ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION May 2019 Wardell Armstrong International Baldhu House, Wheal Jane Earth Science Park, Baldhu, Truro, Cornwall, TR3 6EH, United Kingdom Telephone: +44 (0)1872 560738 Fax: +44 (0)1872 561079 www.wardell-armstrong.com DATE ISSUED: 21 May 2019 JOB NUMBER: ZT61-1731 VERSION: V2.0 REPORT NUMBER: MM1301 STATUS: Final ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION May 2019 PREPARED BY: Andrey Tsoy Principal Resource Geologist Phil Newall Managing Director APPROVED BY: Phil Newall Managing Director This report has been prepared by Wardell Armstrong International with all reasonable skill, care and diligence, within the terms of the Contract with the Client. The report is confidential to the Client and Wardell Armstrong International accepts no responsibility of whatever nature to third parties to whom this report may be made known. No part of this document may be reproduced without the prior written approval of Wardell Armstrong International. ENERGY AND CLIMATE CHANGE ENVIRONMENT AND SUSTAINABILITY INFRASTRUCTURE AND UTILITIES Wardell Armstrong is the trading name of Wardell Armstrong International Ltd, Registered in England No. 3813172. LAND AND PROPERTY MINING AND MINERAL PROCESSING Registered office: Sir Henry Doulton House, Forge Lane, Etruria, Stoke-on-Trent, ST1 5BD, United Kingdom MINERAL ESTATES UK Offices: Stoke-on-Trent, Cardiff, Carlisle, Edinburgh, Greater Manchester, London, Newcastle upon Tyne, Sheffield, Taunton, Truro, West Bromwich. International Offices: Almaty, Moscow WASTE RESOURCE MANAGEMENT ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION CONTENTS 1 EXECUTIVE SUMMARY ......................................................................................................... 1 2 INTRODUCTION ................................................................................................................... 6 2.1 Scope of Work ............................................................................................................................ 6 2.2 Sergeevskoe Project ................................................................................................................... 6 2.3 Independent Consultant ............................................................................................................ 7 2.4 Source of Information ................................................................................................................ 7 2.5 Personal Inspection .................................................................................................................... 8 2.6 Statement of independence ...................................................................................................... 8 2.7 Units and Currency .................................................................................................................... 8 2.8 Limitations, Reliance, and WAI Declaration ............................................................................... 9 3 RELIANCE ON OTHER EXPERTS ............................................................................................ 10 4 PROPERTY DESCRIPTION AND LOCATION ............................................................................ 11 4.1 Location .................................................................................................................................... 11 4.2 Mineral Tenure ........................................................................................................................ 12 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ........ 15 5.1 Accessibility and Infrastructure ............................................................................................... 15 5.2 Climate ..................................................................................................................................... 15 5.3 Local Resources and Infrastructure ......................................................................................... 16 5.4 Physiography ............................................................................................................................ 17 6 HISTORY ............................................................................................................................ 18 6.1 Introduction ............................................................................................................................. 18 6.2 Kluchevskoye ........................................................................................................................... 18 6.3 Sergeevskoe ............................................................................................................................. 19 6.4 Historical Prospects.................................................................................................................. 25 7 GEOLOGICAL SETTING AND MINERALISATION ..................................................................... 28 7.1 Regional Geology ..................................................................................................................... 28 7.2 Sergeevskoe Property .............................................................................................................. 30 7.3 Mineral Occurrences ................................................................................................................ 32 8 DEPOSIT TYPES .................................................................................................................. 40 9 EXPLORATION .................................................................................................................... 43 9.1 Introduction ............................................................................................................................. 43 9.2 Check Sampling ........................................................................................................................ 43 9.3 Orsu Trenching 2017-2018 ...................................................................................................... 44 10 DRILLING ........................................................................................................................... 48 10.1 Introduction .......................................................................................................................... 48 10.2 Orsu Drilling 2017-2018 ........................................................................................................ 48 11 SAMPLE PREPARATION, ANALYSES AND SECURITY .............................................................. 51 11.1 Introduction .......................................................................................................................... 51 11.2 Orsu Exploration Campaign 2017-2018 ................................................................................ 51 11.3 Security ................................................................................................................................. 84 11.4 Authors Opinion .................................................................................................................... 84 12 DATA VERIFICATION ........................................................................................................... 85 ZT61-1731/MM1301 Final V2.0 Page i May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION 12.1 WAI Personal Inspection ....................................................................................................... 85 12.2 Database Validation .............................................................................................................. 88 12.3 WAI Opinion .......................................................................................................................... 88 13 MINERAL PROCESSING AND METALLURGICAL TESTING ....................................................... 89 13.1 Introduction .......................................................................................................................... 89 13.2 2017 Oxide Testwork ............................................................................................................ 89 13.3 2018 Metallurgical Testwork ................................................................................................ 91 13.4 Summary ............................................................................................................................... 92 14 MINERAL RESOURCE ESTIMATES ........................................................................................ 93 14.1 Introduction .......................................................................................................................... 93 14.2 General Methodology ........................................................................................................... 93 14.3 Data Transformations and Software ..................................................................................... 94 14.4 Database ..............................................................................................................................