TIN - INVESTMENT OPPORTUNITIES IN THE CHUKOTKA AUTONOMOUS REGION NPO Economics and Direct Investment Development Fund of the Chukotka Autonomous Region TIN - INVESTMENT OPPORTUNITIES IN THE CHUKOTKA AUTONOMOUS REGION September 2017

Pyrkakai The largest tin deposit in Russia NPO Economics and Direct Investment Development Fund of the Chukotka Autonomous Region PYRKAKAI STOCKWORK is the world's fourth-biggest tin deposit for an amount exceeding 5 bn USD Location Russian Federation TIN: resources, 347 k tonmes (tin in place, 268 k tonnes) The Far East TUNGSTEN: resources, 21 k tonnes Associated commercial components Copper, 55 200 tonnes Argentum, 258 tonnes Gold, 10 tonnes Pevek 85 km Pyrkakai tin-bearing site Chersky Bilibino Average tin content in the ore: 0.29 % The Chukotka Autonomous Region Anadyr Production conditions: open-cut mining, 500 m deep. Magadan Oblast The deposit ores are easily processed. Tin deposit

IMPLEMENTATION STAGES - MINING COMPANY PROJECT NPO Economics and Direct Investment Development Fund of the Chukotka Autonomous Region Implementation stages of the MPP construction project Exploration Field development MPP construction Production plan construction Field development plan (DED) construction Grid connection Transport infrastructure development Supplies of mining equipment and inventory Engineering Material supplies Facility erection Capacity: Tin: appr. 14.3 k tonnes per year Tungsten: appr. 1,450 tonnes per year The economic life of reserves will be 29 years. Investment, ~ 18.2 bn RUR IRR, 20 - 25 % NPV of 20.1 bn RUR Payback period, 10 years. Drilling operations completed in 2011 Relevant metal industry testing

MARKET CAPACITY – KEY INDICES NPO Economics and Direct Investment Development Fund of the Chukotka Autonomous Region Price behavior over the period from 2013-2017 Tin in Russia Yearly consumption, ~ 6.5 -7 k tonnes Annual production 2010 150 tonnes 2016 618 tonnes World market Demand is met using domestic resources Based on the data provided by WBMS, there is a deficit in supply on the world tin market (k tonnes): 10 % 2016 Jan - May, 2017 deficit, 36 deficit, 7,5 Import, 90 % In 1990, the USSR ranked fourth in the world in terms of tin production of 19.8 k tonnes.

Sales market NPO Economics and Direct Investment Development Fund of the Chukotka Autonomous Region Creation of our own tin product manufacturing in the Far East Tin import substitution on the national market Tin exports to the foreign market World's tin demand and consumption pattern 100 % Other; 16,2% 88 % Electronics Chemistry; 13,3% Solder; 53,7% White tin; 16,8% 12 % Miscellaneous Pyrkakai is well placed against the Asia-Pacific tin buyers

Land and infrastructure Incentive package NPO Economics and Direct Investment Development Fund of the Chukotka Autonomous Region TAX Tax preference of the FREE PORT OF VLADIVOSTOK - PEVEK URBAN DISTRICT SEZ FINANCIAL Subsidies for hiring and training personnel Free customs zone regime mull Shelagsky Exploration mountain Yanranai Suitable infrastructure Pevek Land and infrastructure Low utilities cost Pyrkakai stockwork Reduced land rental rates Komsomolsky Zapadno-Polyanskoye Rytkuchi Mayskoye FOREIGN TRADE Export duty exemption

TIN - INVESTMENT OPPORTUNITIES IN THE CHUKOTKA AUTONOMOUS REGION NPO Economics and Direct Investment Development Fund of the Chukotka Autonomous Region THANK YOU FOR YOUR TIME! Contact details: Olga Sergeyevna Plotnikova Director, NPO Economics and Direct Investment Development Fund of the Chukotka Autonomous Region Phone: 8(427 22) 6-93-29 www.fond87.ru Valery Yevgenyevich Kozlov Deputy Department Head, Industry and FEC Division Head 8(427 22) 6-35-02 чукотка.рф