1. 2012 Investment project of cement plant construction in Soligalich municipal district of the Kostroma region

2. Project target is cement plant construction in Soligalich municipal district in order to satisfy the cement needs of Kostroma, Yaroslavl and Vologda regions. Competitors are located at the considerable distance from aforenamed consumers. Plant’s production capacity – up to 2,7 million tons of cement per year. Project value – 14,8 billion roubles. Financial sources: - 25 % of own funds; - 75 % of borrowed funds. Planning and construction period – 3 years. Type of products – cement М-400 и М-500. Resource basis: 1. Limestone reserves – 74 million tons; 2. Clay reserves – from 15 to 20 million tons; 3. Sand reserves – 6 million tons. 2 Project description

3. 3 Location of sources of raw materials

4. 4 Project realization plan 1 st year2 nd year3 rd year4 th year5 th year 12341234123412341234 Feasibility Decision making Realization team Contracts conclusion Construction site preparation Construction-and-geological examination Primary project Ongoing project Construction works Steel constructions delivery Equipment delivery Installation Construction works completion Test runs Start up Examination - guarantee Permanent maintenance Staff training

5. 5 Infrastructure Construction site is situated about 7 km north-west from Soligalich of Kostroma region. Land plot area – 40 ha. Building area – 18 ha. Necessary construction for project realization: 1. Gas pipeline – up to 47 km; 2. Railway line from Galich to Soligalich – up to 110 km; 3. Highway – up to 20 km. Energy resources needs: 1. Power energy – 337 500 000 kW*h per year; 2. Natural gas – 288 milion m3 per year. For energy resources needs satisfaction it is planned to build a gas-piston power station with capacity of 30 MW. Drinking water provision is planned to carry out by wells of 50 metre depth, technical water – by water intake of Svetlitsa river.

6. Social efficiency indicators: 1. Number of new working places: permanent working places – 825 workers; temporary working places – 300 workers. 2. Average salary – 28 000 roubles. Kostroma region administration is ready to provide the most favoured nation treatment for the investment project in part of exemption from payment of the following taxes payable to the regional budget during the payback period: - exemption from payment of property tax; - reduction of the rate of profit tax from 18% to 13,5%. 6 Project efficiency indicators

7. Indicator With privileges, thousand roubles Without privileges, thousand roubles Revenue (excluding VAT)54 523 447,26 Paid for suppliers and employees35 316 163,86 EBITDA19 207 283,40 Depreciation5 688 713,78 Paid taxes1 808 120,023 234 895,68 Interests on loans5 665 124,93 Net profit6 045 324,674 618 549,01 NPV2 476 013,51 649 155,5 IRR, % 45,6033,27 Economic efficiency indicators: 7

8. Budgetary efficiency indicators 8 Project efficiency indicators Indicator With privileges, thousand roubles Without privileges, thousand roubles Federal budget, including2 081 563,682 053 822,8 VAT 1 938 479,07 Profit tax 143 084,61115 343,73 Regional budget, including1 130 342,642 589 659,18 Profit tax 965 821,11 038 093,53 PIT 164 521,54 Property tax 01 387 044,11 Municipal budget, including75 309,23 PIT 70 509,23 Land tax 4 800,00 Social payments 694 414,31 Total 3 981 629,865 413 205,52