Announcement PDF RNS Number : 5888T East Star Resources PLC 21 March 2023 THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. 21 March 2023 East Star Resources Plc ("East Star" or the "Company") Independent Exploration Target for Verkhuba Copper-Zinc-Lead Deposit, Kazakhstan East Star Resources Plc (LSE:EST), which is defining mineral resources in Kazakhstan for the energy revolution, is pleased to announce an independent JORC-compliant Exploration Target conducted by leading resource advisors AMC Consultants on the Verkhuba Copper-Zinc-Lead Deposit on the Rudny Altai VMS belt. Highlights: · Exploration Target of 19-23 Mt at 1.0-1.4% Cu and 1.0-1.4% Zn (1.4-1.9% CuEq) · Exploration Target is defined by 97 drill holes comprising 42,178 m of historical diamond drilling, reviewed by East Star over the past 12 months, providing a reasonable level of confidence in the geological interpretation · Historical drilling was over 2.89 km2 of laterally extensive mineralisation in a grid pattern of circa 100x100 m in the central part of the deposit and 200x100 m on its flanks · Further possible significant exploration upside exists in drill-ready satellite targets identified in 2022 helicopter electromagnetic ("HEM") survey · Historical metallurgical test work reported Au and Ag grades in technological samples equal to 0.3 g/t Au and 14.2 g/t Ag indicating potential to further enhance the value per tonne of ore · Potential for low-CAPEX development using existing processing capacity within the region · Verification and infill drilling has been planned to upgrade Exploration Target to JORC-compliant resources with drilling expected to commence this summer Exploration Target Summary Table Mining method Open pit Underground Total Tonnes (kt) 5,000 - 6,000 14,000 - 17,000 19,000 - 23,000 Zn (%) 0.5 - 0.8 1.2 - 1.6 1.0 - 1.4 Cu (%) 1.4 - 1.8 0.8 - 1.2 1.0 - 1.4 Pb (%) 0.1 - 0.2 0.1 - 0.2 0.1 - 0.2 · This is an Exploration Target and should not be considered to be a Mineral Resource · The Exploration Target assumes an open pit mining method with marginal cut-off of 0.38% Cu equivalent and underground mining method with the marginal cut-off of 0.86% Cu equivalent · A nominal dry density values of 3.0 t/m3 was assumed to be appropriate for the style of mineralisation · Cu equivalent was calculated using the following metal prices: 3,050 US$/t for Zn, 9,000 US$/t for Cu, 2,250 US$/t for Pb · Tonnage is reported on dry basis Chart, diagram Description automatically generated Figure 1 Micromine model of ore bodies including modelled open pit scenario. Alex Walker, East Star CEO, commented: "This Exploration Target validates the statement that the Verkhuba Deposit is a game changer for East Star. The Exploration Target is based on 42,178 m of historical diamond drilling which should require a limited twin drilling programme to upgrade to JORC-compliant resources. The Exploration Target of 19-23 Mt @ 1.4% - 1.9% Cu equivalent is already significant, with potential for additional tonnage in some of the orebodies. "The Verkhuba Deposit is 2.89 km2 within a 30 km2 ore district which also includes multiple drill-ready HEM targets. Furthermore, with significant infrastructure already in place and excess processing capacity within the region from both Glencore (Kazzinc) and KAZ Minerals, it may be possible to fast track the Verkhuba Deposit into production with low capital expenditure. "With high-grade copper mineralisation already identified, significant exploration upside and a potential route to lowCAPEX development, East Star is uniquely positioned for growth in 2023 within a progressive mining jurisdiction. We are eager to commence verification and infill drilling over the Verkhuba Deposit this summer." Webcast Presentation A short webcast presentation about the independent Exploration Target for the Verkhuba Copper-Zinc-Lead Deposit by East Star's CEO is available via the Company's website at: https://www.eaststarplc.com/presentations. Background East Star Resources commissioned AMC Consultants Pty Ltd ("AMC") to prepare a Mineral Resource Estimate ("MRE") and a conceptual pit optimisation and analysis for the Verkhuba Deposit located in eastern Kazakhstan. For reporting purposes, the MRE was converted to an Exploration Target range under JORC reporting standards. Exploration of the project area was carried out in the 1950s through to the 1990s, mostly by surface core drilling. Exploration adits and drives were also developed at the Verkhuba Deposit, but the database for underground channel sampling was not available. Mineralised bodies are represented by VMS shallow dipping sheet-like bodies and lenses. A total of 97 diamond drillholes define the Verkhuba Deposit with a total of 42,178 m of drilling. 62 drillholes were used for the grade estimate. The deposit area was sampled using diamond drillholes at variable spacings - from 200 m x 200 m to 100 m x 100 m spacing. To establish the Exploration Target, AMC completed the following phases of work: · Database import and validation · Classical statistical analysis · Interpretation and wireframing of mineralised zones using metal equivalent grades available in the database · Data selection and compositing · Block model development · Grade interpolation and model validation · Preliminary pit optimisation study using a base case scenario · Pit analysis and a preliminary scoping estimate of the deposit's economic potential · Development of verification and an infill drilling programme Geological modelling was completed by AMC which resulted in 59 interpreted and wireframed mineralised bodies. A block model constrained by the interpreted mineralised bodies was constructed with the parent cell size of 5 mE x 5 mN x 2 mRL with standard sub-celling five times in all directions to maintain the volume resolution of the mineralised bodies. Drillhole sample intervals have been composited to 1 m length and were used to interpolate all main modelled grades (Zn, Pb, Cu) into the block model using ordinary kriging (OK) interpolation techniques. Block grades were validated both visually and statistically and all modelling was completed using Micromine software. Constant average bulk density values of 3.0 t/m3 were applied to each model cell, which was assumed from the historical reports. Exploration Target The grade estimate and subsequent Exploration Target allowed an assessment of the integrity of the input data. It was also used to confirm estimation and reporting of exploration potential ranges of tonnage and grades for the Verkhuba Deposit. The Exploration Target is to be reported in accordance with the JORC Code*. Table 1 shows the Exploration Target for the Verkhuba Deposit for both open pit and underground mining methods. The Exploration Target is based on actual Exploration Results that were obtained during several historical exploration programmes completed between 1950 and 1990 when a total number of 97 diamond holes were drilled totaling 42,178 m. The estimated potential quantity of tonnes and grades are conceptual in nature as there has been insufficient data and evaluation to support estimation of a Mineral Resource. Tonnages and grades are expressed as ranges that are considered appropriate for the Exploration Target. There is no certainty that further exploration, verification drilling, or twinned drilling will result in the estimation of a Mineral Resource. The Exploration Target is not to be considered in any way to represent a Mineral Resource or Ore Reserve. Table 1 Verkhuba Exploration Target estimate for open pit and underground mining methods Mining method Open pit Underground Total Tonnes (kt) 5,000 - 6,000 14,000 - 17,000 19,000 - 23,000 Zn (%) 0.5 - 0.8 1.2 - 1.6 1.0 - 1.4 Cu (%) 1.4 - 1.8 0.8 - 1.2 1.0 - 1.4 Pb (%) 0.1 - 0.2 0.1 - 0.2 0.1 - 0.2 Notes: · This is an Exploration Target and should not be considered to be a Mineral Resource · The Exploration Target assumes an open pit mining method with marginal cut-off of 0.38% Cu equivalent and underground mining method with the marginal cut-off of 0.86% Cu equivalent · A nominal dry density values of 3.0 t/m3 was assumed to be appropriate for the style of mineralisation · Cu equivalent was calculated using the following metal prices: 3,050 US$/t for Zn, 9,000 US$/t for Cu, 2,250 US$/t for Pb · Tonnage is reported on dry basis Following the Exploration Target, AMC made the following findings: · The quality of procedures for the historical data collection used for the Exploration Target estimate is believed to be of sufficient standard · The Exploration Target for the Verkhuba Deposit was prepared using data, geological interpretation and understanding, and estimation practices that are appropriate for the style of mineralisation · The cut-off grades which have been calculated for reporting open pit and underground Exploration Target are considered reasonable and based on justifiable assumptions and parameters · The Exploration Target has potential to be developed via open pit and underground mining methods, and it has been delineated and reported in accordance with the JORC Code · Further verification and infill drilling are required to upgrade the current Exploration Target to a Mineral Resource *Note: Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC). Next Steps As part of ongoing studies, AMC recommend that ten new drillholes, twined to historical drillholes, should be drilled as verification holes to support further mineral resource estimation and classification. It is the intention of the Company to drill these holes in summer 2023 to expediate the estimation of JORC- compliant resources over the Verkhuba Deposit. Upon conversion to JORC-compliant resources, East Star will be able to undertake a Scoping Study on both the open pit and underground development scenarios to confirm the potential economics of the project. East Star hopes to complete and publish the results of this work by the end of 2023. The Company will abide by industry standard QA/QC protocols for quality assurance and intend on conducting geotechnical logging on all core for the purpose of saving time and money on the subsequent stages of feasibility assessment. A map of a city Description automatically generated with medium confidence Figure 2 Arial view of mineralisation with OP outline and planned drillholes (yellow) Rudny Altai Region The Rudny Altai region is one of the largest VMS provinces in the world, part of the Central Asian Orogenic Belt. The Company's newest 1794-EL, 1795-EL (containing the Verkhuba Deposit) and 1799-EL licences are located adjacent to the Company's existing 847-EL and 914-EL licences (together, the "Licences"). Administratively, the Licences are within the Shemonaikha District and are extraordinarily well connected to infrastructure. The regional centre of Ust-Kamenogorsk is located 45 km, and its international airport is located 35 km, southeast of the Licences. The railway connecting Ridder (Kazzinc Mine) and Tomsk cities crosses the Licences from the south to the northwest with two railway stations located on the territory of the Licences. There is a network of dirt roads within the Licences that are suitable for driving all year round. A hard-surfaced road from Ust-Kamenogorsk to Shemonaikha crosses the western part of the Licences. The area is characterised by moderately hilly terrain with elevations ranging between 270 m and 630 m above the mean sea level. For further information visit the Company's website at www.eaststarplc.com, or contact: East Star Resources Plc Alex Walker, Chief Executive Officer Tel: +44 (0)20 7390 0234 (via Vigo Consulting) Peterhouse Capital Limited (Corporate Broker) Duncan Vasey / Lucy Williams Tel: +44 (0) 20 7469 0930 Vigo Consulting (Investor Relations) Ben Simons / Peter Jacob Tel: +44 (0)20 7390 0234 About East Star Resources Plc East Star Resources is focused on the discovery and development of strategic minerals required for the energy revolution. With an initial nine licences covering 1,321.5 km² in three mineral rich districts of Kazakhstan, East Star is undertaking an intensive exploration programme, applying modern geophysics to discover minerals in levels that were not previously explored. The Company also intends to further expand its licence portfolio in Kazakhstan. East Star's management are based permanently on the ground, supported by local expertise, and joint ventures with the state mining company. Follow us on social media: LinkedIn: https://www.linkedin.com/company/east-star-resources/ Twitter: https://twitter.com/EastStar_PLC The person who arranged for the release of this announcement was Alex Walker, CEO of the Company. Competent Persons Statement The information in this Report that relates to the Exploration Target is based on and fairly represents information which has been compiled by Mr Dmitry Pertel who is a member of the Australian Institute of Geoscientists. Mr Pertel has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Pertel is a full-time employee of AMC Consultants Pty Ltd.. The information in this Report that relates to QAQC (JORC Code Table 1 Sections 1 and 2) is based on and fairly represents information which has been compiled by Dr Mikhail Tsypukov who is a Fellow of the Institute of Materials, Minerals and Mining (UK). Dr Tsypukov has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Tsypukov is an independent Consulting Geologist (not associated with AMC) and has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears. JORC Table 1. Verkhuba Deposit Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections) Sampling Techniques ¡ Nature and quality of sampling ¡ The deposit was explored by drilling producing (eg cut channels, random 59 and 76 mm diameter core. Sampling was chips, or specific specialised performed only on mineralised intervals industry standard identified by visual core logging and measurement tools downhole geophysics (X-ray radiometric appropriate to the minerals and/or electric downhole logging). under investigation, such as ¡ Mineralised core of different mineralogy was down hole gamma sondes, sampled separately at intervals ranging or handheld XRF from 0.1 to 2.0 m in length. instruments, etc). These ¡ 59 mm core was sampled in full, 76 mm core examples should not be was cut in half, one half of core was taken as limiting the broad sampled for laboratory studies. meaning of sampling. ¡ Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. ¡ Host rocks in hanging wall and footwall of mineralisation were sampled by 1 m long samples, 2-3 samples were collected from each contact. ¡ Non-mineralised core was sampled by 10 m long composite core samples by collecting ¡ Aspects of the determination of mineralisation that are Material to the Public Report. rock chips every 10 cm of core for rock chemical and mineralogical studies. ¡ Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). ¡ Double barrel wireline system was used in Exploration Target definition drilling. ¡ In case of low core recovery (<50%) sampling ¡ In cases where 'industry intervals were increase to 3 m to provide standard' work has been enough sampling material for chemical done this would be relatively studies. simple (eg 'reverse In the opinion of the Competent Person, the circulation drilling was used sampling techniques were appropriate for the to obtain 1 m samples from geology, scale of deposit, and are of an which 3 kg was pulverised to acceptable standard for the purpose of data produce a 30 g charge for used in estimating an Exploration Target. fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Drilling Techniques ¡ Upper 10-20 m transported deposits were drilled by 132 mm diamond drill bit, followed by 112 mm bit up to depth of 3570 m below the surface. After casing of drill hole by 89 mm casing pipes, the drilling was continued by 76 mm bit (core diameter 57 mm), followed by 59 mm drill bit (core diameter 42 mm). ¡ Most of the mineralised intervals were drilled with 59 mm drill bits. In the opinion of the Competent Person, the drilling techniques are suitable for estimating Exploration Target: the core sizes are appropriate, but the standards of work completed in the Soviet era should be quantified and compared to the planned verification drill programme. The data obtained using the older drilling techniques is acceptable for the definition of an Exploration Target. Drill Sample Recovery ¡ Method of recording and assessing core and chip sample recoveries and results assessed. ¡ On undisturbed core, the recovery was estimated by dividing of core length by the length of drilling run reduced to 100%. Most of the core was presented by broken and fragmented core and its recovery was measured using weight method. ¡ Measures taken to maximise sample recovery and ensure representative nature of the ¡ To increase core recovery on mineralised samples. intervals the length of drilling runs was reduced to 1 m and drill bit load was also ¡ Whether a relationship exists reduced. between sample recovery and grade and whether ¡ Core recovery on mineralised intervals was sample bias may have reported above the limit of 70% and above occurred due to preferential 60% within the bioherm sequence. loss/gain of fine/coarse material. ¡ There were no requirements on core recovery on non-mineralised intervals and host rocks, where core recovery varied within 2340% (1987-1990). ¡ No relationship between sample recovery and grade was reported nor it was apparent. In the opinion of the Competent Person, the drill sample recoveries are suitable for data used in estimating an Exploration Target. Logging Sub-sampling Techniques and Sample Preparation ¡ Whether core and chip samples ¡ All drill holes were geologically logged except have been geologically and upper sections of drill holes with geotechnically logged to a transported sediments, however only level of detail to support limited original information from geological appropriate Mineral archives has been obtained to date. Resource estimation, mining ¡ No results of historical geotechnical logging studies and metallurgical are available. studies. ¡ Historical logging was qualitative, in many ¡ Whether logging is qualitative cases rock nomenclature is not confirmed or quantitative in nature. by rock chemistry and by other exploration Core (or costean, channel, campaigns. etc) photography. ¡ No core photos were taken during historical ¡ The total length and percentage exploration. of the relevant intersections In the opinion of the Competent Person, the logged. available geological logging is sufficient to support estimate of an Exploration Target. ¡ If core, whether cut or sawn and ¡ 57 mm core was cut along the core axe, half whether quarter, half or all core subsamples were taken for control core taken. purposes. 42 mm core was sampled in full, no geological duplicates were available for ¡ If non-core, whether riffled, tube control purposes. sampled, rotary split, etc and whether sampled wet or ¡ Sample preparation was robust and included dry. all necessary procedures, including multiple crushing controlled by sieving, staged size ¡ For all sample types, the nature, reduction, pulverizing and collection of one quality and appropriateness analytical sample and three duplicates of of the sample preparation sufficient weight for analytical studies. technique. ¡ Sample size was appropriate to the grain size ¡ Quality control procedures of the sampling material. adopted for all subsampling stages to The Competent Person's opinion that the maximise representivity of subsampling techniques and sample samples. preparation were suitable for data used in estimating an Exploration Target. ¡ Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. ¡ Whether sample sizes are appropriate to the grain size of the material being sampled. Quality of assay data ¡ The nature, quality and ¡ Atomic absorption spectral analysis was used and laboratory tests appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. ¡ For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. ¡ Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. Verification of Sampling and Assaying ¡ The verification of significant intersections by either independent or alternative company personnel. ¡ The use of twinned holes. for determination of Cu, Pb and Zn. Fire assay analysis with atomic absorption finish was use for determination of Au and Ag. ¡ Analytical test results for Cu, Pb and Zn on main and duplicate samples performed in main and umpire laboratories demonstrated discrepancy within the acceptable limits. ¡ There is no available information on internal QAQC procedures in main and umpire laboratories. The Competent Person is satisfied that the overall quality of the assay results is acceptable and fit for the purpose of estimating an Exploration Target. ¡ No verification drilling has been performed by ESR at this stage. ¡ No twinning of historical drill holes was performed by ESR. ¡ Limited primary historical data as core ¡ Documentation of primary lithological and structural logs, drill hole data, data entry procedures, inclination etc. is available by the time of data verification, data preparation of the report. storage (physical and ¡ Location of mineralised intervals can be electronic) protocols. corrected after obtaining of historical ¡ Discuss any adjustment to topographic survey results, drill hole logs assay data. and on-site inspection. No control or verification results were available at the time of reporting; thus estimated grades and tonnes were not classified. Location of Data Points ¡ Accuracy and quality of surveys ¡ Location and deviation of historical drill holes used to locate drill holes was digitised from georeferenced geological (collar and down-hole sections and maps at scale 1:10,000, which surveys), trenches, mine is considered as appropriate for Exploration workings and other locations Target mineral inventory. used in Mineral Resource ¡ By the time of preparation of the report no estimation. historical drill hole logs with collar ¡ Specification of the grid system coordinates were available. ESR is in the used. process of obtaining this information from geological archives. ¡ Quality and adequacy of topographic control. ¡ Topography of the deposit area was presented as digital terrane model with sufficient resolution which is considered as appropriate for Exploration Target mineral inventory. The Competent Person is satisfied that the location of data points is fit for the purpose of estimating an Exploration Target. Data Spacing and Distribution ¡ Data spacing for reporting of Exploration Results. ¡ Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. ¡ Whether sample compositing has been applied. ¡ Data spacing is appropriate for delineation of Exploration Target assessment of volume of mineralised material and metal endowment and grades. ¡ Historical data spacing and distribution is sufficient to establish mineralised bodies, continuity of lithology and grade appropriate for delineation of Exploration Target. Verification drilling and twinning of some drill holes are required for subsequent Mineral Resource Estimate in Inferred and Indicated categories. ¡ Exploration grid includes 97 diamond holes drilled with 200 m by 200 m to 100 m by 100 m spacing. ¡ Most mineralised zones do not outcrop, but some of them do outcrop. Mineralised bodies were traced to a depth exceeding 800 m from the surface, using adit levels and inclined core drillholes. Drillholes were located along the profiles, oriented across the mineralised bodies strike, the profiles strike at 100-105º. The Competent Person is satisfied that data spacing is appropriate for estimating an Exploration Target. Orientation of Data in relation to Geological Structure ¡ Whether the orientation of ¡ Most of the drill holes were sub-vertical, sampling achieves unbiased intersecting of flat lying lithology at steep sampling of possible angles. Thus, no correction of width of structures and the extent to mineralised intersections was applied which which this is known, is considered as appropriate to the considering the deposit type. considered deposit type. ¡ If the relationship between the ¡ The sampling orientation was appropriate for drilling orientation and the reliable sampling of the identified the orientation of key structures, considering the mineralisation mineralised structures type. is considered to have ¡ Drilling profiles were oriented across the introduced a sampling mineralisation. bias, this should be assessed and reported ¡ The flat lying mineralised bodies were sampled by inclined or vertical drillholes, oriented if material. across the mineralised zone strike. ¡ Sampling bias from the orientation of the drilling was not identified. The Competent Person is satisfied that orientation of data in relation to geological structure is appropriate for estimating an Exploration Target. Sample Security ¡ The measures taken to ensure sample security. ¡ Not appropriate. All historical core and laboratory samples were disposed of shortly after completion of exploration programmes. Audits or Reviews ¡ The results of any audits or reviews of sampling techniques and data. ¡ As far as Competent Person aware, there were no audits or reviews of sampling techniques and data related to Verkhuba deposit performed by any third party. Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section) Mineral ¡ Type, reference Tenement and name/number, Land Tenure location and Status ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. ¡ The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. ¡ Verkhuba deposit is located in the eastern part of exploration licence 1795-EL, owned by Discovery Ventures Kazakhstan Ltd. The licence was issued on 27 July 2022 for initial period of 6 years with a possibility of further five years extension subject to reduction of the licence area by 40%. The licence has an area of 37.1 km2 and contains VHMS deposits Pokrovskoe-2 (mined out in 1960-1970th ) and Verkhuba and several VHMS occurrences. No native title interests, historical sites, wilderness or national park and environmental setting identified by ESR appointed environmental consultants. ¡ Discovery Ventures Kazakhstan Ltd is a 100% owned entity of East Star Resources. ¡ Ministry of Industry and Infrastructural Development of the Republic of Kazakhstan does not carry any negotiations with any other party in respect of the property. All required documents including Exploration programme, Environmental impact assessment (EIA) and enhanced technical and economic calculations studies are completed by ESR and approved by the Kazakhstan mining authorities allowing ESR to perform exploration on the property. ¡ According to Kazakh mining legislation, exploration licence can be converted to mining licence after completion of exploration