Dazhong Mining has announced the commissioning of a second TBM (full cross-section tunnel boring machine for rock formations) at its Gada Lithium Project in Sichuan Province in order to improve prospecting efficiency and shorten the prospecting cycle time.The use of the TBM is an innovative move by Dazhong Mining in lithium mining, as it is capable of digging up to five times faster than the traditional blasting method, which significantly improves the prospecting speed. Despite the high cost of TBM equipment and its construction and operation and maintenance services, the application of this technology is expected to effectively shorten the prospecting cycle and generate faster cash inflows for the Company.

The application of TBM technology not only improves prospecting efficiency, but also embodies the concept of safe, ecological and environmentally friendly prospecting. Through the use of TBM, Dazhong Mining plans to increase the monthly drilling capacity of the prospecting tunnels from the guaranteed 450 meters to 500-600 meters, thereby accelerating the progress of prospecting and realizing the sale of ores earlier. This initiative is in line with the Company's strategy of “mining for mining”, utilizing the cash flow from its existing iron ore business to support the development of its lithium project.

In addition, Dazhong Mining's progress in utilizing TBMs in the prospecting tunnels at the Jixiushan lithium mine in Hunan Province also shows a positive trend, further demonstrating the effectiveness of TBM technology in improving prospecting efficiency. As prospecting accelerates, Dazhong Mining is expected to begin selling raw ore in 2025 and 2026 and lithium concentrate in 2027, supporting the Company's long-term growth and competitiveness.