Anhui Guangda Mining Investment Co.,Ltd. and TARBAGATAY MUNAY LLP OF The Republic of Kazakhstan Singed The Zaysan Block Operation Agreement

Anhui Guangda Mining Investment Co.,Ltd. and Republic of Kazakhstan TARBAGATAY MUNAY LLP (hereinafter referred to as "TBM"), an indirectly held subsidiary of Guanghui Oil, a wholly-owned subsidiary of Guanghui Energy Co. Ltd signed the Zaysan Block Operation Agreement on terms of oil and gas exploration and development.

Anhui Guangda has a professional exploration and drilling team, rich experience in oil and gas field exploration and development and mature technologies, while TBM has the advantages of resources, location and pipeline network. Both parties can achieve win-win cooperation by virtue of their respective resources and advantages, greatly reducing the cost of exploitation, which will bring considerable economic benefits to the accelerated development of the Zaysan block and have a positive impact on the social benefits.

At present, five traps have been discovered in the block and two oil and gas zones have been identified. The main block has 258 million tonnes of C1+C2 reserves and nearly 400 million tonnes of C3 reserves in the Permian reservoir, and 43.36 million tonnes of C1+C2 reserves in the Jurassic Main+East block. The crude oil reserves are huge, and it is expected to build an oilfield with an annual production capacity of over 2 million tonnes.