Exploration

Arehada has its own exploration department while working with outside geo-exploration partners. Arehada's exploration department has three primary functions:

1. Adding mineral reserves to the existing Arehada mine by continuing explorations on its Arehada property.

2. Exploring and identifying new ore deposits on the Dasaituo property where a resource is being developed.

3. Bidding for and carrying out exploration projects for outside parties.

Latest Achievements in Exploration:

1. Acquired the exploration right of Wuhuaobao Cu Polymetalic deposit in SunitezuoQi, Inner Mongolia, with a registered area of 22 square km;

2. Expanded the existing exploration area of Arehada mine from 20.1 square km to 58.5 square km ;

3. Expanded the existing exploration area of Dasaituo from 11.9 square km to 50.5 square km;

4. Conducted further detailed explorations in Arehada area including the continuation of the ore body with enriched mineralization on the east side of Line 39.