Mr. David Kratochvil reports

BQE WATER THIRD SART PLANT IN CHINA ENTERS FULL PRODUCTION

BQE Water Inc. has advanced the SART (sulphidization, acidification, recycling and thickening) plant it designed for Shandong Gold, the largest gold producer in the country, to full production. Following the successful commissioning by the BQE China team, BQE will provide operation support services for an initial term of five years to ensure the plant meets its performance targets, including metal production, cyanide recovery and reduction in sulphate concentrations from the prior buildup.

Similar to the other two SART plants in China, where BQE Water has been providing continuing operation support services since 2022, this newest SART plant also recovers and recycles cyanide in the gold leaching process while recovering copper and zinc in high-grade metal concentrates. What makes this third plant different is the fact that it replaces an existing acidification-volatilization-recovery (AVR) plant that has higher operating costs while creating a buildup of sodium sulphate that interferes with the metallurgical process.

"The successful delivery of the Shandong Gold SART plant further solidifies our leadership position in the cyanide management space in the gold industry, not only in China but globally," said David Kratochvil, president and chief executive officer of BQE Water. "With the gold price reaching historical highs, we expect demand for our cyanide management technical services to continue to grow in the gold mining and smelting sector. Through the capabilities of our team, we are well positioned to meet our clients' requirements and we are fully committed to supporting the gold mining and smelting sector's project needs."

Songlin Ye, vice-president for Asia at BQE Water, adds: "In addition to strengthening our leading global position in applying SART technology, our ability to meet Shandong Gold's expectations for the SART plant to reduce operating costs and address the ultrahigh copper concentrations in the feed showcase BQE's technical depths and capabilities. With BQE now supporting three SART plants for the largest gold producers in the region, we look forward to further growing our cyanide management business in Asia."

Importance of cyanide management for the gold mining industry

Regulations around the world are advancing, and target not only residual cyanide contained in waste water and tailings produced by mining and metallurgical operations, but also place strict limits for cyanidation and cyanide destruction byproducts, such as ammonia, cyanate, thiocyanate and nitrite. A key aspect of cyanide management is cyanide recovery and recycle. The more cyanide that can be reused, the less fresh new cyanide that needs to be consumed and the less cyanide that must be destroyed by using additional chemicals that produce byproducts requiring additional management. The goal is to ensure all discharges are non-toxic and do not cause impacts to the receiving environment. As such, proper cyanide management is key to the permitting of new projects and securing a social licence for gold producers.

Significance of Shandong province for China's gold production

As the largest gold producing province in the country over the last 40 years, annual gold output for Shandong province has exceeded 160 tonnes (5.6 million troy ounces) in 2023 and accounts for approximately 40 per cent of China's total gold production. The province is home to the country's top gold producers, which are expanding their influence globally. In this region alone, where BQE Water has designed and implemented three SART plants, there are more than a dozen metallurgical plants that are focused on gold extraction and refining.

BQE Water's expertise in cyanide management

BQE Water is a global leader in the SART process, which enables cyanide consumed by base metals to be recovered and recycled, lowering the cost of gold extraction and reducing the environmental footprint of gold mining projects. BQE Water also provides solutions to manage the byproducts of cyanidation and cyanide destruction, such as ammonia, nitrite and thiocyanate removal.

About BQE Water Inc.

BQE Water is a service provider specializing in water treatment and management for metals mining, smelting and refining. The company is helping to transform the way the industry thinks about water in the context of natural resource projects by offering services and expertise that enable more sustainable water management practices and improved overall project performance at reduced risks. BQE Water invests in innovation and has developed unique intellectual property through the commercialization of several new technologies at mine sites around the world for organizations including Glencore, Jiangxi Copper, Freeport-McMoRan and the U.S. Environmental Protection Agency (EPA). BQE Water is headquartered in Vancouver, Canada, and trades on the TSX Venture Exchange under the symbol BQE.

We seek Safe Harbor.