Investment proposal Block quarry of charnockite with existing permission for development

2 Deposit description Location - Ukraine, Kirovograd region, Golovanevsk district, situated in 1,2 km to the South – West from village Lebedinka Lebensky charnockite deposit is unique for its blockiness, reserves and color scale of the stone Depending on the angle of the incision, the stone changes its shades to gray- black, black-brown, black and green, black and blue. Such deposit is only one in Ukraine. All deposit is divided into three blocks, within the limits of which the stocks are classified by industrial categories A, B and C 1. Calculation revealed that bowels of deposit area contain 1,053.3 thousand m3 of stone raw materials, including the following categories: A (1 category) thousand m3; B (category 2) thousand m3; C1 (categories 3 and 4) thousand m3. The term of raw materials availability for the company is 140 years.

3 Characteristic waste, physical - mechanical features The waste are characterized by mirror polished. The color of the polished surface gray, dark gray, dark-spotted gray to black, almost black, brownish, slightly brownish. They are suitable for a wide use in construction: finishing inner and outer surfaces of parts of buildings, monuments, arts and crafts. Physical and mechanical features: - real porosity (%) from 0.4 to 4.6; average 1.96; - water absorption (%) from 0.19 to 0.71; average 0.51; - density (g / cc) of 2.65 to 2.93; average 2.79; - compressive strength in water-saturated condition (kg / sq. cm) from 797 to 1267; average in 1030; - compressive strength in the air-dry condition (kg / cm²) from 1010 to 1517; average 1190.

4 Conception of Land plot use The most effective use – organization production of mining and processing of charnockite blocks, and in future – production of facing tiles and architectural products which are widely used in construction. To implement the project on the organization of production and processing of natural Granite, several things are necessary : 1. To purchase equipment to begin granite extraction: pneumatic plant string drilling, Installation of diamond wire, jackdrill, compression apparatus for rope splicing scissors, Installation for tearing off the blocks with the use of ballast Installation of hydrodynamic jackall, Installation for reconditioning of button-tip, System of pneumatic slips, diamond-tipped carrier cable in amount of 100 meters

5 Conception of Land plot use 2. Construction of open area with a warehouse of finished products not less than for 2500 square meters, 3. Construction of a production unit for sawing of granite blocks in the territory of quarry. Production unit will allow to insure income even from defective blocks. The production unit’s area should be not less than sq. m. and it should consist of 4 production blocks: block with big saw, Block with multithreaded saw, Polishing block, Pressing block for recycling 4. To purchase equipment for processing granite, namely: Big saw multithreaded saw Polishing table and small polishing equipment Compression apparatus 3-6 pieces Frame crane for 3 production units 3 telpher conveyer (15t ; 10t; 5t) platform lift-truck preferably at 5 tons Autocrane with автокран with telescopic jib preferably at 40 tons

6 Production plan Projected annual production capacity of the mountain mass is 18.8 thousand m3. The average annual volume of blocks is 3.0 thousand m3. For obtaining the annual volume of blocks it is necessary to extract 7.7 thousand m3 of rock. Yield of blocks from rock mass is 39.3%. Wastes from the manufacture 4.8 thousand m3 (7.8 thousand m thousand m3) will be used for paving stones, bottles, crushed stone and dropouts. Costs for extraction of blocks for 1 cubic meter are from $ 200 to $ 220 USA The market value of blocks A and B category - from $ 1500 to 2500 US

7 Planned final product dimension stone faced tile rock for construction crusher-run stone products off-corn of charnockite

8 Land plot cost - $ US Additional conditions - possible sale of 100% share of the company, as well as consideration of a joint doing business

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12 Investment real – estate development company “TITUL” Contacts: Company President Telman Abbasov Cell phone: Phone/fax: Website: