What you need to know: • BQE Water has advanced its SART plant for Shandong Gold, the largest gold producer in China, to full production and will provide an initial five years of operational support. • The new plant replaces a higher-cost system, recycles cyanide for reuse, and produces copper and zinc concentrates, while reducing costs. • BQE now has three SART plants in the region, positioning the Company to further grow its cyanide management business. Yesterday, BQE Water (BQE:TSXV, BTQNF:OTC) announced that it has advanced the SART plant it designed for Shandong Gold to full production. Following successful commissioning by the BQE China team, BQE will provide operational support for an initial five-year term. The services will ensure the plant achieves its targets for metal production, cyanide recovery, and sulphate reduction. This represented its third SART plant in China, in addition to two facilities it has supported since 2022. The new plant recovers cyanide for reuse in gold leaching while producing high-grade copper and zinc concentrates, and it replaces a higher-cost AVR system that causes sodium sulphate buildup. With three plants now operating for major gold producers, BQE has demonstrated its ability to cut costs and manage challenging feed conditions. We expect BQE to further expand its cyanide management business in Asia as demand for technical services grows alongside soaring gold prices. We are maintaining our BUY rating and $80.00/share target price on BQE Water. Shandong Gold is the largest gold producer in China, with extensive mining and development operations. The Shandong province has been China’s leading gold producer for four decades, contributing over 5.6Moz in 2023 (40% of China’s total output). The province is home to China’s top gold companies, and with more than a dozen gold processing facilities in the region, BQE’s three existing SART plants highlight the significant opportunities for future growth. Cyanide Management Cyanide management has become a critical focus in gold mining as regulations tighten worldwide, covering not only residual cyanide in wastewater and tailings but also by-products such as ammonia, cyanate, thiocyanate, and nitrite. The process centers on recovering and recycling cyanide from leaching so it can be reused, reducing the need for fresh inputs, minimizing harmful by-products, and ensuring discharges remain safe for the environment. Effective cyanide management is now essential for permitting new projects and maintaining social license. BQE Water is a recognized leader in this field through its expertise in the SART process, which recovers cyanide consumed by base metals and recycles it back into gold extraction. This lowers operating costs while reducing the environmental footprint of mining projects. In addition, BQE provides solutions to treat cyanidation by-products, including the removal of ammonia, nitrite, and thiocyanate, further strengthening its role as a trusted partner for miners aiming to meet regulatory requirements and operate sustainably.