SUMMARY Of project of deep processing of red pepper seeds to give water soluble oil with capsaicin 2700 tons capacity / year * *resume has familiarization and approximated character, preserving the order of digits

Deep processing of red pepper seeds In the context of contemporary realities of raw material crisis, search for stable income opportunities associates with the implementation of projects on the territory of the Republic of Kazakhstan in the sphere of processing of agricultural products. The project represents the purchase of know-how and the complete cycle of production and sale of water-soluble oil from the seeds of the red pepper, which will be located in the southern regions of Kazakhstan. On the basis of the preliminary contract for the purpose of certification of manufactured products to the Asian market, the technological cycle of production will be controlled by the South Korean experts. The product is most in demand in the market of South Korea, China, Japan, Indonesia and India, due to traditional food and mass consumption. The project is fully export oriented on these countries. At the initial stage, the raw material (seeds of red hot pepper) for production will be imported from China. In the subsequent, local raw materials (there are preliminary agreements with potential suppliers of raw materials) will be used.

Deep processing of red pepper seeds In addition, the sales market is investigated; there are agreements with potential partners from South Korea, who are willing to sign a contract to purchase of all products for several years ahead, as the demand on environmentally friendly products on the background of the increased quality of consumption in the Asian market is extremely high. Also, the cost of production, produced in Kazakhstan, will be much lower than in South Korea, due to several factors: the availability and optimum cost of use of land resources; low cost of labor resources; a new progressive production technology is protected by patents in South Korea. All of the above will allow to realize the project with payback in the short term and to obtain a high and stable income.

Scope of Business The total area of enterprise 1,2 hectares Built-up area 0,3 hectares The volume of raw material processing (red pepper seeds) 2700 tons/year Production output: Water-soluble oil of red hot pepper (capsaicin) 1 215 tons/year seed meal of red pepper 1 485 tons/year

Scope of Business Major capital expenditures: - design and estimate documentation - architectural and construction part - main equipment - supporting equipment - installation supervision and commissioning - coordination and management of the project   Income from the sale of finished products $ US per year: Water-soluble oil of red hot pepper 1215tn*12000$ = (capsaicin) 14 580 000$ US seed meal of red pepper (not considered in the project) TOTAL 14 580 000$ US

Scope of Business Expenditure part Products Expenditures Total Raw material Additional and unexpected Management Amortization Water-soluble oil of red hot pepper (with capsaicin) 4 860 000 1 549 000 856 000 250 000 7 515 000 Seed meal of red pepper -

Scope of Business Operating profit ( p.6-p.7) 7 065 000$ US Required capital for the execution of this project: – main production area – administrative and amenity buildings – laboratory room – buildings for raw material acceptance and weighting – storage space for finished products 1 620 000$ US – main complete equipment (+ know-how) 2 000 000$ US – supporting equipment 500 000$ US – working capital (3 months)  1 080 000$ US TOTAL 5 200 000$ US Construction time is 8 months Payback period of total investment ( p.10/p.8)+8 months is 17 months.

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