Ann: Kharmagtai Open Pit Scoping Study Completed, page-13

Appendix 2....

The operating cost estimate for this study includes all costs associated with mining, processing, infrastructure, and site-based general and administration costs. The operating costs have been developed based on comparative costs for operations of similar size and quotations for key pieces of processing infrastructure. Mining costs range from US$1.55/t to US$2.66/t mined as mining depths change during operations. Processing costs are consistent through the operation’s life at US$5.03/t processed. General and administration costs address overheads, administration and corporate expenses at an approximate cost of US$0.26 per processed tonne. The selling costs include a treatment charge of US$90/concentrate tonne and transport costs of US$25/t. Refining costs are assumed at US$0.09/lb for copper, and US$5/oz for gold. The cost estimates were compiled in US$ in 2018 real terms, with no allowance for escalation or inflation.