Cove Kaz Capital Group and Qazgeology Provide Exploration Update on Akbulak Rare Earth Project in Kazakhstan

ASTANA, Kazakhstan--(BUSINESS WIRE)--Cove Kaz Capital Group LLC (“Cove Kaz” or “the Company”), in partnership with JSC Qazgeology, Kazakhstan’s national geological company, and a wholly-owned subsidiary of JSC Tau-Ken Samruk National Mining Company, today announced continued progress in the 2026 exploration program of the Akbulak Rare Earth Project located in the Kostanay Region of the Republic of Kazakhstan.

The Akbulak Rare Earth Project hosts a historical resource of 380,000 tons of rare earth oxides, including neodymium and praseodymium—key elements in permanent (NdFeB) magnets, and yttrium which is utilized in electronics, medicine, and materials science applications.

Exploration activities commenced in April 2026 and continue to advance on schedule. As of early June, the Company has completed 77 drill holes totaling approximately 3,700 meters of core drilling across priority target areas identified through historical geological data and modern geological modeling.

The drilling program is designed to evaluate rare earth element potential across the Akbulak license area and further refine the project’s geological understanding. Core logging, sampling, and preparation for laboratory analysis are currently underway.

The 2026 exploration campaign contemplates up to 9,660 meters of drilling. Additional drilling is expected to continue throughout the year as the Company advances exploration activities across multiple target zones within the project area.

“Akbulak represents an important component of our long-term critical minerals strategy in Kazakhstan,” said Pini Althaus, Chairman of Cove Kaz Capital Group. “Together with our partners at Qazgeology, we are applying modern exploration techniques to evaluate the project’s potential and contribute to the development of new sources of critical minerals outside existing dominant supply chains.”

Dominic Heaton, Chief Executive Officer of Cove Kaz Capital Group, added: “The drilling program has generated valuable geological information and marks another important milestone for the project. We look forward to receiving laboratory results and continuing to advance our understanding of the mineral potential of the Akbulak license area.”

Laboratory assay results are expected following completion of sample preparation and independent analytical testing. The Company intends to provide additional updates as exploration activities progress.

Together with the Akbulak Rare Earth Project, Cove Kaz is moving forward as a key participant in the development of reliable, independent sources of strategically important materials outside of China. On April 30, 2026, the Company announced a pending merger with Skyline Builders Group Holding Limited (Nasdaq: SKBL). Subject to obtaining all required approvals and satisfaction of customary closing conditions, the transaction is expected to be completed in the fourth quarter of 2026 or early 2027. Following completion of the business combination, the resulting company is expected to operate under the name “Kaz Resources Inc.” and trade on Nasdaq under the ticker symbol “KAZR." For more information visit www.kazresources.com.

About the Akbulak Project

The Akbulak Rare Earth Project is located near Arkalyk in the Kostanay Region of Kazakhstan and covers approximately 64.5 square kilometers. Historical geological data indicate an estimated historical resource of approximately 380,000 tonnes of rare earth oxides (REO), including neodymium, praseodymium and yttrium. While additional exploration and verification work are required, Akbulak is considered one of Kazakhstan’s most significant rare earth exploration projects. The project is being advanced through a joint venture between Cove Kaz Capital Group and Qazgeology and forms part of the Company’s broader strategy to develop critical mineral assets that support advanced manufacturing, energy security, defense applications, and resilient global supply chains.

About Cove Kaz Capital Group LLC

Cove Kaz Capital Group LLC is a U.S.-backed critical minerals development company focused on advancing strategic resource projects in Kazakhstan. On April 29, 2026, the company acquired a 70 percent controlling interest in Severniy Katpar LLP, a joint venture with Kazakhstan’s national mining company Tau-Ken Samruk, which retains the remaining 30 percent.

Through this partnership, Cove Kaz is developing the Northern Katpar and Upper Kairakty tungsten deposits, among the largest undeveloped tungsten resources globally. The project is advancing through feasibility, permitting, and development toward commercial production, with the objective of establishing a long-term, secure supply of tungsten to support critical industrial and high-technology applications in the United States and allied markets.

About Qazgeology

Qazgeology is Kazakhstan’s geological exploration company, dedicated to the discovery and development of the country’s mineral wealth. Through strategic partnerships and cutting-edge research, Qazgeology plays a pivotal role in advancing Kazakhstan’s mining industry and unlocking new resources for future development.

About Tau-Ken Samruk

Tau-Ken Samruk is the national mining company of Kazakhstan, focused on the development of geological exploration, mining and metallurgical projects. Committed to innovation and sustainability, Tau-Ken Samruk collaborates with domestic and international partners to enhance the competitiveness of Kazakhstan’s mining sector and support economic growth.

Forward-Looking Statements

This press release contains forward-looking statements regarding exploration activities, drilling programs, laboratory results, geological interpretations, project potential, and future development plans. Actual results may differ materially from those expressed or implied by such statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this release.