1. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Iran’s Steel Development Facts & Investment Promoting Projects

2. Brief Introduction of Barsoo Engineering Co.

3. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Barsoo, founded in 1993, has been the pioneer in providing consulting engineering services in Iran. The company offers integrated front end engineering design and consulting services in a wide range of sectors like iron and steel, ferro ‑ alloys, electric power and utilities and wastewater, infrastructure and other allied industries. 3

4. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Scope of Services Feasibility (techno- economical) studies, market study Procurement management Design and detailed engineering Industrial buildings, facilities and infrastructure design Execution of turn-key / EPC projects Inspection services Supervision services Project management (MC) 4

5. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Certificates and Memberships Quality management system / ISO 9001:2008 / TÜV Certificate, valid up to 2018 Project management system based on PMBOK Certificate of eligibility for consulting services /Iran MPO 5

6. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Fields of Activity Base Metals and Minerals Processing Infrastructures and Off-Site Facilities Power Plants, Transmission and Distribution Oil, Gas and Petrochemicals 6

7. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 7 Projects Distribution in Iran

8. Iran’s Steel Development Facts

9. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference According to National plan for development of steel production, based on target consumption per capita of 480 kg, 9

10. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference At 2025, 42 MTPA crude steel shall be produced With consideration of 13 MTPA, export target, total annual production capacity of the Country shall be reached to 55 MTPA 10

11. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Predominate route of steel development Based on: Non-availability of enough coking coal Non- availability of enough scrap Huge available sources of Natural gas with considerably low price 11

12. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Nature of iron ore mines of the Country Main route of steel development is decided to be Direct Reduction - Electric steel making (DR- EAF) 12

13. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 13 DR- EAF Route

14. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference So, from 55 MTPA, Target Value of crude steel, 49 MTPA through DR-EAF route, 6 MTPA through Blast Furnace (BF) & Basic Oxygen Furnace (BOF) i.e BF-BOF route would be produced 14

15. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 15 BF- BOF Route

16. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Steel development locations Based on: Serious issue of dry climate of the Country and so low water resources Access to international marine transportation 16

17. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Considered locations are: Beside big iron ore mines of the Country, preferably, for beneficiation & pelletizing 17

18. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 18

19. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Beside south coasts of the Country (Persian Gulf & Oman Sea) for direct reduction, steel making & hot rolling 19

20. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 20

21. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference For realization of National plan Target capacities of steel production chain material have been defined 21

22. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 22

23. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Considering: Total expected capacities to be realized at 2025, shortages, of the steel production chain material would be as follow: 23

24. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Pellet3 MTPA Concentrate 9 MTPA Lump & fine Ore3.5 MTPA Coking quality coal1.5 MTPA Scrap2.6 MTPA 24

25. Investment opportunities in Iran Steel Industries

26. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Potential fields of investment Exploration & development of new iron ore mines Iron ore beneficiation lines beside new developed mines 26

27. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Scrap processing plants Production of refectory material Production of graphite electrode Ferro alloys production Lime & dolomite production lines Construction of new power plants 27

28. Investment promoting projects

29. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference For realization of target capacity of 55 MTPA crude steel, The holding for State investment, i.e. Iranian Mines and mining Industries Renovation & Development Organization (IMIDRO) 29

30. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Is promoting investment of Iranian private sector and would welcome to Foreign investors for: Production of indicated shortages Production of additives & consuming materials 3, High Priority, investment “packages” are introduced in this presentation 30

31. 10 MTPA, Mega Steel Green Field, project To be developed by IMIDRO with foreign & local strong investors

32. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Available infrastructure, advantages & incentives Port facilities beside high depth areas of Oman sea suitable for raw material handling by 250-400 thousand tons bulk carriers 32

33. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 33

34. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Rail way connection to National network & Pakistan Best location for transit of goods to Afghanistan & CIS countries 34

35. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Natural gas pipe line Availability of highly experienced & skilled managers, experts & operators in the Country Tax exemption 35

36. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Target 10 MTPA, raw material, semis & finished products Mostly for improving balance of steel production chain material and assurance of 2025 National plan realization 36

37. Production route, concept, Capacities & sequence of Investment

38. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 0.03 MTPA Stacking, Blending and Reclaiming of raw materials Stage 1Stage 2 Ship & Wagon and Truck Unloading Concentrate Stacking & Reclaiming Stage 1 Stage 2 Stage 3 Pelletizing Plant 6.3 MTPA Bandar Abbas & Bandar Emam Scarp Billet casting One line High speed rebar Continuous RollingRebar 0.5 MTPA HBI 0 (1.7) [1.125] MTPA Beneficiation 1 st Line 2.1 MTPA Beneficiation 2 nd Line 2.1 MTPA Beneficiation 3 rd line 2.1 MTPA Pellet Stacking & Reclaiming 0.51 MTPA Billet 0.56 MTPA HDRI / HBI / CDRI 0.52 MTPA Direct Reduction Mega Module 1.7 MTPA Pellet 0 (2.5) [2.5] MTPA Pellet 6.3 (3.8) [3.8] MTPA Bandar Abbas Concentrate 0 (2.5) [5] MTPA Imported Iron Concentrate 2.1 (2.1) [2.1] MTPA By Vessel Local Iron Ore 6.15 (9.2) [9.2] MTPA Imported Iron Concentrate 0(0.4) [2.9] MTPA From Afghanistan By Rail Melting No.1 38

39. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Products (Final Stage) Concentrate 5 MTPA Pellet 3.8 MTPA HBI 1.125 MTPA Rebar 0.5 MTPA Total 10 MTPA 39

40. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Required Utilities DescriptionFinal Stage Electricity, Installed Power (MW) 200 Water (M 3 /Hr) 1000 N.Gas (Nm 3 /Hr) 92000 40

41. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Investment & Economic Indices DescriptionPhase 1Phase 2Phase 3 Investment (MEuro) 95012001500 Internal Rate of Return(%) 182221 Break-even point(%) 443540 41

42. 2.5 MTPA, Pellet Production From rather low grade Iron Ore of small scale mines of the Country Green field Project

43. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Small Scale Mines statistics DescriptionQuantities Total Registered Mines 194 units Total Active Mines 150 units Mineable Reserve of All Mines 250 Million Tones Mineable Reserve of Active Mines 150 Million Tones Annual Iron Ore Production, 2013 32 Million Tones Total Employees of Active Mines 8000 Persons 43

44. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Main Location of the Mines ProvinceNo. of Active Mines Mineable Reserve (Million Tons) Khorasan5048 44 Hormozgan719 Kerman1819 Yazd1016 Fars1012 Central province1011 Zanjan189 Isfahan137 West Azarbaijan55 Other provinces94 The Country150

45. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 1 2 3 4 5 Final Beneficiation & Pellet Plant (FB & PP) Small Mines 1-5 5 Primary Beneficiation Centres (PBC) 45

46. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Khorasan Province Two PBC 46

47. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Kerman Province One PBC 47

48. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Isfahan Province 48 One PBC

49. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference One PBC 49 Hormozgan Province

50. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Required Utilities DescriptionPBCFB & PPWhole package Electricity, Installed Power (MW) 26070 Water (m 3 /Hr) 1175180 N.Gas (Nm 3 /Hr) -10000 50

51. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Investment & Economic Indices DescriptionPBCFB & PPWhole package Investment (MEuro) 4230250 Internal Rate of Return(%) 26.623.226 Break-even point(%) 313933 51

52. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Investment can be realized either through 6 Investors 5 Investors of 5 PBC 1 Investor of FB & PP Or 1 Investor For the whole “Package” of 5 PBC and FB &PP 52

53. 225000 TPA Ferro manganese (3x75000 or 2x112500) Green field project(s)

54. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference General viability Assured local market based on 2025 National Target plan of 55 MTPA crude steel production Potential export market to MENA & Europe Countries, because of so high Energy Consumption & Considerable low Prices of energy in the Country Existing production, marketing and export experiences & expertize 54

55. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference 55

56. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Ferroalloy Process 56

57. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Required Utilities (For 1x75000 TPA, Fe Mn Plant) DescriptionQuantity Electricity, Installed Power (MW) 30 Water (M 3 /Hr) 10 N.Gas (Nm 3 /Hr) 500 57

58. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Investment & Economic Indices (For 1x75000 TPA, Fe Mn Plant) DescriptionQuantity Investment, Accumulative (MEuro) 60 Internal Rate of Return(%) 32 Break-even point(%) 29 58

59. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Investment can be realized either by: 3 investors for establishment of 3x75000 TPA production plants in 3 locations Or by: 2 investors for establishment of 2x112500 TPA tons production plants in 2 locations 59

60. Istanbul Turkey, Sep. 2015 2 nd Iran Steel Export Perspectives Conference Thanks to All participants for their kind attention Metal expert for well arrangement of the Conference Turkish participants in the Conference for their hospitality 60