Neon Mining CompanyBishkek 2020

Chon-Kaindy Project

• Neon Mining is an exploration company focused on exploration for porphyrycopper-gold occurrences in northern Kyrgyzstan. The Company currently holds a100% interest in the exploration permits for the Chon-Kaindy Property coveringsome 408 km2.

• The property is located in Chuy province, the northernmost province of the KyrgyzRepublic approximately 100 km southwest of the capital Bishkek.

• Although at high altitude (>3,600 m), the Project area is very well serviced byroads (highway Bishkek-Osh), power (PL-35 kW) and communications (mobiletelephony & Internet).

• Historical Soviet exploration work had identified several anomalous areas for goldand copper within the Chon-Kaindy License Area, although it is only in the last fewyears, when as a result of glacial retreat, extensive copper (+gold) mineralizationhas been uncovered in the Mazarashu South area.

• The position of the glaciers until the beginning of the 90s was at 3400-3500 m andthe location of mineralization was over than 3 800 m.

• Thus, as a result of the retreat of the glacier, it became possible to access thepreviously covered area, and the discovery of an earlier unknown mineralizationwas made by Neon Mining in 2016. It was named Mazar-Ashu South.

Chon-Kaindy Project

• Two main types of mineralization have been identified, notably a gold-bornite type developed within stockworks associated with theemplacement of monzonites into gabbroides with fragments of magnetite-garnet skarn (800 m by 1 400 m), and chalcopyrite type which appears tobe developed on the periphery of the first type of mineralization (1.5 kmby 7 km).

• In addition, a zone of gold-rich epithermal type of mineralization(diatreme, silica cap?) has been discovered within 1 km from the zone ofgold-silver-copper mineralization.

• In total, this zone of gold-copper mineralization is developed withinbrecciated hornfels and metavolcanics with a width of 3 km and length (ina northwest direction) of up to 7 km. Together with Mazarashu North thelength of the whole porphyry mineralized system is more than 14 km(almost meridional strike) and width about 3 km.

• Assaying was done in the certified laboratory Stewart Assay andEnvironment Laboratories LLC. (Kara-Balta, Kyrgyzstan).

Chon-Kaindy Project.Possible Analogues

• In terms of deposit analogies, the limited data from Mazar-Ashumake it difficult to compare with others, although the huge Almalykporphyry complex in Uzbekistan (which is pretty closed) showsmany similarities. It is also worth comparing the Alumbrera projectin Argentina.

• Almalyk is located 65 km to the southeast of Tashkent ineastern Uzbekistan (about 400 km to SW from Mazar-Ashu). Thecomplex encompasses the ore deposits at Kal'makyr (2.5 Gt@0.38% Cu, 0.5 g/t Au) and Dalnee (2.8 Gt @0.36% Cu, 0.35 g/tAu).

• The Bajo de la Alumbrera (Alumbrera) copper-gold mine inArgentina is owned and operated by Minera Alumbrera (MAA). Themine is located in Catamarca province, 1,100 km north-west ofBuenos Aires at an altitude of 2,500 m. The pre-mining measuredresource was: 695 Mt @0.51% Cu, 0.66 g/t Au, with a high gradecore of 118 Mt @0.64% Cu, 0.92 g/t Au.

Mazar-Ashu Position

Chon-Kaindy Project

Development ofcopper-porphyrydeposits with goldon the continentaltype crust (Andestype of volcanobelt).

Collision Zone. Collision of Tarim Platform and Kazakh Microcontinent.

Chon-Kaindy Project

0 250 500 km

South Tien-Shan – volcanic arcMiddle and North Tien-Shan – Paleozoic arc

Significant orogenic gold depositsCopper-porphyry deposits Russia

Kazakhstan

Tajikistan

UzbekistanKyrgyzstan

China

Daugyztau6 Moz

Muruntau210 Moz

Zarmitan13 Moz

Jilau 3 Moz

Kumtor15 Moz.

Au-Tolgoi50 Moz

Kharmagtai> 5 Moz

Tashkent

BishkekAlmaty

Ulaanbatar

Kal’makyr >2BT @ 0.45% Cu; 0.45g/t Au (93 Moz Au)

Tuwu

Mazar-Ashu Mongolia

Tien-Shan-South Gobi Belt.Orogenic gold and gold-copper porphyry deposits.

The closest analogues of Mazar-Ashu is Kal’makyr copper-gold porphyry deposit

Chon-Kaindy Project.Geological Map

Mazar-AshuTaldybulak TalasGold-Copper Porphyry

Chon-Kaidy Project.Mazar-Ashu Position to the Axis of Kyrgyz Range (Collision Zone)

The area of the sharp bend of Kyrgyz Range

• Mazar-Ashu occurs to the area of sharp shift of structural position of collision zone, whichhas linear character with sub-latitudinal strike overall.

• The loop-like shoulder testifies to a powerful tectonic-magmatic development of thisblock with a change in the sublatitudinal strike of the main structures, including ore-bearing ones, to the submeridional one.

Chon-Kaindy ProjectMazar-Ashu position in copper-porphyry

with gold systemThe similarity of the Mazarashu South areawith the reference features of porphyrysystems makes it possible to refer it toobjects of the porphyry type:1. The host rocks are volcanic andsubvolcanic rocks of the Middle Ordovician,represented by explosive breccias, tuffbreccias and altered gabbroid bodies;2. The host rocks are intruded by the bodiesof monzonitoids, syenites of porphyrystructure and their derivatives in the formof veinlets of K-feldspar and quartz-K-feldspar compositions. Among the latter,there is an impregnation of copper minerals(bornite, chalcopyrite and malachite);3. Among the metasomatically altered hostrocks, there are fragments of garnet skarnbodies;4. At 1.5-2.0 km to the east, there is a zoneof development of epithermal rocks ofsilicate composition (silica cup?), containingpoor gold-copper mineralization.

The scheme of the formation of copper-porphyry deposits (R.Silitoe, 2009)

Mazar-Ashu Pozition

Chon-Kaindy Project.Chon-Kaindy License Area and location of prospective sites

• During the Soviet period (until 1991), geological prospecting workswas carried out throughout the license area, as a result of which asignificant number of occurrences of gold, copper, complex copper-gold, molybdenum, lead and tungsten were identified.

• When studying these works, four main mineralized clusters wereidentified: Mazar-Ashu, Kara-Balta, Promejutochnyi and Aksu.

• Further analysis of spectrozonal satellite images showed that themost prospecting areas are the Mazar-Ashu and Promejutochnyiareas.

• In this regard, exploration in the field seasons 2013-2015 wasfocused on the Mazar-Ashu North area, and in the 2016-2019seasons on the Mazar-Ashu South area.

• In other prospecting areas, field works were limited toreconnaissance, and one well was drilled in the Aksu area, whichrevealed a rather intense geochemical halo of copper.

Chon-Kaindy Project.Chon-Kaindy License Area and location of prospective sites

Chon-Kaindy area

Promejutochnyi area

Chon-Kaindy License Area

Copper-porphyry system with gold. Mazar-Ashu position in

the system.

Chon-Kaindy Project. Mazar-Ashu Area

Schematic cross-sectionNW SE

Chon-Kaindy Project

Mazar-Ashu Area. Processing of the results of 2013-2019• Below are illustrative materials for processing a database compiled

from the results of sampling and analysis of geochemical samples.• Processing was carried out using modeling GIS systems: Leapfrog,

MapInfo (with integrated packages Encom Discover, VerticalMap,Surface) and RockWorks.

• At this stage, 3 066 samples of various types (grab, line-point,channel, etc.) taken from the surface took part in the processingand, in some cases (processing in Leapfrog), the database wassupplemented with 2 122 core samples.

• The zones of copper-porphyry mineralization were identified on thebasis of a cascade superposition of anomalies of individualelements.

Chon-Kaindy Project

Based on the analysis of thecorrelation matrix, the followingcomplexes of elements wereidentified:

Mineralized (copper-porphyry)complex Au-Ag-Cu-Bi-Te-Pb-Se-(Mo) - (W) - (Fe)(Au + sulfides + sulfosalts + scheelite)

Rock-forming complexes:

1. K-Ba-Cr-Fe-Mg-Y-Be-La-P-Sn-Zr (K-feldspar + muscovite + sericite + zircon + apatite);

2. Ca-Fe-Mg-Mn-Na-Sr-P-Sc-Ti-V-Zn-Co (feldspar + hornblende + chlorite + carbonates + rutile)

Mazar-Ashu Area. Processing of the results of 2013-2019

Chon-Kaindy Project.Mazar-Ashu Area. Processing of the results of 2013-2019

Chon-Kaindy Project.Mazar-Ashu Area. Processing of the results of 2013-2019

Zone Stockwork

Zone Malakhitovaya

Mineralized zones allocatedbased on anomalies tracking

Anomaliesassociated

with secondaryhalos

Chon-Kaindy Project.Mazar-Ashu Area. Processing of the results of 2013-2019

Chon-Kaindy Project.Mazar-Ashu South Area. 2018-2019 field works

• In 2018-2019, the main works of the summer field season were concentratedaround the main mineralization-bearing structure - the Stockwork Zone.

• The Malakhitovaya Zone was identified, which is exposed to the surface, and islocated 700-800 meters to the south of the Stockwork Zone. Petrographic andmineralogical studies of the rocks of the Malakhitovaya Zone have shown theiridentity to the rocks of the Stockwork zone.

• During this period, ascending DDH ## С-8-18, С-9-18, С-9-19 and С-10-19 weredrilled.

• The Malakhitovaya Zone was sampled from the surface. In total, three samplinglines were pushed. The following results were obtained:

– Line #1 – 30 meters sampled; average copper grade – 0.4% and silver – 2.6 g/t for a crossedthickness of 30 meters, including an interval of 7 meters with an average gold grade of 0.15g/t.

– Line #2 – 67 meters sampled; average copper grade – 0.6% and silver – 4.8 g/t for a crossedthickness of 63 meters, including an interval of 23 meters with an average copper grade of1.14%, gold – 0.12 g/t and silver – 9.8 g/t.

– Line #3 – 100 meters sampled; average copper grade – 0.7% and silver – 4.9 g/t for a crossedthickness of 74 meters, including an interval of 25 meters with an average grade of copper –1.14%, gold – 0.13 g/t and silver – 7.3 g/t (including the sub-interval with gold grade – 0.24 g/tper 7 meters).

Chon-Kaindy Project.Mazar-Ashu South. 2018-2019 field works

Sampling Plan of Malakhitovaya Zone(horizontal projection)

Cu-0.4%, Ag-2.6 g/t30.0 m

Au-0.15 g/t7.0 m Cu-1.14%, Ag-9.8 g/t

Au-0.12 g/t23.0 m

Cu-0.6%, Ag-4.8 g/t63.0 m

Cu-1.14%, Ag-7.3 g/tAu-0.13 g/t

25.0 mAu-0.24 g/t

7.0 m

Cu-0.7%, Ag-4.9 g/t74.0 m

Chon-Kaindy Project.Mazar-Ashu South. 2018-2019 field works

Sampling Line #1Length – 34.0 m

Sampling Line #2Length – 69.0 m

20 m

Cu-0.4%, Ag-2.6 g/t30.0 m

Cu-0.6%, Ag-4.8 g/t63.0 m

Cu-1.14%, Ag-9.8 g/tAu-0.12 g/t

23.0 m

Chon-Kaindy Project.Mazar-Ashu South. 2018-2019 field works.

Assay results of the Malakhitovaya Zone sampling (Lines #1 and #2)

1 1-0 0.01 1.2 <0.005 <3.52 1-1 0.00 <1.0 <0.005 <3.53 1-2 0.02 1.3 <0.005 <3.54 1-3 0.00 1.4 <0.005 <3.55 1-4 0.32 2.5 0.007 <3.56 1-5 0.13 1.7 <0.005 <3.57 1-6 0.23 2.1 0.009 <3.58 1-7 0.78 6.1 0.046 139 1-8 0.38 2.7 0.022 <3.510 1-9 0.74 5.0 0.031 611 1-10 1.12 6.4 0.040 712 1-11 0.15 2.0 <0.005 <3.513 1-12 0.44 3.0 <0.005 <3.514 1-13 0.19 1.8 <0.005 <3.515 1-14 0.12 1.5 <0.005 <3.516 1-15 0.24 1.7 0.005 <3.517 1-16 0.27 2.4 0.006 <3.518 1-17 0.28 1.2 0.006 <3.519 1-18 0.94 4.9 0.325 1420 1-19 0.45 2.7 0.059 <3.521 1-20 0.66 3.4 0.097 <3.522 1-21 0.48 3.1 0.113 <3.523 1-22 0.57 3.1 0.130 424 1-23 0.89 3.7 0.118 825 1-24 0.64 3.2 0.209 <3.526 1-25 0.19 2.0 0.024 <3.527 1-26 0.22 <1.0 0.033 <3.528 1-27 0.13 1.0 0.015 <3.529 1-28 0.08 <1.0 0.014 <3.530 1-29 0.17 2.4 0.040 <3.531 1-30 0.51 2.4 0.081 <3.532 1-31 0.08 1.7 0.017 <3.533 1-32 0.24 2.0 0.013 <3.534 1-33 0.10 1.9 <0.005 <3.5

1 2-0 0.09 1.6 <0.005 <3.52 2-1 0.02 <1.0 <0.005 <3.53 2-2 0.01 1.1 0.006 <3.54 2-3 0.01 <1.0 <0.005 <3.55 2-4 0.00 <1.0 <0.005 <3.56 2-5 0.03 1.4 <0.005 <3.57 2-6 0.15 1.5 <0.005 <3.58 2-7 0.07 1.7 <0.005 <3.59 2-8 0.19 1.8 0.009 <3.510 2-9 0.13 1.8 0.005 <3.511 2-10 0.23 2.6 <0.005 <3.512 2-11 0.71 5.7 0.014 <3.513 2-12 0.35 3.5 0.018 <3.514 2-13 0.26 2.5 0.007 <3.515 2-14 0.46 3.3 0.009 <3.516 2-15 0.78 5.7 0.047 <3.517 2-16 0.50 3.8 0.028 <3.518 2-17 0.93 6.7 0.049 419 2-18 0.98 10.0 0.086 2420 2-19 0.94 8.9 0.144 2021 2-20 1.22 8.9 0.120 2722 2-21 1.05 8.7 0.152 2423 2-22 0.65 6.8 0.044 2424 2-23 0.74 7.4 0.078 2525 2-24 1.62 15.1 0.014 11826 2-25 0.61 5.9 0.068 1727 2-26 0.41 2.5 0.017 <3.528 2-27 1.29 11.1 0.087 6329 2-28 0.83 7.6 0.140 4130 2-29 0.64 6.7 0.047 2631 2-30 1.46 17.8 0.354 9432 2-31 2.32 16.6 0.146 7633 2-32 3.24 21.2 0.231 8234 2-33 0.70 6.3 0.076 2735 2-34 2.34 23.2 0.405 8836 2-35 0.45 4.3 0.036 <3.537 2-36 0.75 6.9 0.103 1338 2-37 1.06 8.6 0.114 1939 2-38 1.03 7.8 0.068 2140 2-39 0.85 6.5 0.109 2041 2-40 0.10 2.0 0.009 <3.542 2-41 0.10 1.5 <0.005 <3.543 2-42 0.06 1.6 <0.005 <3.544 2-43 0.54 1.2 0.083 2145 2-44 0.48 <1.0 0.116 4546 2-45 0.54 <1.0 0.067 1347 2-46 0.06 1.2 0.007 <3.548 2-47 0.03 1.1 0.007 <3.549 2-48 0.12 1.1 0.017 <3.550 2-49 0.29 1.4 0.033 <3.551 2-50 0.61 3.3 0.082 <3.552 2-51 0.52 1.8 0.036 <3.553 2-52 0.18 1.7 0.021 <3.554 2-53 0.22 2.2 0.019 <3.555 2-54 0.04 2.1 <0.005 <3.556 2-55 0.06 1.3 0.006 <3.557 2-56 0.23 1.5 0.019 <3.558 2-57 0.12 1.5 0.019 <3.559 2-58 0.10 <1.0 0.011 660 2-59 0.16 1.4 0.022 <3.561 2-60 0.36 2.0 0.062 <3.562 2-61 0.30 1.6 0.054 <3.563 2-62 0.12 1.1 0.014 <3.564 2-63 0.46 1.9 0.045 <3.565 2-64 0.92 3.0 0.129 466 2-65 0.07 <1.0 0.009 <3.567 2-66 0.16 1.1 0.017 <3.568 2-67 0.18 2.2 0.054 <3.569 2-68 0.20 2.4 0.059 <3.5

Sampling Line #1

Sampling Line #2

## ##sample Cu, % Ag, g/t Au, g/t Bi, g/t

Chon-Kaindy Project.Mazar-Ashu South. 2018-2019 field works.

Assay results of the Malakhitovaya Zone sampling (Line #3)

1 3-0 0.022 1.1 <3.5 0.022 3-1 0.005 <1.0 <3.5 0.013 3-2 0.008 <1.0 <3.5 0.004 3-3 0.007 <1.0 <3.5 0.005 3-4 0.007 <1.0 <3.5 0.006 3-5 0.009 <1.0 <3.5 0.027 3-6 <0.005 <1.0 <3.5 0.008 3-7 <0.005 <1.0 <3.5 0.009 3-8 <0.005 <1.0 <3.5 0.0010 3-9 0.007 <1.0 <3.5 0.0011 3-10 <0.005 1.0 <3.5 0.0012 3-11 <0.005 <1.0 <3.5 0.0013 3-12 0.009 <1.0 <3.5 0.0714 3-13 0.005 <1.0 <3.5 0.0015 3-14 0.010 <1.0 <3.5 0.0016 3-15 0.010 1.5 <3.5 0.0817 3-16 0.010 <1.0 <3.5 0.0118 3-17 <0.005 <1.0 <3.5 0.0119 3-18 0.007 <1.0 <3.5 0.0120 3-19 0.009 <1.0 <3.5 0.0121 3-20 <0.005 <1.0 <3.5 0.0122 3-21 <0.005 <1.0 <3.5 0.0223 3-22 <0.005 <1.0 <3.5 0.0224 3-23 <0.005 <1.0 <3.5 0.0425 3-24 <0.005 <1.0 <3.5 0.0526 3-25 0.006 <1.0 <3.5 0.0327 3-26 0.009 1.3 <3.5 0.0328 3-27 0.006 1.2 <3.5 0.0929 3-28 0.006 1.9 <3.5 0.2030 3-29 0.007 1.7 <3.5 0.1831 3-30 0.085 5.7 39 0.8232 3-31 0.034 4.4 21 0.5933 3-32 0.075 6.6 47 1.0034 3-33 0.042 4.6 24 0.8835 3-34 0.062 6.7 44 1.2236 3-35 0.045 4.9 24 0.7137 3-36 0.022 2.3 <3.5 0.4538 3-37 0.049 4.5 21 0.6939 3-38 0.153 8.0 61 1.4940 3-39 0.245 10.3 72 1.6541 3-40 0.248 13.5 115 2.9942 3-41 0.041 4.7 26 1.2643 3-42 0.081 9.9 95 2.0244 3-43 0.067 4.1 28 0.8245 3-44 0.073 5.1 20 0.6046 3-45 0.047 5.4 34 0.6047 3-46 0.063 6.2 37 0.9748 3-47 0.102 9.0 59 1.2349 3-48 0.589 17.5 134 2.1450 3-49 0.259 4.4 18 0.72

51 3-50 0.161 10.7 62 1.2952 3-51 0.061 3.1 19 0.7253 3-52 0.116 4.9 37 0.8054 3-53 0.296 15.2 68 1.5355 3-54 0.187 11.7 49 1.2856 3-55 0.027 2.1 <3.5 0.3757 3-56 0.085 7.6 26 1.0058 3-57 0.087 6.2 14 0.8159 3-58 0.037 3.2 <3.5 0.4460 3-59 0.025 2.5 <3.5 0.2761 3-60 0.139 4.5 9 0.6762 3-61 0.056 5.2 10 0.6763 3-62 0.069 5.5 10 0.7864 3-63 0.028 4.6 5 0.6265 3-64 0.052 4.9 12 0.8066 3-65 0.036 3.9 <3.5 0.3867 3-66 0.061 5.4 4 0.6068 3-67 0.054 4.4 8 0.5169 3-68 0.068 4.5 13 0.6670 3-69 0.137 9.7 44 1.8571 3-70 0.118 8.4 30 1.3472 3-71 0.080 5.7 24 0.9573 3-72 0.033 2.2 4 0.3574 3-73 0.005 1.1 <3.5 0.0675 3-74 <0.005 1.1 <3.5 0.0176 3-75 <0.005 <1.0 <3.5 0.0177 3-76 <0.005 1.2 <3.5 0.0178 3-77 0.014 2.4 <3.5 0.2279 3-78 0.014 1.3 <3.5 0.1380 3-79 0.025 1.9 <3.5 0.2981 3-80 0.007 1.1 <3.5 0.0482 3-81 0.019 1.4 4 0.1883 3-82 <0.005 1.1 <3.5 0.1284 3-83 0.011 1.3 <3.5 0.0985 3-84 0.014 1.2 <3.5 0.0986 3-85 0.010 1.2 <3.5 0.0587 3-86 0.076 5.1 16 0.7188 3-87 0.070 5.4 13 0.7889 3-88 0.134 9.3 30 1.2790 3-89 0.055 4.2 8 0.6591 3-90 0.074 5.5 14 0.8492 3-91 0.035 2.4 <3.5 0.2293 3-92 0.101 6.2 19 0.8294 3-93 0.148 8.9 29 1.1295 3-94 0.046 2.1 <3.5 0.2896 3-95 0.048 4.1 7 0.8097 3-96 0.072 3.0 <3.5 0.5998 3-97 0.021 2.0 <3.5 0.2299 3-98 0.024 1.3 <3.5 0.18

100 3-99 0.042 2.4 <3.5 0.39

Chon-Kaindy Project.Mazar-Ashu South. 2018-2019 field works. The example of the Analysis Report (Line 3)

Chon-Kaindy Project.Mazar-Ashu South. 2018-2019 field works. The example of the Analysis Report (Line 3)

Chon-Kaindy Project.Mazar-Ashu South. 2018-2019 field works. Photo of the Malakhitovaya Zone

Chon-Kaindy Project.Mazar-Ashu South. Extension of the Malakhitovaya Zone to SSW

Prospects for extension of the Malakhitovaya Zone to the South-Southwest. Currently, access to thissite is extremely difficult due to constant rockfalls. However, the association of this area with theMalakhitovaya Zone is obvious.

Chon-Kaindy Project.Mazar-Ashu South. Mineralogy

• Two main types of ore mineralization are distinguished:• Gold-galena-covellite-chalcocite-bornite; and• Pyrite-molybdenite-chalcopyrite.

– Gold-galena-covellite-chalcocite-bornite is composed mainly of bornite, over which secondarycopper-sulfide minerals develop - chalcocite and, less often, covellite. Chalcopyrite in this associationis observed locally, filling the lattices of the decomposition structures of solid solutions in bornite.Bornite is represented by fine dissemination and aggregate accumulations of xenomorphicsegregations between amphibole and feldspar grains in metasomatites.

– Bornite often replaces grains of primary magnetite of host rocks and metasomatic magnetite ofskarnoids. In intergrowths with bornite, segregations of galena and Pb-Bi-Cu sulfosalts - galenabismutite (PbBi2S4?) And angelaite (Cu2AgPbBiS?) Are observed. In the composition of mineralizedspecimens, micron-sized grains of native gold and silver have also been observed.

– This type of mineralization is observed among the stockwork of feldspar veins and injectionsassociated with the intrusion of monzonitoids, as well as in the bodies of metasomatites alonggabbroids and metavolcanics.

• The pyrite-molybdenite-chalcopyrite type is closely related to the bornite type, is morerecent and developed along the periphery of the stockwork in the zones of deformation ofrocks. It is composed mainly of chalcopyrite with some admixture of pyrite and molybdenite,often against the background of the development of mineralization along the accumulationsof magnetite grains. Native gold is also found here in the form of micron-sized inclusions.

• The wide halo of silver and bismuth in the Mazar-Ashuu South area is explained by thepresence of such minerals as galena bismuthite and angelaite. These minerals form the mainbackground of silver and bismuth, and their grades have a direct correlation with copper andgold.

Chon-Kaindy Project.Mazar-Ashu Area. Mineralogy

Forms of manifestation of sulfidemineralization in monzonite (amf-fsp)

Sulfide mineralization is representedby dissemination and bornite nests(bn) in interstices between rock-forming minerals, sometimes inintergrowths with chalcopyrite (bn +cpy).

Bornite is mostly replaced bysecondary copper sulfide (bn + cc) –chalcocite (cc), often in associationwith covellite (cc + cv).

In intergrowths with copper sulfides,rosettes of a mineral from the groupCu-Ag-Pb-Bi sulfosalts – angelaite(ang) are widely developed.

Chon-Kaindy Project.Mazar-Ashu South. Mineralogy

Allocations of angelaite(Cu2AgPbBiS) in the core

Allocations of angelaite(Cu2AgPbBiS) in the core

Chon-Kaindy Project.Mazar-Ashu South. Main results of 2018-2019 field season

Geological routes:

As a result of the geological routes, in the western part of the site, the mineralized zone was identified,which may be of industrial interest.

Channel samples were taken along the outlined sampling lines oriented across the newly identifiedmineralized zone "Malakhitovaya". The results of analyzes were obtained on line ##1, 2 and 3.• Along line #1, the mineralized zone with a crossed thickness of 30 m, the average grade of Cu was

0.4%, and Ag – 2.6 g/t. Within this interval, an interval (18-25 m) with a thickness of 7 m with anelevated Au grade of 0.15 g/t was revealed.

• Along line #2, the mineralized zone with a crossed thickness of 63 m, the average grade of Cu was0.6%, and Ag – 4.5 g/t. Within this interval, an interval (18-41 m) with a thickness of 23 m wasrevealed with an average Cu grade of 1.14%, Ag – 9.8 g/t, and Au – 0.12 g/t.

• Along line #3, the mineralized zone with a crossed thickness of 72 meters, the average grade of Cuwas 0.71%, and Ag – 4.9 g/t. Within this interval, an interval (32-57) with a thickness of 25 meterswas identified with an average Cu grade of 1.14%, gold – 0.13 g/t and silver – 7.2 g/t (with anadditional sub-interval with a gold grade of 0.24 g/t per 7 meters).

In addition to the elevated grades of copper, in the indicated intervals, elevated silver grades (up to 23g/t) and gold (up to 0.4 g/t) are noted.

Chon-Kaindy Project.Mazar-Ashu South. Main results of 2018-2019 field season

The main results of 2018 field season works are:1. Obtaining extended mineralized intersections (30.0 m @ 0.4% Cu; 63.0 m @ 0.6% Cu and 72 m @ 0.71 Cu at copper cut-off

grade – 0.1% Cu).2. Delineation within these intersections the enriched interval (23.0 m @ 1.14% Cu and 25 m @ 1.14% with a cut-off grade of

1.0% Cu).3. Identification of areas with evaluated Au grades within each of the intersections.4. The hypothesis of the presence of a "core structure" within the general mineralized contour was confirmed.5. Presence of a strong correlation between the main elements Cu, Au, Ag and Bi.6. Establishment of the development of halos of evaluated Ag and Bi grades along the periphery of the ore system:

I. Ag grade in well C-3-17 was in the interval 287-320 m (33.0 m @ 1.3 g/t max – 2.3 g/t);II. Ag grade for well C-7-18 was in the intervals:

a. 30-38 m (8.0 m @ 4.4 g/t; max – 28.4 g/t)b. 179-189 m (10 m @ 1.1 g/t; max – 2.3 g/t)c. 198-234 m (36 m @ 1.2 g/t; max – 1.7 g/t)d. 293-300 m (7 m @ 1.5 g / t; max – 2.7 g/t)

III. The Ag content for well C-8-18 was in the intervals:a. 49-63 m (14 m @ 1.0 g / t; max – 1.5 g/t)b. 102-189 m (87 m @ 1.2 g / t; max – 2.0 g/t)c. 220-312 m (92 m @ 1.4 g / t; max – 2.1 g/t).

7. Visual tracing of the Malachite zone to the South-Southwest.8. Establishment of identity in the petrographic and mineralogical plan of the mineralization of the Stockwork and Malakhitovaya

zones, which makes it possible at the present stage of work to combine them into one mineralized formation and to localizefurther drilling at the site Stockwork Zone – Malakhitovaya Zone.

Chon-Kaindy Project.Mazar-Ashu South

ASSUMPTIONS

Chon-Kaindy Project.Mazar-Ashu South

Chon-Kaindy Project.Mazar-Ashu South

Chon-Kaindy Project.Mazar-Ashu South. Stockwork Zone

Chon-Kaindy Project.Mazar-Ashu South

Stockwork (comprises Stockwork and Malakhitovaya Zones)• Stockwork site is the most perspective area within Mazar-Ashu

South. It is the largest mineralized formation, and, in addition,within its limits, it was possible to establish fairly clear signs of thecore part of the porphyry system, expressed in the type ofmetasomatic alterations, a set of mineralization-forming mineralsand grades of ore-bearing elements.

• Visual signs of mineralization are observed in nature and on satelliteimages. The results of assays, general understanding of thedevelopment of the systems allow to suggest the hypotheticalresources of this area. In case we classify them according to the GKZclassification, then these resources could be attributed tocategories P1 and P2. According JORC classification it could beattributed as un-classified.

Chon-Kaindy Project.Mazar-Ashu South

• The parameters of the mineralized part of the site are:– Along the strike – 1,400 meters;– Across the strike – 800 meters;– Width – 200 meters.

• The assay results suggest that the average copper andgold grades for this zone might be 0.8-0.9% and 0.2 g/t,respectively.

• Thus, the hypothetical resources are to be:– 1,400 x 800 x 200 = 582.4 million tons of ore; and– 582.4 x 0.8% = 4 673 thousand tons of copper; and– 582.4 x 0.2 g / t = 116.5 tons of gold.

Chon-Kaindy Project.Mazar-Ashu South

• Inside the zone, the core part of the system isallocated, and the parameters of which are:– Along the strike – 700 meters;– Across the strike – 300 meters;– Width – 70 meters.

• The assay results suggest that the average copper andgold grades in this zone might be 1.1-1.3% and 0.3 g/t,respectively.

• Thus, the hypothetical resources are to be:– 700 x 300 x 700 = 147 million tons of ore; and– 147 x 1.1% = 1,617 thousand tons of copper; and– 147 x 0.3 g / t = 44.1 tons of gold.