PE1078 mining field of Congo (Kinshasa) Shituru MiningCorporation (hereinafter referred to as “SMCO”) is located in the centralpart of the world’s famous south-central Africa’s Lufilian copper-cobaltmetallogenic belt, which has a total of more than 200 copper-cobalt depositsdiscovered. The typical deposits include copper-cobalt deposits in Kolwezi, Tengkai-Fenggulume and Kamoto, etc.

The PE1078 mining field islocated at a straight-line distance of approximately 32km from the northwestdirection of Likasi, Congo (Kinshasa) with a total area of 217 Carre (1 Carre =0.85km2). There are many deposits, such as Kanfundwa, Kazibizi and Msesa, etc.on both sides of the mining field, and the Museba civilian mining area islocated here (see Figure - 1), the exposed mineralized body is 5-20 meterswide, and the test result of fast analyzer shows that the copper grade is0.5-3.5% and the cobalt grade is 0.1-1%; the regional geological data showsthat the ore-bearing strata of Mine Subgroup of Roan Group extends by more than5 kilometers, which boasts a prospecting potential for ore fields.

Museba Civilian Mining Area in PE1078 Mining Field

On June 25, 2018, SMCOand Congo (Kinshasa) Sinomine Resources Co., Ltd. (hereinafter referred to as“Sinomine Resources”) have entered into an agreement on entrusting SinomineResources to carry out the census of Block 2 of the PE1078 mining field. OnJuly 8, the technical team of “Sinomine Resources” entered the site to startmineral investigation. As of July 24, the distribution of ore-bearing stratawas preliminarily controlled to extend about 2 km through nearly half a month’sgeological survey and pit investigation, etc.

SMCO will fullycooperate with all technical teams of PE1078 in the next stage to vigorously promotegeological census work and strive to provide ore resources to SMCO as soon aspossible.

SMCO employees and Sino Resources technical team on the site ofPE1078 project startup scene