Executive Summary

• The Jongju REE target can be seen as a potential “economic dynamo” in the region
• The project can be classified as a “Super Deposit” and can support a “Super Mine” status for more than 100 years
• In summary, and based on data produced by limited drilling and a comprehensive trenching exercise, the following summary is indicative of the Jongju Deposit: 664.9 Mt @ > 9.00% TREO, 634.0 Mt @ > 5.70 ≤ 9.00% TREO, 2.077 Bt @ > 3.97 ≤ 5.70% TREO, 340.4 Mt @ >1.35 ≤ 3.97% TREO, and 2.339 Bt @ ≤ 1.35% TREO are present in the Jongju REE Target (a total of 216.2 Mt TREO). The THREO – component is assumed to be 2.62% or approximately 5.45 Mt
• Associated with the REE potential, several commodities (i.e. fluorite, apatite, zircon, feldspar and nepheline) are available to be separated and applied as (a) feed for new industries, (b) support existing industries and possible expansions and (c) an export market to China, South Korea and Japan
• The region mentioned is situated 2 hours from the capital city Pyongyang, 10 km from the nearest coast, situated in the proximity of Jongju City, on rail, and is 30 km west of Anju (a coal mining district and the Namhung Youth Chemical Complex (in the city of Anju)
• The above-mentioned “economic dynamo” is an ideal start to (a) a focussed, high-technology industry, providing a range of product (i.e. raw to finished), (b) a focus on training and job creation, (c) primary and secondary economic development throughout the direct area and region
• The total infrastructure to support the Jongju exploration, mine and plant development, further processing facility and links to the existing industries (i.e. electricity, rail, road - Namhung Youth Chemical Complex, Sinuiju border crossing to China) will be further catalyst for employment and a general social-economic change in the region.