JSC NATIONAL EXPLORATION COMPANY KAZGEOLOGY. Potential projects of JSC «National Exploration Сompany «Kazgeology»

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1 JSC NATIONAL EXPLORATION COMPANY KAZGEOLOGY Potential projects of JSC «National Exploration Сompany «Kazgeology» Astana, 2017

2 Exploration of platinum and gold ores on Surovskiy area in Eastern Kazakhstan General information: The site is located on the left bank of the Irtysh River and is indented by its tributaries. From the southeast to the northwest the area is intersected by a highway between the Novotroitsk and Samsonovka settlements. The length of the area is 11 km. Type of road - field road. The systematic studies of the Irtysh shear zone and Kalba started in the 50s of the last century, resulting in geological mapping on a scale of 1: 200,000 and 1: 50,000, unified stratigraphic and magmatic schemes for Kalba and Irtysh land, which formed the basis for further research. Amount of investment in the exploratory stage: 716 million KZT. Annual economic and social charges: KZT. Amount of the subscription bonus: KZT. Project implementation period: 3 years Total area: 48,3 km2. Forecast reserves: Surovskiy area is a complete ore occurrence, the main minerals of which are elements of platinoid group (EPG) and magnesite. EPG Inferred resources make up the sum of P1 + P2: Pt , 2 kg (from 1,9 g/t to 3,35 g/t). Pd ,6 kg (from 1,93 g/t to 3,47 g/t). Magnesite Inferred resources, making up the sum of P1 + P2-1258,62 thousand tons. Expected result: The result of activities will be the evaluation of Surovskiy gabbroid solid mass for platinumgold mineralization detection and evaluation. Stages of activities involves preparation of prospecting report on evaluation of forecast resources of P1 category and recommendations on evaluation activities.

3 Project for exploration of polymetallic ores (lead & zinc) on Dautbai area in Karagandy region General information: Administrative area of Dautbai is located in Ulytai district in Karagandy region, 210 km South-East from Zhezkazgan city. Ulytau village - administrative center. Geological characteristization. Dautbai ore occurrence is situated in the eastern boundary of the Zhezkazgan-Sarysu trench within Dautbaysk horst-anticline, the length of which is 25 km and width from 4 to 7 km. On South Dautbai and North Dautbai, situated at a distance of 8 km from each other, the areas with barite-polymetallic and strontium mineralization are identified. Conclusions on the prospectiveness of South Dautbai and North Dautbai areas and on the whole Dautbaysk horst-anticline was made based on the conducted prospecting works for identification of polymetallic ores, as well as for zinc, silver barite and strontium ores, which increases perspectivity of Dautbai area and determines the necessity of conducting prospecting and evaluation works within the area. On North Dautbai area lead-zinc ores with barite occur as concordant with the stratification of horizons, forming three mineralized zones. At the station allocated from 3 to 6 mineralized horizons with a zinc content of 0.1 to 2.1%. In addition to barite-polymetallic mineralization indicated silver mineralization with an average silver content of 27 g / t to 9.8 m power. Forward-cat resources. P2 (lead + zinc) -776 tonnes -951 tonnes of silver (taken as geological). Total area: 48,3 square km Type of mineral: polymetallic ores The size of the subscription bonus: KZT. Annual socio-economic charges: KZT. Project implementation period : 4 years, with an initial investment of 480 million KZT.

4 Exploration of copper, gold, molybdenum and other non-ferrous on Kyzylkain area in Eastern Kazakhstan Main information: In the administrative relation the Kyzylkain area settles down in the Tarbagatai region of East Kazakhstan region in 20 km. to settlement Priozernyi (Tugyl). Total area makes 60 sq.km. Within the area there are two ore portion with a copper content of 0.5%. One size 100x300m confined to the northwest a breach, and the other the size of 30x200 meters - to a north-south. Most rich in relation to copper is a central part of the plot with a copper content %. As a result of geological exploration predecessors calculated ore reserves in the amount of million tons and copper reserves in tonnes when its content of 0.3% and thousand tons at an average grade of copper %. In addition, the estimated reserves of molybdenum, which are estimated in the amount of 27.1 thousand tons Removing 85% of copper, molybdenum - 93%. The value of deposits increased due to the content in the ores of gold and rhenium. Total area: 84 square meters. km. Type of minerals: copper, gold, molybdenum and other non-ferrous metals The size of the subscription bonus : KZT. Amount of investment : 840 million KZT Annual socio-economic charges : KZT

5 Exploration of gold ores on the Mailishat area in Eastern Kazakhstan General information: Mailishat area is located in Ayagoz district (last Chabartausk) in Eastern Kazakhstan region. Amount of investment : ,95 thousands of KZT Closest city (center of district) and railway station is Ayagoz city, situated 150 km eastwards. Population and cities are mostly focused near Bakanas river valley and its tributaries. Project implementation period: 6 years Geological knowledge : - Hydrogeological survey on a scale of 1:200,000 (Murtazin Z.V. and others, 1967) - Regional geophysical survey on a scale of 1: 50,000 (Chistoedov L. et al, 1984) - Geological Survey on a scale of 1: 50,000 (Chistoedov L.V. and others, 1987) - Geological mapping on a scale of 1: 200,000 (2005). Surveys have shown that gold is the main component within the area, possibly in industrial concentrations. Secondary sulfide enrichment zone is comparable to that in the field Kosmurun where 20 tons of gold were mined at an average grade of 20 g / t in oxidized ores. In separate consignments reached the gold content of up to 1 kg. Per ton of ore. In the Soviet period Maylishat ore occurrence was explored to a depth of 1 m, with an average gold content of 6-7 g / t reserves its C1 and C2, respectively, accounted for 73.1 kg. And kg. Besides gold, the ore contained relatively rich copper mineralization ( %). At present, the previously calculated and approved reserves entirely. Processed (Geology of the USSR). Of interest is the zone of secondary sulphide enrichment lies at a depth of meters. Primary gold - polymetallic ore previously reconnoitered.

6 Exploration of non-ferrous metals (except bauxite) on area in Kostanai region Location: The block is located in the region with the developing agricultural and potentially mining industries. Newly built "Altynsarino-Khromtau" railway passes through the center of the block, the nearest railway station - Taldykulsk. Project implementation period: 3 years Amount of investment : ,169 thousands of KZT Current state: December 23, 2014 subsoil use contract was concluded. Currently magnetic survey is performed with the total volume of work linear km, airborne geophysical survey on 564 km2 is also planned to be carried out. Geological knowledge : Kunduzdinsk ore cluster. Inferred copper reserves thousand tons, gold - 4 tons. Productive strata - volcanogenic-sedimentary rocks and weathering crusts. Element contents: copper 1,13%, zinc 0,94%, molybdenum 0,15%, gold 0,4 gram for ton, silver - 52 gram for ton. South Kungurtausk ore occurrence - ore mineral is represented by chalcopyrite forming clusters in the areas of 4-6 m thickness, copper content in the zones reaches 2,2%. Benkalinsk ore occurrence. Inferred resources by P3 category: copper tons at an average copper grade of 0.43%, molybdenum % and evaluation depth m. Productive stratа - rock porphyry intrusion and its enclosing volcanic-sedimentary formations.

7 Exploration on Medyne in Karagandy region Main Information: Search the area of Medyne is in Shet district of Karaganda region. The area is located in the central part of the Nura Synclinorium folded flyschoid formation of the Silurian-Lower Devonian. To the south of these areas stand out Tekturmas anticline to the north - the Devonian volcanic belt. Geological information: The most interesting to study appears to Middle-Late Carboniferous intrusive complex (Toparsky), which is presented on an area of numerous rod shaped and dyke-like bodies that intrude Silurian sedimentary rocks and Lower and Middle Devonian. The largest is the intrusion of diorite massif located in the northwestern part of the area of Medyne, promising to look for non-ferrous and precious metals. This diorite array in performance and industrial-genetic type is similar to known deposits Kounrad and Aktogay. Project implementation period : 6 year Amount of the subscription bonus: KZT. Annual economic and social charges: KZT. Chemical analysis of mineralized rocks installed copper content of 0.37 to 2.25% Spectral analyzes marked silver and 5 g / ton gold, 0.3 g / m, up to 1% boron. Inferred resources not counted. Current situation: JSC Kazgeology" June 24, 2016 through direct negotiations obtained the right to conclude the contract for exploration of base and precious metals on the Medyne area in Karaganda region. Annual economic and social contributions: KZT. Total area: 630,3 km2

8 Exploration of gold ores on Karabaibulak, Sarymsaktinsk and Arpaozen-Kultas ore fields in Southern Kazakhstan region Main information: Gold occurrence has significant similarities with the gold objects known in Nevada (USA), the so-called Karlinsk type of gold deposits. They are represented by the formation and vein-like bodies and deposits of silicified and mineralized rocks with finely disseminated gold in a substantially carbonate carbonaceous strata. This fact significantly increases the interest in the full assessment of gold manifestation group consisting of about 15 objects, which are localized in carbonate formations kokbulaksk Formation Cambrian basement Famennian sediments, sparkling and turlansk suites. Author reserves (Buvtyshkin V.M. and others, 2007) consist by category C2-5.9 tonnes of gold and inferred resources amount to over 10 tons. The average gold content of 1-30 g / t. Forecast depth m. Total area : 900 km2 Amount of the subscription bonus : KZT Annual economic and social charges : KZT Location: Karabaibulak, Saysmakinsk-Kultas ore fields belong to Suzak district on Southern Kazakhstan. Project implementation period : 3 year Current situation: in March 31, 2016 was received the protocol of direct negotiations, under development of construction documents.

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