1 Content

 Why invest in Myanmar?  Current Mining Activities  Mineral Potentials  Investment Procedures  Joint Venture opportunities  Update of Myanmar Mining Law  Tax Regime of Mining Sector.

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. A country that’s blessed with mineral wealth. . Myanmar have held emporiums and special sales three times a year for Jade, Gems and Pearls since 1964 with the pricing based on Foreign Currencies.( sell through tender or competitive bidding ). . Extensive mineral occurrences and well established centuries- old mining industry. ( such as Namtu Bawdwin lead zinc Mines started since the 15th century, Mawchi tin-tungsten Mines started before 2nd world war ) . The world largest Jadeite-jade deposits are found. . Mogok, known as the Land of Rubies since 13rd Century. . But, mineral potential remains unrealized and resources are very much underutilized.

4 5 Foreign Direct Investments ( FDI ) Enterprise/ Type of Current Sr. Company Location Department Minerals Status Gold and Nobel Gold Bhamauk, 1. D.G.S.E Associated Exploration Limited Sagaing Region minerals Zhong Chaun Proceeding Magwe Region, 2. D.G.S.E Int’l Mining Coal to Ngape Area Holding MIC De Rui Feng Tanintharyi 3. D.G.S.E Investment Co., Tin- Tungsten Region , Dawei Exploration Ltd River Area Cornerstone Shan State, 4. ME(1) Resources Zinc Ore Production MineponTownship (Myanmar)Ltd Crude North Mining Chin State, Ferronickle, Preparing 5. ME(1) Investment TeetainTownship, Ferronickle for PSC Co.,Ltd Hmewtaung Track Alloy 6 Foreign Direct Investments ( FDI ) Enterprise/ Type of Current Sr. Company Location Department Minerals Status

Kantbalu - Wuntho (Eastern Area) Lead, Zinc , Preparing Asia Pacific Sagaing Region 6. ME(1) Copper, Setgadone- Mabein for Mining Ltd Gold Mahochaung -Namtu Exploration (Northern Area) Shan State Myanmar 72% Tin Taninthayi Region, 7. ME(2) Ponepipet Dawe Township, Production Concentrate Co.,Ltd Heinda Mine Thabeikkyin Township, Myanmar CNMC Mandalay Region 8. ME(3) Ferronickel Developing Nickel Co.,Ltd Hteechaik Township, Sagaing Region Simco Song Da Nayputaung, Taungkoke 9. ME(3) Joint Stock Marble Township, Developing Company Rakhine State 7 Ministry of Mine already issued 1763 mining permits for citizens and can classified by following: Exploration Permit - 464 Nos Small Scale Mining Permit - 1119 Nos Large Scale Mining Permit - 134 Nos Subsistence Mining Permit - 46 Nos

* mainly for Tin – Tungsten, Copper, Antimony, Iron, Coal , Industrial Minerals Marbles, Granite , Magnesia dioxide, Goal and lime stone. 03/08/13 9 General Category Minerals Very rich Jade, Ruby, Sapphire, Limestone Rich Copper, Lead, Zinc, Tin, Tungsten, Gold, Coal, Barite

Fairly rich Antimony, Silver, Nickel, Gypsum, Iron Chromite, Manganese, PGM Minerals, Radioactive Minerals, Poor Diamond, fertilizer Minerals, Fluorite, Bauxite, Mercury, Kaolin, Feldspar, Quartz, Bentonite, Mica 03/08/13 10 GEOLOGICAL MAP OF MYANMAR (2008)

Area - 261227 sq.miles Completed - 261227 sq.miles in year 2008 (100%)

03/08/13 11 Copper Region

03/08/13 uefUowf 12 Lead,Zinc, Silver Region

03/08/13 uefUowf 13 Tin & Tungsten Region

03/08/13 uefUowf 14 Gold Region

03/08/13 uefUowf 15 Antimony Region

03/08/13 uefUowf 16 Nickel & Cromite Region

03/08/13 uefUowf 17 Coal Region

03/08/13 uefUowf 18 Gems & Jade Region

03/08/13 uefUowf 19 MINERAL POTENTIAL OF MYANMAR Tonnage ( Million Tons) Mineral Sr. Occurrences Deposits Total Remarks Commodity P-2 P-3 P-4 Total 1 Columbite 3 2 5 0.00003 - 0.0036 0.0036 Tantalite

2 Coal 203 292 495 229.58 140.73 121.53 491.84

3 Gemstones 56 12 68 1.07 0.11 0.07 1.25

4 Copper 88 27 115 1308.55 688.52 0.19 1997.3

5 Feldspar 3 21 24 0.005 0.86 0.0002 0.865

6 Antimony 74 58 132 0.18 0.56 0.26 1.0

7 Chromite 23 20 43 0.02 0.04 0.02 0.08

8 Lead 163 128 291 13.28 12.67 18.14 44.09

9 Graphite 21 14 35 0.039 0.004 2.58 2.62 Mineral Occurren Depos Tot Tonnage ( Mi l l ionTons) Remark Sr. Commodity ces its al P-2 P-3 P-4 Total s 10 Tin – 125 358 483 0.36 38.74 0.29 39.39 Ore Tungsten 0.08 0.05 0.01 0.14 Concen trate 11 Gypsum 13 24 37 23.18 12.81 0.007 35.99

13 Zircon sand - 11 11 - 31.46 0.38 31.48

13 Limestone 30 422 452 3095.1 5982.4 49740.5 58818

14 Dolomite 17 24 41 22.16 7.41 7.73 37

15 Nickel 4 10 14 70 80.66 12.2 162.8 6 16 Fluorite 13 6 19 - 0.002 0.004 0.006

17 Phosphate 12 5 17 0.78 10.02 0.08 10.88 rock 18 Baryte 19 53 72 0.11 1.36 0.23 1.70 Mineral Occurre Depos Tot Tonnage (Mi l l ionTons) Remark Sr. Commodity nces its al P-2 P-3 P-4 Total s 19 Bauxite 8 18 26 12.75 261.99 0.16 274.9 20 Porzolan - 6 6 - 651 - 651 21 Molybdenu 16 3 19 - 0.019 0.006 0.025 m 22 Manganese 21 31 52 2.9 2.66 5.34 10.9 23 Kaolin 3 64 67 3.401 0.457 33.11 36.97 24 Bentonite 2 20 22 - 22.06 2.04 24.1 25 Glass Sand 4 35 39 83.16 19.86 28.12 131.1 4 26 Gold 246 95 341 15.29 47.66 3.16 66.11 Primary 4.92 341.94 893.28 1240. Alluvial 2 (Cu..Yd.) 27 Platinum 14 5 19 4.2 1.37 26.95 32.52 28 Mica 26 4 30 - 0.0036 - 0.003 6 29 Quartz 21 26 47 4 36.04 43.01 83.05 30 Iron 194 199 393 332.92 61.53 101.44 495.4 2 31 Zinc 18 11 29 5.21 14.41 0.33 19.95 32 Heavy 10 4 14 - 0.007 0.019 0.026 Mineral 33 Decorative 62 31 93 7354 44966 504 52924 Stone 23  In accord with the policy of the Ministry of Mines, our ministry is not making own investment, but to encourage foreign and local investors to invest in the mining sector.

 The investor can invest as a foreign direct investment (FDI) or joint investment with local company.

 For investors who would like to do exploration to confirm the reserve of a deposit or to start with the grassroots exploration operations in a virgin land, they may apply

accordingly clearly stating their intentions. 24  Funds required to conduct the prospecting, exploration and feasibility study are borne by the investor 100% at his own risk.

 Myanmar practice the production sharing contract (P.S.C) system.

 In the production sharing types of agreement the investor shall have to contribute 100% of investment in which case the government would expect a share of the production and a production sharing will be signed with sharing ratio to be agreed upon between the parties.

25 26 China Non Ferrous Metal Description Viet Nam Simco Sounda Corporation (CNMC) Area Nay Pu Taung, Taunggok Township , Taguang Taung, Thabeikkyin Rakhine State Township ,Mandalay Region

Investment US$ 18.5 million US$ - 787.899 Million Signing 16.3.2012 28.7.2008 Development 20 Months 36 Months Period Proposed Marble Block - 30,000 m3 Ferro Nickel – 51416 Tons Production Marble Slab - 100,000 m3 Ni = 25.49 % Per Year Royalty 3 % 4 % Production 20 : 80 (Below – US$ 649) 12 : 88 (US$ 20001- 25000) Shearing 25 : 75 (Between – US$ 650 - 749) 15.75 : 84.25 (US$ 25001- 29000) Contract Ratio 30 : 70 ((Above – US$ 750) 20 : 80 (US$ 29001- 35000) (Government : 23.75 : 76.25 (US$ 35001- 42000) Company ) 28 : 72 (US$ 42001- 50000) 03/08/13 32 : 68 (Above – US$ 50000)27 Procedures for the Foreign Investment in Mining Sector

1. Foreign companies have to send letter of courtesy call officially.

2. The Union Minister or responsible officials will discuss mainly focus on mineral commodity and targeted area.

3. Site visit will be arranged if requested by the investors or company. Recommendation letter from the respective Embassy, letter of undertaking, tentative site visit schedule and passport copy are required to submit to the Ministry of Mines through DGSE two week ahead.

4. After the site visit, if the investor decided to invest,a proposal should submit to the Ministry of Mines and copy to relevant departments.

5. Minerals prospecting, exploration and feasibility study are concerned to DGSE and other Mining Enterprises are responsible for mining operation and production stages. 28 6. Documents to include with the proposal

29 7. After getting the approval of the Ministry of Mines and the completion of all the require recommendation documents, the proposal and the Agreement Draft will send to the Myanmar Investment Commission ( MIC ) for Investment permit.

30 1. Foreign investors can buy Jade and Gems in Emporium and it can be exported. 2. Foreign investors can invest in Jewellery Making Industry. But, gemstone mining are not allowed to invest. 3. All new mining proposal should contain Mine Closure Plan prepared in accordance with Myanmar Mines Law. 4. For mining projects proposal, it’s necessary to address the potential environmental impact and social impact assessments that may arise due to proposed mining activities. 5. Private entrepreneurs are permitted to sell their mineral products freely in the local market and may also export them after mineral processing. 6. Any kind of raw ores are not allowed to export.

7. Ministry is welcoming to set up mineral processing and refining plants in Myanmar in partnership with local and foreign investors.

8. We are now inviting to produce coal and build coal power plants.

( for domestic use only , not allowed to export) 9. Before investing in Myanmar, foreign investors need to understand a number of regulatory and legal topic as well as environmental conservations. 10. Some of these are corporate registration, legislation, work permits, industrial licensing, taxation, investment promotion and the availability of infrasture and facilities.

32 Joint Investment Opportunities

The Companies who invited for Joint Investment of Foreign Companies -

33 Copper(3 Companies )

Company Address Contact Phone, Product Production Remark Name Person Fax Amount E mail Dagon No.809/D, U Win 09-5035947 Copper 1530 MT/year Ayeyarwaddy Mining Co., Condomini Naing Tun 067- 417118 Ore Division.Lay Myat Nhar Ltd. um, Kan St, (MD) Townshop. Ward(10), Hlaing T/S, Yangon Douhtawad No. C-31/1, U Mg Mg 09-2110180 Copper 2055 MT/year Sagine y Co., Ltd. Copper (MD) 09-44402965 Ore Division, Mine, 09-2012370 Kalling Salingyi T/S, Township, Sagaing Shan Kalone region. Region Wa Minn 116, U Moe Lwin 01-660772 Copper Developme-nt Sagine Co., Ltd. Thamine @ U Lwin 09-8606999 Period Division, Station Rd, Moe Qtr(2), Mayangone T/S, Yangon Tin & Tungsten ( 8 Companies)

Compan Address Contact Phone, Produ Productio Remark y Person Fax ct n Name E mail Amount Ngwekabar No.80, 50th U Sai 01-201689 Tin & 100 Investment Myanmar Street, G/F, Mook 01-700942 Tungst- MT/year amount is Co., Ltd. Pazundaung Vantage.yan en 500 Million Township, goonmy@g Kyats Yangon mail.com A & A No.72, 2nd U Min Din 09-73024321 Tin & 100 Investment NRD Co., Floor, Left (MD) 01-209412 Tungst- MT/year amount is Ltd. corner,Kyai 01-522077 en 100 Million kkasan 01-209412 Kyats Road, Tamwe 01-522077 Township, mindinngo@ Yangon gmail.com Phyo 55. Linlon U Kyi Taw 01-430590 Tin & 300 Investment Kaday Min Street,San Phyo Htet 09- Tungst- MT/year amount is Co., Ltd. -chaung (MD) 420102524 en 300 Million Township, kyitawts@g Kyats Yangon mail.com Compan Address Contact Phone, Fax Produc Productio Remark y Person E mail t n Name Amount Myanmar No.75, Daw Aye 01-216051 Tin & 1000 Investment Tin & Kingdon Aye 01-206042 Tungste MT/year amount is Tungsten Road, (MD) Tintlwinchan n 100 Million Co., Ltd. Yangon @gmail.com Kyats

Aung No.69, U Aung 09-8761613 Tin & 60 MT/year Investment Dana Kanphyar Myo Latt Aungdanathu Tungste amount is Thukha Main (MD) kha@gmail. n 500 Million Co., Ltd. Road, com Kyats Myeik

Golden Build(1), U Tin Soe 09-5001401 Tin & 5000 Investment Zenith Room(6), (MD) 01-507208 Tungste MT/year amount is Mining Myanmar n 1000 and Info- Tech, Million Hlaing Kyats Engineer Compus, Co., Ltd. Yangon Compan Address Contact Phone, Produ Productio Remark y Person Fax ct n Name E mail Amount Shwe Pin No.B/189, 52 U Kyaw 01-524190 Tin & 150 Investment Le Co., Road, Min Tun Tungst- MT/year amount is Ltd. Thukha (MD) en 500 Million Street, Kyats Hlaing Township, Yangon Silver No.531, U Chan 01-545990 Tin & 100 Investment LightCo., Room (305), Tha 01-541155 Tungst- MT/year amount is Ltd. Yetakhon 01-559539 en 20,000 Tower, uchanthar@ Lakh Kyats Kyeemyind- aing Road, gmail. com Yangon Lead & Zinc ( 20 Companies)

Compan Address Contact Phone, Produ Productio Remark y Person Fax ct n Name E mail Amount Ruby Shweli U Than 082-24066 Zinc 10200 Garden Yadanar Oil Win Metal MT/year Mining Mill, Ward (MD) Ore Co., Ltd. (12), Layyin kwin Street, Lashio Township, Shan North Myanmar No.12, U Lin Zaw 09-5190994 Zinc 230 National Room(3-A), Latt Metal MT/year Treasure Thirimigalar (MD) Ore Mining Street, Myanigone Co., Ltd. North Ward, Sanchaung Township, Yangon Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Mayflower No.601, U Moses 09-5031126 Zinc 33470 Mining Yadana (Director) Metal MT/year Enterprise Condomiu Ore Ltd. m, 9 mile, Pyay Road, Mayangone Township, Yangon Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Aye No.161, 59th Daw Aye 09-8351460 Lead 520 Thitsar Street, Aye Soe 081-27860 Metal MT/year Industry Zamyinzwe (MD) Ore Ltd. Qtr, Pyi Gyi Tagon Township, Mandalay Yadana No.459/469 U Tun 01-293384 Lead 2235 Tun , D-8, Lower Sein Metal MT/year Mining Pazundaun (MD) Ore Co., Ltd. g Road, Pazundaun g Township, Yangon Ingyin Bld. U Kyaw 01-250113 Lead 7610 Shwe Sin (171/181), Naing 09-73125188 Metal MT/year Co., Ltd. Room(2/3), (MD) Ore 28th Street, Upper, Pabedan Township, Yangon Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Shwe Li No.60, U Kyaw 082-50188 Lead 6105 Great Homon Sein Metal MT/year Mining Block, (MD) Ore Co., Ltd. Muse, Shan State

San Linn No.837, Ro- U Myint 09-49271161 Lead 1505 Co., Ltd. om(15/27), Oo 01-293384 Metal MT/year Shwebonth (MD) Ore ar Street, Pabedan Township, Yangon Thein No.377/379, U Myo 09-5107832 Lead 5964 Than Co., Bosunpat Myint 01-254925 Metal MT/year Ltd. Street, (MD) Ore Pabedan Township, Yangon Company Address Contact Phone, Fax Product Production Remark Name Person E mail Amount Myanma No.(SA/14), U Hyu 02-66242 Lead 890 Aung 5th Street, Houh Metal MT/year Myay Chanmyath Kyon Ore Manufactu ayar Qtr, (MD) Pyigyitagon ring Co., Township, Ltd. Mandalay Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Top Ten National U Aye Tun 01-243130- Lead 2380.9 Star Swimming Shwe 8056 Concen MT/year Productio Pool (MD) kolympic@ trate n Co., Ltd. Compound, myanmar.co U Wisara Road, m.mm Dagon Township, Mandalay Linn Pyae No.35(B), U Kyaw 09-5058096 Lead 130 Mining Ou Yin Ko Ko Concen MT/year Co., Ltd. Street, New (MD) trate University Avenue Road, Bahan Township, Yangon Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Su Myat No.117, 1st U Aung 01-373385 Lead- 1295 Tun Floor, 92nd Moe Aye apd@myan Zinc MT/year Mining Street, Kan (MD) mar.com.m Ore Co., Ltd. Shae Qtr, m Mingalar Taung Nyunt Township, Yangon Star Ray No.83, U Haung 09-91044253 Lead- 340 Mining Thitsar Khang Zinc MT/year rd Co., Ltd. Lane, 63 (MD) Ore Street, Between(32n d&33rd)Street, Pyi

Gyi Myatshin Ward,

Chan Aye Thar Zan

Township, Mandalay Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Prince No.No.7, U Aung 09- Lead- 560 Manufactu Yehtwet Oo (MD) 49358962 Zinc MT/year ring Co., Street, Ore Ltd. Forestry Block, Taunggyi Pan Khum No.417, U T Jhun 09-47309813 Lead- 1900 Mining Ward(8), Myat Zinc MT/year Co., Ltd. Theinni (MD) Ore Street, Lashio Township, Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Myay No.1, Qtr(1), U Kyaw 09-5233226 Lead 1125 Nagar Science Mying Carbon MT/year Mining Road, (MD) ate & Co., Ltd. Lashio Lead 615 Township, Shan State Zinc MT/year Ore Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Shwe No.(Ma- U Shin 09-42003755 Lead, 18840 Sapar 10/41), 64th Phu Zinc & MT/year Mining road, Bet. (MD) Copper Co., Ltd. Cherry St& Padauk St, Myothit, Mandalay Khine Si No.11, Zabu Daw Tin 01-564032 Lead 1115 Hein Mandai St, Tin Win 01-240153 Zinc MT/year Mining Bo Kan (MD) Associa- Co., Ltd. Nyunt Qtr, te Thin Gan Gynn T/S, Mineral Yangon s Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Pyi Tan No.40, U Naing 09-5062266 Lead & 480 Yadanar Room(1), Aung 01-618399 Copper MT/year Mining Yankin (MD) Co., Ltd. Lane (2),Qtr(1), Yankin T/S, Yangon Gold (only 1 Company)

Company Address Contact Phone, Fax Product Productio Remark Name Person E mail n Amount Minwun No.90, U Saw Ko 09-6818476 Gold 1.50 Investmen Taung Thihathu (MD) Viss/year t amount Mining Street, is 50 Co., Ltd. Ywahtaung Million Qtr, Sagaing Kyats Coal ( 6 Companies) Company Addres Contact Phone, Produ Producti Remark Name s Person Fax ct on E mail Amount Young No.647(A) Daw Nan 01-526626 Coal 25,000 Investme Investment Pyi Road, Saw Htwe 09-5146768 MT/year nt Group Kamayut 01-526626 amount is Industry Township, 150 Yangon Co., Ltd. Million Kyats Htun Kyawe No.4, U Aung 056-22269 Coal 12,000 Investme Paw Hantha Kyaing 09-5007941 MT/year nt Industrial Wady amount is Co., Ltd. Road, Myo 19 Million Thit Ward, Kyats Than Lyin, Yangon 24 Hour No.11,Mag- U Aung 01-560717 Coal 7,500 Investme Mining and gin Street, Aung Zaw 09-5119889 MT/year nt Industry 14 Ward, 01-571967 amount is Co., Ltd. KyaukKine 15 Million Yankin Township, Kyats Yangon Company Address Contact Phone, Produ Producti Remark Name Person Fax ct on E mail Amount Shwe Ohn No.8, U Kyaw 082-85013 Coal 7,200 Investme Pwint Co., Shwe Pyi Aye Ko 09-47129307 MT/year nt Ltd. Soe Street, amount is Regi on 9 Million (6), Nau ng Hkio, Kyats Shan North Tun Thwin No.23/B-2, U Thein 01-560380 Coal 20,000 Investme Mining Co., Thukha Tun 09-5006225 MT/year nt Ltd. Waddy 01-560380 amount is Street, 39 Million Yankin Township, Kyats Yangon Shwe No.584, 5th U Kyaw 09-8656639 Coal 150,000 Investme Taung Floor, Naing Soe 067-421610 MT/year nt Develop- Corn -er of [email protected] amount is th ment Co., 7 Str- m.mm 500 eet&Stran Ltd. d Road, Million Lanmadaw Kyats & Township, 0.5 Yangon Million US$ Iron (6 Companies) Company Address Contact Phone, Produc Producti Remark Name Person Fax t on E mail Amount Steel King No.296(B) U Kyaw 09-8591883 Iron Ore 2,000 For Steel Industry Ayer Wun Kyaw Oo +951547275 MT/day Mill Co., Ltd. Road, Thaketa Township, Yangon San Lin Bld.387, U Myint 01-254775 Iron Ore 10000 Internat- Ro- Oo 01-254067 MT/year ional om(15/27), (MD) Export&Im Shwe Bon Tha St, port Co., PabedonT/ Ltd. S, Yangon Jade King No.53/55, Daw Ja Bu 01-549740 Iron Ore 6000 Mining Co., New Bu.blfygu@ MT/year Ltd. University mpt.mail.net Avenue Rd, .mm Bahan T/S, Yangon Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount Electrum No.403, U Win 09-49256256 Iron 20000 Mining Mindama Myint Law 09-43114653 Ore MT/year Co., Ltd. Condo, U Tin Lin 01-656650 Mayangone 01-655287 T/S,Yangon mms@htoog roup.com Young No.647-A, U Win 09-8637019 Iron Investmen Pyay Rd, Lwin 01-526626 Ore t Group Kamayut Myint 01-512128 Industry T/S, Yangon 067-422311 Co., Ltd. 067-422310 Aung Kyo Bld.(Da U Win 09-8637019 Iron 860 Kyar Co., 2/18) 60th Lwin 01-526626 Ore MT/year th Ltd. Rd, Bet 40 Myint 01-512128 & 41th, 067-422311 Maharmyai ng Qtr, 067-422310 Mandalay Lime stone (2 Companies)

Compan Address Contact Phone, Produc Productio Remark y Person Fax t n Name E mail Amount Steel King No.296(B) U Kyaw 09-8591883 Lime 6,000 For Industry Ayer Wun Kyaw Oo +951547275 Stone MT/day Cement Co., Ltd. Road, Plant Thaketa Township, Yangon Young No.647(A) U Win 09-8637019 Lime 2,000 For Investmen Pyi Road, Lwin 01-526626 Stone MT/day Cement t Group Kamayut Myint 01-512128 Plant Industry Township, 067-422311 Yangon Co., Ltd. 067-422310 Antimony (12 Companies) Company Address Contact Phone, Product Production Rem Name Person Fax Amount ark E mail KaYah Shan South, U Htun 083-22202 Antim-ony 240 MT/year Golden PunKunn Kyaw Mineral Gate T/S (MD) Mining Co., Ltd. Eastern Shan East, Daw Yin 09-5077151 Antim-ony 150 MT/year Highland Mat-mun Swe 09-73002394 Mineral Mineral T/S (MD) Exploration and Mining Co., Ltd.

Certain No.13-B, U Mg Mg 95949275900 Antim-ony 130 MT/year Mineral Aung Pan- Hnin 958166231 Mineral Exploration Pindaya Rd, Yi Win Fighterjeck.1 Mining Co., Awyaw Qtr, (MD) 981.Fgmail. Pindaya Ltd. T/S, Shan com 03/08/13 South 55 Compan Address Contact Phone, Produ Producti Remark y Person Fax ct on Name E mail Amount KaYah No.428, U U Htun 083-22202 Antim- 240 Golden Kun Li Rd, Kyaw ony MT/year Gate Naung (MD) Mineral Mining Yar(A) Qtr, Loikaw T/S Co., Ltd. Hawk Eye Kayah U Myint 09-5600661 Antim- 615 Mining State, Fruso Mg Mg 083-22058 ony MT/year Co., Ltd. T/S Director Hawk Mineral Eye.Myanm ar.gmail.co m Thu Ya Kayah U Thu Ya 949777674 Antim- 420 Kan Chun State, Tun info@Myan ony MT/year Co., Ltd. Loikaw T/S (MD) mar-sb.com Mineral www.myan mar-sb.com

03/08/13 56 Company Address Contact Phone, Product Product Remark Name Person Fax ion E mail Amount Thu Za Na Kayin U Win 09- Antim- 750 Pwint State, Hlaing 43083969 ony MT/year Mining Co., Kyain- (MD) Mineral Ltd. Seikgyi T/S Thein Than Kayin U Myo 09-49233188 Antim- 1445 Mining State, Myint ony MT/year Co., Ltd. Hlaingbwe (MD) Mineral T/S

Htay Kayin U Hla 09-43112222 Antim- Develop- Family State, Htay 01-655711 ony ment General Kyain- (MD) Mineral Period Manufac- Seikgyi T/S turing Co., Ltd.

03/08/13 57 Company Address Contact Phone, Product Production Re Name Person Fax Amount mark E mail Thuwanna Kayin Daw Than 09-5403439 Antim- 300 MT/year Myay Si State, Nyo 09-49233433 ony Mining Co., Kyain- (MD) Mineral Ltd. Seikgyi T/S

Zenith No.48, U Kin 01-540859 Antim- 772 MT/year Mining Co., Thamine Maw 09-73235472 ony Ltd. Baran Rd, Director Mineral Yangon

Tha Byu Room(201), Dr. Tun 01-551536 Antim- 2000 MT/year Mining Co., Bld.(C), Min Latt 01-555318 ony Ltd. Tatkatho (MD) Yeikmon Housing, New University Avenue, Yangon

03/08/13 58 59  All naturally occurring mineral deposits found either on or under the soil of any land in the continental shelf are deemed to be owned by the State.  Recently, MIC (Myanmar Investment Commission) promulgated the new Myanmar Investment Law.  The Union of Myanmar Mines Law was promulgated in September 1994 and Rules relating to the law followed in December 1996.  Already enacted the Environmental Laws. ( promulgated in March 2012 ). Related rules will come out soon.  The draft of amending the Myanmar Mines Law ( with the advice of experts and publics ) will replaced soon . (i) To encourage for investments more easily , trustfully and comprehensive (ii) To facilitate the environmental conservation and Green Mining. (iii) More detail for Mine safety. 60

(iii)

Description Existing Mining permit , Future Mining Permit, Time and Area Time and Area

Mineral -A period not exceeding 1 year. Prospecting -The land area not exceed 4200 Km2. Land Area may Change. Permit -Extension period not exceeding 12 months.

Mineral -A period not exceeding 3 years. -The land area not exceed 3150 Km2. Exploration -Extension permit one year at a time. Land Area may Change. Permit and -Extension may normally be two Feasibility Study occasion only

61 -A period not exceeding 25 years shall be permitted. -However, if the estimated life of the -A period not exceeding 25 years Large Sclae ore deposit proposed to be mined is shall be permitted. less than 25 years only such period -The land area is depend on Mineral shall be determined. investment amount and ore deposit. Production -The land area is depend on -Extension period not exceeding Permit investment amount and ore deposit. 5 years at a time. ( may get 3 times to -Extension period not exceeding 5 extend ) years at a time.( may get 3 times to extend )

Medium Scale -Not more than 10 Year Mineral -Designated land area which shall not Production exceed 1Km2 Not Include in Previous Law Permit -Extension period not exceeding one year on four occasions.

Small Sclae -A period not more than 5 years. -A period not more than 5 years. -Designated land area which shall -Designated land area which shall not Mineral not exceed 1Km2 exceed 50 acres Production -Extension period not exceeding one -Extension period not exceeding one Permit year on four occasions. year on four occasions. 62 Subsistence Mineral -A period not exceeding 1 year. Remain Un change Production -The land area not exceed 1 Km2. Permit

Mineral Prospecting, Mineral Intgrated Exploration and Large Scale Mineral Remain Un change Permit Production or Small Scale Mineral Production Permit.

*In detail after getting the approval Mineral ( including Transporting, Storage Trading Not Include in Previous Law and Trading for produced Minerals ) Permit

Mineral Processing Not Include in Previous Law *In detail after getting the approval Permit Description In 1996 Mining Rule Future Mining Rule

Small Scale 20 Acres and below 5 Acres and below

Medium Scale Not Mention Not more 50 Acres

Large Scale -No area limit 50Acres and above -Depend upon the size of Ore deposits and production Time

64 Tax Regime in the Mineral Sector in Myanmar

03/08/13 65 Dead Rent (Kyats) for 1 Km2

Prospecting Exploration Period Type period Sr. of Minerals 1st Yr 2nd Yr 1st Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

Industrial 1 Mineral (or) 50,000 100,000 100,000 200,000 400,000 600,000 800,000 Stone Metallic 2 100,000 200,000 200,000 400,000 800,000 1,200,000 1,600,000 Mineral Precious 3 Metallic 200,000 400,000 400,000 800,000 1,60,000 2,400,000 3,200,000 RemarkMineral ;1. Extension Period subject to the approval of the Ministry or the Department 2. Exchange rate subject to market.

03/08/13 66 Dead Rent (Kyats) for 1 Km2

Feasibility Study Production Developing Period Type period Period Sr. of Minerals 1st Yr 2nd Yr 1st Yr 2nd Yr 3rd Yr 1-20 Yrs

Industrial 1 Mineral (or) 800,000 1,200,000 1,400,000 1,600,000 2,000,000 2,000,000 Stone 2 Metallic Mineral 1,600,000 1,600,000 1,800,000 2,100,000 2,400,000 3,000,000 Precious Metallic 3 3,200,000 3,200,000 3,600,000 4,200,000 4,800,000 6,000,000 Mineral

Remark ;1. Extension Period subject to the approval of the Ministry or the Department 2. Exchange rate subject to market.

03/08/13 67 Royalty According to Myanmar Mine Law for metallic minerals is 3 to 4 % for precious metallic minerals 4 to 5 %. Industrial Minerals 1 to 3%  Royalty is levied on value of mineral sold. It is a sale based royalty and not a production based royalty.  Royalty may be exempted or relief may be given by the Ministry of Mines.

03/08/13 68 MINISTRY’S EXPECTATION

Promote optimal utilization of Myanmar valuable mineral

resources for its production of refined products, through the

contribution of foreign investment with advanced technologies.

69 Activities to Promote Mining Sector

70 Mr. Kyaw Thet Director Department of Mines Ministry of Mines Office Building No. ( 19 ), Nay Pyi Taw, Myanmar. Tel : 95-67-409376 Fax : 95-67-409376 E-mail :[email protected] Website : www.mining.com.mm 71 72