Location and Description of the Assets

The Chilisai Deposit is situated in the north-western Kazakhstan, immediately west of the town of Kandagash (formerly known as Oktyabrsk), in the Mugalzharski and Temirski regions of the Aktyubinsk Oblast. Kandagash, population of 41,000+, is a main freight hub on the North-South road, the Moscow-Tashkent rail link, the Orsk-Atyrau rail link and the Bukhara/Ural gas pipeline.

Located in a predominantly agricultural region with significant oil and gas production facilities, and mining infrastructure, Kandagash is an important rail hub and a center for several major heavy industries. The region benefits from developed infrastructure that was built during the Soviet era.

Kandagash is situated approximately 90 km south of the city of Aktobe, the central city of the Oblast. Aktobe is the main administrative centre for the Aktyubinsk Oblast with an international airport servicing the surrounding region with its oil and gas and mining enterprises.

The Licence Area is 836 sq km, which encompasses an extensive shallow sedimentary layer under a thin layer of overburden. Early mining has shown that the deposit can be developed through a simple open pit mining process. The area covers the central part of the Chilisai Deposit.

Temir Service derives its rights to extract minerals from the Licence Area under the Subsoil Use Contract. The period of the contract is initially 25 years but this can be extended by agreement between the parties. Temir Service, as the current subsoil user, has a priority right to negotiate the extension of the Subsoil Use Contract and, if these negotiations are successful, there is no requirement for a further tender to be carried out.

Coordinates of Kandagash: 49° 28' 28.00", +57° 25' 24.00" or 49.474444,57.423333 (for google maps service)