Xinhai Mining and East Star Resources Sign Joint Venture Agreement for Verkhuba Copper Project

March 17, 2026 – Xinhai Mining has entered into a Joint Venture (JV) Agreement with London-listed East Star Resources Plc (LSE: EST) to advance the Verkhuba Copper Project in Kazakhstan, marking a significant step toward the project’s development and future production.

Under a phased investment framework, Xinhai Mining will commit USD 65 million to ultimately acquire a controlling 70% interest and lead the development of this high-grade copper-zinc polymetallic deposit in Central Asia.

(JV Signing Ceremony – Verkhuba Copper Project)

World-Class Copper-Zinc Asset

The Verkhuba Project is located in the highly prospective Rudny Altai metallogenic belt in Eastern Kazakhstan. It hosts a JORC-compliant Mineral Resource Estimate of 20.3 million tonnes at an average grade of 1.16% Cu, 1.54% Zn, and 0.27% Pb. The high-grade polymetallic nature of the deposit, with a copper-equivalent grade exceeding 1.4%, positions it as a significant polymetallic asset with strong development potential in Central Asia.

Development Pathway: 1 Mtpa Operation

The project is planned as a modern underground mining operation with a designed processing capacity of 1 million tonnes per annum (Mtpa), utilising advanced copper-zinc-lead flotation technology. Xinhai is currently advancing a Feasibility Study for the 1 Mtpa operation, with mine construction targeted to commence in 2027. At steady-state production, the operation is expected to yield approximately 10,000 tonnes of copper annually.

Alex Walker, CEO of East Star Resources, commented:

"This partnership with Xinhai, a world-class EPC contractor, validates the significant value of the Verkhuba asset. Xinhai brings both the financial capacity and technical expertise to de-risk and accelerate the development of the project. This agreement allows East Star to retain exposure to a future copper producer while freeing up capital to focus on our high-impact exploration pipeline across Kazakhstan. We look forward to working with Xinhai on Verkhuba and potentially other projects in the future."

Strategic Rationale

East Star Resources is a Kazakhstan-focused explorer with a portfolio of high-quality copper and gold exploration licenses. The partnership enables East Star to advance the Verkhuba Project toward production without shareholder dilution, while maintaining exposure to future cash flows.

About Xinhai Mining

Xinhai Mining operates under a dual-track model of “Mining Investment & Development” and “Mining Full-Industry-Chain Services,”(EPC+M+O) delivering integrated solutions across the entire project lifecycle—from mineral processing test work and engineering design to equipment manufacturing, mine construction, and operation management. With a global footprint spanning over 100 countries and involvement in more than 2,500 mining projects, Xinhai is well-positioned to efficiently deliver the Verkhuba Project.

This partnership marks a significant milestone for Xinhai’s expansion in Central Asia and supports East Star’s transition toward becoming a producing company, highlighting a new model of collaboration between international mining investors and project developers.