JSC National Atomic Kazatomprom : Competent Person’s Report on the mineral assets of Kazatomprom

COMPETENT PERSONS' REPORT ON THE MINERAL ASSETS OF JOINT STOCK COMPANY NATIONAL ATOMIC COMPANY KAZATOMPROM, REPUBLIC OF KAZAKHSTAN

Prepared For

Joint Stock Company National Atomic Company "Kazatomprom"

Report Prepared by

SRK Consulting (UK) Limited

UK31126

SRK Consulting

Kazatomprom CPR, 2022 - Copyright

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Copyright (and any other applicable intellectual property rights) in this document and any accompanying data or models which are created by SRK Consulting (UK) Limited ("SRK") is reserved by SRK and is protected by international copyright and other laws. Copyright in any component parts of this document such as images is owned and reserved by the copyright owner so noted within the document.

Except where SRK has agreed otherwise (including pursuant to an agreement between SRK and JSC NAC Kazatomprom ("KAP") dated 02 November 2021 or any subsequent agreement):

• The use of this document is strictly subject to terms licensed by SRK to the named recipient or recipients of this document or persons to whom SRK has agreed that it may be transferred to (all such persons, including without limitation KAP, each of its direct and indirect subsidiaries, KAP's shareholder JSC Sovereign Wealth Fund Samruk-Kazyna and competent state authorities in Kazakhstan and other relevant jurisdictions, as may be applicable, being the "Recipients"). Unless otherwise agreed by SRK, this does not grant rights to any party which is not a Recipient (a "Third Party"). This document may not be utilised or relied upon for any purpose other than that for which it is stated within and SRK shall not be liable for any loss or damage caused by such use or reliance. In the event that the Recipient of this document wishes to use the content in support of any purpose beyond or outside that which it is expressly stated or for the raising of any finance from a Third Party where the document is not being utilised in its full form for this purpose, the Recipient shall, prior to such use, present a draft of any report or document produced by it that may incorporate any of the content of this document to SRK for review so that SRK may ensure that this is presented in a manner which accurately and reasonably reflects any results or conclusions produced by SRK.
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			© SRK Consulting (UK) Limited 2022
	SRK Legal Entity:			SRK Consulting (UK) Limited
	SRK Address:			5th Floor Churchill House
				17 Churchill Way
				City and County of Cardiff, CF10 2HH
			Wales, United Kingdom of Great Britain and Northern Ireland.
	Date:			April, 2022
	Project Number:			UK31126
	SRK Project Director:		Dr Mike Armitage	Corporate Consultant (Geology)
	SRK Project Manager:	Dr Iestyn Humphreys	Corporate Consultant (Due Diligence)
	Commercial Client
	Legal Entity:		Joint Stock Company National Atomic Company Kazatomprom
	Registered Office:			17/12, E-10 Street,
				Yessil District, Astana, 010000,
				Republic of Kazakhstan
	UK31126_Kazatomprom_CPR_Final.docx		April, 2022

SRK ConsultingKazatomprom CPR, 2022 - Table of Contents Executive Summary

Table of Contents: Executive Summary

1 INTRODUCTION ..................................................................................................	i
1.1	Background..........................................................................................................................	i
1.2	Requirement, Reporting Standard, Reliance and Responsibility Statements....................	iv
1.3	Effective date, Base Technical Information Date and Publication Date .............................	v
1.4	Verification and Validation ..................................................................................................	v

1.5 Limitations, Reliance on Information, Declaration, Consent and Cautionary Statements..vi

1.5.1	Limitations..............................................................................................................	vi
1.5.2	Responsibility Statement ......................................................................................	vii
1.5.3	Reliance on Information........................................................................................	vii
1.5.4	Declarations.........................................................................................................	viii
1.5.5	Copyright..............................................................................................................	viii

	1.6	Indemnities Provided by the Company...............................................................................	ix
	1.7	Qualifications of Consultants and Competent Persons......................................................	ix
2	THE MINERAL ASSETS .....................................................................................	x
	2.1	Introduction .........................................................................................................................	x
	2.2	Location, Tenure and Environmental Setting .....................................................................	x
	2.3	Historical Statistics ...........................................................................................................	xiii
3	TECHNICAL OPINION .....................................................................................	xiii
	3.1	Introduction .......................................................................................................................	xiii
	3.2	Commodity Prices and Macro-Economics .......................................................................	xiii
	3.3	Mineral Resources and Ore Reserves .............................................................................	xv
		3.3.1	Mineral Resources...............................................................................................	xvi
		3.3.2	Ore Reserves.......................................................................................................	xx
	3.4	Environmental and Social Liabilities................................................................................	xxii
	3.5	Life-of-Mine plan.............................................................................................................	xxiii
		3.5.1	LoM Planning Process.......................................................................................	xxiv
		3.5.2	Sales Revenue ...................................................................................................	xxv
		3.5.3	Cash Cost Reporting ..........................................................................................	xxv
		3.5.4	Technical Economic Parameters.......................................................................	xxvi
	3.6	Exploration Programme..................................................................................................	xxvi
	3.7	Risks and Opportunities ................................................................................................	xxvii
4	CONCLUSIONS .............................................................................................	xxix
	4.1	Introduction .....................................................................................................................	xxix
	4.2	Work Completed..............................................................................................................	xxx
	4.3	Key Outcomes .................................................................................................................	xxx
	4.4	Closing Statement ..........................................................................................................	xxxi

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SRK ConsultingKazatomprom CPR, 2022 - Table of Contents Main Report]

Table of Contents: Main Section

1 INTRODUCTION .................................................................................................	1
1.1	Background.........................................................................................................................	1
1.2	Requirement, Report Standard and Reliance ....................................................................	4
	1.2.1	Requirement ..........................................................................................................	4
	1.2.2	Reporting Standards..............................................................................................	5
	1.2.3	Reliance .................................................................................................................	9
1.3	Effective Date, Base Technical Information Date and Publication Date ..........................	10
1.4	Verification, Validation and Reliance................................................................................	10

1.5 Limitations, Responsibility Statement, Reliance on Information, Declarations and

	Copyright ..........................................................................................................................	12
	1.5.1	Limitations............................................................................................................	12
	1.5.2	Responsibility Statement .....................................................................................	13
	1.5.3	Reliance on Information.......................................................................................	14
	1.5.4	Declarations.........................................................................................................	14
	1.5.5	Consent................................................................................................................	15
	1.5.6	Copyright..............................................................................................................	15
1.6	Indemnities Provided by the Company.............................................................................	15
1.7	Statement of Qualification ................................................................................................	16
1.8	Report Format...................................................................................................................	17
2 COMPANY OVERVIEW AND MINERAL ASSETS ...........................................	18
2.1	Introduction .......................................................................................................................	18
2.2	Group Overview................................................................................................................	18
	2.2.1	Corporate Structure .............................................................................................	19
	2.2.2	Historical Development........................................................................................	22
	2.2.3 Corporate Strategy, vision and mission...............................................................	25
	2.2.4	Financial Performance.........................................................................................	27
	2.2.5	Human Resources ...............................................................................................	38
	2.2.6 Environmental and Social Governance ...............................................................	41
	2.2.7 Occupational Health and Safety ..........................................................................	46
2.3	Mineral Assets ..................................................................................................................	49
	2.3.1 Location, Access and Infrastructure ....................................................................	50
	2.3.2	Historical Operating Statistics..............................................................................	55
	2.3.3 Mineral Resources and Ore Reserves ................................................................	59
	2.3.4	Exploration Programme .......................................................................................	61
	2.3.5 Environmental and Social Liabilities ....................................................................	61
3 COMMODITY PRICES AND MACRO ECONOMICS ........................................	63
3.1	Introduction .......................................................................................................................	63
3.2	Commodity Prices and Macro-Economic Summary.........................................................	63
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SRK Consulting		Kazatomprom CPR, 2022 - Table of Contents Main Report]
3.3	Uranium Market ................................................................................................................	64
	3.3.1	Demand ...............................................................................................................	64
	3.3.2	Supply ..................................................................................................................	66
	3.3.3	Uranium Price Analysis........................................................................................	70
3.4	Macro-Economics.............................................................................................................	73
4 LEGISLATIVE ENVIRONMENT AND MINING TITLE STATUS .......................	76
4.1	Introduction .......................................................................................................................	76
4.2	Legislation.........................................................................................................................	76
	4.2.1	Exploration...........................................................................................................	78
	4.2.2	Mining ..................................................................................................................	78
	4.2.3	Environmental Regulations..................................................................................	79
	4.2.4	Mine closure ........................................................................................................	81
	4.2.5 Land Code and Land Use Regulations................................................................	82
	4.2.6	Water Use Code ..................................................................................................	82
	4.2.7 Atomic Industry and Radiation Safety Requirements..........................................	82
	4.2.8 Labour Protection and Occupational Health and Safety .....................................	83
	4.2.9	Energy Saving Law..............................................................................................	84
4.3	Status of the Company's Agreements..............................................................................	84
5 URANIUM DEPOSITS: GEOLOGICAL OCCURRENCE, MINING AND
PROCESSING ...................................................................................................	86
5.1	Introduction .......................................................................................................................	86
5.2	Uranium Deposits: geology, resources, mining and processing ......................................	86
5.3	Kazakhstan Uranium Production ......................................................................................	91
5.4	Mining and Processing Operations at the Company's Deposits ......................................	94
	5.4.1	Hydrogeology and Geochemistry ........................................................................	95
	5.4.2 Wellfield design and construction ......................................................................	102
	5.4.3 Uranium Process Recovery and Refining..........................................................	104
	5.4.4	Supporting Infrastructure ...................................................................................	107
6 GEOLOGY	.......................................................................................................	112
6.1	Introduction .....................................................................................................................	112
6.2	Shu-Sarysu Basin...........................................................................................................	112
	6.2.1	Regional Geology ..............................................................................................	112
	6.2.2	Deposit Geology ................................................................................................	117
	6.2.3	Deposit Mineralisation .......................................................................................	117
	6.2.4	Deposit Summaries ...........................................................................................	117
6.3	Syrdarya Basin ...............................................................................................................	127
	6.3.1	Regional Geology ..............................................................................................	127
	6.3.2	Deposit Geology ................................................................................................	128
	6.3.3	Mineralisation.....................................................................................................	128
	6.3.4	Individual Deposit Summaries ...........................................................................	129
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