invest in kazakhstan - mining & metallurgy

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1 CONFIDENTIAL Acquisition and greenfield investment opportunities in mining and metallurgical industry in Kazakhstan February 2016 This Presentation does not constitute an offer or invitation to the public in any jurisdiction to purchase any shares or assets of any Company, and does not constitute or form any part of any offer or invitation to purchase shares, nor shall it or any part of it form the basis of, or be relied upon, in any way in connection with any contract or investment decision relating to any shares. Information contained herein should be treated as confidential. Copying or distributing without prior written consent from Kaznex Invest is prohibited. Confidential National export and investment agency “KAZNEX INVEST” JSC Ministry for investment and development of the Republic of Kazakhstan

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Page 1: Invest in Kazakhstan  - Mining & Metallurgy

1CONFIDENTIAL

Acquisition and greenfield investment opportunities in mining and metallurgical

industry in Kazakhstan

February 2016

This Presentation does not constitute an offer or invitation to the public in any jurisdiction to purchase any shares or assets of any Company, and does not constitute or form any part of any offer or invitation to purchase shares, nor shall it or any part of it form the basis of, or be relied upon, in any way in connection with any contract or investment decision relating to any shares. Information contained herein should be treated as confidential. Copying or distributing without prior written consent from Kaznex Invest is prohibited.

Confidential

National export and investment agency “KAZNEX INVEST” JSC Ministry for investment and development of the Republic of Kazakhstan

Page 2: Invest in Kazakhstan  - Mining & Metallurgy

2CONFIDENTIAL

Agenda

1.Executive summary and basic information

2.Mining and metallurgy potential

3.Acquisition and greenfield investment opportunities

Page 3: Invest in Kazakhstan  - Mining & Metallurgy

3CONFIDENTIAL

Executive summaryKazakhstan is a dynamically developing economy with favorable demographics and low public debt Kazakhstan is the largest economy in Central Asia. The country has got vast oil reserves and deposits of metals, minerals and other reserves.

The Kazakhstan ferrous / steel industry enjoys a significant advantage over the non-ferrous sector in that 73% of reserves are classified as readily extractable. Moreover, 6.9% of ores do not require enrichment. On the other hand, just 20% of ores have a difficult rating;

Kazakhstan plays an important role in ensuring food security in Central Asia. Taking into account the interaction within the Organization of the Islamic food security, the possibilities of Kazakhstan in this area will increase significantly;

At present the Mining and Metallurgy Complex of Kazakhstan is oriented to developing about 30 new processing enterprises in the metals sector, focusing on the manufacture of high value added product, with the objectives of both increasing the growth in production of technology-intensive goods while also expanding exports;

All substantial Kazakh mining and metallurgy enterprises have vertically integrated facilities and are involved in a variety of related product categories along the value chain

Kazakhstan’s mining and metallurgy The mining and metallurgy sector is one of the most competitive and dynamically developing

industries of Kazakhstan. Kazakhstan has abundant natural resources with almost 100 elements discovered and 60 being actively recovered. Metallurgy occupies over 35 percent of the processing industry volume. The numbers are impressive - Kazakhstan possesses 30% of the world’s chrome ore deposits, 25% of manganese ores, 10% of iron ores;

The Kazakhstan reserves of copper, lead and zinc represent 5,5%, 10% and 13% respectively of the world’s reserves;

Kazakhstan currently ranks third in the world among titanium producers; zinc – 7th rank, lead – 8th, iron ore – 13th, copper – 15th, and steel - 35th. The total geological reserves and estimated coal resources of Kazakhstan are estimated at 150 billion tons;

Sum

mar

y of

pro

ject

s

Kostanay region - hot briquetted iron 1.4 million tones a year, section iron 75,000 tones per year, 450,000 tons of rolled metal a year;

Zhambyl region - ferrosilicomanganese 64,800 tones a year; Aktobe region - ferrochrome up to 440,000 tones, iron nuggets 500,000

tones a year; Akmola region - ore mining 8 million tones a year, gold production 15

tones a year; Pavlodar region - copper concentrate production 500,000 tones a year,

production of primary aluminum 125,000 tones a year and railroad tracks production 100,000 tones a year;

East-Kazakhstan region - production of copper concentrate 500,000 tones a year, copper smelter with capacity of 25,000 tones a year;

East-Kazakhstan region - production of sponge type titanium 16,000 tones a year, copper cathode production 70,000 tones a year;

Karaganda region - steel production up to 10 million tones a year.

Regional implication

Exec

utiv

e su

mm

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Page 4: Invest in Kazakhstan  - Mining & Metallurgy

4CONFIDENTIAL

Kazakhstan’s economy and basic market data

Kaza

khst

an’s

eco

nom

y

Kazakhstan is a dynamically developing economy with favorable demographics and low public debt Kazakhstan is the largest economy in Central Asia. The country has got vast oil, metals, minerals and other reserves deposits.

Economic growth Since 2000 Kazakhstan’s economy has been

growing dynamically (among the world’s fastest developing countries)

Average GDP growth rate of 7.7% in years 2000-2014.

GDP increase has been driven by favorable market prices for Kazakhstan’s leading exports – oil, metals and grain.

Demographics Population of 17.3 million in 2013 expected

to increase to 18.7 million by 2020 Favorable age structure implies a steadily

increasing demand for meat and agricultural products

Median population age is at 29 years (compared to 46 in Germany, 38 in Poland, 31 in Brazil)Public debt

Kazakhstan has been the first former Soviet republic to repay all of its debt to the IMF, 7 years ahead of schedule

The public debt of Kazakhstan since 2011 remains stable between 12-14%

In 2014 Kazakhstan sold first overseas dollar bonds in 14 years, issuing USD 2.5bn of 10- and 30-year bonds

9.813.5

9.8 9.3 9.6 9.7 10.7 8.9

3.31.2

7.3 7.55.0 6.0 4.3

GDP growth rate (%)

03006009000 - 4

20 - 24

40 - 44

60 - 64

80 - 84

100+

0 300 600 900

Male Female

Age structure (ths)

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

11.48.1 6.7 5.9 6.7

10.2

15.512.6 13.2 13.8

12.1

Public debt (% of GDP)

2006200720082009201020112012201320142015110130150170190

USD/KZT

KZT devaluation

KZT devaluation

Public debt Total area: 2,7 mln. km2 (9th largest in the world); Official language: Kazakh, Russian; Currency: Tenge (₸) KZT); Capital: Astana; Largest city: Almaty; Administrative division: 14 regions + 2 cities of

republican significance; Membership in the organizations: UN, IMF, WB, OSCE,

OIC, WTO.

Basic information

Basi

c in

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Page 5: Invest in Kazakhstan  - Mining & Metallurgy

5CONFIDENTIAL

Kazakhstan’s mining and metalindustry

Mar

ket

data

and

val

ue

Market data and value

A

gro

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of K

azak

hsta

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Foreign trade of the Republic of Kazakhstan at the end of 2014 amounted to 120.8 billion . dollars . USAGrowth and investment attractiveness Mining and metallurgy are two of Kazakhstan’s

key industries, accounting for over 9% of GDP and circa 18% of total industrial production. The national mineral and resources base consists of 5,004 fields with a net worth of US$46trillion.

About 80% of all mining industry products are exported to over thirty countries worldwide, representing 20% of total exports and 30% of the country’s annual revenue.

Mining production in Kazakhstan decreased 1.40 percent in January of 2016 over the same month in the previous year. Mining Production in Kazakhstan averaged 7 percent from 1999 until 2016, reaching an all time high of 30 percent in October of 1999 and a record low of -10.90 percent in April of 1999.

Strategy of Kazakhstan in mining

Cancellation on moratorium for the use of mineral resources; Implementation of Australian practice in obtaining mineral rights; Intensive holding of regional geological studies due to transfer technologies and build

infrastructure; Harmonized action in the country classification of mineral reserves with international accounting

standards system on mineral resources «CRIRSCO»

2010 2011 2012 2013 20140

20

40

60

80

100

120

140

160

91.4

121.2132.8 133.5

120.8

31.1 36.946.4 48.8

41.3

60.3

84.3 86.4 84.7 79.5

Total turnover of metallurgy, bln.USD

Total tunover Import Export

Page 6: Invest in Kazakhstan  - Mining & Metallurgy

6CONFIDENTIAL

Acquisition and greenfield investment opportunities

Allo

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oppo

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s w

ith

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rd t

o co

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Zhambyl region – ferrous metals

Akmola region – non-ferrous metallurgy, gold deposits.

Allocation of investment opportunities with regard to country’s regions

Aktobe region – ferrous and non-ferrous metallurgy

South Kazakhstan region – ferrous metals Kostanay region – ferrous metals

East Kazakhstan region – non-ferrous metal dimensions.

Karaganda region – ferrous and non-ferrous metallurgy. Famous for the metallurgical processes of Arcellor Mittal Temirtau, and for copper deposits in Zhezkazgan city regulated by Kazakhmys

Pavlodar region – ferrous and non-ferrous metallurgy. Pavlodar region also concerned on aluminum production, except of successful tube productions.

Page 7: Invest in Kazakhstan  - Mining & Metallurgy

7CONFIDENTIAL

Agenda

1.Executive summary and basic information

2.Mining and metallurgy potential

3.Acquisition and greenfield investment opportunities

Page 8: Invest in Kazakhstan  - Mining & Metallurgy

8CONFIDENTIAL

Investment incentivesPreferential Investment IncentivesFood processing is inclusive to the list of prioritized sectors in Kazakhstan. New and existing projects in the sector with investment of more than 2 million MCI* are subject to applying for preferential investment incentives that include:

Exemption from customs duties for transporting in manufacturing equipment, its components and spare parts, as well as importing raw materials and supplies

In-kind grants of no more than 30% of the total investment in fixed assets

Tax exemptions: Corporate income tax – 0% for 10 years, Land-tax – 0% for 10 years, Property tax – 0%for 8 years.

Reimbursement up to 30% of the actual expenses for installation and construction works and equipment acquisition

Guarantee of stability of the legislation: tax legislation and in the sphere of attraction foreign labor

In order to protect investors’ rights in Kazakhstan the Institute of "Investment Ombudsman" is established that: Considers appeals of investors on issues arising during the implementation of investment

activity in the Republic of Kazakhstan, and make recommendations to resolve them, including interacting with public authorities

Assists investors in emerging issues in court and pre-trial procedures

Investment Ombudsman

Visa-free entrance up until 31st December 2017 for citizens of 19 countries

Entry clearance

* MCI stands for Monthly Calculation Index. A unit of MCI equals 2 121 Tenge or approx. 5.7 USD

Special economic zonesSpecial economic zones (SEZs) are detached areas that exhibit more attractive environment for doing business as compared to the rest of Kazakhstan’s territory. There are currently 10 SEZs in Kazakhstan that provide following incentives: Exemption from Corporate income tax, Land tax and Property tax Exemption from VAT on all goods completely consumed in the production process within SEZ Exemption from customs duties for importing products Exemption from social tax for 5 years (only within SEZ “Innovation Technology Park” and

subject to terms and conditions) Exemption from customs duties when the good produced within SEZ is exported to the

Eurasian Economic Union member countries Waived restrictions when recruiting employees from abroad Provision of free land in SEZ for a period of up to 10 years from registration time as SEZ

resident

Page 9: Invest in Kazakhstan  - Mining & Metallurgy

9CONFIDENTIAL

Key players in mining and metallurgy

Key

prod

ucer

sCo

ntac

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Key players in mining and metallurgy sectors

Key player Subsector Region

Kaz Atom Prom

Uranium producer (#1 exporter and producer in the world)Rare earth metals producer: beryllium, tantalum EnergyExploration and production

All over KazakhstanEast Kazakhstan (rare earth metals

producer)

Arcellor Mittal Temirtau Ferrous metals production Karaganda regions

KSP Steel Seamless Steel Tube Production Pavlodar region

Casting LLPSteel Plantcopper smelting plantferrous metals processing plant

Pavlodar region

ERG (Eurasian Resources Group)FerroalloysChromium (#2 producer)AluminumExploration and production

Kostanai regionKaraganda region

Pavlodar regionAktobe region

Kazakhmys Copper Karaganda region(Central Kazakhstan)

KazMinerals Copper East KazakhstanTauKen Samruk (National Company) Mining ore deposits (JV creation) All over Kazakhstan

Kazgeology (National Company) Mining ore deposits (JV creation) All over Kazakhstan

Investment hypothesis

Kazakhstan is one of world’s main exporters and producers of uranium Big potential on unexplored deposit reserves Metallurgical higher level processes market is not covered fully, market potential

Contact information

Shynar AlimovaInvestment Attraction Department in Mining and Metallurgy Sector, KAZNEX INVEST, JSCTel: +7 7172 91 90 40 (1064)Mob: +7 701 806 70 60E-mail: [email protected]

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CONFIDENTIAL

Agenda

1.Executive summary and basic information

2.Mining and metallurgy

3.Acquisition and greenfield investment opportunities

Page 11: Invest in Kazakhstan  - Mining & Metallurgy

11

CONFIDENTIAL

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Gold deposit Shokpar

Location: Korday, Zhambyl regionTerrain: Terrain with hills covered  with bushes and herbaceous vegetation (Relatively favorable area 60%)  Climate: sharply continental with cold winter and moderately hot, dry summers The right to subsoil use : Contract with the competent authorities in 2014.Infrastructure:  At 5 km from the deposit is a road leaving the highway "Almaty - Bishkek“. On the road provided access to railway stations and Chu-Otar 10 km runs high-voltage line power with a branch to deposit.

Company name

JSC «National Mining Company «TauKen Samruk»

Year of establishment

2009

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

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Name of deposit

Gold reserves

Gold resources

C2 P1

Shokpar 2 105 thousand tons of ore; 15 151,8 kg gold, 89,7 tons of silver

2 121,8 thousand tons of ore; 15 600 kg of gold, 78,6 tons of silver.

Field exploration: 1984 – 1988 search and evaluation stage, 1993 – 1995 improve of the reliability of the geological data, 2005 environmental audit contract territory  , Search routes , profile electromagnetics  magnetic prospecting , mining work appraisal drilling , complex GIS2015 appraisal drilling;Required investor’s type:

Page 12: Invest in Kazakhstan  - Mining & Metallurgy

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CONFIDENTIAL

Copper, lead and barite deposit in Tuyuk-Temirlik Location: Tuyuk-Temirli, Raiymbek and Uigur microregions, Almaty regionTerrain: Highlands ( dense forest , steep ( rocky slopes , mountain rivers and streams) Climate: moderately continentalThe right to subsoil use : Contract with the competent authorities in 2013.Geological area: 376,29 sq.km.Infrastructure:  20 km far from administrative center Kegen of Raiymbek microregion, “Almaty-Kegen-Narynkol” road, industrial water supply is carried out from the nearby river , well-established electricity.

Required investor’s type:

Company name

JSC «National Mining Company «TauKen Samruk»

Year of establishment

2009

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

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Name of deposit

Potential results

Tuyuk-Temirlik Potential: 326 mln t:-Copper - 2500 thous. tons-Lead – 2 000 tons-Silver – 6,6 tons

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

Page 13: Invest in Kazakhstan  - Mining & Metallurgy

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CONFIDENTIAL

Gold deposit in South Moiynty

Location: Karagandy regionTerrain: uplandsClimate: continental with cold winters and moderately hot, dry summersThe right to subsoil use : Contract with the competent authorities in 2015.Geological area: 234 sq.km.Infrastructure:  90 km far from Balkhash city, “Moiynty-Balkhash” road, 18 km far from railways.Field exploration: 1991 - area was assessed as  very promising in the quartz- vein type,1992 – exploration started2015 - metallometric shooting, 19 trenches have been passed, 14 of them quartz veins.At the end of the first quarter of 2016 will be obtained the results of laboratory studies of geochemical processing , point- linear , trench and core samples

Required investor’s type:

Company name

JSC «National Mining Company «TauKen Samruk»

Year of establishment

2009

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

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Name of deposit Quartz veins

C2-P1

South – Moiynty square

24 tons (3-5 gold/ton)

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

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CONFIDENTIAL

Zinc and lead deposit in Shalkiya

Location: Zhanakorgan district of the Kyzylorda province Landscape: hummocky topography with absolute elevations of up to 250–300 m Climate: sharply continental with hot, dry summer and cold winter Subsoil use rights: the Contract №935 was signed in 2002 for extraction of polymetallic ores—45 yearsContract area: 6,7 sq. km Mineral resources base approved by GKZ on

01.01.2013Infrastructure: The deposit is located 27 km of railway station in Zhanakorgan town The asphalt road Kyzylorda—Shymkent is in close location to the deposit and is connected by unpaved road .Grade plant is located in distance of 165 km in Kentau The transport routes are asphalt and rail-way roads Local infrastructure: two electric power lines 220 kV with length of 16 km, railway road that connected to railway station in Zhanakorgan (27 km), buildings and surface facilities on the deposit.

Company name

JSC «National Mining Company «TauKen Samruk»

Year of establishment

2009

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

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Classification

Ore (Mtons)

Average grade (%)P1 P2

B 8,3 1,48 4,29C1 104,5 1,30 4,28C2 14,6 1,06 4,22Off-balance resources

119,6 0,61 2,71

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

Required investor’s type:

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CONFIDENTIAL

Gold deposit in Predgornyi (piedmont) Ketmen Location: south slopes of Ketmen mountain range Uighur and Raimbek districts of Almaty province Landscape: highlands with relative elevations of up to 200–300 m Climate: typical for highlands sudden change of weather during the day Subsoil use rights: the Contract №4134 was signed with the Competent Authority in 2012 The Contract area: 17.1 sq. kmInfrastructure: The nearest village Karasoz is located at a

distance of ,60 km. Karasoz is 45 km of the deposit by graded

road 15 km by field road Karasoz is located 300 km of Almaty and connected by asphalt road

Kegen, the centre of the Raimbek district, located 110 km to the south-west of the deposit

Company name

JSC «National Mining Company «TauKen Samruk»

Year of establishment

2009

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

ect

info

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Name of deposit

Gold resources

P1 P2 Total

Predgornyiy ketmen

2,553.4 kg

4,530.5 kg

7,089.8 kg

Required investor’s type:

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

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CONFIDENTIAL

Polymetallic ore deposit in Alaigyr

Location: on the border of Karkaraly and Shetsky districts of Karagandy province Licensed area: 4.17 sq. km Landscape: the combination of low mountain relief and wide valleys Climate: sharply continental climate with cold winter and moderately hot, dry summer Subsoil use rights: the Contract for complex ore mining was signed by the Competent Authority in 2013Infrastructure: The railway road Karagandy-Karagaily is located

at a distance of 80 km Karagailinsky mining and processing complex is

80 km to the north-east of the deposit The electric power base of the region is

represented by two electric power lines—110 kV; the first line is 75 km to the north-east of the deposit; the second one is 65 km to the south-west

The main source of water supply is underground fracture waters situated 2 km to the north of the deposit

Company name

JSC «National Mining Company «TauKen Samruk»

Year of establishment

2009

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

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Deposit

Balance resources Off-balanceC1 C2 Total

Alaigyr 13.2 Mtons of ore

5.3 Mtons of ore

18.5 Mtons of ore

2.9 Mtons of ore

Pb, Ag, Cd, Sb, Hg, S.

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

Required investor’s type:

Page 17: Invest in Kazakhstan  - Mining & Metallurgy

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CONFIDENTIAL

Copper deposit in Spasskaya Location: Karagandy province Landscape: the combination of flat terrain, low mountain relief and wide valleys Climate: sharply continental climate with cold winter and moderately hot, dry summer Subsoil use rights: the Contract №4188 for exploration of copper, gold and by-products was signed with the Competent Authority in 2013Infrastructure: The ore zone is in close proximity to regional

center Karagandy Major highways pass through the center of the

ore zone and there are a number of roads that can be used to access most areas of the ore zone

Major regional centre with excellent supporting, infrastructure including grid power and rail: Khazakmys a global-top-ten copper producer, operates two major copper mines in the region

Exploration To confirm copper mineralization within the ore

zone is planned to implement complex geological exploration works (2013-2018)

Company name

JSC «National Mining Company «TauKen Samruk»

Year of establishment

2009

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

ect

info

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C2+P1+P2

Spasskaya ore zone

Forecast resources – 1, 984 Ktons (Cu)10 – 15 tons (Au)100-150 tons (Ag)

Required investor’s type:

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

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Gold deposit in Progress Location: Karkaraly microregion, Karagandy province Landscape: Uplands and lowland relief with relative excess of up to 50 mClimate: continental with cold winters and moderately hot, dry summersSubsoil use rights: the Contract for exploration was signed with the Competent AuthorityInfrastructure: At 130 km south-east is Karagaily obage fabric 60 km - w / d station Kentobe associated with

deposit maintainer At 60 km from the mine KentobeExploration: The field is allocated 5 ore bodies on Northern

section of the body and 1 - in the South area In 2015, following was carried out : Complex

geological exploration. Kolonkovoe Drilling - 3,077 lm - Geofizicheskie Well survey - 2770 lm - Geologic the core documentation of wells - 3077 lm -  Sampling of core wells - Laboratory and analytical work

In 2016, it planned to conduct evaluation  work in the field with the aim of further exploration deposit and the subsequent approval of reserves

Company name

JSC «National Mining Company «TauKen Samruk»

Year of establishment

2009

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

ect

info

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Deposit Resources

C2+C1Progress 1 538,2 kg of gold

700 kg silver

Required investor’s type:

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

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Gold deposit in Gagarin ore deposit Location: Korday, Zhambyl region Licensed area: 5 sq. km Landscape: The terrain is covered with shrubs and herbaceous vegetationClimate: continental with cold winters and moderately hot, dry summersSubsoil use rights: the Contract for exploration was signed with the Competent AuthorityInfrastructure: The field is allocated 5 ore bodies on Northern

section of the body and 1 - in the South area The distance from the field to the highway

 Almaty - Bishkek " the road paved " It is 17 km away ; on a dirt road - 8 km

Energy is represented by two base transmission line 110 kV in the village. Birlik , 35 km and 10 kV in the village. Alga 8 km

The main source of technical water supply is a river Kokpatas

Company name

JSC «National Mining Company «TauKen Samruk»

Year of establishment

2009

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

ect

info

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Deposit Resources

Gagarinskoe By 01/01/2009, 1 659,6 thous.tons of ore. 9 430, 3 gold, 85, 4 silver (C2)

Required investor’s type:

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

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CONFIDENTIAL

Non-ferrous deposit in Kostanay region Location: Kostanay region Licensed area: 1 186 sq. kmInvestment amount: 5 mln USDExploration term: 3 yearsSummary: The distance from the area center to Kustanay city is about 270 km. There is a range of ore indications and occurrences within the area. There are two promising sites for further detailed prospecting works for the copper – Yuzhno-Kungurtausskiy and Kunduzdinskiy.Inferred resources of the area are about 1 300 thous. tons of copper and about 9 tons of gold. The average elements concentration: copper — 1,13 %, zinc — 0,94 %, molybdenum — 0,15 %, gold — 0,4 g/t, silver — 52 g/t.

Company name

JSC «National Mining Company «Kazgeology»

Year of establishment

2011

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

ect

info

rmat

ion

Cont

act

Proj

ect

profi

tabi

lity

Required investor’s type:

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

Page 21: Invest in Kazakhstan  - Mining & Metallurgy

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CONFIDENTIAL

Gold deposit in Mailishat

Location: East Kazakhstan regionSite area: 151,8 sq. km. Exploration term: 6 yearsInvestment amount: 3 mln. USD.

Summary: The nearest large settlement and railway station – Ayagoz town – are 150 km to the East. During the Soviet period, gold occurrence was explored to the depth of 10 m. Its reserves were about 200 kg at the average gold concentration of 6-7 g/t. Apart from the gold, the ores contained rather rich copper mineralization (0,9–4,2%). Rich ores of the oxidation zone are worked out by the artisan mine. As of today, secondary sulphide enrichment zone at the depth of 20-40 m and primary gold and polymetallic ores are of significant interest. Earlier drilled wells established the industrial copper concentration of up to 1,44-1,66%. Moreover, gold is present at the level of from 0,2 to 1,0-7,6 g/t. The expected gold reserves increment will be 3,3 tons (1,64 g/t), copper – 1,2 mln. t (0,6%).

Company name

JSC «National Mining Company «Kazgeology»

Year of establishment

2011

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

ect

info

rmat

ion

Cont

act

Proj

ect

profi

tabi

lity

Required investor’s type:

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

Page 22: Invest in Kazakhstan  - Mining & Metallurgy

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CONFIDENTIAL

Gold deposit in Surov

Location: East Kazakhstan regionArea: 48,3 sq. km. Exploration term (exploration stage): 6 yearsInvestment amount: 3,3 mln. USD.

Summary: The railroad Ust-Kamenogorsk – Zyryanovsk is laid closely to the site area.According to preliminary data, platinum group elements are present in ionic form: i.e., they form organometallic compounds with carbonic agent.6 mineralized zones including the sites with increased PGE concentration are specified.The capacities of residual soils vary from 15-20 to 30-40 m. Sometimes, in tectonically weakened zones, the residual soil can be detected to the depth of 60-80 m. The inferred resources of platinum group elements by Р1 +Р2 category are: platinum - 73 458 kg, palladium - 74 917 kg.

Company name

JSC «National Mining Company «Kazgeology»

Year of establishment

2011

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

ect

info

rmat

ion

Cont

act

Proj

ect

profi

tabi

lity

Required investor’s type:

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

Page 23: Invest in Kazakhstan  - Mining & Metallurgy

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CONFIDENTIAL

Coal deposit in Dolinskaya

Location: Karaganda regionLocation: Field mines Dolinskaya is located in 8 kilometres to the east of Shahtinsk city, in 35 kilometres south-east of Karaganda city; area 42-42 bis (cutting throat to the mine Dolinskaya ) occupies the area of 11 square kilometer and located on Dolinskaya area of Churubainurinskii coal district of the Karaganda coal pool. Objective of the project : Building mine and organization booty anthracite coal, brand D and KZH on the deposit of mine Dolinskaya, layers D1-D6 .Reserve: 99 million tons (Balance sheet - 78,7 million tons, off-balance sheet - 20,7 million tons).Period of realization: Extraction period– 25 year, 2010 – 2035 years.Planned volume of investments : 47,0 billions tenge.Creation of workplaces : to 900- 24.06.2010 year. – signed a contract for subsoil use;- 08.12.2011year. – transfer of subsoil use right is approved in the joint venture of "Mine Dolinskya“ LLP.

Company name

JSC «National Mining Company «Kazgeology»

Year of establishment

2011

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Proj

ect

info

rmat

ion

Cont

act

Proj

ect

profi

tabi

lity

Required investor’s type:

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

Page 24: Invest in Kazakhstan  - Mining & Metallurgy

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CONFIDENTIAL

Coal deposit in Shaksha Location: Karaganda regionArea Shaksha is located on territory of Priozersk district in the Karaganda region. On accumulation of mineral set 2 goldsilver zones and 2 associations of gold, containing silver minerals are distinguished.Objective of the project : Realization reconnaissance works for raising supplies of deposit on state balance with the purpose of subsequent booty.Period of realization: Exploring period – 5 year, 2016 - 2021 years.Planned volume of investments : 625 millions tenge.Creation of workplaces :15- 30.12.2013 year. protocol of direct negotiations is got;- 07.02.2014 year. obtained geological allotment;-05.03.2014year. potential partner - “Technokompleks ontustik“ LLP gave up realization of project;- 03.06.2015 year. a project is ratified by Committee of geology and suboil use;- 02.07.2015year. A working group of The Ministry of Investment and Development of the Republic of Kazakhstan is consider a draft contract;-27.07.2015year. a draft contract is sent to examination in the authorized public organs.

Company name

National Company «SEC «Saryarka»

Year of establishment

2011

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

Proj

ect

info

rmat

ion

Cont

act

Proj

ect

profi

tabi

lity

☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Required investor’s type:

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

Page 25: Invest in Kazakhstan  - Mining & Metallurgy

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CONFIDENTIAL

Manganese ore at the deposit Sulu-Medina Location: Karaganda regionLocation: Sulu-Medina’s accumulation of mineral is located in the Shetsk district of the Karaganda region, in 70 kilometres south-west of Karaganda city, in 8 kilometres to the west of settlement Sulu-Medina, in 20 kilometres on a south-west from settlement Yujnyi.Objective of the project : Realization reconnaissance works for raising supplies of deposit on state balance with the purpose of subsequent booty.Period of realization : Exploring period – 3 year, 2016 - 2019 years.Planned volume of investments : 89,5 millions tenge.- 25.07.2014year. protocol of direct negotiations is got;- 14.08.2015year. The project of exploring works is concerted by the department of ecology on the Karaganda region;- 01.10.2015year. – meeting of the Central Commission for Exploration and Development of the Ministry of Investment and Development of the Republic of Kazakhstan took place according to statement of project the exploring works on the deposit of Sulu-Medina;- 13.10.2015year. - the project of exploring works is sent to the statement in Committee of geology and subsoil use of the Ministry of Investment and Development of the Republic of Kazakhstan.

Company name

National Company «SEC «Saryarka»

Year of establishment

2011

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

Proj

ect

info

rmat

ion

Cont

act

Proj

ect

profi

tabi

lity

Required investor’s type: ☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”

Page 26: Invest in Kazakhstan  - Mining & Metallurgy

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CONFIDENTIAL

Manganese ore deposit Oypat Location: Karaganda regionLocation: Oypat accumulation of mineral (area) is located in the Nurinsk district, in 300 kilometres to the west Karaganda city, 70 kilometres more south Tengiz lake, 45 kilometres south-west settlement Barashino. Prognosis reserve : to the depth a 5 m estimated by authors in 540 thousand tons. Expected maintenance of manganese of 22-25%;Period of realization : Exploring period – 3 year, 2016 - 2019 years.Planned volume of investments : 101,5 millions tenge.- 25.07.2014year. protocol of direct negotiations is got.- 14.08.2015year. The project of exploring works is concerted by the department of ecology on the Karaganda region;- 01.10.2015year. meeting of the Central Commission for Exploration and Development of the Ministry of Investment and Development of the Republic of Kazakhstan took place according to statement of project the exploring works on the deposit of Oypat;- 13.10.2015year. - the project of exploring works is sent to the statement in Committee of geology and subsoil use of the Ministry of Investment and Development of the Republic of Kazakhstan

Company name

National Company «SEC «Saryarka»

Year of establishment

2011

Presence on the market:

Mining of Kazakhstan

Current operation:

JV creation, regulating deposits, realization of mining projects

Project initiator

Proj

ect

info

rmat

ion

Cont

act

Proj

ect

profi

tabi

lity

Required investor’s type: ☑ Equity ☑ Debt ☐ Technology transfer ☐ Other

Shynar AlimovaKAZNEX INVEST, JSC+7 7172 91 90 40 (int. 1064)E-mail: [email protected]

Contact information

Project initiator’s contacts: Tau-Ken SamrukAstana, 010000, Republic of KazakshtanEsil microregion, Kunayev street, 8,block “B”