Summary of the project of deep processing of wheat in Kostanay August 2016 Нурханов Нурлан (+7701 511 50 90)

Main issues Our region is a major exporter of high-quality grain which is sold as a raw material The deep wheat processing improves economic efficiency of 5 times Requested finished products: gluten, starches, feed additives Fast return on investment 2

The favorable situation on the market The global market for starch → over 60 million tons / year. Wheat starch market → more than 4 million. Tons / year The enormous demand for dry wheat gluten in Europe. In CIS production is concentrated in the European part. There is no finished productions of gluten and modified starches from the Urals to the Far East yet. No processing in Kazakhstan. Existing enterprises - LLP "Zharkent starch and syrup factory" - 150 t / d corn. The market is developing dynamically. LLP "Verny Capital" confirmed the investment in the sector of processing corn of 100 million dollars. It is planned to restore LLP "Biochim" (biofuel plant is idle 5 years) 3

The choice of equipment supplier a preliminary analysis of the main European and Asian suppliers, in particular, Alfa Laval, GEA Westfalia Separator, Broadbent, various Chinese companies was made for purchase of equipment for the plant The choice fell on the South Korean proposal. Why? Firstly, the technology used in progressive knowhow Secondly -good price (around $ 250-450 / t processed) Third - offered an interesting circuit to further sale of products in the Asian market with full control of the quality of the buyer at the manufacturing stage. 4

Business Scale. Invest costs * Title The amount, estimated cost , $ The amount , estimated cost, $ The amount, estimated cost, $ Raw output 30 000 tonnes / year Raw output 100 000 tonnes / year Raw output 200 000 tonnes / year square 5ha 10ha 15ha Starch and starch products 1,500㎡ 1 050 000 5,000㎡ 3 500 000 8,500㎡ 5 950 000 Storage of raw materials 3,000㎡ 900 000 10,000㎡ 3 000 000 10,000㎡ Ｘ 2set 6 000 000  Storage of ready materials 1,000㎡ 600 000 2,000㎡ 1 200 000 4,000㎡ 2 400 000 office and lab 300㎡ 210 000 800㎡ 560 000 700 000  additional rooms equipment 1 LOT 14 000 000 32 000 000 42 000 000 Water treatment and purification 150 tn/day 400 000 250 tn/day 800 000 350 tn/day 1 000 000  ELECTRIC POWER eQUIPMENT 400kw 600kw 1200kw   gas supply system 10 cube. м/h   25 cube .м/h 40 cube.м/h Special equipment, spare parts 300 000 500 000   engineering works total 18 020 000 42 260 000 59 650 000 Working capital 4 000 000 15 000 000 25 000 000 22 020 000 57 260 000 84 650 000 * - The exact amount possible after detailed engineering 5

The participation of the Project Executor Business identification number 160640000469 Title of the company LLP “KazBioTech" Address Kostanai, Baimagambetov Str169 Name and surname of the director Nurkhanov Nurlan tel +7 701 511 50 90 E-mail kazbiotec@gmail.com Gasified production area on a plot of 10 hectares - * Contracts of intention are concluded on the supply of raw materials from farms (Kostanay-largest raw material base, the order of 4-6 million tons of wheat per year). It signed an agreement of intention with the South Korean company to transfer tadvanced technologies of grain processing to Kazakhstan Ready manpower for the start of the project is almost 80%. Sufficient selection of qualified personnel (Kostanay agricultural processing center in the region) Administrative resources are written confirmation of the regional administration in the provision of infrastructural assistance to the project. Expressions of interest and willingness to purchase finished products from the Asian partners * -up To 2021 on the sale of land to non-residents of Kazakhstan moratorium 6

Cost of the project and return (30,000 tons / year) Total costs per ton of $ 281.8 (raw wheat at the rate of $ 200 / t) + $ 92 (additional) $ 38.64 + (control) + $ 35.21 (loan servicing) + 44 $ 82 (depreciation) = ⇒ approx. $ 500 / ton (100,000 tons / year) Total costs per ton of $ 281.8 (raw wheat at the rate of $ 200 / t) + $ 92 (additional) $ 25.15 + (control) + $ 26.21 (loan servicing) + 31 $ 26 (depreciation) = ⇒ approx. $ 460 / ton (200,000 tons / year) Total costs per ton of $ 281.8 (raw wheat at the rate of $ 200 / t) + $ 92 (additional) $ 11.56 + (control) + $ 13.99 (loan servicing) + 19 $ 11 (depreciation) = ⇒ approx. $ 420 / ton Production The sale price, $ / ton Starch F.O.B – 700 feed additives F.O.B – 200 Glutin F.O.B – 1,500   30000ton/year 100000tn/year 200000 tn/year Sum from selling 20 404 200 71 414 000 135 665 000 Cost price 11 243 950 33 491 950 58 634 800 Operating profit 9 160 850 37 922 050 77 030 200 Taxes*(15%) (app) 1 374 128 5 688 308 11 554 530 TOTAL, annual income 7 786 723 32 233 743 65 475 670 Payback (investment / profit) months 34 21 16 7

Implementation Schedule Title Period (months) М+4 М+6 М+8 М+10 М+12 М+14 М+16 М+18 М+20 М+…. Preparation to the project Manufacturing equipment building installation work Transportation Installation and commissioning Work regime The payback period of the total investment will be 16-34 months from the date of commissioning of the plant. The construction period of 12-16 months. Project Indicators calculated excluding reimbursement of 30% of state expenditures in the form of grants or in-kind grant (according to the Republic of Kazakhstan "On investments" Law) 8

Production scheme Scheme of production of wheat starch and by-products <principal scheme> Raw Fresh water chemicals fiber material 45~55℃ Conveyor 10~15℃ (Mill feed) Chilled air waste Water Vibrating sieve Mill feed Process blowing → To waste water tank water cooling water acid From Purifier waste process water gluten milk Fiber materials ◆ Gluten ◆ Комбикорм ◆ Starch Milling separator Magnetic separator De-stoner Measurement Measurement conveyor Wahsing Rotary washer Steeping Steeping Tank #1 De-watering Peeler centrifuge Purifictation Grinding Break Roller 6stage Reduction Smooth Roller 6stage Buffer Tank → To Mill feed supply tank Starch extraction Extraction Tank Pre-heating Heat exchanger Cooling Steam heavy solution Starch separation 3Phase-nozzle decanter Fine sieving Conical strainer #2 De-watering 3P-Decanter Filtering Screen centrifuge De-hydration Drying Hot-air flash dryer Giuten filter Packer De-watering 2-phase decanter Ring dryer Starch filter Starch Tank Storage conveyor Mill Feed supply 9

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