STRATCAP Introduces: Special Investment Project , 2011

!"#"$%&'()*(+,)#)-'(.#/(01$%."#.234( 54643)7-4#%()*(84)&9". STRATCAP Roles and Responsibilies

 STRATCAP is an affiliate of STRATFOR  Engaged by senior Georgian officials to market the Anaklia Project to American investors  Strong and deep political relationships in Georgia up to the office of the Presidency  Intimate understanding of the business and political process in Georgia Special Investment Project: Anaklia

 This will become the tourism hub of the as well as a premier destination for the gaming industry  Georgia’s mission to make Anaklia on the Black Sea a flourishing tourist haven is well underway  The construction of hotels in the Anaklia Free Tourism began in April, with the resort ready to welcome its first holidaymakers in the summer of 2012  Eager to have American hotel/casino operators participate in the Project  The government of Georgia offers investors 4 hotel projects with excellent business terms and great benefits for the next 15  Plots for the construction of 4 new hotels, from either an open plan or one provided, are prepared and included in the Anaklia Free Tourism Zone  All of the hotels are located along the coast, which is framed by beautiful seaside boulevard  Georgia is the only gambling-friendly country in the region, with the gaming industry attracting visitors from neighboring countries such as Turkey, Azerbaijan, Armenia and A N A K L I A- Project Incentives

Anaklia offers: ¾ Sandy beach and a subtropical climate ¾ Best climatic conditions along the Georgian Black Sea Coast ¾ Beautiful seaside boulevard, designed by a famous Spanish architecture Company CMD Ingenieros, along which the hotel plots are located ¾ A yacht club ¾ Completion of works within 18 months since signing the contract.

The government offers investors unprecedented terms for the construction of hotels along the seaside: ¾ F ree land: A plot of land along a seaside boulevard with an area of 3.7 hectares will be provided for 5 hotels. i.e. on average 0.6 ha for each hotel plot ¾ A F ree Hotel Master Plan ¾ No profit and property taxes for 15 years ¾ F ree casino license for the hotels with over 80 rooms ¾ Full engineering utility networks and corresponding outdoor infrastructure such as electricity, gas, water and new roads ¾ Mineral water from source will be available at each land plot

!"#"$%&'()*(+,)#)-'(.#/(01$%."#.234( 54643)7-4#%()*(84)&9". Anaklia on the Map of Georgia

Black Sea

Easy Access:

¾ ± 340 km ± Capital of Georgia Modern Infrastructure: ¾ ± 100 km ± Resort and Entertainment Centre ¾ New International Airport by 2012 ¾ ± 120 km ± Annual Mountain Resort, a place ranked ¾ New Anaklia ± Airport by 2011 (local) #6 by New York Times in "The 41 Places to Go in 2011 ¾ New Highway Anaklia ± Poti ¾ Poti ± 20 km ± Biggest Port (a free industrial zone and a ¾ New Highway Anaklia ± Batumi logistics hub)

!"#"$%&'()*(+,)#)-'(.#/(01$%."#.234( 54643)7-4#%()*(84)&9". Tourism Trends in Georgia In Thousands 4920 5000 4500 35% 4000 3645 3500 3000 2700 35% 2500 2000 35% 2000 1500 1290 33% 1500 983 1051 16% 1000 560 500 0 2005 2006 2007 2008 2009 2010 2011 F 2012 F 2013 F ‡ Government Policy towards Tourism ‡ 12,000 Historical and Cultural Development monuments ‡ Creation of an elite annual winter resort in Mestia ‡ 103 Resorts and 182 Resort Areas ‡ Free Touristic Zone in ‡ 8 National Parks ‡ Development of Spa Cities around Georgia ‡ 2400 Springs of Mineral Waters ‡ Anticipated annual tourist growth of 37% in the ‡ Curative Climate next 3-5 years

!"#"$%&'()*(+,)#)-'(.#/(01$%."#.234( 54643)7-4#%()*(84)&9". Summary

 Excellent opportunity for hotel/casino investment in a strategic resort destination  Strong commitment, including hefty incentive package, from Georgian government to the development of the Project  STRATCAP partnership brings political access and deep understanding of the process

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