Xinhai Mining Makes Strategic Investment in TSXV-Listed Aton to Advance Egyptian Gold Projects

Xinhai Mining recently signed a strategic cooperation memorandum with Aton Resources Inc. (“Aton”, TSXV: AAN), a Canadian mineral exploration company listed on the Toronto Venture Exchange. Xinhai subscribed for 7,619,048 common shares for aggregate consideration of approximately CAD 4.0 million. The transaction closed on August 12, 2026. Following the investment, Xinhai became a strategic shareholder of Aton and will nominate one director to Aton’s board.

The partnership combines Aton’s extensive geological database, local operating experience, and strategic land position with Xinhai’s integrated capabilities in mineral testing, engineering design, equipment manufacturing, construction, and mine operations (EPC+M+O). The two companies will collaborate on the exploration and development of Aton’s Egyptian assets, advancing gold and polymetallic projects across the Abu Marawat Concession.

This transaction marks Xinhai’s fourth overseas resource investment in 2026 and represents the company’s inaugural entry into Egypt’s gold sector.

01Expanding the Global Footprint: Entry into the Arabian-Nubian Shield

Aton is a Canada-based explorer focused on the discovery and development of gold deposits in Egypt. Its core asset, the Abu Marawat Concession, lies within the Arabian–Nubian Shield in the Eastern Desert, approximately 200 kilometres from the world-class Sukari Gold Mine.

In January 2024, Aton secured a Development Lease for Abu Marawat, becoming the first international company to obtain a gold mining licence in Egypt since 2005. The lease covers 57.66 square kilometres and encompasses the Hamama West and Rodruin deposits, with an initial 20-year term. Aton retains an additional 255 square kilometres of highly prospective exploration ground.

The project benefits from established infrastructure, including direct access to a four-lane highway, a 220 kV power line, water supply networks, and proximity to the international airports of Hurghada and Luxor.

02Advancing Multiple Deposits: Significant Resource Potential

Aton has delineated several gold and polymetallic projects within the concession, including Hamama, Rodruin, Abu Marawat, and Semna.

(Hamama gold project in Egypt within the Abu Marawat Concession)

Hamama is currently the company’s primary development focus. Publicly reported NI 43-101 Mineral Resources currently cover the Hamama West and Abu Marawat deposits. These deposits collectively host approximately 480,000 ounces (oz) of gold, along with approximately 13.91 million oz of silver, 49 million pounds (lbs) of copper, and 73 million lbs of zinc.

• Hamama West: Hosts Indicated and Inferred Mineral Resources totalling 12.015 million tonnes (Mt) at 5.76 g/t gold and 112.1 g/t silver, containing approximately 318,000 oz of gold and 11.21 million oz of silver, reported as roughly 478,000 oz of gold equivalent (AuEq) under the original technical report methodology.

• Abu Marawat: Hosts Inferred Mineral Resources of 2.90 Mt at 1.75 g/t gold, containing approximately 162,000 oz of gold, along with additional silver, copper, and zinc mineralization (29.3 g/t Ag, 0.77% Cu, 1.15% Zn).

(Rodruin gold project in Egypt within the Abu Marawat Concession)

Rodruin hosts broad zones of near-surface gold mineralization, including high-grade intervals. Notable drill intercepts include 88.6 metres at 5.76 g/t gold.

Drilling conducted at Abu Marawat in 2025–2026 has continued to return near-surface, high-grade mineralization. Semna, a project with historical mining activity, exhibits coarse gold and high-grade characteristics, including a 6 m intercept at 50.07 g/t gold. Mineralization remains open along strike and at depth.

The aforementioned Mineral Resources exclude Rodruin and Semna. Aton plans to release updated estimates for Hamama and Abu Marawat, as well as a consolidated resource statement for the entire Abu Marawat Concession. The concession also offers significant potential for further resource growth.

The clustered distribution of deposits and exploration targets could support phased development, resource growth, and centralized processing. Xinhai will leverage its integrated EPC+M+O model to evaluate development pathways and accelerate project development.

(Note: Mineral Resources are not Mineral Reserves. Highlighted intercepts do not necessarily represent true widths or average grades. All figures remain subject to independent technical verification.)

03Fourth Overseas Resource Investment in 2026: Executing the “Resources + Services” Strategy

• Zimbabwe – Dokwe Gold Project: January 2026 – Strategic investment in AIM-listed Ariana Resources Plc.

• Kazakhstan – Verkhuba Copper Project: March 2026 – Joint venture with LSE-listed East Star Resources Plc.

• Namibia – Ongombo & Ongeama Copper Projects: July 2026 – Agreement with LSE Main Market-listed African Pioneer Plc.

• Egypt – Abu Marawat Gold Project: August 2026 – Strategic investment in TSXV-listed Aton Resources Inc.

From gold in Zimbabwe and Egypt to copper in Kazakhstan and Namibia, Xinhai is building a diversified portfolio across multiple jurisdictions and commodities. These investments are a natural extension of the company’s three decades of expertise in technology, engineering, and operations—not a divergence from its core service business.

Through a two-pronged strategy combining Mining Investment & Development with Integrated Mining Services (EPC+M+O), Xinhai is expanding its role from a mining services provider to a strategic partner in resource development. The company remains committed to leveraging its integrated capabilities across the mining value chain to support the responsible, efficient, and sustainable development of mineral resources globally.