STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES OPPORTUNITY FOR THE PROJECTS IMPLEMENTATIONIN THE MINING FIELD OF THE REPUBLIC OF UZBEKISTAN TASHKENT 2012

STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES 1926 Central Asian branch of the Geological Committee (now State Committee) has been organized and initiating a comprehensive study of geology and mineral resources in Central Asia. In accordance with the Decree of the President of the Republic of Uzbekistan 27.08.2010g. № PP-1396 "On measures to further improve the efficiency of the organization and conduct of exploration," State Committee defined functions: - exploration work on the hydro resources; - exploration work on solid non-metallic minerals; - exploration works on ferrous metals; - comprehensive research on geological study areas geological filming work, identifying promising areas of mineral resources.

STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES Mineral deposits registered in the State Balance of RUz as of 01.01.2012 (number of deposits/ % of total number) During independence years the Republic of Uzbekistan has strongly fixed own positions at the global mineral market in many directions Mineral deposits discovered during the Independence Period of RUz (number of deposits/ % of total number) The current status of a mineral base on strategic aspects of metallic minerals, oil and gas, mineral fertilizers, groundwater construction materials as a whole is estimated as satisfactory.

LAYOUT OF INVESTMENT DEPOSITS AND PROSPECTIVE AREAS STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES LAYOUT OF INVESTMENT DEPOSITS AND PROSPECTIVE AREAS 16 Iron 1-Tebinbulak Tungsten 8-Koitash 9-Ingichka 10-Kara-Tyube 11-Yakhton Oil Shale 2-Sangruntau 3-Baysun Celestite 12-Sherabad Iodine 4-Kruk 5-Bukhara-Karshinsky artesian basin Tantalum 13-Mangit 14-Sultansay Manganese 6-Dautash 7-Takhtakaracha Mercury 15-Karasu Сupper 16-Gava

disposition of oil shale basins in the Republic of Uzbekistan STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES Sangruntau Baisun SCHEME disposition of oil shale basins in the Republic of Uzbekistan Oil shales are widely spread within Central Asian countries on the area more than 100 ths. km2. In Uzbekistan oil shale resources are estimated up to a depth of 600 m and in amount of 47 bln. t. 5

928,1 Reserves of oil shale deposits of Uzbekistan Total Deposit STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES Reserves of oil shale deposits of Uzbekistan Deposit Author’s shale reserves in natural conditions, M. t Baisun 55,4 Sangruntau 180,0 Aktau 126,0 Uchkyr-Kulbeshkak 318,2 Urtabulak 248,4 Total 928,1 Calculated author’s reserves at five deposits (Baisunsky, Urtabulaksky, Uchkyr-Kulbeshkaksky, Sangruntausky and Akatausky) amount to about 1 bln. t.

Symbol of shale samples STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES Content of elements in oil shale deposits in Uzbekistan №№ п/п Symbol of shale samples Baisun Jam Sangruntau Name of element Content in the initial sample, g/t (average) Elements with the content in initial raw mineral higher than clarke (abundance ratio) 1 Molybdenum 2800 2200 1200 3 Cadmium 200 80 160 4 Selenium 106 75 50 7 Nickel 2300 8 Vanadium 2160 900 800 9 Cobalt 600 25.0 20.0 10 Copper 400 100 13 Zink 480 350 220 14 Barium 4000 9000 2000 16 Aluminum 35000 39000 53000 17 Manganese 920 330 18 Phosphorus 15800 11300 3200

Used for producing of combustion gases at burning of semi-coke, STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES Output of finished products of processing of Sangruntau shale organic part (per 1 t dry shale) Initial shale Tar, 56,75 kg Fuel production Shale oil, 0,4 barrel Pyrolysis gases, 50 kg Electric power, 0,194 megawatt-hour Power generation Aqueous distillate, 34,25 kg Used for producing of combustion gases at burning of semi-coke, 93 kg Semi-coke ash, 766 kg Metal recovery

STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES Site: Northwest end part of Sultan-Uvais mountains, Karauzyaksky district Karakalpakstan in 8,0 km to the east from Karauzyak railway station. Infrastructure: at a distance of 1,5 - 2 km to the southeast the transmission line passes and one substation is built. Cross the Karauzyak railway station a water pipe from the Tuyamuyun water reservoir to supply water to Nukus and districts located to the north from it passes. Branch from a waterpipe is in 3-4 km to the south from a deposit. Distance to highway А-380 is 5 km. Тебинбулак ЛЭП ЛЭП ВОДОВОД Deposit Deposit Type Ore mineral composition Values Ore reserves, mln.t Tebinbulak Titanomagnetite Linear zones of stringer-porphyry mineralization mineralization in gabbro- pyroxenite solid mass Fe TiO2 V2O5 16.0 1.96 0.15 C2 – 452.3 Р1+Р2 – 3 491.5

STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES Within the framework of joint cooperation development of Tebinbulak deposit along with building of mining and smelting enterprise with a complete cycle including ore extraction and dressing, agglomeration for producing of metallized pellets and agglomerate, heat-resistant steel amounting to 1,0 million tons is proposed. Extraction – 14,7 million tons Ore processing – 14 million tons Concentrate generation – 3,5 million tons Pig-iron production – 1,5 million tons - in OJSC "Uzmetkombinat" – 0,4 million tons (cost is 350$ х 400 000 = 140 million dollars) - deep processing – 1,1 million tons Steelmaking production – 1,0 million tons (cost is more than 900 million dollars) (steel sheets, rails, etc.) Vanadium * – 5,0 thousand tons. (Cost is 12000$ x 5000 = 60 million dollars *) Approximate annual revenue –1,1 billion dollars * Content is 0,15 %, extraction - 30 %

PROCESS FLOW SCHEME OF ORE BENEFICIATION, PELLETIZING STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES PROCESS FLOW SCHEME OF ORE BENEFICIATION, PELLETIZING AND HIGH-ALLOY STEEL OUTPUT OPEN-PIT MINE ORE OUTPUT WET MAGNETIC SEPARATION TAILS 14.7 mm tonnes Vanadium (content - 0,15%, extraction - 30%) 5,0 ths..ton IRON-VANADIUM CONCENTRATE EXTRACTION CONCENTRATE DEHYDRATION UNLOADING TO A WORKSHOP USING CONVEYOR ORE BREAKING Ironmaking 1,5 mm tonnes DRESSING BY MAGNETIC SEPARATION «Uzmetkombinat» OJSC 0,4 mm tonnes (metallised pellet pellet) Further processing 1,1 mm tonnes ORE BREAKING 14.0 mm tonnes 3.5 mm tonnes Steelmaking product 1,0 mm tonnes Ore processing Concentrate production

STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES GAVA Chust Namangan Location: The Gavasay prospective area (220 km2) is located on the southern slopes of the Kuraminsky ridge on a right bank of the Syrdarya river between its tributaries Gavasay and Charkasarsay. Under signed memorandum of understanding on cooperation in the field of geological study of the Gava area perspective for revealing of deposits of copper and other metals (including associated components), located in the Namangan area, joint cooperation between Goscomgeology and Rio-Tinto company is being maintained.

2012-2013. (Stage 1) - exploration works on GAVA; STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES During 18th session of the Uzbek-British Council devoted to trade and industry, arrangements on preparation of the draft agreement on carrying out of geological study have been reached, according to which in 2012 financing (about 1,0 million dollar) and commencement of stage-by-stage geological researches on the Gava prospective area are provided. In case of revealing of exploitability of the area for discovery of copper-porphyritic deposit, the parties will discuss continuation of exploration including further mining according to PSA terms. Now the draft agreement on geological study of Gava prospective area in the Namangan area is under approval, which provides for the following stages: 2012-2013. (Stage 1) - exploration works on GAVA; 2014 (Stage 2) - with the positive results of exploration work, approval and signing of the PSA; From 2015 (Stage 3) - development of the deposit on PSA terms.

STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON GEOLOGY AND MINERAL RESOURCES Uzbekistan has modern mining and processing industry as well as developed infrastructure. Complexity of many deposits and opportunity of extraction of co-elements considerably increase their value, and favorable conditions of investment are the reliable basis for wide attraction of the direct foreign and inner investments.

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