[Lead Smelter Updates] It was reported that Yuguang Gold and Lead Group stated on an interactive platform that Ye Group holds the mining rights to the Shuikoushan lead-zinc mine and the Baifang copper mine, with 3 mines (the Kangjiawan mine and the lead-zinc mine both fall under the Shuikoushan lead-zinc mine mining rights) and 1 beneficiation plant, possessing an annual mining and beneficiation capacity of 860,000 mt of raw ore. Its captive mines can produce lead concentrates, copper concentrates, gold concentrates, and other mineral products, providing raw material support for the company.

[Continuous Overseas Supply Disruptions Drive SHFE and LME Zinc Prices Higher] At the beginning of the week, LME zinc continued the fluctuating trend from last week; subsequently, zinc prices edged down as the U.S.-Iran peace agreement was not reached; however, the ongoing fermentation of Peru's energy emergency decree drove a broad rally in non-ferrous metals, and LME zinc rebounded; immediately after, Zazzinc's lead-zinc mine in Kazakhstan reduced its operating load following an accident, and LME zinc continued to surge......

The year 2026 marks the opening year of the "15th Five-Year Plan" period. Against the backdrop of intensifying global macro volatility and the deepening advancement of high-quality development in China, the zinc industry is undergoing profound transformation: tightness on the ore side and the release of smelting capacity are creating structural tension, divergence between domestic and overseas inventories reflects the complex dynamics of supply-demand rebalancing, and technological innovation is becoming the key momentum for resolving contradictions and reshaping the landscape. Key areas under the "15th Five-Year Plan" such as new energy and new-type infrastructure are injecting new momentum into traditional zinc consumption, while green, low-carbon, and circular economy principles are accelerating the restructuring of industrial logic driven by technological innovation. With the joint support of upstream and downstream enterprises in the zinc industry, industry associations, and relevant parties, SMM is about to hold the 2026 SMM Zinc Industry Conference & the 8th Hot-Dip Galvanizing Industry Development and Technological Innovation Forum & the 14th Zinc Salt, Zinc Oxide and Zinc Secondary Resources Development Forum & the Zinc-Based Materials Development Forum on August 6-8 in Qingdao, Shandong. Themed "Converging Zinc Momentum · Building Zinc Industry · Embarking on a New Journey," the conference is driven by the dual engines of macro perspectives and fundamental analysis, closely aligned with the "15th Five-Year Plan" high-quality development mainline, focusing on four major dimensions: macro policies, supply-demand patterns, global trade, and technological innovation. It aims to drive cost reduction and efficiency improvement through technological breakthroughs, respond to market fluctuations through collaborative innovation, and jointly chart a new blueprint for high-quality and sustainable development of the zinc industry. Gansu Changba Nonferrous Metals Co., Ltd. will attend this grand event, discussing industry development trends with industry peers and jointly driving the zinc industry to new heights. Click the to register now, witness and participate in this significant and far-reaching industry event, and co-create a glorious new chapter! ◆ Company Overview ◆ Gansu Changba Nonferrous Metals Co., Ltd. is a subsidiary of Baiyin Nonferrous Group Co., Ltd., with Chengzhou Zinc Smelter and Changba Lead-Zinc Mine under its management. It is a large state-owned nonferrous metals enterprise integrating lead-zinc mining, mineral processing, smelting, and scientific research. Chengzhou Zinc Smelter currently has an annual electrolytic zinc production capacity of 100,000 mt. It is a modern smelter integrating zinc metal smelting, comprehensive utilization of resources, and R&D of new nonferrous metal smelting processes. The enterprise adheres to the development direction of "lean collaboration, digital integration, and green leadership," closely aligned with the goal of creating the ultimate quality benchmark. It has continuously made breakthroughs in improving zinc smelting quality. In 2026, the first batch of high-purity zinc ingots with a purity of 99.998% was successfully produced, injecting solid momentum into further enhancing the enterprise's core competitiveness, expanding the high-end zinc materials market, and driving high-quality development of the enterprise. The Chengzhou Zinc Smelter has always adhered to the pursuit of excellence and perfection. With the successful production of 99.998% high-purity zinc ingots as a major breakthrough, the smelter has continued to increase investment in scientific research, actively introduced advanced and applicable production technologies and equipment, focused on building a high-caliber professional and technical talent team, continuously optimized the production process for 99.997% high-purity zinc ingots, and steadily carried out technical research on even higher-purity zinc products. ◆ Honors Bestowed: Quality Certified by Authoritative Bodies ◆ The outstanding quality of the 99.998% high-purity zinc ingots has been widely recognized by authoritative institutions both within and outside the industry, with numerous prestigious awards attesting to their quality excellence: · Technology Innovation Awards: Leveraging core technological breakthroughs such as "Research and Application of Low-Impurity Electrolytic Zinc Standard Creation," the smelter won the "Second Prize of Nonferrous Metals Industry Science and Technology Award," the "First Prize of Gansu Province Science and Technology Progress Award," and the "Grand Prize of Science and Technology of CITIC Guoan Group Co., Ltd.," with its technical capabilities recognized at national, provincial, and municipal/county levels. The "R&D and Application of High-Grade Zinc Ingot Preparation Process Technology" won a Bronze Award at the 11th International Invention Exhibition "Belt and Road" and BRICS Skills Development and Technological Innovation Competition. "Full-Process Lean Management Control for Creating Excellent Zinc Ingot Quality" won the Second Prize of the 2025 Nonferrous Metals Enterprise Management Modernization Innovation Achievement Award. The smelter built Nanshi's first 5G+ digital workshop, deployed industrial robots and unmanned AGV systems, achieved full-process automation of ingot production, and improved production efficiency by 30%. · Product Quality Awards: The main product, zinc ingots (including the 99.997% grade), together with the by-product sulphuric acid, were awarded the highest honor in nonferrous metals product physical quality certification — the "Gold Cup Award," serving as an authoritative endorsement of their quality stability and superiority by the industry. In 2025, the smelter was recognized as a "Premium Brand" by the CNIA. · Market Access Certification: The main product, zinc ingots, was successfully registered on the Shanghai Stock Exchange, obtaining standardized market circulation qualifications. The brand value reached 2.482 billion yuan, ranking 31st nationwide among "Product Brands," laying a solid foundation for the market promotion of 99.997% high-purity zinc ingots. ◆ Diverse Applications: Empowering High-End Industrial Development ◆ Due to its extremely low impurity content and excellent chemical stability, the 99.998% high-purity zinc ingot demonstrates irreplaceable application value in multiple high-end fields: · High-End Electronics: As a core raw material for electronic component coatings, its low-impurity characteristics effectively enhance the conductivity and service life of electronic devices, and it is widely used in the production of precision electronic components such as integrated circuits and smartphone chips. · Aerospace: Used in anti-corrosion coatings for aerospace components and lightweight alloy material manufacturing, its stable physicochemical properties can adapt to extreme environments, ensuring the reliability of aerospace equipment. · Pharmaceutical and Chemical Industry: Serving as raw materials for pharmaceutical intermediates and high-end catalysts, its high-purity characteristics ensure product safety and efficacy, meeting the stringent standards of the pharmaceutical and chemical industry. · New Energy: In the production of new energy products such as zinc-based batteries and energy storage equipment, high-purity zinc ingots can enhance battery energy density and cycle life, facilitating the upgrading of the new energy industry. ◆ Outstanding Performance: Market Recognition Demonstrates Strength ◆ With a zinc ingot capacity of 100,000 mt, the 99.998% high-purity zinc ingots, leveraging core advantages of low lead, low iron, and low cadmium, received strong recognition from downstream clients upon market launch, delivering impressive market results: · Industry-Leading Zinc Ingot Quality: Zinc ingot purity reaches 99.998%, with lead content at 0.0009%, iron content stable at 0.0003%, and cadmium, tin, and aluminum consistently maintained at 0.0002%, placing it at a leading level in the ISP zinc smelting industry. · Extensive Market Coverage: Products were rapidly sold to core markets such as Shanghai and Xuzhou, covering multiple sectors including high-end electronics and precision manufacturing, breaking the supply bottleneck of high-end high-purity zinc ingots. · Leading Client Satisfaction: With stable purity, extremely low impurity content, and reliable supply capability, a stable client base and strong market reputation have been established. Client satisfaction in 2025 reached 100%. ◆ Future Outlook: Continuously Leading High-Quality Development ◆ Chengzhou Zinc Smelter consistently adheres to the pursuit of excellence and perfection. Taking the successful production of 99.998% high-purity zinc ingots as a significant breakthrough, it continues to increase R&D investment, actively introduces advanced and applicable production technologies and equipment, focuses on building a high-caliber professional technical talent team, and continuously optimizes the production process for 99.997% high-purity zinc ingots while steadily advancing technical breakthroughs for even higher-purity zinc products. Meanwhile, it deepens industry-academia-research collaborative innovation, expands application scenarios of high-purity zinc in high-end manufacturing, new materials, and other fields, and promotes coordinated improvement and synergistic development across the upstream and downstream of the industry chain. The enterprise is anchored on the goal of building an industry-leading lean benchmark enterprise, continuously strengthening whole-process quality management, deepening green and low-carbon production, accelerating intelligent transformation and upgrading, and driving enterprise quality improvement, efficiency enhancement, and transformation with solid achievements, contributing tangible "Chengye Strength" to the high-quality development of the zinc smelting industry. ◆ Contact Information ◆ Long press to scan the code and register now 2026 SMM Zinc Industry Conference

[SMM Morning Meeting Minutes: Increasing Mine-Side Disruptions, LME Zinc Continues to Rally] Overnight, LME zinc opened at $3,482/mt. At the beginning of the session, LME zinc briefly dipped to a low of $3,457/mt. Subsequently, bulls increased their open interest, and LME zinc fluctuated upward throughout the session, touching a high of $3,542.5/mt near the close. It ultimately closed higher at $3,532.5/mt, up $50.5/mt, a gain of 1.45%. Trading volume increased to 15,265 lots, and open interest rose by 727 lots to 242,000 lots.

Spot silver surged 7.07% on May 11, breaking above $86/oz. Peru, a leading global silver producer, issued an energy crisis emergency decree on the same day. With mining operations highly dependent on stable energy, the shortage is expected to reduce global marginal silver supply, further boosting prices amid low inventory levels.

[Lead-Zinc Ore Market Dynamics] Recently, Yunnan Chihong Zn & Ge Co., Ltd. responded to investor questions on an interactive platform, stating that the company is proceeding in an orderly manner with the third-phase exploration and boundary delineation exploration of the Xidong lead-zinc mine. The mining permit application and plan optimization for the Jinxin molybdenum mine are being actively advanced, and the matter has received great attention from leaders at the Ministry of Natural Resources and relevant authorities in Heilongjiang and Inner Mongolia.

[No Impact on Lead-Zinc Mine Production in Hunan for Now] Due to the fireworks factory explosion in Liuyang, Hunan Province, the market paid close attention to local mine production. According to SMM, all fireworks producers in Hunan suspended production, while lead-zinc mines mainly conducted self-inspections, with no significant impact on production for the time being. SMM will continue to follow up on subsequent developments.

According to Mining.com, BMC Minerals has intersected high-grade massive sulphide mineralization in drilling at the Krakatoa zone of its Kudz Ze Kayah (KZK) copper-lead-zinc project in Canada's Yukon Territory, while government permitting has also made positive progress. BMC reported on Monday that the first hole to verify Krakatoa, K26-560, intersected 25.1 meters of mineralization at a depth of 327.5 meters, grading 180 g/mt silver, 9.7% zinc, 1 g/mt gold, 0.3% copper, and 3.4% lead. The Krakatoa zone is adjacent to the ABM main deposit of the KZK project, located approximately 260 kilometers southeast of Whitehorse. "The K26-560 intersection reinforces our confidence that the Krakatoa zone hosts thick, high-grade mineralization that extends beyond the limits of our current mineral resource estimate," said BMC CEO Michael McClelland in a press release. "This strengthens our conviction that Krakatoa has sufficient potential to add resources to the mine plan and extend the mine life of the KZK project." Government Green Light The company's 20,000-meter drilling program yielded significant results just one week after the Yukon territorial and federal governments announced positive decisions on the development of the KZK project. In 2020, the Yukon Environmental and Socio-economic Assessment Board recommended approval of the project, and this document carried forward the 2022 and 2024 decisions. Indigenous Opposition However, the KZK project now faces opposition from the Kaska Indigenous groups. According to the Canadian Broadcasting Corporation (CBC), last week the RRDC (Ross River Dena Council) expressed disappointment with the government's decision, stating that the project was in the wrong location and should not be allowed to proceed. In previous objections, the Indigenous peoples claimed that the federal and Yukon governments had not addressed their concerns about the mine's potential impact on wildlife — particularly caribou migration — and the environment. On April 13, BMC President Steven Michael stated in a release that the government decision allowed the company to continue advancing its permit applications. "We will continue to work toward our ultimate goal — to build and deliver a successful, long-life project that brings lasting, tangible benefits to the Kaska Nation while creating significant, long-term value for shareholders and all Yukon residents," he said. BMC plans to obtain a quartz mining license and a water license, and hopes to make a final investment decision on the project by the end of 2027. Confirming Historical Grades Hole K26-560 at the Krakatoa zone was drilled between two holes completed in 2016, both of which intersected similar grades. Hole K16-369 intersected 8 meters of mineralization at a depth of 385 meters, grading 102 g/mt silver, 12.2% zinc, 0.8 g/mt gold, 1.5% copper, and 0.5% lead. Hole K16-363 intersected 20.8 meters of mineralization at a depth of 323.2 meters, grading 218 g/mt silver, 8.6% zinc, 2 g/mt gold, 0.3% copper, and 3.7% lead. Although the Krakatoa zone is not included in the KZK reserves, the 2025 indicated mineral resource totaled 18.3 million mt grading 148 g/mt silver, 6.3% zinc, 1.4 g/mt gold, 0.9% copper, and 1.9% lead, representing 87 million ounces of silver, 1.1 million mt of zinc, 827,000 ounces of gold, 164,000 mt of copper, and 346,000 mt of lead; the inferred mineral resource totaled 800,000 mt grading 143 g/mt silver, 7.2% zinc, 1.2 g/mt gold, 1% copper, and 1.7% lead, representing 4 million ounces of silver, 58,000 mt of zinc, 30,000 ounces of gold, 8,000 mt of copper, and 13,000 mt of lead. Probable Reserves Based on the 2023 estimate, the ABM deposit had probable reserves of 15.7 million mt grading 138 g/mt silver, 5.8% zinc, 1.3 g/mt gold, 0.9% copper, and 1.7% lead, representing 70 million ounces of silver, 915,000 mt of zinc, 666,000 ounces of gold, 136,000 mt of copper, and 266,000 mt of lead. KZK could rank among the largest zinc mines in the Yukon. While Fireweed Metals' Macpass project has a larger resource base with an indicated mineral resource of 56 million mt grading 5.49% zinc, representing 6.7 billion pounds of zinc, the KZK project is more advanced. A 2023 feasibility study showed the KZK project had a net present value of $835 million (at a 7% discount rate), a pre-tax internal rate of return of 42%, and a mine life of 9 years. The pre-production capital cost for this open-pit project was $492 million, with a payback period of two years. This study was based solely on the reserve estimate of the ABM deposit.

[Lead-Zinc Ore Market Dynamics] A project advancement meeting for the Feihushan lead-zinc mine was held this week in Huzhong District, Heilongjiang, chaired by Guan Jingjun, Deputy Secretary of the District Party Committee and District Governor. The total investment for the Feihushan lead-zinc polymetallic mine development project is expected to be 396.7111 million yuan, with all required funds to be self-raised by the enterprise. Upon completion, the project will have an annual capacity of 300,000 mt of raw ore (including 200,000 mt of lead-zinc ore and 100,000 mt of iron ore). The mineral processing products will be lead concentrates, zinc concentrates, and iron ore concentrates, with a service life of 14 years (excluding a 4-year construction period).

[Lead-Zinc Ore Market Dynamics] It was reported that in April 2025, Western Mining Co., Ltd. obtained the mining permit for the Youre lead-zinc mine in Baiyu County, Sichuan Province. The mine holds lead-zinc ore resources of 6.792 million mt, including lead metal content of 297,100 mt and zinc metal content of 431,200 mt. Associated resources include silver metal content of 405 mt and copper metal content of 21,900 mt. The mine has a designed processing capacity of 600,000 mt/year, and upon completion, the project will boost the production of ore-derived lead and ore-derived zinc.