Kaz Resources Subsidiary Begins Exploration for Rare Earths in East Kazakhstan

Kaz Critical Minerals LLP, a wholly-owned subsidiary of Kaz Resources LLC and a portfolio company of Cove Capital LLC— a leading player in the global critical minerals industry, is pleased to announce it has commenced drilling activities and its 2024 geological programs in East Kazakhstan on one of its licensed concessions issued in 2023 by the Ministry of Industry and Construction. This marks a significant milestone in its exploration endeavors and underscores the Company’s commitment to developing Kazakhstan’s rich critical minerals potential.

We commend the cooperation between the United States and Kazakhstan on critical minerals development, and we anticipate very promising results from this phase of our operation. This initiative demonstrates the potential for successful U.S. foreign direct investment in Kazakhstan’s rare earth and critical minerals sector,” said Pini Althaus, Chief Executive Officer of Kaz Resources LLC. “Through extensive investments in exploration and eventual production, we aim to substantially contribute to the local Kazakh economy and the global transition to sustainable energy and advanced technology,” Mr. Althaus added.

Kazakhstan possesses significant mineral wealth, including 17 critical materials on the U.S. Department of Energy’s Critical Materials List. In 2023, Kazakhstan and the United States signed a memorandum of cooperation on geology, and the active bilateral dialogue continues with a strong emphasis on geological exploration and critical minerals development.

Cove Capital was an early entrant to the rare earths and critical minerals sector in East Kazakhstan, and we appreciate the ongoing and mutually beneficial cooperation at the highest levels of the U.S. and Kazakh governments,” said Mr. Althaus. "Kazakhstan is an abundantly mineral-rich country that can serve a multitude of manufacturing and industrial sectors. With the new approach and mandate President Kassym-Jomart Tokayev has led on the development of the country’s critical minerals reserves, Kazakhstan is well positioned to become a global leader in this sector,” added Mr. Althaus.

Kaz Resources LLC & Cove Capital LLC in Kazakhstan

In 2023, Kaz Resources LLC (through its wholly-owned subsidiary Kaz Critical Minerals LLP), became the first U.S. company to receive critical minerals and rare earths land concessions in Kazakhstan. These concessions include minerals such as rare earth elements, lithium, tantalum, beryllium, niobium, cesium and tin.

In September 2023, Cove Capital LLC entered into an MoU with Kazakhstan’s Sovereign Wealth Fund, Samruk Kazyna, as part of the cooperation on critical raw materials, specifically rare earth metals.

On April 8, 2024, Cove Capital LLC, announced a landmark collaboration with Tau-Ken Samruk, Kazakhstan's national mining company, aimed at advancing the exploration and development of rare earth and critical metals within the Republic of Kazakhstan. This partnership demonstrates a significant milestone in Cove Capital's mission to drive innovation and sustainable development in the rare earth industry.

In the groundbreaking development, Tau-Ken Samruk (via “Kazgeology” JSC), entered into a binding joint venture agreement with Cove Capital for geological exploration on the Akbulak rare earth project in the Kostanay region of Kazakhstan. Historical reserves at the site include reserves of rare earth elements, including those used for permanent magnets.

To carry out geological exploration work, a joint venture was be created between “Kazgeology” JSC and Cove Capital with the parties' participation shares: Cove Capital – 75% and “Kazgeology” JSC – 25%. Cove Capital will fully finance exploration work until reserves are listed on the balance sheet.

This strategic alliance underscores Cove Capital's commitment to leveraging its expertise and financial resources to unlock the potential of Kazakhstan's rich mineral reserves.

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