of the "Chile La Higuera Carmen 3345 Copper-Gold Mine Mining Concession" and provide a pricing reference for the compensated transfer of the mining concession.

3 Pre-Assessment Base Date

Based on the purpose of this pre-assessment and the nature of the economic activity, the pre-assessment base date is determined as October 31, 2025

4 Pre-Assessment Basis

4.1 Legal and Regulatory Basis

• Mineral Resources Law of the People's Republic of China
• Administrative Measures for Mineral Exploration and Mining Registration
• Administrative Measures for the Transfer of Exploration and Mining Rights
• China Mining Rights Assessment Standards
• Classification of Solid Mineral Resources Reserves (GB/T 17766-2020)
• General Specifications for Solid Mineral Geological Exploration (GB/T 13908-2020)
• Specifications for Copper, Lead, Zinc, Silver, Nickel and Molybdenum Mineral Exploration (DZ/T 0214-2020)
• Announcement of the Ministry of Land and Resources on Implementation of Mining Rights Assessment Standards (MLR Announcement No. 6, 2008)

4.2 Ownership Basis

The "Chile La Higuera Carmen 3345 Copper-Gold Mine Mining Concession" project is owned by MINERA CHANG JIANG S.A.

4.3 Other Basis

• Pre-Exploration Report of La Higuera 3345 Copper-Gold Mine, Chile
• Other geological data collected for project pre-assessment

5 Pre-Assessment Principles

In addition to the working principles of independence, objectivity, fairness and scientificity, this pre-assessment follows the following economic principles based on the characteristics of the mining concession:

• Principle of interdependence between mining rights and mineral resources;
• Principle of respecting geological laws and resource economic laws;
• Principle of rational development and utilization of mineral resources.

6 Mining Concession Overview

6.1 Location and Transportation

The mining area is located 40–50 km east of the 600 km section of Chile's main highway Route 5. It is 170 km from La Serena (IV Region) and 120 km from Vallenar (III Region). Route 5 is a high-grade asphalt road; after exiting Route 5, there are 12 km of asphalt road followed by gravel roads. Transportation is relatively convenient.

6.2 Physical Geography and Economic Conditions

The mining area is a medium-mountain region at an elevation of 2000–2500 m, with a maximum elevation of approx. 2540 m and minimum of approx. 2040 m. Maximum relative elevation difference is about 500 m. Natural ground slope is mostly not less than 10°. Surface vegetation is sparse, mainly low shrubs, with good visibility. Most of the surface is covered by a thin layer of residual slope deposits, with local good bedrock exposure.

This area is at the intersection of a southern hemisphere tropical desert climate and subtropical climate, with abundant sunshine, arid and little rainfall. Precipitation occurs 3–4 times per year, concentrated in winter. Average annual rainfall (1961–1990) is 78.5 mm, with evaporation 4–5 times the rainfall. Annual maximum temperature 42°C, minimum 0°C, average 13–18°C, with large diurnal temperature variation. Surface water is undeveloped in the mining area; two gullies in the northern area have underground springs for temporary living and construction use. The area is uninhabited, with only a few temporary herder grazing points.

6.3 Previous Geological Work

• Chile has a relatively high degree of geological work, with nearly half of its territory covered by 1:250,000 regional geological surveys. In 1982, the Chilean National Geological and Mining Service completed the 1:250,000 geological map "HOJA VALLENAR Y PARTE NORTE DE LA SERENA" and accompanying explanatory notes.
• No systematic geological work has been carried out within the mining area. Only small-scale surface excavations and pits left by local free miners exist: 9 in the northern area and 3 in the southern concession area.
• In 2011–2012, China Coal Changjiang Group commissioned Jiangsu Changjiang Geological Exploration Institute for an investigation, concluding that the area has favorable metallogenic geological conditions.
• In 2012–2013, further investigations discovered dozens of mineralized alteration zones, indicating the area has potential for a large porphyry copper deposit.

7 Geological Exploration Work Completed

Starting in 2014, Jiangsu Changjiang Geological Exploration Institute conducted systematic geological work on the Chile La Higuera 3345 copper polymetallic mining area. As of October 31, 2025, main work included geological mapping, geological profile surveys, surface trenching, geophysical feasibility tests, and drilling. All field exploration works passed expert on-site inspection with excellent quality. Details are shown in the table below.

8 Geological Overview of Mining Area

8.1 Mining Area Geology

Cretaceous:

Quaternary:

8.2 Deposit Geological Characteristics

Based on pre-exploration results and analogy with adjacent mining areas, 3 mineralized concentration zones

8.3 Mining Technical Conditions

Hydrogeology:

9 Pre-Assessment Method

The "Chile La Higuera Carmen 3345 Copper-Gold Mine" mining concession project is at the exploration stage with substantial geological results. The Income Equity Method

Where: P — assessed value of mining concession; SI_t

10 Selection and Calculation of Technical Parameters

10.1 Resources and Reserves

In March 2016, Jiangsu Huadong Nonferrous Deep Geological Exploration Co., Ltd. submitted the "Pre-Exploration Report of La Higuera 3345 Copper Mining Area, Chile," which passed expert review. The projected inferred resources (334) for mineralized bodies 1, 2, 3 are approx. 68.765 million tonnes

10.2 Calculation of Resources for Pre-Assessment

This assessment only includes copper metal resources within the concession: 68.765 million tonnes of copper ore, 583,000 tonnes of copper metal at average grade 0.848%; silver 640.9 tonnes (9.32 g/t); gold 12.38 tonnes (0.18 g/t).

10.3 Product Plan, Scale and Mining Method

The product is copper ore, with a planned production scale of 6.5 million tonnes of ore per year

10.4 Selection of Related Technical Parameters

Mining loss rate: 10%

10.5 Service Life

At this production scale, the mine can operate for 10 years and 1 month. The pre-assessment period is set at 10 years

11 Discount Rate

Risk-free rate based on 5-year average deposit rate 1.59%; exploration & development stage risk 3% (maximum for pre-exploration to prospecting stage); industry risk 1%; financial & operational risk 1.25%.

12 Mining Concession Equity Coefficient

The equity coefficient for non-ferrous metal raw ore mining concessions ranges from 3.5% to 4.5%. Based on the mining technical conditions and method of this mine, the selected value is 4.2%