Copper JV Agreement Signed with Xinhai Mining

By Finance News On Mar 22, 2026

Further to the Heads of Agreement announced on 11 December 2025, East Star Resources Plc (LSE: EST), the Kazakhstan-focused gold and copper explorer, is pleased to announce the formalisation of the joint venture agreement (“JVA”) pursuant to which Hong Kong Xinhai Mining Services Limited (“Xinhai”) will farm into the Verkhuba Copper Deposit (“Verkhuba”), and advance it into production.

Xinhai is a privately owned, global process engineering and contracting company that specialises in providing engineering design, procurement, construction (“EPC”) services and contract services to the mining industry.

Highlights:

JVA with a market-leading EPC firm to finance, de-risk, and speed up the development of the Verkhuba
East Star shall incorporate the joint venture company (“JVCo”) in Kazakhstan within 30 days under the Astana International Financial Centre and Xinhai shall earn into 70% of the JVCo
Xinhai’s estimated investment for the feasibility study, mine development, and plant construction is approximately US$65 million
East Star is fully carried to production and will hold 30% of the producing mine with a current JORC Inferred Resource of 20.3Mt @ 1.16% copper, 1.54% zinc and 0.27% lead
East Star retains 100% of its nearby advanced prospects, including the Soviet-era Rulikha deposit, independently modelled to contain an upper limit JORC Exploration Target of 23Mt @ 2.4% copper equivalent

Farm-In Stages

As previously announced, Xinhai shall have the right to earn an increasing equity interest in the JVCo by funding 100% of the costs required for Verkhuba, from additional resource definition drilling through to commissioning and production.

Xinhai’s equity interest in the JVCo shall increase in stages according to the following schedule upon the satisfaction of the corresponding milestones:

	Milestone	Resulting Shareholding (Xinhai / East Star)
Stage 1: Establishment of JVCo & Initial Funding	Xinhai invests A$1.5 million for resource definition drilling	15% / 85%
Stage 2: Feasibility Study Completion	Xinhai funds a feasibility study sufficient for Kazakhstan mining licence application	20% / 80%
Stage 3: Detailed Engineering Design	Xinhai funds detailed engineering and design work	30% / 70%
Stage 4: Equipment Transfer	Transfer of ownership (Bill of Lading) of construction equipment to the JVC	51% / 49%
Stage 5: Project Commissioning	Successful commissioning of a 1 million tonne per annum capacity mining and processing project	70% / 30%

Upon establishment of the JVCo, Xinhai and East Star will each appoint one director. When Xinhai earns more than 50% of the shares of the JVCo, Xinhai will have the right to appoint an additional director to the board of the JVCo.

Xinhai will provide all necessary working capital and bear all costs incurred up to commissioning and earning a 70% interest in JVCo. Upon the successful commissioning of the project and issuance of the Completion Certificate, the JVCo shall assume full responsibility for the operational management of JVCo and the…