20 Million Ton Copper Mine Project - External Cooperation Commercial Document

Bayan-Uul Porphyry Copper Mine Project - Standard Commercial Document for External Cooperation

I. Basic Document Information
Issuing Entity: "SHINE MONGOL ERDES" LLC
Document Number: XM-KC-202502
Issuing Date: December 6, 2025
Validity Period: Synchronous with the Power of Attorney (November 24, 2025 - November 23, 2026)

Core Purpose: External investment promotion, cooperation negotiations, investment docking, and commercial filing for the project

II. Core Project Overview
(I) Ownership and Compliance Information
Exploration Qualification: On March 23, 2006, the company obtained the exploration license (No.: XV-012111) for the "Bayan-Uul" mining area, covering 11,017 hectares, located in Khanbogd and Bayan-Ovoo Soums of Umnugovi Province.
Mining License: On November 14, 2019, the company obtained the mining license No. MV-021495 through a resolution of the Mineral Resources and Petroleum Authority. The mining area covers the northeastern half of the K-48-58-A sheet, with an area of 2,740.33 hectares and clear, undisputed ownership.
Mining Area Coordinates (Precise Boundaries):
106º34'20"E, 42º32'55"N
106º34'0.22"E, 42º37'14.46"N
106º36'41.45"E, 42º37'14.46"N
106º36'41.44"E, 42º33'9.22"N
106º36'20"E, 42º33'9.22"N

106º36'20"E, 42º32'55"N

(II) Key Project Information
Geographic Location: 900 kilometers southeast of Ulaanbaatar, 212 kilometers east of Dalanzadgad (capital of Umnugovi Province), and 40 kilometers south of the Oyu Tolgoi deposit. It is located in the core area of regional mineral development, adjacent to planned railway lines.
Geological Background: Situated in a deep fault zone crossing Mongolia, sharing the same genetic origin with the Tsagaan Suvarga Mine and Oyu Tolgoi Mine in China. The deposits are 40-70 kilometers apart, indicating favorable metallogenic conditions.
Resource Scale: It is a porphyry copper deposit with a depth of up to 1,000 meters and an estimated copper reserve of 20 million tons. Two stable copper orebodies are distributed 1,000 meters below the surface, with a width of 1,200-2,500 meters and a length of 1,400 meters, showing strong mineralization continuity.

Grade Data: SGS Laboratory tests show that the copper content in drill core samples ranges from 2,172 to 4,669 ppm, with a maximum grade of 4,669 ppm, consistent with the boundary grade of the Oyu Tolgoi copper mine.

III. Detailed Exploration Results
(I) Exploration Workload
Field Surveying and Mapping: 1:10,000 scale geological mapping and 100m×100m grid detection were conducted. Malachite mineralization points were identified in the western part of the mining area, confirming the existence of a copper deposit.
Geophysical Exploration:
Phase I: Magnetic exploration covering 11,017 hectares, 144 kilometers of electric field mapping, and dipole-dipole measurements along 13 lines, reaching a depth of 500 meters.
Phase II: Dipole-dipole method detection along 14 lines (total length 45 kilometers) extending to a depth of 1,000 meters, clarifying the spatial distribution of orebodies.
Drilling Operations: Using Chinese YDX-1800 diamond drilling rigs, 4 drill holes with a total length of 2,000 meters were completed, with depths ranging from 459 to 521 meters. Clear copper orebodies were intersected at depths of 320-485 meters.
Drill Hole No. Longitude Latitude Depth (m)
BHZ13-01c 628513 4719100 500
BHZ13-02c 628687 4719100 520
BHZ13-03c 628798 4719200 521
BHZ13-04c 638877 4719400 459

Laboratory Testing: 65 rock samples were collected (30 from BHZ13-01c drill hole and 35 from BHZ13-03c drill hole) and analyzed by the internationally recognized SGS Laboratory, with authentic and traceable data.

(II) Technical Support
UBC DCIP2D software was used for 2D inversion and RES3DINV software for 3D inversion to accurately locate orebodies.
Magnetic field mapping was conducted using a 200m×200m grid with a total measured length of 560 kilometers, verifying the stability of orebody extension.
IV. Explanation of Authorization Qualifications
(I) Core Authorization Information
Authorization Element Specific Content
Authorizer "SHINE MONGOL ERDES" LLC
Authorized Person Minjur Urtnasan Zambaga (Mongolian citizen, ID No.: TSB75012504)
Basis for Authorization Article 5 and 16 of Mongolia's "Company Law"; Clause 62.1.1 of the Company's "Articles of Association"
Authorization No. 11/24/A
Authorization Scope Investment promotion and docking, share purchase and transfer, and full authority to represent cooperation matters (including signing relevant legal documents)

Qualification Certification The Power of Attorney is signed and sealed by shareholder P. ALtan-Erdene, with translation certification by "Elite-Khongor" LLC, having complete legal effect

V. Cooperation Value and Models
(I) Core Cooperation Value
Resource Value: 20 million tons of copper reserves with high-grade ore. The porphyry deposit is associated with comprehensively exploitable minerals, showing significant development potential.
Location Advantage: Adjacent to mature mining areas with planned railway coverage. The logistics supporting facilities are gradually improving, reducing transportation costs.
Technical Guarantee: Complete systematic exploration data (geophysics, drilling, and laboratory testing) and 3D inversion to clarify orebody distribution, reducing development risks.
Policy Dividends: Mongolia regards the mining industry as a pillar of its economy and adopts an open attitude towards foreign investment cooperation. The project can enjoy preferential policies related to mining investment, including tax benefits and simplified approval procedures.
(II) Compliant Cooperation Models
Equity Cooperation: Cooperation partners can participate in the project through share subscription or transfer, sharing benefits and risks. The equity ratio can be determined through negotiations based on the investment scale.
Project Financing: Introduce debt financing or project financing for exploration upgrading and mine construction, with agreed fixed returns and repayment mechanisms.
Technical Cooperation: Collaborate with technically advanced enterprises to optimize mining processes and promote comprehensive recovery of associated minerals, sharing technical achievements.

Joint Development: Cooperation partners invest capital, equipment, or technology to jointly advance project development and distribute products or benefits in accordance with agreed ratios.

VI. Risk Tips and Safeguards
Risk Tips: The project development must comply with Mongolia's relevant laws and regulations on mining, environmental protection, and taxation, requiring reserved compliance investment. Fluctuations in mineral prices may affect returns, so it is recommended to establish a risk hedging mechanism.

Safeguard Measures: The company provides complete exploration data, ownership certificates, and authorization documents, and cooperates with partners in due diligence. The authorized representative is fully responsible for business docking to ensure the legality and compliance of the cooperation process.

VII. Contact Information and Appendices
(I) Contact Information
ACFC Singapore
Email Address: ACFCsingapore@gmail.com
Authorized Contact Person: Minjur Urtnasan Zambaga (Full Authorized Representative for Project Cooperation)
(II) Appendix List (Available upon Request)
Copy of Mining License No. MV-021495
Complete Exploration Result Report (including geophysical maps and drilling data)
Scanned copy of the original SGS Laboratory test report
Power of Attorney (including translation certification documents)
Mining area location map and 3D orebody distribution map