Exploration work by the KMPC included excavation of 5 prospecting adits, a trench and a small open cut. The KMPC drilled 13 diamond core holes (3,170m core) during 1980-1982 designed to test an east-west orientated breccia pipe structure, developed on the margin of the quartz porphyry intrusion. This drilling intersected high-grade molybdenum mineralisation with a 250m long x 2-30m wide breccia. The drilling recorded the following significant high-grade moly intersections (as shown on geology map below).

1. •   66.2 m @ 1.27% MoS₂ (hole 81-3 ; 108.7 – 174.9m).
   •   66.9 m @ 1.27% MoS₂ (hole 81-2 ; 135.2 – 200.1m).
   •   11.9 m @ 0.77% MoS₂ (hole 80-3 ; 181.1 – 193.0m).
   •   11.0 m @ 0.91% MoS₂ (hole 80-2 ; 129.0 – 140.0m).

KORES (2005) compiled a detailed report on Oksan and reported a foreign historical inferred mineral resource, which does not comply with the 2012 JORC Code and must be classified as an Exploration Target of 1.7 – 2.5Mt @ 0.8 – 1.40% MoS₂.

Cautionary Statement: A foreign historical mineral resource was estimated by KORES (2005) on the basis of historical data quality, sample spacing and continuity of interpreted zones, but must be classified as an Exploration Target under the JORC (2012) Code. There is no certainty that further exploration will result in the estimation of an Inferred Mineral Resource.

KML considers Oksan has significant potential for a high-grade mining operation, using sub-level open stope underground mining method or Sustainable Mining by Drilling (“SMD”). Molybdenum is an important metal used by the Korean steel industry. Conventional molybdenum flotation concentrates could potentially be recovered and then sold to the Kwangyang moly roaster for refining (operated by steel producer Se Ah Besteel).

Historical mineralised drill intersections and surface projection of the moly mineralised breccia pipe