INVESTMENT PROJECT PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT , Volgograd, str. 40 let VLKSM, 57, tel.: +7 (8442) , fax: +7 (8442) ,

2 GROUP OF COMPANIES PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT PURPOSE Production foundation: CCM- magnesite with a capacity of tpy, sodium bromide tpy, precipitated calcium carbonate tpy, and pelletized calcium chloride tpy. RAW MATERIAL SOURCES Own unique “bischofitу” field provides in the framework of related diversification expansion of product range on the basis of magnesium chloride brines of bischofite mineral. Production of synthetic CCM-magnesite in the framework of current project is based on process of chemical precipitation of magnesium hydroxide from brines bischofite by using of calcium hydroxide. Calcium chloride is formed as a side product that is used for production of pelletized calcium chloride. Also limestone is a feedstock for CCM-magnesite production, limestone is mined on own career (Perekopsky career) and besides the main purpose to precipitate magnesium hydroxide it is used for production of precipitated calcium carbonate that minimizes resource logistics and reduce production costs. Also feature of own Svetloyarsky bischofite field is availability in its composition of industrial bromine content that allows to select it from brine by economically viable method and to direct to the production of sodium bromide , Volgograd, str. 40 let VLKSM, 57, tel.: +7 (8442) , fax: +7 (8442) ,

3 GROUP OF COMPANIES ADVANTAGES OF LOCATION AREA Production site in Volgograd has well-developed infrastructure: water catchment area and water treatment system, refrigerating station providing production with cold of different parameters, modern biological treatment plants, maintenance service, motor-road and rail transport department. CHP-3 (owned by LLC "LUKOIL Volgograd-Energo") is rented by us for a long term and provides production site of Group with electric energy and low\high pressure steam. The second independent source of electricity provision are networks of JSC “Volgogradenergosbyt” , Volgograd, str. 40 let VLKSM, 57, tel.: +7 (8442) , fax: +7 (8442) , PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT

4 GROUP OF COMPANIES MARKET SITUATION: CCM-MAGNESITE CCM-magnesite is used: in production of refractory products, in chemical industry, construction, agriculture, in production of fertilizers, water treatment etc. Volume of the world market CCM-magnesite due to its widespread use is estimated at 2 mln.t., demand for synthetic CCM-magnesite is about t. The highest growth rate of world CCM-magnesite consumption (3-5 %) is observed in construction, chemical industry, agriculture, food production and perfumes , Volgograd, str. 40 let VLKSM, 57, tel.: +7 (8442) , fax: +7 (8442) , PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT

5 GROUP OF COMPANIES MARKET SITUATION: SODIUM BROMIDE RUSSIAN MARKET OF SODIUM BROMIDE Sodium bromide is not produced in the Russian Federation; the entire demand for this product is satisfied by import supplies from Ukraine and Israel. The main and the most promising segment of the consumption of sodium bromide at Russian and world market is bromobutyl rubber production, the only Russian manufacture of which and the third largest world producer is JSC "Nizhnekamskneftekhim" with consumption on the situation at the beginning of tpy. By development program of JSC "Nizhnekamskneftekhim" is provided increase of production capacities for the production of halogenated butyl rubber (chlorobutyrate and bromobutyl rubber) up to tpy. The main use of these rubber types is production of sealing layer of tires , Volgograd, str. 40 let VLKSM, 57, tel.: +7 (8442) , fax: +7 (8442) , PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT

6 GROUP OF COMPANIES MARKET SITUATION: SODIUM BROMIDE WORLD MARKET The most promising type of rubber due to low gas permeability and high level of compatibility with other types of rubber by vulcanization is bromobutyl rubber, demand for which is growing at 5-7% per year. The world's largest manufacturers of bromobutyl rubber besides JSC "Nizhnekamskneftekhim" are corporations “ExxonMobil”, USA and “Lanxess”, Germany. Modern tire production technology by using of bromobutyl rubber (manufacture sealing layer) is developed by world tire industry leaders, for example, by Michelin, which supplies products of JSC "Nizhnekamskneftekhim". MARKET ENTRY STRATEGY Target marketing direction for this project is to satisfy growing demand for sodium bromide by JSC "Nizhnekamskneftekhim" - full import substitution of sodium bromide. Export directions of supplies will be used during market development period , Volgograd, str. 40 let VLKSM, 57, tel.: +7 (8442) , fax: +7 (8442) , PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT

7 GROUP OF COMPANIES MARKET SITUATION: PRECIPITATED CALCIUM CARBONATE Precipitated calcium carbonate is used as an inert plastics filler. Pattern of demand by application areas  polymer – 26%;  paint and coatings – 18%;  sealing component – 14%;  construction mix – 9%;  cosmetics – 9%;  other (mechanical rubber, chemical, glass industry, pharmacy) – 24%. Tendency and consumption forecast: Is expected demand growth in production of plastics, mechanical rubber goods and paint and coatings , Volgograd, str. 40 let VLKSM, 57, tel.: +7 (8442) , fax: +7 (8442) , PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT

8 GROUP OF COMPANIES MARKET SITUATION: CALCIUM CHLORIDE Pattern of demand by application areas :  oil and gas industry – 77%;  anti-icing agents – 15%;  pharmacy and food industry – 3%;  other – 3% (In general, calcium chloride has more than 60 industrial applications). Tendency and consumption forecast: Projected increase in calcium chloride consumption by oil and gas segment of the CIS countries due to new field developments and consumption solid CC instead of liquid caused by saving on transport costs. Also is projected substantial demand growth in road operation sector (processing routes and urban areas in winter), in construction and the food industry , Volgograd, str. 40 let VLKSM, 57, tel.: +7 (8442) , fax: +7 (8442) , PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT

9 GROUP OF COMPANIES MARKET SITUATION: CALCIUM CHLORIDE World market conditions of calcium chloride: Key players: Man manufacturers of calcium chloride, which accounts for over 40% of the world capacity, are:  Tetra Technologies – 18% (USA, Finland and Sweden);  Oxy Chem (USA) – 16%;  Shandong Haihua Share Holding Co., Ltd. (China) – 9%;  LLC Zirax (Russia) – 3%; Volume of current market: 2,9 mln.t. Pattern of demand by application areas:  dust control and unmetalled road stabilization – 23%;  oil-and-gas industry – 20%;  anti-icing agents – 20%;  other – 24%. Tendency and consumption forecast: Increase of calcium chloride consumption is expected on the world market, primarily due to such segments as oil and gas production and road operation (dust control, anti-icing reagent) , Volgograd, str. 40 let VLKSM, 57, tel.: +7 (8442) , fax: +7 (8442) , PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT

10 Group of Companies We are interested in a mutually beneficial partnership with all companies that directly related to the processes of production and sales of chemical products as well as financial institutions and private investors. We are ready to consider any proposals for cooperation in this direction from the equity in the financing of several projects and providing engineering services till implementation agreements of future products including off-take agreements. CONTACT PERSON : Andrey Tereschenko New Industries Development Department tel.: +7 (8442) PRODUCTION OF CCМ-MAGNESITE, SODIUM BROMIDE, PRECIPITATED CALCIUM CARBONATE AND INCREASING OF PELLETIZED CALCIUM CHLORIDE OUTPUT NIKOCHEM GROUP OF COMPANIES Moscow, Aptekarsky Lane., 4, Bldg. 2. office fax: +7 (495) tel.: +7 (495) http: