INVESTMENT OPPORTUNITIES 2018 OF KAZAKHSTAN Niche projects Mining and smelting industry

Mining and smelting industry is the basis for industrialization of the national economy. 30% of the world's chrome ore reserves, 25% of manganese ores, 10% of iron ores are concentrated in Kazakhstan. Kazakhstan reserves of copper, lead and zinc amount to 10% and 13% of the world reserves, respectively. Out of the 118 elements of the periodic table, 99 were revealed in Kazakhstan, 70 elements have explored reserves, and more than 60 elements are involved in production. Mining is one of the most socially important branches of the economy of the Republic of Kazakhstan, on which development of regions, cities and towns, growth of jobs, as well as social, industrial and transport infrastructure are dependent. Development and processing of mineral resources in long term will remain an important source of economic growth. Large mining and smelting enterprises of the republic are mainly focused on production of primary metals. Most of their products are exported, while domestic market receives about 20%. A structure of production is dominated by raw materials and semi-finished products, which are processed abroad and re-imported into Kazakhstan in the form of finished products. It should also be noted that activities of mining and smelting enterprises were included in the list of priority investment directions in the Republic of Kazakhstan. Accordingly, these projects will receive support from the state along the entire production chain.

5 Mining and smelting industry

Construction of a mining and processing complex and industrial development of Aidarly copper deposit

Project description: Project implementation assumptions: This investment project (“Project”) provides for the High demand. A stable increase in demand for the construction of mining and processing complex at refined copper is expected over the next years. the Aidarly deposit in the East Kazakhstan Oblast. Copper plays a significant role in infrastructure, Product: Cathode copper, copper concentrate. generation and transmission of electricity, transport, Objective of the project: development of the communications, in the production of industrial Kazakhmys Corporation resource base, creation of equipment and electrical appliances. Demand for the an effective integrated business for the extraction refined copper is forecasted to increase annually by and processing of copper ore and the sale of 2% and 1.5% in 2019 and 2020, respectively. cathode copper in the domestic market and abroad. Price stabilization. Refined copper prices currently Manufacturing process: mining – open-pit show a moderate upward trend. According to method. Oxide ores processing (stage1) –processing Bloomberg, a moderate rise in prices for the refined of oxide ores will occur at a heap leaching plant with copper with the subsequent price stabilization is the production of cathode copper. expected in the medium term: 2019 − US$ 6,038, Sulphide ores processing (stages 2 and 3) – 2020 − US$ 5,961, 2021 − US$ 6,011, 2022 − US$ processing of sulphide ores will occur at a 6,054, 2023 − US$ 6,087 per tonne. processing plant with the production of copper Import substitution and local production concentrate. growth. While the dynamics of the trade balance Initiator: Aidarly Project LLP, subsidiary shows a surplus in the category "refined copper and organization Kazakhmys Corporation LLP. crude copper alloys", the opposite situation is Annual production capacity: observed for the category of goods with a greater Processing of 1.3 mln tonnes of ores (stage 1), 20 depth of processing as "plates, sheets and stripes or mln tonnes (stage 2), 50 mln tonnes (stage 3). strips of copper". Key investment indicators Deposit reserves, thousand tonnes On-balance reserves in the pit Index Results contour Index Oxide Sulphide ores Investment, US$ thousands 1,474,770 ores С1 В С1 С2 Project NPV, US$ thousands 104,605 Reserves

MIRR, % 8.2% Ore 5,878 317,849 1,205,889 Copper 20.5 1,220/0 4,630 EBITDA return, % 29% Molybdenum, 154,278 tonnes Payback period, years 18.3 Gold, kg 14,141 Discounted payback period, 21.0 years Silver, tonnes 2,170.4 Project location: Ayagoz district, East- Project profitability Kazakhstan Oblast 3 000 000 33% 33% 35% 29% 29% 30% 2 500 000 25% 22% 25% 2 000 000 Nur-Sultan 20%

1 500 000 5676072 Aidarly deposit 15%

1 000 000 2 062 8160622

2 015 0370152 10%

509 712 509

1 833 0208331 US$ thousands US$

500 000 1755931 5%

0 0% Almaty Year Year Year Year Year Year 16 26 36 37 47 48

Revenue, US$ thousands EBITDA margin, % KAZAKH INVEST: December 2019 12 Investment proposal Mining and smelting industry

Construction of a mining and metallurgical complex on Besshoky Square in the Karaganda region

Project overview: Project implementation assumptions: This investment project (hereinafter referred to as Large reserves of copper. Kazakhstan takes the the “Project”) provides for the construction of a 8th place in the world in copper reserves with a mining and metallurgical complex at the Besshoky share of 4.7% of world reserves (37 million tons). field. High demand. Copper plays a significant role in Project goals: development of a group of deposits modern infrastructure, generation and transmission on Besshoky Square, creation of an effective of electricity, in the production of industrial integrated business for the extraction and equipment and electrical appliances. According to processing of copper-molybdenum ore. the forecasts of the International Copper Study Group, the annual growth in demand for refined Initiator: Ulmus Fund B.V. copper will be 2% in 2019 and 1.5% in 2020. Production process: open pit mining; ore Price stabilization. According to Bloomberg, the processing at the processing plant and production price of refined copper is expected to increase with of copper-molybdenum concentrate; processing of its subsequent stabilization in the medium term: concentrate at a smelter to produce copper and 2019 - 6038.5 USD, 2023 – 6087 USD per ton. molybdenum. Molybdenum price increase. Despite a significant Products: copper and molybdenum drop in molybdenum prices from 2013 (24,889 USD) Production capacity: to 2015 (11,625 USD), according to the London Metal Exchange (LME) index, the price of 10 mln tons of ore per year molybdenum began to rise steadily to 24.9 thousand USD in 2018 (CAGR for 2015-2018 - 29%).

Key investment indicators Project profitability

Indicator Results 500 000 26% 27% 30% 23% 24% Amount of investments, US$ 22% 22% 22% 25% 210,000 400 000 thousands 20% Project NPV, US$ thousands 116,747 300 000 15% IRR, % 21.2% 200 000 10%

EBITDA margin, % 14-28% 100 000 5%

US$ thousands US$

250 927250 640256 302262 365280 445315 314353 460396 Payback period, years 8.5 0 0% Year Year Year Year Year Year Year Discounted payback period, years 11.7 5 6 7 10 15 20 25 Revenue, US$ thousands EBITDA margin, %

Project location: Besshoky square, Field reserves by JORC (2012) Karagandy oblast Ore, mln Copper, ths Field Cu, % tons tons East Besshoky

Measured 9.64 74.58 0.77 Nur-Sultan Indicated 19.09 116.93 0.61 Besshoky South Besshoky square Measured 44.36 164.52 0.37

Indicated 147.32 527.03 0.36 Shymkent Almaty Kaindyshoky Measured - - -

Indicated 37.87 143.52 0.38

KAZAKH INVEST: December 2019 14 Investment proposal Mining and smelting industry

Development of Nurbay, Besshocky and Sarybulak copper ore deposits

Project Description: Market conditions: Construction of industrial complex for copper ore Availability of raw materials and subsoil use extraction at the Nurbay, Basskocky and Sarybulak rights. The forecasted reserves of the complex of deposits in East Kazakhstan oblast and copper Nurbay-Basskocky-Sarybulak deposits amount to cathode production in the amount of 12,500 tonnes over 280 thous. tonnes of copper. per year High demand. It is expected that the steady growth in demand for refined copper will continue in Product: Copper cathode subsequent years, since copper is the most Capacity: Processing of 1 million tons of copper important resource and factor of production in a oxide ore per year. Further expansion is possible for modern technological society. Annual growth in the processing of sulphide ores. demand for refined copper is projected at 2% in 2019 and 1.5% in 2020. Production volumes: Expected production of Price stabilization. According to analysts at 12,500 tons of cathode copper per year. Bloomberg, a moderate increase in refined copper Initiator: Ertis-Med’ LLP. prices is expected in the medium term, with Location: Ayagoz district, East-Kazakhstan Oblast. subsequent stabilization of the price level: 2019 - $6,038.5; 2021 - $6,011; 2023 - $6,087 per tonne. Potential markets: non-ferrous metal processing Export potential. The shortage of this product plants in CIS, China and Europe. indicates the potential for import substitution. Also RK has an opportunity to increase exports to the PRC and other countries.

Key investment indicators of the Project Project profitability

Indicator Results 100,000 51.0% 90,000 50.8% 50.8% Project implementation period, years 9 50.5% 80,000 50.8% 50.6% incl. investment stage, years 2 70,000 50.9%

operational stage, years 7 60,000 50.2% 50.4% 50.4%

Investment amount, US$ thousands 43,845 50,000 50.2% 50.0% 40,000 50.0% 54,884 US$ thous. Project NPV, US$ thousands 30,000

19,125 49.8% IRR, % 40.1% 20,000

10,000 49.6%

57,375 83,546 94,921 87,635 91,507 EBITDA margin, % 51% 79,875 0 49.4% Payback period, years 4.5 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Discounted payback period, years 5.2 Revenue, US$ thous. EBITDA margin, % Project location: Deposit reserves Ayagoz district, East-Kazakhstan Oblast Indicators Unit meas. Reserves (Presumably according to Nurbay intelligence data from 1962) Copper (С2) ‘000 tonnes 180.00 Incl. ‘000 tonnes 30.00 Nur-Sultan oxidized (According to the evaluation Basskocky work) Nurbay, Besshoky and Sarybulak Copper (Р1) ‘000 tonnes 20.00 deposits (oxidized) Sarybulak (According to intelligence) Copper ‘000 tonnes 75.00 Almaty Incl. С2 ‘000 tonnes 15.00 (oxidized) Incl. Р1 ‘000 tonnes 60.00 (oxidized) KAZAKH INVEST: December 2019 8 Investment proposal Mining and smelting industry

Industrial development of non-ferrous and precious metal deposits in the East Kazakhstan Oblast

Project overview: Project implementation assumptions: Investment project (the “Project”) provides for High copper demand. A stable increase in demand industrial development for the extraction and for the refined copper is expected over the next processing of non-ferrous and precious metal ores years as copper is the major resource and industrial at the Belousovsky deposit in the East Kazakhstan driver in the modern technological society. Demand Oblast. for refined copper is forecasted to increase annually Products: Cathode copper, silver pellets, gold bars, by 2% and 1.5% in 2019 and 2020, respectively. zinc in zinc concentrate. Stable gold demand. Gold consumption in Production process: Kazakhstan is mainly created as a result of gold 1) Mining – underground; processing done by three refineries: Kazzink in Ust- Kamenogorsk, Kazakhmys in Balkhash and Tau-Ken- 2) Ore beneficiation is planned at the Nikolayevsky Altyn in Nur-Sultan. Currently, all of the produced plant, owned by Kazakhmys; refined gold is used for the purpose of replenishing 3) Refining of copper, gold and silver concentrates the country's currency reserves. According to (obtaining a final product) will be carried out by the experts, by 2020, refining volumes in Kazakhstan Balkhash smelting plant owned by Kazakhmys. will reach up to 80-90 tons. Initiator: Kazakhmys Barlau LLP. World silver production. Kazakhstan is one of the Project location: East Kazakhstan Oblast, largest silver producers. In recent 5 years, Glubokovsky district, Belousovka village. Kazakhstan was among the world’s ten largest silver producers. Kazakhstan ranks third by world silver Annual production capacity: reserves, according to the USGS geological survey. 250 thousand tonnes of ore.

Key investment indicators Deposit reserves, thousand tonnes On-balance reserves by Indicator Results category Ore/metal А+В+С Amount of investments, US$ А В С1 С2 13,378 1 thousands Ore 15 951.3 3,498.3 4,464.6 8,027 Project NPV, US$ thousands 30,009 Copper 0.5 16.9 26.2 43.6 33.1 IRR, % 42.2% Lead 0.1 19.3 31.3 50.7 64.2 Zinc 0.8 65.1 136.5 202.4 287.7 EBITDA margin, % 28% Ore - - 1,398.6 1,398.6 11,102 Payback period, years 3.8 Gold, kg - - 1,679.4 1 679.4 4,605.0 Discounted payback period, 4.4 years Silver, tons - - 55.9 55.9 555.1 Project location: East Kazakhstan Oblast, Project profitability Glubokovsky district 45 000 29% 40 000 Nikolayevsky 29% beneficiation 35 000

plant . 30 000 28%

Nur-Sultan 28% 25 000 28%

thous 28% 28%

Belousovsky deposit 20 000 27%

28% 27%

US$ 15 000 27% Balkhash (copper) 10 000 smelting plant 27%

5 000

33 930 33 35 645 35 166 35 053 36 687 38 142 42 0 26% Almaty Year 3 Year 4 Year 5 Year 6 Year 9 Year Revenue, US$ thous. 13 EBITDA margin, %

KAZAKH INVEST: December 2019 13 Investment proposal Mining and smelting industry

Commercial development of the Zhaissan copper deposit

Project overview: Project implementation assumptions: This investment project (“Project”) provides for the High demand. A stable increase in demand for the commercial development of the Zhaissan deposit in refined copper is expected over the next years. Zhambyl Oblast, involving copper mining and Copper plays a significant role in infrastructure, processing. generation and transmission of electricity, transport, Products: Cathode copper, pelleted silver. communications, in the production of industrial equipment and electrical appliances. Demand for the Manufacturing process: refined copper is forecasted to increase annually by Mining – underground method; 2% and 1.5% in 2019 and 2020, respectively. Processing – mined oxidized ores are going to be transported by road to the heap leaching site of the Price stabilization. World prices for the refined Shatyrkul mine. Sulphide ores are going to be copper currently show a moderate upward trend. transported by truck to the station Berlik-1, then by According to Bloomberg, a moderate rise in prices rail to the Balkhash beneficiation plant (BOF). The for the refined copper with the subsequent price copper concentrate obtained at the BOF will be stabilization is expected in the medium term: 2019 processed at the Balkhash Metallurgical Plant. − US$ 6,038.5, 2020 − US$ 5,961, 2021 − US$ Initiator: Zhanashyr Project LLP, subsidiary 6,011, 2022 − US$ 6,054.5, 2023 − US$ 6,087 per organization Kazakhmys Corporation LLP. tonne. Project location: Zhambyl Oblast, Shu district. World silver production. In recent 5 years, Kazakhstan was among the world’s ten largest silver Annual production capacity : producers; Kazakhstan is the third largest country 600 thousand tonnes of ore. by world silver reserves, according to the USGS geological survey.

Key investment indicators Deposit reserves

Index Results Index Unit Reserves

Investment, US$ thousands 118,436 Zhaissan On-balance reserves

111,287 Project NPV, US$ thousands thousands of Copper (С1) 205.6 tons IRR, % 27.4% thousands of Copper (С2) 96.1 EBITDA return, % 60% tons Molybdenum tons 908 Payback period, years 10.2 (С1)

Discounted payback period, 11.4 Silver (С2) tons 35.2 years Project location: Shu district, Zhambyl Oblast Project profitability 140 000 64% 63% 60% 59% 63% 63% 63% 60% 120 000 63% 62% 100 000

129 810129 61%

Nur-Sultan 805124 80 000 149123

60%

107 039107 105 239105

BOF 335103 60 000 209101 59% 40 000

US$ thousands US$ 58% 20 000 57% Zhaissan deposit Almaty 0 56% Year Year Year Year Year Year Year 9 10 11 12 22 23 26 Revenue, US$ thousands EBITDA margin, %

KAZAKH INVEST: December 2019 16 Investment proposal Mining and smelting industry Construction of hydrometallurgical plant for cathode copper production

Project description: Market conditions: The Project considers the construction of copper ore Large copper reserves. Kazakhstan ranks 8th in processing industrial plant which will be targeted the world in copper reserves with a share of 4.7% of towards cathode copper production with a capacity world reserves, which in real terms is 37 million of 5000 tonnes per year. tonnes. Product: cathode copper (pure copper of no less High demand. It is expected that refined copper than 99,99%). demand will have a constant growth for the Capacity: 5000 tonnes of cathode copper per year. following years because copper is the major factor in Production process: economic activity and modern technological society. extraction – open-pit; The expected demand growth for the refined copper will reach 2% in 2019 and 1.5% in 2020. processing – flotation and heap leaching, and SX- EW. Price growth. Global market prices for refined copper demonstrate increasing dynamics related to Initiator: AK Minerals LLP – the owner of the increased demand for that product as a result of exclusive copper processing right at Ai-Karaaul. global economic stabilization. According to the Location: East-Kazakhstan Oblast. The Plant will be forecasts, a moderate increase in copper prices is located in Urjar District, 40 km. away from Ayagoz expected during the following years: 2020 - US$ town, and relatively close to the Ai-Karaaul deposit. 5,961, 2021 - US$ 6011, 2022 - US$ 6054.5, 2023 - Potential markets: Kazakhstan, Russia and China. US$ 6087 per ton. Export potential. The trade deficit in products such as copper sheets, strips and tapes indicates the import substitution potential. Also, Kazakhstan has an opportunity to increase its exports to China and neighbor countries. Key investment indicators of the Project Project profitability

Indicator Results 35 000 70% 61% 61% 72% Project implementation period, years 14 63% 30 000 68% 70% Incl. Investment stage, years 2 25 000 68% Operational stage, years 12 66% 20 000 Investment, US$ thousands 29,951 64% 15 000 Project NPV, US$ thousands 42,879 62% 10 000 60%

IRR, % 39,6% thousands US$

5 000 58%

27,550 28,858

EBITDA returns, % 63,6% 13,656 32,139 0 31,424 56% Payback period, years 4.4 Year 3 Year 4 Year 6 Year 9 Year 10 Discounted payback period, years 5.0 Revenue, US$ thousands EBITDA margin, %

Project location: East-Kazakhstan Oblast Mineral resources of the Ai field and its NW flank and forecast resources of the Aiskaya area (without the Ai field)

Astana Copper, Ai-Karaaul Aver. copper Ore type Category thousand copper-ore content district tonnes С1 1.47 17.78 Oxidized Almaty Forecast 0.86 50.1

Primary Forecast 0.77 70.0

Sulfide С1+С2 1.7 36.48

KAZAKH INVEST: February 2020 1 Investment proposal Mining and metallurgical complex Development of Batalinskoye and Krasnoarmeyskoye copper ore deposits

Project description: Market conditions: The Project involves construction of copper ore Large copper reserves. Kazakhstan holds the 6th beneficiation industrial plant at Batalinskoye and place in the world for its copper reserves of 36.6 million tonnes, which accounts for 4.7% of global Krasnoarmeyskoye deposits that are located in reserves. Kostanay Oblast. High demand. It is expected that refined copper Product: copper concentrate (incl. subsequent demand will have a constant growth for the processing at Kazzinc LLP’s plant in Ust- following years because copper is the major factor in Kamenogorsk Oblast, which will then be sold to end economic activity and modern technological society. customers). The expected demand growth for the refined copper will reach 2.99% in 2018 and 2.15% in 2019. Initiator: Mystau LLP. Price growth. Global market prices for refined Location: Denisovsky district, Kostanay Oblast. copper demonstrate increasing dynamics related to Potential markets: non-ferrous metal processing increased demand for that product as a result of plants in CIS, China and Europe. global economic stabilization. According to the forecasts, a moderate increase in copper prices is expected during the following years: 2020 – US$ 6833, 2021 – US$ 6849 per tonne. Export potential. The trade deficit in products such as copper sheets, strips and tapes indicates the import substitution potential. Also, Kazakhstan has an opportunity to increase its exports to China and neighbor countries.

Key investment indicators of the Project Project profitability

400,000 60% Indicator Results 50% 350,000 43% 44% 45% 50% Project implementation period, years 17 41% 300,000 39% incl. investment stage, years 2 40% 250,000 29% operational stage, years 15 200,000 30% Investment amount, US$ thousands 298,600 150,000 110,705

US$ US$ thousands 20% 163,693

Project NPV, US$ thousands 100,000 56,758

21,756 10%

IRR, % 22.5% 50,000

253,937 329,443 300,074 368,432 EBITDA margin, % 31-53% - 0% Payback period, years 7.9 Year 3 Year 4 Year 5 Year 7 Year 9 Year Year 10 17 Discounted payback period, years 10.3 Revenue, US$ thousands EBITDA margin, %

Project location: Denisovsky district, Kostanay Oblast Deposit reserves

Balance Batalinskoe and Indicator Unit reserves by Krasnoarmeyskoe deposits С2 category Astana Batalinskoye Copper thous. Tonnes 561.7

Ore thous. Tonnes 130,899.7

Content % 0.43-0.45 Krasnoarmeyskoye Copper thous. Tonnes 203.9 Almaty Ore thous. tonnes 85,050.20 Content % 0.24

KAZAKH INVEST: August 2018. 1 Investment proposal Mining and metallurgical complex Expansion of mining and processing of copper-nickel ores of the Maksut deposit

Project description Market prerequisites: expansion of mining and processing plant of copper- Availability of raw materials – The estimated nickel ores of the Maksut deposit in the East reserves of the Maksut deposit according to the JORC Kazakhstan oblast (Project). 2012 Code are 26.8 million tonnes of ore with a copper content of 0.44% and nickel of 0.35% Project goal Growing demand – Demand for refined copper is increase in mining and processing of copper-nickel expected to grow by 2.99% in 2018 and by 2.15% in ores of the Maksut deposit beneficiation plant from 2019. According to the World Bureau of Metal 400 thousand tonnes to 1.4 million tonnes of ore Statistics in 2017, the shortage of refined nickel on per year the world market amounted to about 96 thousand Project initiator tonnes. mining company BAST JSC, developing the copper- Rising metal prices – According to the forecast data nickel ores of the Maksut deposit. of the World Bank, it is expected of rising of the price Products and average annual production after of copper (2018 – US$ 6,800; 2021 - US$ 6,849). As expansion: of from 2018 to 2022 the average nickel price per • 21% copper concentrate - 24.3 thousand tonnes year will increase by 3%. • 4% nickel concentrate - 57.8 thousand tonnes Availability of customers – The mining and processing complex Maksut is an operating enterprise Processing capacity after expansion: which produces copper and nickel concentrates. 1.4 million tonnes of ore per year Concentrates are successfully in great demand in Project location: China, Russia, Uzbekistan. The company has long- term contracts for the sale of concentrates. Abay district, East Kazakhstan oblast

Key investment indicators of the Project Project Profitability

Indicator Results 70,000 36% 40% 60,000 32% 35% Project implementation period, years 20 29% 24% 30% incl. investment stage, years 2 50,000 20% 25% operational stage, years 18 40,000 20% Investment amount, US$ thousands 24,979 30,000 15% Project NPV, US$ thousands 43,749 20,000 US$ thousands US$ 10%

IRR, % 41.3% 10,000 5%

11,311 38,188 49,337 61,720 43,663 EBITDA margin, % 30% 0 0% Year 1 Year 3 Year 10 Year 19 Year 20 Payback period, years 4.0 Discounted payback period, years 4.8 Revenue EBITDA margin, %

Project Location: Abay District, Mineral Resource Report of the Maksut deposit East Kazakhstan oblast in accordance with the JORC Code as of July 27, 2017

Resource Avg. Cu Avg. Ni Astana Tonnage category content, % content, % Maksut deposit

Indicated 26.8 mln 0.44 0.35

Almaty Probable 16.7 mln 0.38 0.28

Всего 43.5 mln 0.41 0.33

KAZAKH INVEST: August 2018 1 Investment proposal Mining and smelting industry

Development of Zhezdybassay copper deposits in Mangistau Oblast

Project overview: Market assumptions: th This investment project (the "Project") involves Large copper reserves. Kazakhstan is ranked 6 construction of an industrial complex for the in the world for copper reserves, which is 4.7% of extraction and beneficiation of copper ores at world reserves or 36.6 million tonnes in volume Zhezdybassay deposit and at nearby located terms. deposits in the Mangystau region. Copper High demand. Demand for the refined copper is concentrate is planned to be processed into cathode forecasted to increase by 2.99% and 2.15% in 2018 copper at the copper plant KazZink, with its and 2019, respectively. subsequent sale as a final product. Rise in prices. According to the World Bank’s Commercial product: cathode copper (in sheets) forecast, the moderate rise in prices for copper is Project initiator: Tekhnogran Aktobe LLP expected. Project implementation location: Mangistau Export potential. Trade deficit in considered district, Mangistau Oblast copper products indicates potential for import substitution. Moreover, Kazakhstan has the Potential market: Non-ferrous metals processing opportunity to boost export to the People’s Republic plants of neighbouring countries, China and Europe of China and neighbouring countries.

Key investment data Project economics Index Results 45,0 60% 70% 57% 59% Project implementation period, years 17 40,0 54% 60% including the investment stage, years 4 35,0 45% 50% 30,0 40% Operational stage, years 13

25,0 40% US$

Investment, US$ thousands 23,000 % 20,0 30%

Project NPV, US$ thousands 29,435 mln 15,0 12,5 20% IRR, % 29.5% 10,0 8,9

10%

36,0 38,6 35,4 EBITDA returns, % 39-61% 5,0 32,9 - 0% Payback period, years 7.4 Year 3Year 6Year 8 Year Year Year Discounted payback period, years 8.7 10 12 17 Revenue, US$ mln EBITDA margin, %

Project implementation location: Mangistau Reserves of Project’s deposits district, Mangistau Oblast Amount Deposits/ Reserves, Ore, Copper of Mineral resources mln grade, copper, occurrences category tons % thous. tonnes Zhezdybassay С2+Р1 6.7 0.58 39.2 Astana Dolnapinskoye С2+Р1 1.8 0.6 10.8 Sarshasaiskoye Р1 2.4 0.6 14.0 East- Shairskoye Р1 1.1 0.8 8.8 Kyzyltanskoye С2+Р1 0.8 0.6 4.8 Zhezdybassi and other Shaniyazskoye Р1 0.09 1.1 1.0 Aktau deposits Koktas Р1 0.36 0.4 0.9 Other Almaty occurrences and Р1 2.1 0.5 10.5 areas Total: С2+Р1 15.3 90.0

KAZAKH INVEST: August 2018 1 Investment Proposal Mining and smelting industry

Development of the zinc-copper Alexanderovskoye deposit in East Kazakhstan Oblast

Project Description: Market assumptions: The project involves construction of an industrial Growing demand. complex for the extraction and beneficiation of zinc- The demand for refined copper is expected to grow copper ores at the Alexanderovskoye deposit in East by 2.99% in 2018 and by 2.15% in 2019. Kazakhstan Oblast. Demand for refined zinc, will reach 14,389 thousand Product and average annual production: tonnes in 2020, increasing by 1.8% in 2019 and by 1.9% in 2020. Copper concentrate - 6,881 tonnes (963 tonnes of copper) Potential for exporting. Zinc concentrate – 22,696 tonnes (10,213 tonnes of Kazakhstan has a geographical advantage which allows an increase of exporting of the product to zinc) China. Kazakhstan, being the main exporter of Processing power: copper products to the Russian Federation, can 360 thousand tonnes of ore increase the volumes of supplies of copper concentrates. Initiator: In China (the largest consumer of zinc), the demand “Varsa Mining” LLC for refined zinc is expected to grow from 6,596 Location: thousand tonnes in 2018 to 7,257 thousand tonnes in 2020. Kazakhstan, unlike Peru and Australia, has Kurshim district, East Kazakhstan Oblast a convenient geographical location for exporting Consumer markets: products to China. Processing plants of non-ferrous metals in the CIS Kazakhstan is also the main exporter of zinc countries, China and Europe concentrates to Russia.

Key investment indicators Project Profitability

Indicator Result 35,000 45% 44% 50% 41% 43% Project implementation period, years 8 30,000 35% 40% incl. investment stage, years 3 25,000 operational stage, years 5 20,000 30% Investment, US$ thousands 15,620 15,000 20% Project NPV, US$ thousands 11,997 10,000

US$ thousands US$ 10%

IRR, % 49.1% 5,000

27,508 25,847 29,513 19,992

EBITDA returns, % 42% 0 25,864 0% Payback period, years 4.7 Year 4 Year 5 Year 6 Year 7 Year 8 Revenue EBITDA margin, % Discounted payback period, years 5.1

Project location: Kurshim district, East Alexanderovskoye deposit reserves Kazakhstan Oblast

Calculation Indicators Category Ед. изм. of reserves

Sulphide zinc- thousand Astana С –С 13,000 copper ore 1 2 tonnes Alexanderovskoye Zinc content % 3.83

Copper content % 0.34

Calculation of zinc tonnes 49,799 reserves Calculation of Almaty tonnes 4,394 copper reserves * Initiator’s proprietary calculations in 2018, based on drilling results KAZAKH INVEST: October 2018 1 Investment proposal Development of the 300,000 tonne/year Kogadyr-6 gold ore deposits in Dzhambul Oblast

Summary Market prerequisites

Project overview: This investment project involves the extraction of Due to its frequent use in alloys, the aviation and space industries, radio proven gold ore deposits at the Kogadyr-6 field. equipment, electronics, and medicine, the global demand for gold is constantly growing. In addition, gold is one of the main materials used in the jewellery Investment amount: US$ 111,191 thousand industry and frequently as a main currency metal. Project initiator: Ordabasy Group LLP Industry analysis shows that domestic gold production does not cover its primary Product: Dore gold use in Kazakhstan, which is the replenishment of national monetary reserves at three processing plants - Kazzinc in Ust-Kamenogorsk, Kazakhmys in Balkhash Location: Dzhambul Oblast, Kordai District and Tau-Ken-Altyn in Astana. Gold refining in Kazakhstan has been growing Project goals: annually by 10%, reaching 31 tonnes in 2016. According to experts, gold refining levels could reach 80-90 tonnes by 2020. • Create an effective integrated gold mining business with further sales in Kazakhstan The cost of production is low due to the availability of cheap raw materials, whose cost accounts for 69% of COGS. With estimated gold reserves of 1,160 tonnes • Generate high-quality, export-oriented and competitive products (1.8% of global reserves) and a metal content ratio in ore of more than 6.3 using advanced and proven production technology grams/tonne, Kazakhstan reserves are the 10th largest and 3rd largest in the CIS • Develop Kazakhstan's huge export potential to become a major (after Russia and Uzbekistan). player on the global gold market, providing stable and large-scale supplies. Currently, mining operations are performed at more than 35 of 80 registered gold ore deposits in Kazakhstan. Ore quality and its gold content is sufficient to avoid additional processing to ensure raw materials meet refining standards (precious metal content varies from 10% to 98%).

Project investment attractiveness Revenue forecast

250,000 60% 47% Indicator Results, US$ thousands 43% 200,000 42% 35% 35% 40% Project NPV 139,460 150,000

100,000 IRR 48.2% 20%

EBITDA margin 40% 50,000

173,531 201,546 170,194 173,965 205,609 0 0% Payback period, years 3.7 Year 3 Year 4 Year 5 Year 12 Year 13

Discounted payback period, years 4.2 Revenue, US$ thousands EBITDA margin, %

1 Development of the 300,000 tonne/year Kogadyr-6 gold ore deposits in Dzhambul Oblast

Project location: Dzhambul Oblast, Kordai District Climate The local climate is variable with cold winters, and hot and dry summers. The average temperature is -10°C in winter, and varies between 20°C and 30°C in summer, occasionally reaching 40°C. However, the spring and autumn climate is mild. Annual precipitation varies between 450 and 510 mm. Energy supply and pipelines Electricity is produced at the 110 kV Emba substation, which is close to the Bukhara-Ural gas pipeline. Water supply The household and drinking water source for the Kogadyr deposit Kogadyr-6 deposit reserves is an industrial site water well. Water supply services are also Tones Au Contained Metal Contained Metal Class Type (Mt) (g/t) (koz Au) (tones Au) provided by the Kordai Su Public State Enterprise. Transition Measured Railway and highway services Fresh The deposit is near to the Turk-Sib railway, which is used to Transition 4.1 0.91 120 3.7 Indicated dispatch production materials and fuel. The Kogadyr-6 deposit is Fresh 7.9 0.98 248 7.7 located about 206 km west of the city of Almaty. Subtotal Measured + Transition 4.1 0.91 120 3.7 Indicated Fresh 7.9 0.98 248 7.7 Human resources Transition 0.7 1.12 25 0.8 Due to the deposit’s proximity to the town of Kordai, with a Inferred Fresh 17.7 1.28 730 22.7 population of 27,000, there should be no difficulty in hiring the

Total Measured + Transition 4.8 0.94 145 4.5 required staff for the project. Indicated + Inferred Fresh 25.6 1.19 978 30.4

Project implementation timeline

Year 1 Year 3 Year 13 Compound annual growth rate – 22.2% Capital expenses Working capital investments EBITDA margin – 40% US$ 103,700 thousand US$ 7,491 thousand Net income margin – 20% Construction period Production and implementation period

2 Mining and smelting industry

Extraction and processing of gold-bearing ores at Shoyimbai deposit

Project overview: Market assumptions: Extraction and processing of gold-bearing ores at the Shoyimbai deposit (the “Project”) Availability of supply sources – gold consumption Commercial product: Gravity concentrate, later in Kazakhstan is mainly created as a result of gold supplied to the smelting and refining factories of the processing done by three refineries: Kazzink in Ust- country. Kamenogorsk, Kazakhmys in Balkhash and Tau-Ken- Altyn in Nur-Sultan. Currently, all of the produced Output capacity: processing over 130 thousand refined gold is used for the purpose of replenishing tonnes of gold-bearing ores per year the country's currency reserves. According to Project implementation period: 12 years experts, by 2020, refining volumes in Kazakhstan Initiator: will reach up to 80-90 tons. CaspianGeoConsultingServices LLP, a subsidiary of Import substitution – Domestic production KM GOLD JSC, carries out exploration of precious facilities cannot meet the demand for gold. Despite metals and their extraction. The company plans to the decline in imports during the period from 2013 build its own modular processing plant. to 2017, in 2018, 210 thousand tons of metal were imported. Project implementation location: Karagandy region Stable high demand – Gold is in stable demand in the world. It is used in technology in the form of Potential markets: Kazakhstan alloys with other metals, in the aviation and space industry, in radio equipment, electronics, medicine, as well as for manufacturing jewelry. It also plays the role of the main currency metal.

Key investment indicators Project profitability 12,000 100% Index Results 90%

Project implementation period, years 12 10,000 80% 85.8% incl. investment stage, years 3 8,000 70%

60% 42.3%

operational stage, years 10 42.9%

42.2% 42.1%

6,000 43.1% 50% 41.9% Investment amount, US$ thousands 11 000 40% 4,000 30% Project NPV, US$ thousands 6 139

2,000 20%

10,218

8,010 8,192 8,373 8,950 9,384 IRR, % 36,7% 5,999 10% 0 0% EBITDA margin, % 47% Year Year Year Year Year Year Year Payback period, years 4,7 3 4 5 6 7 10 12 Discounted payback period, years 5,6 Revenue, KUSD EBITDA margin, %

Project location: Shoyimbay field reserves Karagandy region Reserves

С1 C2 P1 P2 426 kg 3,42 t 30 t 109 t Gold Nur-Sultan (14 g/t) (6 g/t) (2,5 g/t) (2,5 g/t)

Processing volumes Shoyimbai deposit Phase 1 Phase 2

Almaty Processing 30 000 kg 1 166 667 kg volumes

Gold content 14,09 g/t 2,50 g/t

KAZAKH INVEST: July 2019 1 Investment Proposal Mining and smelting industry

Extraction and processing of gold-bearing ores at Shokpar and Gagarin deposits

Project overview: Market assumptions: Extraction and processing of gold-bearing ores of Raw materials availability – Low COGS is the Shokpar and Gagarin deposits (the "Project") achieved due to the availability of own cheap raw Commercial product: bulk concentrates of gold materials base. Kazakhstan holds the 6th place in and silver. the world for the amount of its explored gold reserves. Silver reserves in Kazakhstan are Output capacity: 17,463 kg of gold and 88,844 kg discovered in more than 100 ore fieds. of silver over the whole project operating period. Export potential – Taking into account the fact Production process: Mining – open-pit and that 24% of the global demand for gold comes from underground; Processing – direct collective flotation China, Kazakhstan has a huge export potential. Project implementation period: 12 years, incl. Kazakhstan has exported 4,500 tonnes of gold- the development of deposits in the meantime. bearing ore to China in 2017. Also, one of the other Initiator: main importers of Kazakhstan gold is Russia, which has imported 7,349 tonnes of gold-bearing ore in Tau-Ken Samruk National Mining Company LLP – 2017. national operator of mining assets in Kazakhstan, which has a priority right to acquire a license for In addition, China and Russia are among the top 10 exploration and extraction of mineral resources. silver importing countries as of 2017. Project implementation location: Zhambyl Oblast Potential markets: Kazakhstan

Key investment data Project profitability Index Results 70,000 60% 50% Project implementation period, years 12 60,000 50% incl. investment stage, years 1 50,000 39% 35% 39% 40% 32% operational stage, years 11 40,000 30% Investment amount, US$ thousands 49,996 30,000 20% Project NPV, US$ thousands 27,077 thous. US$ 20,000

IRR, % 28.9% 10,000 10%

62,188 36,909 44,711 47,784 42,154 EBITDA margin, % 35.8% 0 0% Year 2 Year 3 Year 5 Year 8 Year 12 Payback period, years 4.5 Discounted payback period, years 5.5 Revenue, US$ thous. EBITDA margin, % Project location: Shokpar field reserves and resources Zhambyl Oblast Reserves Index С1 С2 Ore, thous. 641.5 912.6 tonnes Astanа Gold, kg 4,224.1 (6.58 g/t) 6,728.9 (7.37 g/t)

Silver, tonnes 20.0 (31.24 g/t) 31.5 (34.47 g/t)

Gagarin field reserves and resources Shokpar and Reserves Gagarin deposits Almaty Index С1 С2 Ore, thous. 1,003.1 1,254.1 tonnes Gold, kg 4,197.3 (4.18 g/t) 5,907.0 (4.71 g/t) Silver, tonnes 41.1 (40.96 g/t) 43.1 (34.37 g/t) KAZAKH INVEST: February 2020 1 Investment Proposal Mining and smelting industry

Increasing the resource base and expanding the production of gold on the Tobolsk area of deposits

Project overview: The investment project provides Market assumptions: for the development, extraction and processing of Consistently high demand – Gold consumption in gold bearing ores of the Tobolsk area of deposits the world is at a consistently high level. It is used in Project Goals: technology in the form of alloys with other metals, • Increase in capacity for the mining/processing of in the aviation and space industries, radio oxide ores; equipment, electronics, and medicine. A significant part of gold goes to jewelry making. It also plays the • detailed exploration of sulfide ores with role as a main currency metal. registering of reserves at a commercial level; Availability of customer base – In Kazakhstan, • increase in capacity for the extraction and gold consumption is mainly created for the purpose processing of oxide ores; of replenishing the country’s foreign exchange • construction of a sulphide ore processing plant. reserves as a result of processing by three refining Commercial product: Dore alloy plants: Kazzinc in Ust-Kamenogorsk, Kazakhmys in Balkhash and Tau-Ken-Altyn in Nur-Sultan. Initiator: Brendt LLP conducts mining of oxide ores, According to experts, by 2020, refining will reach and processes them into the Dore alloy. Ore 80-90 tonnes per year processing is carried out through the open pit method. The current mining/processing capacity is 800 thousand tonnes of ore per year. Planned output: Annual volume of mining and processing of sulphide ores at the level of 1.8 mln. Potential markets: Kazakhstan Key investment data Project profitability 46% Index Results 140 50% 28% 2% 120 2% Project implementation period, years 17 11% 30% 100 incl. investment stage, years ~4 -35% 10% 80 operational stage, years 16 -10% 60 Investment amount, US$ thousands 70,800 -30%

40 23 23

Project NPV, US$ thousands 39,479 20 -50%

29 29 32 85

114 114 117 120 IRR, % 25.1% 0 -70% Year 1Year 2Year 3Year 9 Year Year Year EBITDA margin, % 30% 10 11 16 Payback period, years 8.5 Revenue, US$ mln Revenue growth rate, % Discounted payback period, years 10.2 Project location: The Kutyukhinskoye field and the Reserves of Tobolsk’s area of deposits, Tobolsk area are located in the Zhitikarinsky district calculated according to JORC of Kostanay oblast JORC Oxidized ore Sulphide ore Total classification

Gold, Conten Gold, Conten Gold, kg t, g/t kg t, g/t kg Nur-Sultan Measures 5,324 1.42 5,324 resources Verified Kutyukhinskoye field 5,686 1.5 5,686 and the Tobolsk area resources Estimated 5,537 1.48 22,434 2.0 27,971 resources

State Reserves Almaty 3,337 1.4 40,100 2.0 43,437 Commission P3

Total 19,884 1.42 62,534 2.0 82,418

December 2019 KAZAKH INVEST: Investment proposal 10 and STB gold ore deposits ore gold STB and Tokhtar Mining Mining andindustry smelting , amount Investment Discounted payback period payback Discounted Payback period margin EBITDA IRR NPV Project Key investment indicators investment Key January 2018 Product Capacity amount Investment Tokhtar at South the mine new developing aat mine the Tokhtar (hereinafterSTB) deposits. It also involves Tokhtar the at resources measured T Project overview Kostanai Location gold andgold Ken market Selling 11 years : period implementation Project management license Project location: Kostanai location: Project he he extraction of gold ore from considerable Altyn - South and : Oblast, Oblast, cathode gold and and : : , Cathodic state plant US$ thousands US$ 450,000 Indicator , the possibility of subsurface years , South : Zhetikara Kazzinc US$ thousands US$ : gold Tokhtar tonne extension refineries purchaseDore : , US$ 322,034 thousand years , /year Kazakhmys - Tokhtar Barambayev Tokhtar Oblast, Oblast, deposit. deposit and a anddeposit , South South , Result Zhetikara and Tau 322, 26 50.3 0,341 Investment Investment 51 KAZAKH INVEST: 0 3 3 34 % % .8 . 3 - proposal US$ thousands Content Gold Content Content Gold Gold 100,000 150,000 200,000 250,000 Market prerequisites Market • • • 50,000 Deposit reserves Project profitability Project Indicator 0 Growth in world demand tonne grams/ content ratio orein of more than6.3 a metal andreserves)(1.8%of global 1,160 of reservesestimated gold availabilitycheap ofraw Thecost of productionis low Kazakhstan use in primary gold productiondoes not cover its shows that analysis Industry domestic Shortage currency metal a main as frequently and industry the main materials inused the jewellery Year 1 Year 38%

Revenue, US$ thousands US$ Revenue, 20,196 Year 2 Year 53% measure g/ g/ g/ Unit of of Unit of gold supplythein market

ment 80,190 tonne tonne tonne South South kg kg kg . Year 3 Year 71% Tokhtar 189,296 . STB Tokhtar Year 4 Year 53% : On

3,509 1,662 231,451 С - 4.9 8.2 1 balance reserves Year 7 Year 51% EBITDA margin, % - - materials with 218,944 – . gold is oneof 12,353 20,806 10,055 due to theto due Year 9 Year 49% С 2.6 5.4

10 228,537 2 tonnes Year 11 Year 47% 12,353 24,315 11,717 С 237,995 1 +С - 2.6 5.3 9.7 51 0% 10% 20% 30% 40% 50% 60% 70% 80% 2 Mining and metallurgical complex Production and processing of rare- metal ore at the Drozhilov field

Project overview: Market assumptions: Produce and process rare-metal ore at the Drozhilov Growing demand for rare metals. Over the next field in Kostanai Oblast decade, global demand for tungsten is predicted to Commercial product and production output for increase as its use is strongly linked to the the entire Project period: development of the processing industry and vehicle production. Lithium consumption in battery • lithium concentrate – 2,490 thousand tonnes production has increased significantly in recent (lithium – 149 thousand tonnes) years as rechargeable lithium batteries are being used more and more often in portable electronic • molybdenum trioxide – 176.6 thousand tonnes devices and electric car batteries. (molybdenum – 118.3 thousand tonnes) Rising metal prices. In the last three years, the • artificial scheelite – 62.26 thousand tonnes lithium oxide price has increased 2.5 times due to (tungsten trioxide – 48.6 thousand tonnes) growing demand. Average prices for molybdenum Initiator: JV Kazakhstan-Russian Ore Company LLP trioxide grew 20% in the same period. Prices for has a contract in place to explore and produce tungsten derivatives are currently growing. The lack molybdenum and tungsten at the Drozhilov field of available financing and low metal content in ore limit supply and act a stimulus for further rare-metal Project implementation location: Kostanai price rises. Oblast, Denisov District Potential markets: Russia, China Raw materials base. Kazakhstan has the highest tungsten reserves in the world (63% of global reserves). It also has significant molybdenum and lithium reserves.

Key investment data Project economics

Index Results 610,000 41% 45% Project implementation period, years 26 36% 40% 510,000 including the investment stage, years 1 35% 410,000 26% 30% operational stage, years 25 24% 25% 310,000 550,063 Investment, US$ thousands 88,556 20% 13% Project NPV, US$ thousands 332,269 210,000 450,777 15% 46.6% 76,662 10% IRR, % thousands US$ 110,000

11,630 302,916 5% EBITDA returns, % 30% 10,000 0% Payback period, years 6.6 Year 2 Year 5 Year 7 Year 20 Year 26 Discounted payback period, years 7.0 Revenue EBITDA margin, %

Project location: Kostanai Oblast Drozhilov field reserves

Metals, thousand Content, % Reser- tonnes ves, Astana mln tonnes Drozhilov field Mo W Li Mo W Li

Pro- 140 263 64.3 0.19 0.05 Almaty ven

Calcu- 131 78 88.3 121 0.06 0.03 0.45 lated

Esti- 300 150 150 0.05 0.05 mated

KAZAKH INVEST: August 2018 1 Investment Proposal Mining and smelting industry

Development of tungsten ores of the Koktenkol deposit

Project Description Market prerequisites: Development of tungsten ores at the Intermediate Availability of raw materials – The spatial section of the Koktenkol deposit (Project) isolation of the tungsten and molybdenum mineralization of the Koktenkol deposit allows you Project Initiator to organize the primary mining of shallow-lying Dala Mining LLP is a private Kazakhstani company tungsten ores of the Intermediate section. that is the copyright holder of the Contract for the development of tungsten and tungsten- Export potential – In 2017, world imports of molybdenum ores of the Koktenkol deposit. tungstates amounted to 11,049 tonnes. The main buyers of ammonium paratungstate in the Output and average annual capacity: international market are the USA, Germany and • ammonium paratungstate (APT) – 3,000 tonnes Japan. The development of the automotive and • molybdenum oxide - 600 tonnes mining industries in these countries opens up • copper hydroxide - 300 tonnes prospects for the supply of products. Growing demand – Over the next 10 years, Manufacturing process: well in-situ leaching (ISL) using oxalic and hydrochloric acids. global demand for tungsten is projected to increase from 72,552 tonnes to 121,679 tonnes Location: Karaganda oblast, Shetsky district (CAGR 5.3%). The growth in demand for tungsten Sales market: Germany, Japan is closely related to the development of the manufacturing industry and the production of automobiles.

Key investment indicators Project profitability 250,000 35% Indicator Result 31% 29% 28% 30% Project implementation period, years 36 200,000 22% 25% incl. investment stage, years 2 17% 150,000 20% operational stage, years 34 13% 15% Investment, US$ thousands 77,769 100,000 10% 89,425

Project NPV, US$ thousands 35,900

US$ thousands US$ 50,000

5%

110,050 124,730 159,447 195,808 IRR, % 26.5% 16,395 0 0% EBITDA returns, % 25% Year 3 Year 7 Year Year Year Year Payback period, years 7.9 10 20 30 36 Discounted payback period, years 9.3 Revenue EBITDA margin, %

Project location: Karaganda Oblast Reserves of the Intermediate site Ore, W gen, Cu gen, Cu gen, thous. W gen, % tonnes % tonnes tonnes 87,340 0.315 274,798 0.222 95,000 Astana

Koktenkol deposit

Almaty

KAZAKH INVEST: October 2018 1 Investment Proposal Mining and metallurgical complex Development of South Zhaur tungsten ore deposit

Project description: Market conditions: Mining and processing of rare-metal ores from South Raw material base – Kazakhstan holds the 6th Zhaur deposit in Karaganda Oblast. place in the world for its tungsten reserves of 2 Products: million tonnes, which accounts for 63% of global reserves. Availability of significant molybdenum • 57% concentrate of tungsten trioxide reserves (160 thousand tonnes) in Kazakhstan • 50% concentrate of molybdenum opens up a potential for reviving the molybdenum Production process: mining industry in the future. • Open-pit Metal price growth – The lack of readily available financing and low metal content in the ore deposits • Sulphide-scheelite flotation, including grinding in are the main reasons for the limited supply of metal one stage, sulphide flotation and scheelite in the market, which in the future, may serve as an flotation. incentive for further price increases for tungsten and Maximum processing capacity: molybdenum. 4,000 thousand tonnes of commodity ore per Growing demand– According to the forecasts, over annum. the next 10 years, global demand for tungsten will Initiator: JV Saryarka Tungsten LLP. increase from 72,552 to 121,679 tonnes (5.3% CAGR). The development of the steel industry Location: Karaganda Oblast, Shetsky district affects the growing demand for molybdenum. In the Project implementation period: 35 years long term it is expected that the growth rate of demand for this metal will be equal to 3.6% per annum until 2024.

Key investment indicators of the Project Project profitability

Indicator Results 250,000 60% 50% 52% Project implementation period, years 35 47% 49% 50% 200,000 41% Incl. Investment stage, years 2 42% 40% Operational stage, years 33 150,000 Investment, US$ thousands 70,942 30% 100,000 Project NPV, US$ thousands 173,323 20%

IRR, % 32.7% US$ thousands

50,000 10%

103,009 130,893 166,994 205,156 51,973

EBITDA returns, % 49% 79,872 - 0% Payback period, years 5.4 Year 3 Year 4 Year 10 Year 20 Year 30 Year 35 Discounted payback period, years 6.7 Revenue, US$ thousands EBITDA margin, %

Project location: South Zhaur deposit reserves (JORC) Karaganda Oblast Balance reserves by С2 category Indicator Composition, Quantity, tonnes % Astana Ore 122,189,700 Tungsten 198,953 0.163 South Zhaur trioxide district Molybdenum 13,062 0.010

Almaty Bismuth 6,408 0.005

KAZAKH INVEST: Аugust 2018 г. 1 Investment proposal Mining and metallurgical complex

Extraction and processing of cobalt-nickel ore deposit Shevchenkovskoye

Project Description Market prerequisites: Extraction and processing of cobalt-nickel ores from Rising prices for metals – According to the Shevchenkovskoye deposit forecasts of S&P and Capital IQ, prices for nickel will Project Initiator rise by 23.9%, from US$ 12,985 per tonne in 2018 “KazCobalt” LLP, subsoil user of the deposit JSC to US$ 16,094 per tonne in 2022. Prices for cobalt Qazgeology will rise by 1.6% from US$ 82,695 per tonne in 2018 Production to US$ 84,018 per tonne in 2022. Ferronickel Rising demand for metals – Development of Reserves industries (e.g. production of electronic devices, medical equipment and electric vehicles), that use according to 2005 estimates from Bateman Minerals and Metals Ltd., Shevchenkovskoye deposit nickel batteries, will provide long-term demand for reserves amount to 104.4 million tonnes of ore, the metal. According to WMBS, in 2017, the deficit of containing on average 0.79% of nickel and 0.045% refined nickel on the world market amounted to of cobalt. around 96 thousand tonnes. According to Palisade Project location: and Macquarie, demand for cobalt will rise by 5.1% 50 km to the south west of Zhetikara, Kostanay annually within the next 5 years. Oblast Export potential– In 2015, China consumed 65% of Potential consumer markets total world produced cobalt and nickel products. With Kazakhstan, China the rapidly developing market of electronic devices and electric vehicles, China’s reserves of cobalt and nickel are depleting.

Key Investment indicators Project Profitability

Indicator Results 250,000 72% 73% 76% Project implementation period, years 46 74% 200,000 72% incl. investment stage, years 1 69% 67% 70% operational stage, years 45 150,000 68% 66% Amount invested, US$ thousands 250,000 100,000 62% 64% Project NPV, US$ thousands 175,989 62%

IRR, % 19.3% thousands US$ 50,000 60%

143,332 230,669 214,951 87,253 58%

Rate of return in terms of EBITDA, % 71% 0 18,385 56% Payback period, years 7.5 Year 2 Year 6 Year 10 Year 30 Year 46 11.7 Discounted payback period, years Revenue EBITDA margin, %

Project location: Ore field description Кostanay Oblast, 50 kms to the South-West from Explored reserves of С1 and C2 categories the town of Zhetikara Indicator Amount, tonnes Ore 104.4 million Proven 21.4 million Astana Shevchenkovskoye Possible 83 million field Nickel 825 thousand (0.79%) Cobalt 47 thousand (0.0455) • Ore extraction on Shevchenkovskoye can be carried out through an open pit mining, since Almaty the depth of ore deposits reaches 40m. • Extraction of nickel and cobalt by hydrometallurgical and electric smelting methods amounts to 90-95% for nickel and 85- 90% for cobalt.

KAZAKH INVEST: August 2018 1 Investment proposal Mining and metallurgical complex

Cobalt-nickel ores mining and processing at the Gornostayevskoye deposit

Description of the Project Market conditions: This investment project provides for the creation in Rising prices for nickel and cobalt. Since the end the East Kazakhstan region of a metallurgical of 2018, there has been a positive trend, largely complex for the processing of cobalt-nickel ores to related to the growth in demand for electric cars and produce nickel and cobalt their production, the average annual forecast growth rate of nickel prices from 2020 to 2023 is 2%. Project goals: Export potential. Reserves of Kazakhstan allow • creation of a metallurgical complex on the basis them to be exported in significant volumes to China, of an innovative renovation of an industrial South Korea, Russia, Japan and Ukraine. The enterprise, ensuring the efficient use of natural increase in demand for high-quality nickel is resources and improving the quality of products; associated with ongoing raw material restructuring • production of high-quality products that meet among steel producers in Europe. In addition, the international standards to enter the international global structural deficit in the nickel market will market. continue after 2020. This is due to the introduction by the Government of Indonesia of a ban on the Production capacity: export of nickel ore from January 2020 and the • nickel - 5,000 tonnes per year, with a subsequent continued growth in demand for metal from increase to 10,000 tonnes per year; manufacturers of batteries for the automotive industry. • cobalt - 365 tonnes per year, with a subsequent increase to 730 tonnes per year. Low competition in the domestic market. Nickel-containing ore was not processed on an Initiator: SAT & Company JSC industrial scale in Kazakhstan, which makes it possible to completely replace imports and expand the country's export potential. Key investment indicators of the Project Project profitability

Indicator Results 250,000 46% 50% Investment amount, US$ 39% 90,277 200,000 37% 40% thous. 34% 33% Project NPV, US$ thous. 275,593 150,000 30% IRR, % 23.2% 100,000 20% EBITDA yield, % 39.72%

US$ thousands US$ 50,000 10%

89,086 90,572 97,143 227,791 Payback period, years 6.3 102,603 0 0% Discounted payback period, 8.1 Year 2 Year 3 Year 6 Year 7 Year 10 years Revenue, US$ thousands EBITDA margin, % Project location: East Kazakhstan Region, Field Reserves Beskaragai district

Cut-off Volume Tonnage Metal Ni Ni (%) Co (%) Metallurgical grade (thous. m3) (kt) (kt) complex

Nur-Sultan Indicated

67,851 88.2 0.57 503.4 0.039

1.3

Inferred Almaty

62,432 81.2 0.61 497.4 0.038

KAZAKH INVEST: April 2020 1 Investment proposal Mining and smelting industry

Extraction and processing of nickel-cobalt ore deposit Bogetkol

Project Description Market prerequisites: This investment project provides for the extraction Rising prices for nickel and cobalt. According to and processing of nickel-cobalt ores from the forecasts by Bloomberg analysts, the average nickel Bugetkol deposit in the Aktobe region (the price in 2019 will increase by 27% and amount to “Project”). US$ 13,550 per ton, and for the period 2019 – 2022, Project goals: the average annual price will increase yearly by 9% • Development of the resource base of Sary Arka and rise to US$ 15,900 per ton by 2027. Mining Company LLP, creation of an effective Export potential. The country's domestic demand integrated business for the extraction and processing of cobalt/nickel ores and the sale of for cobalt and nickel is low, so it is possible to cover final products in the domestic market and it with excess. nickel-cobalt ore reserves in abroad; Kazakhstan allow the export of this mineral in • obtaining high-quality, export-oriented, significant quantities to China, South Korea, Russia, competitive products through rational and Japan and Ukraine. China is the main importer of effective field development using advanced nickel, nickel concentrates, cobalt ores and cobalt proven technologies. concentrates. Project Initiator In-situ recovery (ISR) method of mining with Mining company "Sary Arka" LLP sulphurous acid leaching: The extracted productive solution (which contain nickel and cobalt Production ores) then goes to the processing plant. Received • Nickel concentrate; productive solution further goes through the • Cobalt concentrate. following stages: Annual production capacity: • Nickel/cobalt extraction from pregnant solutions Nickel – from 4,508 to 9,125 tons, Cobalt – from by ion exchange; 281 to 580 tons. • Eluate neutralization; Key Investment indicators • Nickel/cobalt sulphate purification and recovery; Indicators Results • Tailings neutralisation, storage and evaporation. Investment amount, thous. 574,743 Project Profitability USD 72% 72% 57% 250 000 70% 68% 80% Project NPV, thous. USD 384,347 52% 200 000 60% IRR, % 35.5% 150 000 40%

-15% 222 558222

EBITDA margin, % 58-61% 100 000 20%

192 735192

189 879189

181 417 181 US$ thousand US$

50 000 082 22 0%

Payback period, years 4.2 419145 98 615 98 Discounted payback period, 0 -20% 4.9 years Year Year Year Year Year Year Year Project location: 2 3 4 5 26 27 28 Aytekebi district, Aktobe region Revenue, US$ thousand EBITDA margin, % Field Reserves Ni, Co, mln Nur-Sultan Category %Ni %Co thous. thous. tones Bugetkol tones tones field Inside Tenement Indicated 36.01 0.68 0.037 243,366 13,221 Inferred 1.76 0.68 0.039 11,986 682 Outside Tenement Almaty Indicated 1.11 0.71 0.041 7,855 454 Inferred 0.39 0.55 0.045 2,140 173 Total Indicated 37.12 0.68 0.037 251,221 13,675 Inferred 2.15 0.66 0.040 14,126 855 KAZAKH INVEST: December 2019 15 Investment proposal Mining and smelting industry

Construction of the mining and metallurgical facility to mine and process tin ores

Project overview: construction of the mining and Market assumptions: metallurgical facility to process 2 mln tonnes of ore at Available raw materials base – The Syrymbet the Syrymbet deposit (“Project”). deposit is Kazakhstan’s only and world’s biggest Processing capacity: 2 mln tonnes of ore a year undeveloped deposit of explored and classified tin Raw materials: tin, copper and fluorite ore reserves, according to the 2012 JORC Code. Production: Import substitution and potential export – Tin is not produced in Kazakhstan, and the country is Main products: totally dependent on imports. Tin is imported from 1) Tin concentrate - an average of 3,500 tons of tin in Indonesia, Russia, Belgium, Poland and China. The concentrate per year; 2) Tin sublimates - an average latter is the largest tin consumer and accounts for of 4,900 tons of tin in concentrate per year. 48% of the overall import of tin products in the By-products: world. 1) Copper concentrate - an average of 2,000 tons of Rise in prices and demand - The world prices for copper in concentrate per year; 2) Fluorite tin and tin concentrate are currently rising due to concentrate - an average of 173,000 tons of fluorite in the increasing demand for this product as a result of concentrate per year stabilization of the world economy. Initiator: Tin One Mining JSC is operating based on a 30-year subsoil use license in Kazakhstan dated Sept. 23, 1998 (5 yrs of exploration and 25 yrs of mining) Location: North-Kazakhstan Oblast Sales market: Kazakhstan, China, Russia

Key investment indicators Project profitability Indicator Result 350 74% 80% 68% Project implementation period, years 15 300 57% 70% 54% incl. investment stage, years 2 250 51% 60% operational stage, years 13 50% 200 285,136 mln Investment, US$ thousands 40% Project NPV, US$ thousands 380,017 150

US$ 30% Project NPV, US$ thousands (without 16% 276,642 100 accounting for tax preferences) 20% 50

IRR, % 41.2% 10%

242 324 272 302 225 45 EBITDA return, % 51% 0 0% Year 3 Year 4 Year 5 Year 6 Year 7 Year 15 Payback period, years 4.7 Discounted payback period, years 5.3 Revenue, US$ mln EBITDA margin, % Project implementation location: Deposit reserves North-Kazakhstan Oblast Ore, Tin One Mining JSC’s Tin, Category thousand Tin, % plant tonnes tonnes The Syrymbet deposit Measured 46,552 0.46% 214,139 Astana Indicated 9,164 0.33% 30,241 Probable 68,945 0.37% 256,632 Total 124,661 0.40% 501,012

Almaty

KAZAKH INVEST: October 2018 1 Investment proposal Mining and metallurgical complex

Construction of Tymlai Mining, Chemical and Metallurgical Complex

Project overview: Market prerequisites: Construction of a mining, chemical and metallurgical Stable demand. High historical production growth complex for the production of derivative products rates and strategic importance for the further development of industries using steel and titanium from processing of titanium magnetite ores. The dioxide as raw materials create a steady demand for complex consists of two production facilities: a the products produced within the Project. mining and processing plant at the Tymlai ore field Import substitution and export. The lack of and a chemical and metallurgical plant in the SEZ production of titanium dioxide in Kazakhstan, and a Pavlodar. small amount of production in the CIS, creates Production volume: prospects for sales. Regarding alloyed types of steel, the volume of imports for the last 5 years were in 1) Titanium dioxide – 601 thousand tonnes per average 828 thousand tonnes in the Russian year; 2) Special steel – 1956 thousand tonnes per Federation and 2,627 thousand tonnes per year in year; 3) Silicon dioxide – 76 thousand tonnes per the PRC. Moreover, currently there are forward year. contracts for the supply of special types of steels Products: 1) titanium dioxide pigment; 2) special being already signed. steel grades; 3) silicon dioxide; Initiator: TENIR-Logistic LLP Location: Zhambyl Region, Kordai District; SEZ Pavlodar Potential customers: Kazakhstan, nearby countries

Key investment indicators Project profitability Indicator Result 4,000 56% 70% 55% 56% 56% 56% Project implementation period, years 29 3,500 54% 60% 3,000 incl. investment stage, years 7 41% 50% 2,500 operating stage, years 26 40% 2,000 Investment amount, $US thousands 2,585,904 30% 1,500 Project NPV, $US thousands 5,465,840 US$ millions US$ 1,000 20%

IRR, % 46.4% 333

500 339 10%

1,778 3,638 3,714 2,091 EBITDA margin, % 57% 1,735 0 0% Payback period, years 7.5 Year Year Year Year Year Year Year Discounted payback period, years 8.1 4 5 6 7 8 9 29

Revenue, US$ mln EBITDA margin, %

Location of project implementation: Kordai Ore field reserves district of Zhambyl region; SEZ Pavlodar Industrial reserves Prognosed resources Name of the ore (mln tonnes) (mln tonnes) deposit C1 C2 P1 P2 SEZ Pavlodar Tymlai 226 Sarysai 100 60 44 Astana Akdala (South) 70 40 20 Akdala (North) - - 30 229

Akterek - - 10 47 00km

Total: 396 100 104 276 13 Total C1+C2+ 876 +P1+P2 Almaty Tymlai ore field

KAZAKH INVEST: August 2018 1 Investment proposal Mining and metallurgical complex Development of Alaigyr lead-silver deposit

Project overview: Market assumptions: This investment project provides for the exploitation Growing demand. According to BMI Research, the and development of Alaigyr lead-silver deposit world primary market of lead will experience (“Project”). shortfall by 2019 amid gradual supply cuts: lead Raw material: consumption will exceed its production by 10 thousand tonnes in 2019. According to the Silver lead-silver ores Institute, the last five years are characterised by a Product: global silver shortfall; in 2017, this index reached 35 Concentrate containing: mln ounces (810 tonnes). The metal mining declined • Lead - about 30 thousand tonnes per year (a 4% fall in 2017). • Silver - about 13 thousand kilograms per year Import substitution. Although the lead and lead- Initiator: ore production consistently increased over the past National Company Tau-Ken Samruk JSC, which few years, the country’s market was met by 46% specializes in exploration, development, production, only. Metal production in the domestic market processing and sale of solid minerals. amounted to 112 thousand tonnes in 2017, while its Project’s operator -Alaigyr LLP. consumption was 245 thousand tonnes. Location: Karaganda Oblast, on the border between Shetsky and Karkaralinsky districts Potential market: Domestic market, KazZinc LLP

Key investment data Project profitability

Index Results 120,000 54% 60% 51% Project implementation period, years 25 100,000 50% 37% including investment period, years 2 80,000 40% operation period, years 23 30% 60,000 30% 25% Investment, US$ thousands 177,962 17% 40,000 20% Project NPV, US$ thousands 49,002 US$ thousands

20,000 10%

110,753

84,549 76,077 78,923 92,440 IRR, % 19.9% 50,330 EBITDA return, % 43% - 0% Year 3 Year 4 Year 5 Year 10Year 17Year 25 Payback period, years 7.3 Discounted payback period, years 12.5 Revenue, US$ thousands EBITDA margin, %

Project implementation location: Deposit reserves approved by Kazakhstan Karaganda Oblast State Reserves Committee

Grade Amount Ore, Category thousands Аstana of tonnes Ag, Pb, % Pb, tonnes Ag, kg g/t Alaigyr depost С1 13,160 5.69 27.6 784,500 362,600

С2 5,358 4.70 22.4 251,700 120,200

Almaty Total 18,518 5.60 26.1 1,036,200 482,800

KAZAKH INVEST: Август 2018 г. 1 Инвестиционное предложение Mining and smelting industry

Construction of a mining and processing plant for the production of manganese concentrate

Description of the Project Market conditions: The present investment project (the “Project”) High demand. Manganese in ferromanganese provides for the construction of a mining and alloys is used to “deoxidize” steel during its melting processing complex for the production of (to remove oxygen from it). The high growth of manganese concentrate at the Karamola deposit in steel production in the world and the strategic importance of the further development of industries the Almaty region. using steel as raw materials create a steady demand Product: manganese concentrate. for the products manufactured under the Project. Aims of the Project: Creation of an innovative According to the forecasts of the International Steel Association, the global demand for steel and steel mining and metallurgical complex for the production products will increase by 1.4% in 2019. According to of manganese concentrate in the Almaty region. Lucintel forecasts, the average annual growth rate Manufacturing process: The developed (CAGR) for steel pipes will be 1.6% in 2019-2024. technological enrichment scheme includes two-stage Export potential. China is the world's largest crushing of the initial ore to a fineness of 40 mm, importer of manganese concentrate (27 656 followed by wet screening into fineness classes of thousand tons in 2018). Russia is the fourth largest 40-5 mm, 5-125 mm and 1.25-0.0 mm. importer of manganese concentrate (1318 thousand tons in 2018). Over the past 5 years, the growth Initiator: Tentek LLP. rates of imported manganese concentrate by China Production volumes: and Russia amounted to 14.3 and 6.6%, ore - 49.6 thousand tons per year, respectively. concentrate - 19.2 thousand tons per year.

Key investment indicators of the Project Deposit reserves Currently, one area has been explored with Indicator Results estimated reserves of 1.5 - 2.0 million tons of manganese ores, including the estimated and Investment amount, US$ 10,114 approved GKZ RK C1 - 233.4 thousand tons (Mn thous. 22.65%), C2 - 215, 0 thousand tons (Mn 22.53%). Project NPV, US$ thous. 5,651 The reserves of the deposit are estimated at more than 16 million tons of manganese and 80 million IRR, % 24.04% tons of ore. The manganese content in ores varies from 12-14% to 38-46%, with a phosphorus content EBITDA yield, % 75.2% of up to 0.1%. Estimated reserves in general for 23 ore sites (including the Karamola deposit) of the Payback period, years 6.48 Karamola area are estimated at 250 million tons.

Discounted payback period, 8.22 years Project location: Alakol district, Almaty Oblast Project profitability 77% 8 000 77% 77% 76% 78% 7 000 76% 73%

6 000 74% . Nur-Sultan 5 000 72%

thous 4 000 68% 70%

Karamola deposit 3 000 68% US$ 2 000 66%

1 000 64%

2,669 4,266 6,851 6,978 7,104 7,242 Almaty 0 62% Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Revenue, US$ thous. EBITDA margin, %

KAZAKH INVEST: December 2019 17 Investment proposal Mining and smelting industry

Development of Kulan-Ketpes fluorite ore deposits

Project description: Market conditions: R The Project involves development of fluorite ore ich resource base deposits and ore enrichment plant construction at The Kulanketpes ore field with a balance of Kulan-Ketpes ore field fluorite reserves of 2,931 thousand tons is one of the largest deposits in Kazakhstan. Product: Pricing advantage • fluorspar (acid and ceramic grades containing The favorable location of production plant near to its 75%, 90%, 95%, 97% CaF2); main consumers and tariffs imposed by the Eurasian • manganese concentrate (37% content). Economic Union on fluorspar imports (9-10%) provide substantial geographical pricing advantage Initiator: on the Russian fluorspar market. Muyunkum-Mineral LLP Growing demand and production volume contraction Location: Due to increasing operational and transport costs, a Muyunkum district, Jambyl Region principal Russian fluorspar manufacturer halted fluorspar production. Potential markets: Low production cost large-scale manufacturers in chemical, steel, High processability of the Kulan-Ketpes ore and nuclear, and aluminium industries of CIS countries homogeneity of its mineral content allow to configure an economical technological process with minimal manufacturing and operational costs while adhering to the highest international products quality standards.

Key financial measures Project Profitability

Measure Value Project’s life, years 24 incl. development period, years 3 operational period, years 21 Investment amount, USD thousands 68,157 Project’s NPV, USD thousands 16,499 IRR, % 21.0% EBITDA margin, % 26% Payback period, years 8.5 Discounted payback period, years 11.5 Project location: Muyunkum district, Jambyl Deposit reserves, category C1+C2 Region

Ore, Fluospar, Content, Measure thous. thous. % tons tons Nur-Sultan

Vein deposits 5,764 1,667 28.92%

Kulan-Ketpes ore field Stratified deposits 5,946 1,264 21.26% Almaty

Total 11,710 2,931 25.02%

KAZAKH INVEST: December 2019 11 Investment proposal Mining and smelting industry

Construction of a complex for the production of barite concentrate in Mangystau Oblast

Project description: Project implementation assumptions: The project involves construction of a complex for Existence of a rich resource base. the extraction of barite-celestine ores and their The Aurtas deposit, located in Mangistau Oblast, is processing into barite concentrate for use as the largest barite ore deposit with a balance stock of weighting agents for drilling muds. The mining of 3.5 million tons of ore. Additionally, ore reserves barite-celestine ores and their processing will be may increase during additional geological carried out at the North Aurtas deposit. exploration of the area during mining operations. Product: Barite-celestine based weighting agent Advantageous location. The geographical proximity of the Aurtas deposit to («BCWA»), carbonate based weighting agent the oil and gas fields of western Kazakhstan and to («CWA»). the Caspian Sea and the ports of Aktau and Kuryk Reserves (Category C1): provides a favorable logistic advantage in the delivery of final products to both domestic and 3,579 thousand tons foreign consumers. Initiator: Development of the oil and gas industry of Chemicals trading LLC. Kazakhstan. Location: The last four years, the volume of purchases of the entire oil and gas market in Kazakhstan has Mangystau district, Mangystau Oblast increased by an average of 20% per year. The total Annual production capacity: amount of oil services purchased in 2018 amounted to US$ 8.26 billion, which is 15.5% more than in 200 thousand tons of ore per year; 2017 (US$ 7.15 billion). • BCWA - 186 thousand tons; Lack of competition in foreign markets and • CWA - 14 thousand tons. export potential. Key investment indicators According to the analysis of competitors in foreign markets in Turkmenistan, Russia, Azerbaijan and Saudi Arabia, the extraction and processing of barite Indicator Results is insufficient or completely absent to meet domestic Amount of investments, US$ demand. 14,123 thousands

Project NPV, US$ thousands 14,999

IRR, % 32.5%

EBITDA margin, % 34-41%

Payback period, years 5.0

Discounted payback period, 6.1 years Project location: Mangystau district, Project profitability Mangystau Oblast

Nur-Sultan

Aurtas deposit Almaty Shymkent

KAZAKH INVEST: December 2019 9 Investment proposal Mining and metallurgical complex

Steel production at the Velikhovskoye deposit in Aktobe Oblast

Project Description: Market assumptions: The project provides for the construction of a Steady demand for steel. High rates of historical complex for the production of steel, through the production growth and the strategic importance of beneficiation and processing of iron-bearing ores at further development of industries using steel as raw the Velikhovskoye Yuzhnoye deposit in the Aktobe materials create a stable demand for the products region. that the project is going to produce. Raw materials: Further growth in demand for steel. According Low alloy construction steel, carbon construction to the forecasts of the International Steel steel, quality carbon construction steel Association, the global volume of demand for steel and steel products will increase by 1.8% and 0.7% Initiator: Aktobe-Temir-VS Subsidiary, JSC in 2018 and 2019 respectively. Location: Kargalinsky district, Aktobe oblast Potential for import substitution and export of Potential markets: Kazakhstan, Russia, China steel. The existence of the trade deficit over the past few years shows a good potential for import substitution and the availability of stable demand for steel on the domestic market of Kazakhstan. Also, due to the geographical proximity of large world steel consumers such as Russia and China, there is good export potential for the supply of products to these countries.

Key investment indicators Project Profitability

Index Results 900 39% 40% 800 38% 39% Investment, US$ thousands 550,727 700 38% 38% 39% 37% 600 38% Project NPV, US$ thousands 421,198 500 37% 38% 37% IRR, % 25.9% 400 37% 300 37% EBITDA returns, % 38% millions US$ 200 36%

100 36%

471 596 625 622 611 821 Payback period, years 6.8 306 0 35% Discounted payback period, years 8.8 Year 4Year 5Year 6Year 7Year 8 Year Year 14 23 Revenue, US$ mln EBITDA margin, %

Project location: Kargalinsky district, Aktobe Estimation of resources according to JORC Oblast Average Cut-off Type Category tonnage Content grade Fe (%)

Magnetite resources, Measured 16 112,851,680 20.91 Velikhovskoye South ore body – I Martite resources Deposit Astana Measured 16 4,455,263 20.86 <30% Fe Magnetite resources, Inferred 16 344,762,786 20.02 ore body – I Magnetite resources, Inferred 16 9,829,786 20.18 ore body – II Martite resources Inferred 16 17,570,097 19.59 <30% Fe Martite resources Almaty Inferred 20 4,991,815 41.00 >30% Fe

Total - - 494,461,430 20.43 Report on the Mineral Resources of the Velikhovskoye South deposit in accordance with the JORC Code for February 2, 2012 KAZAKH INVEST: September 2018 1 Investment proposal Mining and smelting industry

Construction of a metallurgical complex for the production of pig iron in Mangystau Oblast

Project overview: Project implementation assumptions: The project involves construction of a complex for Deficiency of ferrous scrap. In Kazakhstan, there the production of pig iron, with ROMELT technology. is currently a shortage of ferrous scrap caused by its Iron ore mining and crushing will be carried out at export ban. Since the ban in 2014, the volume of the Beskempir deposit. The processing complex with domestic consumption of ferrous scrap has the ROMELT technology, to which iron ores are decreased by 50-60% compared with 2011. going to be transported after crushing, will be Rich resource base. The Beskempir deposit, located on the SEZ "Seaport Aktau". located in the Mangistau Oblast in the central part of the Karatau ridge, is the largest iron ore deposit, the Product: Intermediate pig iron reserves of which are approved under the State Reserves Committee of the Republic of Kazakhstan Production process: in category C2, amounted to 13,812 thousand tons. Mining – open-pit; Iron ore is characterized by a high iron content and Processing – ROMELT, liquid phase recovery with the absence of impurities. Also, the Mangistau oblast energetic coals. is rich in natural gas reserves. Initiator: Technogran Aktobe LLC. Production technology. ROMELT technology for Location: Mangystau district, Mangystau Oblast. ore processing is based on direct iron reduction technology without an enrichment stage, which has Consumer market : China. a number of economic advantages in the production Annual production capacity: of pig iron. 240 thousand tonnes of pig iron.

Key investment indicators Deposit reserves and its provision Provisi Reserves, Indicator Results Content, Site on, thousand Fe, % Amount of investments, US$ years tonnes 172,340 thousands On-balance 23 13,811.64 43.88 Project NPV, US$ thousands 152,771 reserves, C2 North 5,760.19 40.39 IRR, % 27.4% Central 1 5,608.23 46.67 EBITDA margin, % 51% Central 2 1,424.06 46.89 Central 3 1,019.15 44.12 Payback period, years 5.7 Off-balance 22 13,696.26 40.19 Discounted payback period, reserves 7.2 years Total 45 27,507.9 42.04 Project location: Mangystau district, Project profitability Mangystau Oblast 140 000 52% 51% 53% 52% 120 000 51% 49% 51% 52% 51% 51% 100 000 51%

Nur-Sultan 80 000 177130 51%

119 075119 50% 108 495108

60 000 281 99

105 145105 97 866 97

102 110102 50% Metallurgical complex 40 000 49% 49% 20 000

48% US$ thousands US$ 0 48% Beskempir Year Year Year Year Year Year Year deposit Almaty 3 4 5 6 7 17 24

Revenue, US$ thousands EBITDA margin, %

KAZAKH INVEST: December 2019 6 Investment proposal Mining and metallurgical complex

Construction of a metallurgical complex for the production of pig iron in Aktobe Oblast

Project description: Market prerequisites: The project involves construction of a complex for Existence of a rich resource base. Aktobe Oblast the production of pig iron, through beneficiation and has a number of deposits with reserves of iron ore. processing of iron-bearing ores from nearby Moreover, Aktobe region borders with Karaganda deposits in Aktobe Oblast. and Kostanay Oblasts, which have the greatest Product: intermediate pig iron amount of iron ore deposits across Kazakhstan. Initiator: Altyn plc. Positive price dynamics. After a downturn in 2014-2015, the last two years have shown prices for Location: Shalkar district, Aktobe Oblast pig iron returning to a positive trend. According to Consumer markets: China, Russia, Kazakhstan the forecasts of market participants, prices for this Annual production capacity: metal will continue to move in a positive trend and • 826 thousand tonnes of pig iron; will stabilize in the near future. • 800 thousand tons of granulated slag. Potential for pig iron exporting. Currently, in Kazakhstan, the export of pig iron is underdeveloped. In particular, exports to China are completely non-existent. Moreover, the import of pig iron in Russia and China is growing rapidly, thereby creating exporting potential for producers in Kazakhstan. Projected growth in demand for cast iron. According to the forecasts of the International Steel Association, the global demand for steel (product Key investment indicators obtained from pig iron processing) will increase by 3.9% and 1.4% in 2018 and 2019, respectively. Indicator Results Thus, taking into account the specifics of the iron and steel market, the growth in demand for pig iron Amount of investments, US$ 497,047 is also expected. thousands Developed railway infrastructure. In the village Project NPV, US$ thousands 653,709 of Shalkar (location of the metallurgical complex) IRR, % 55.2% there is a railway station named "Shalkar". A significant competitive advantage of the Shalkar EBITDA margin, % 66% station lies within its direct railway access towards China, Russia, as well as towards the seaport of Payback period, years 5.1 Kuryk, through which maritime shipping across the Discounted payback period, Caspian Sea is carried out. 5.5 years

Project location: Shalkar district, Aktobe Project profitability Oblast 500 60% 52% 450 50% 400

350 448 40%

300 390 30% 335

Astana 250 327

319 312 Metallurgical 200 307 20% complex 150

US$ millions US$ 10% 2% 2% 3% 2% 1% 2% 100 0% 50 0 -10% Year 4Year 5Year 6Year 7Year 8 Year Year 17 26 Almaty Revenue, US$ millions EBITDA margin, %

KAZAKH INVEST: October 2018 1 Investment proposal Mining and metallurgical complex

Development of iron ore deposits in Chumekskaya field in the East Kazakhstan Oblast

Project description: Market assumptions: The project involves completion of exploration works High demand. Demand for iron ore, primarily due at the Chumekskaya iron ore field in East to the demand for steel, directly reflects the Kazakhstan Oblast, with subsequent extraction and development trends of the world economy. sale of iron-bearing ores. According to estimates from Commercial product and annual volume of The Eсonomist Intelligence Unit («EIU»), in the production: foreseeable future, steel production will grow by 4% in 2019 amounting to 1692 million tonnes. iron ore – 5,691 thousands tonnes Export potential. Since the production of iron ore Based on preliminary research data, the given ore in the country fully provides domestic demand for deposits stand out for the high quality and this product, the main share of pellets and compliance with the most stringent technological concentrate, produced in the republic, is supplied requirements of metallurgical enterprises. This beyond its limits. At the same time, the key sales means that there is no need for additional markets (90%-99% are in Russia and China. Being technological processing. After extraction and ore- the largest producers of iron ore, China and Russia preparation, the ore will be ready for sale. are also considered as the world’s largest consumers Initiator: Lacus Mining LLP and imports, since these countries occupy a leading Location: Kurchumsky district, East Kazakhstan position in the production of steel all over the world. Oblast In 2017 total annual imports of iron ore of China and Russia amounted to 1084 million tonnes. Consumer market: ferrous metal processing plants of China and Kazakhstan.

Key investment indicators Project Profitability

Index Results 800,000 70% 56% 58% Project implementation period, years 36 700,000 55% 53% 60% Including the investment stage, years 6 600,000 46% 50% Operational stage, years 30 500,000 816,792 40% Investment, US$ thousands 400,000 242,629 30% Project NPV, US$ thousands 300,000 IRR, % 19.2% 20% US$ thousands US$ 200,000

EBITDA returns, % 54% 100,000 10%

375,491 487,557 544,418 668,761 640,617 Payback period, years 9.9 0 0% Discounted payback period, years 14.0 Year 7 Year 15 Year 20 Year 30 Year 36 Revenue EBITDA margin, % Project location: Kurchumsky district, East Proprietary estimation of field reserves Kazakhstan Oblast Ore, Iron Type of reserves million content, % tonnes Chumekskaya field Astana Martite, magnetite ores 179 62.5

Disseminated mineralization 317 62.5

Reserves were estimated according to National Recourses Committee standards on the basis of geophysical works carried out Almaty in 2017 and historical exploration data from 1965. A report on geophysical works at Chumekskoye field was prepared by ITSETI LLP (ТОО ИЦЭТИ) in November 2017.

KAZAKH INVEST: September 2018 1 Investment proposal Kokbulak Mining andindustry smelting , amount Investment Discounted payback period payback Discounted Payback period margin EBITDA IRR NPV Project Aktobe location Project January Domestic market Domestic market Selling 24 : period implementation Project Aktobe Location steel produce60% to Concentrate withaniron contentof at least Product Capacity amount Investment build Development of Project overview Key investment indicators investment Key years concentrate concentrate 2018 Oblast Oblast, Oblast, : , , : : including construction period US$ thousands US$ Indicator 8 - , million tonne/year years , Aktobe Shalkar : Kokbulak : , US$ thousands US$ enrichment plant enrichment Russia and China and Russia : : - iron ore deposit ore iron , Steel ProductionLLP US$ 418,986 thousand years district iron ore depositoreiron and Result 418, 36,668 14.9% Investment 24% 16. KAZAKH INVEST: 986 9 . 3 4 proposal

US$ thousands 1,000,000 Total C2 Total C1 C2 Total: C2 C1 Total C1 B Market prerequisites Market Kokbulak profitability Project • • • 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Class : : : High demand High reserves ore reserveswith a 2% ofshare global ranks11ththe in worldterms in of iron reserves ore iron Large Export potential developmenttrends economicglobal steel, which,in turn, directly reflects of all, conditionedbythe demand for China (90 China exported, predominantly to Russiaand isconcentrate andpellets produced domestic demandfull, in theof bulk iron ore produced in Kazakhstanmeets 0 Year 4 Year 12% Reserves, tonnes million Revenue, US$ thousands US$ Revenue, 276,913 648.8 238.1 295.9 410.7 295.9 611.2 561.9 361.2 198.1 163. deposit deposit 49.3 . - Year 5 Year 1 23% 99%) 471,748 - Central zone Central Off South zone North zone North Ironore demand is,first Fe, % Fe, reserves . - Year 6 Year 21% – balance 27.2 28.3 35.2 26.6 35.2 38.1 37.9 42.1 39.4 37.8 41.3 626,980 Since the volume of : Year 7 Year 20%

640,858 – EBITDA margin, % P Kazakhstan 2 O 5 , % Year 8 Year 18% 1.03 1.09 1.38 0.99 1.38 1.39 1.36 1.46 1.57 1.48 1.67 654,925 Year 24 Year Sulphur, 5% . % 0.11 0.09 0.11 0.09 0.06 0.06 0.06 0.08 0.09 0.06 906,006 0.1 54 0% 5% 10% 15% 20% 25% Mining and metallurgical complex Extraction and processing of coking coal from Samarskoye deposit

Project description Market prerequisites: This investment project (the "Project") involves Potential for exporting – In Russia there is a construction of a complex for extracting and shortage of "K" type high quality coal (20% of the processing of coking coal from Samarskoye deposit planned output at Samarsroye deposit). In China, a in Karaganda Oblast. policy is being implemented to reduce coal Project initiator production. These factors suggest an existence of Valdisere Mining LLP opportunity for exporting to those markets. Production and average annual output: Constantly growing prices. Recently, the market • concentrate of “gas fat" and “fat" types of coking has seen an increase in prices for both coal and coals (semi-soft coking coals) - 2686 thousand products processed from it (namely a coal coke as a tonnes result of higher prices for coking coal). In the period • concentrate of grade “coking fat" and “coking" of 2013-2017, the average increase in producer coking coals (hard coking coal) - 1133 thousand prices for coal and brown coal was 12% and 5%, tons respectively. • energy coal - 955 thousand tons High market demand. Constantly developing • By-product (low quality coal) - 637 thousand tons industrial sector dictates the need for ever- Project location: Nurinsky district, Karaganda increasing supply of quality raw materials for the Oblast production of coke. Consumer markets: Kazakhstan, China, Russia

Key investment indicators Project profitability 55% 57% 1 200 51% 51% 60% Indicator Result 47% 47% 1 000 50% Investment amount, US$ 438,276 thous. 800 34% 33% 40% Project NPV, US$ thous. 590,665 600 30%

IRR, % 31.08% 400 20%

US$ millions US$

235 97

EBITDA margin, % 55% 200 99 10%

434 582 796 867 0251 Payback period, years 6.32 0 0% Year Year Year Year Year Year Year Year Discounted payback period, 7.51 7 8 9 10 11 12 18 24 years Revenue, US$ mln EBITDA Margin, %

Project location: Nurinsky district, Karaganda Deposit resources Oblast Estimated reserves 751 mln tonnes

Astana Kazakhstan Balance Off-balance reserves reserves 268 mln tonnes 483 mln tonnes Samarskoye deposit

Allowed for extracting* Almaty 105 mln tonnes

• Volatile – 34-40% Sulfur – 1,8-2,2% • Phosphorus – 0,03-0,06% *permission for extracting the rest of balance reserves can be obtained • A, % - 9% without difficulties • Y, mm - 22

KAZAKH INVEST: October 2018 1 Investment proposal Metallurgy and mechanic engineering

Organization of the production of ferrosilicon aluminum in Pavlodar oblast

Description of the Project : Market background: The investment project provides for the construction Growth in demand for steel. According to the of a plant for the production of ferrosilicon aluminum forecasts of the International Steel Association, the in Ekibastuz. global demand for steel and steel products will increase by 1.4% in 2019. Lucintel expects steel Production and annual capacity : demand to grow. Compound annual growth rate Ferrosilicon aluminum labeled as FS45А10 till (CAGR) will be 1.6% in the period from 2019 to FS65А20 – 60 thousand tons per year. 2024. Raw materials: Low competition. The demand for FSA among steel producers is significant. Competition is made Carbonaceous rock, quartzite, coal only by producers of ferrosilicon. However, the superiority of the FSA over the analogue will cover a Initiator: significant share of domestic and foreign markets. Vtormet Asia LLP Increased production, export and domestic Location: consumption of ferrosilicon. Ferrosilicon Ekibastuz, Pavlodar region aluminum surpasses and replaces the traditional deoxidizers - ferrosilicon and aluminum, reducing Sales market: domestic market, China, Russia. the percentage of defective products and reducing the amount of sulfur, fluorine and other non-metallic parts. The growth of production by 8.8%, exports by 4.3% and consumption by 12.6% in 2017-2018 show growing demand for ferrosilicon and, accordingly, for PSA also as an analog product.

Key investment indicators: Project profitability

120,000 44% Indicator Results 42% 43% 43% Investment, USD thousands 70,000 100,000 41% 42% 80,000 41% Project NPV, USD thousands 86,388 41%

IRR, % 29.5% 60,000 39% 40% 38% 39% EBITDA returns, % 38-43% 40,000

US$ US$ thousands 38% 17,574 Payback period, number of years from the 20,000

6.4 37%

72,774 86,826 96,296 114,091 start of production 105,248 Discounted payback period, 0 36% number of years from the start of 7.9 Year 3 Year 5 Year 10 Year 15 Year 20 Year 24 production Revenue, US$ thousands EBITDA margin, % Location of the Project: Ferrosilicon aluminum and its analogues: Ekibastuz, Pavlodar oblast Pavlodar oblast FSA55А20 FeSi65 Al or Ferrosilicon Ferrosilicon Aluminum aluminum Ekibastuz

Steelmaking Ferrosilicon is used as a deoxidizing agent for steel. FSA surpasses and replaces traditional deoxidizers - ferrosilicon and aluminum

KAZAKH INVEST: September 2019 1 Investment proposal Metallurgy and mechanic engineering

Construction of a ferroalloy plant in Kyzylorda

Description of the Project Market assumptions: This investment Project provides for the construction Growth in demand for ferrosilicon. According to of a ferroalloy plant in Kyzylorda the AlloyConsult analytical agency, global demand for (CAGR 2.7% from 2014 to 2028) ferrosilicon will Production and annual capacity reach 9.5 million tonnes by 2026. • Shop 1 - 42,000 tonnes of ferrosilicon per year; Persistent steel demand. High rates of historical • Shop 2 - 120,000 tonnes of ferrosilicon per year. production growth and the strategic importance of Project goals the further development of industries, which use • Low aluminum ferrosilicon production; steel as raw materials, create a steady demand for • Obtaining high-quality, export-oriented, the products manufactured under the Project. According to the forecasts of the International Steel competitive products using advanced proven Association, the global demand for steel and steel production technologies; products will increase by 1.4% in 2019. According to • Meeting local and global demand for ferrosilicon Lucintel forecasts, steel demand is projected to through the production and subsequent sale of grow. Compound annual growth rate (CAGR) will be products in the markets of Kazakhstan, Europe, 1.6% in the period from 2019 to 2024, and revenue Southeast Asia, North and South America. will be about 68.4 billion US dollars, which will also contribute to the rise of ferrosilicon demand. Initiator: Provision of raw materials. The company National Center on Complex Processing of Mineral concluded long-term contracts for the main raw Raw Materials of the Republic of Kazakhstan, «RSE material base for the production of ferrosilicon, NCCPMRM» fixing prices for a long-term period, which, in turn, helps to maintain low production costs. Key investment indicators Project profitability Indicator Results 300,000 60% 52% 52% 52%52% 52% Investment, USD thousands 242,264 250,000 46% 50% Project NPV, USD thousands 277,539 200,000 40% IRR, % 29.2% 150,000 30% EBITDA returns, % 52%

100,000 20% US$ thous. US$

Payback period, number of years 42,973 6.1

from the start of production 50,000 10%

253,722 253,722 189,662 189,662 197,492 209,313 275,042 0 0% Discounted payback period, Year 3 Year 5 Year 7 Year Year Year number of years from the start of 7.6 10 20 24 production Revenue, US$ thous. Location of the Project: EBITDA margin, % Site of the Industrial Zone, Kyzylorda, Kyzylorda Technological process: Oblast, Republic of Kazakhstan 1st stage – Dosing 4th stage - Alloy of raw materials release

Nur-Sultan 2nd stage – Loading charging 5th stage - Casting material into Ferrosilicon Plant furnace bins

6th stage - Almaty 3rd stage – Alloy Crushing and smelting fractionation of the alloy

KAZAKH INVEST: September 2019 Investment proposal Processing industry

Hydrometallurgical enterprise for ash processing

Project overview: Market assumptions: Construction of a hydrometallurgical enterprise Potential for import substitution and export to process 100 thousand tonnes of ash per year. of silicon dioxide. As far as amorphous silica is Products and capacity: not produced in Kazakhstan and produced only in small amounts in the EEU, there are perspectives • Amorphous silica (silicon dioxide): 56 of selling these goods in the domestic market and thousand tonnes per year abroad. • Alumina: 23 thousand tonnes per year Further growth of demand for silicon dioxide. • Iron concentrate - 10 thousand tonnes per As forecasted by Technavio, the world market of year precipitated silicon dioxide will grow up to US$ Raw material: 3,313.2 mln by 2021. The growth rate of the world market of precipitated silicon dioxide is expected Ash and slag waste from Ekibastuz Thermal to accelerate in 2018-2021, and the compound Power Plant, Ekibastuz Hydroelectric Power annual growth rate will be 6.64%. Plant-1, Ekibastuz Hydroelectric Power Plant-2 Cheap raw materials. Use of the ash and slag Project applicant: waste (ASW) as a relatively cheap raw material for Dmitriev Leonid Nikolaevich the production of goods; reduction of the cost of Location: Pavlodar Oblast finished products, which gives an undeniable advantage to an industry participant. Sales market: Kazakhstan, EEU countries

Key investment data Project profitability 56% 120,000 51% 60% Index Results 51% 49% Project implementation period, years 24 100,000 50% 41% including investment period, years 2 80,000 40% operation period, years 22 60,000 30% Investment, US$ thousands 57,088

Project NPV, US$ thousands 106,259 40,000 20% US$ thousands US$

IRR, % 29.9% 20,000 10%

105,949

74,884 85,110 99,338

EBITDA return, % 52% 36,967 0 0% Payback period, years 5.4 Year 3 Year 4 Year 10 Year 20 Year 24 Discounted payback period, years 6.7 Revenue EBITDA margin, %

Project implementation location: Innovative ASW processing technology Pavlodar Oblast, Ekibastuz district More than 300 technologies are known to process and use ASW, but they are mainly focused on ash application in the construction industry and the production of construction materials and don’t imply extraction of useful and valuable components from Astana ash. The patented hydrometallurgical technology “Aluminosilicate Raw Material Processing Method” (patent No. 28163 registered with the State Register of Inventions of the Republic of Kazakhstan on January 21, 2014; patent No. 2574252 registered with the State Register of Inventions of the Russian Federation on December Shymkent Almaty 30, 2015) help efficiently extract amorphous silica, alumina and iron concentrate from ASW, which is industrially and economically viable.

KAZAKH INVEST: Август 2018 г. 1 Инвестиционное предложение Metallurgy and mechanic engineering

Organization of the production of refractory products in the Karagandy oblast

Description of the Project : Market prerequisites This investment project provides for the Import dependence of the country. Demand for construction of a plant for the production of refractory products in the country doubles their refractory products in the Karagandy city. production. Domestic consumption is met through imports mainly from Russia and China. The share of Production and annual capacity : imports in domestic consumption in 2018 was 51%. • 15,000 tons of refractory products per year The demand for refractory products increases due to Project objectives: their use in ferrous and non-ferrous metallurgy, • creation of an effective integrated business for energy and the chemical industry. the production of refractory products and their Unique technology. The technology of RSE NC implementation in the domestic market; IPMRM using chemically active mixtures allows the • obtaining high-quality, export-oriented products use of chemical energy in the system itself, which in using advanced, domestic, patented production turn accelerates the processes of solid-phase technology; sintering, improves quality and reduces cost. • application of domestic technology for the Stable growth in steel demand. High rates of production of competitive products that facilitate growth in the world of steel production and related import substitution. industries create a steady demand for products. Initiator: Lucintel forecasts that global demand for steel and Republican State Enterprise "National Center for the steel products will increase in 2019-2024 with a Integrated Processing of Mineral Raw Materials of CAGR of 1.6%. the Republic of Kazakhstan“ ("RSE National Center IPMRM") Key Investment Indicators Project profitability

Indicator Results 14,000 32% 35% 29% 28% Investment, USD thousands 7,763 12,000 30% 10,000 22% 25% Project NPV, USD thousands 5,405 20% 20% 19% IRR, % 25.0% 8,000 17% 20% EBITDA returns, % 17-32% 6,000 15%

Payback period, number of years from 4,000 10% US$ US$ thousands 5.0 2,240

the start of production 2,000 5%

5,596 8,511 8,812 9,725

11,788 11,788 10,785 12,778 Discounted payback period, 0 0% number of years from the start of 6.9 Year Year Year Year Year Year Year Year production 1 2 3 5 10 15 20 24 Revenue, US$ thousands EBITDA margin, % Location of the Project Technical process Karagandy city, Karagandy oblast, Republic of Kazakhstan Clay I stage – Mixing (Grinding and drying raw materials up to 100 microns and 1% moisture)) Refractory Nur-Sultan factory II stage – 2 stage Slag of metallurgical Karagandy pressing (I- 10-15 production (Grinding МPА, II – 150-160 up to 100 microns) МPА)

III stage – drying Fireclay bricks fight Almaty and firing in a (Grinding up to 100 tunnel oven microns) (1300-1350оС)

KAZAKH INVEST: October 2019 1 Investment proposal Machinery construction and metallurgy Production of copper pipes

Project overview: Market prerequisites: Construction of a copper pipes production • Import substituition – Kazakhstan does plant not have copper pipes production plant. Investment amount: US$ 59,345 thousand Demand in the domestic market is fully covered by imported goods. Products: copper pipes with external diameter of 6-46 mm as per ASTM standard • Export potential. Kazakhstan’s geographical location and the high Location: demand for copper pipes in China, Special Economic Zone Saryаrka, Russia, Ukraine and Belarus Karaganda city demonstrates opportunity to boost sales. Project implementation period: • Stable growth of raw materials 24 years, including 1 year of construction production. In 2016, Kazakhstan Target markets: Kazakhstan, Russia, China, produced 408,435 tonnes of refined, Belarus, Ukraine and Austria unprocessed and unalloyed copper Suppliers: local suppliers of raw materials, (+ 3.5% compared to 2015). foreign equipment suppliers Consumers: companies operating in the fields of gas supply, heat supply and automotive industry

Project profitability Key investment indicators 250,000 30% 26% Indicator Result 25% 200,000 20% 18% 18% Investment amount, US$ thousands 59,345 20% 150,000 14% 15% Project NPV, US$ thousands 22,587 100,000

US$ thousandsUS$ 10% IRR, % 21.4%

50,000 46,536

33,338 5% EBITDA margin, % 19%

95,043

187,842 235,898 0 0% Payback period, years 6.4 Year 2 Year 3 Year 4 Year 14 Year 24 Discounted payback period, years 9.6 Revenue, US$ thousands EBITDA margin, %

Plant location  Special economic zone provides a special legal regime and preferences to its residents, such as, provision of land plots for the secondary land use (sublease) and infrastructure facilities for lease (sublease) to the persons engaged in ancillary services. Additionally, businesses in the special economy zone receive the exemption from taxes and custom payments until 2036.  Kazakhstan’s geographical location provides convenient access to markets in neighboring countries, which expands export potential for the produced products. The high demand for copper pipes in China, Russia, Ukraine, Belarus and Austria demonstrates opportunity to boost sales.

KAZAKH INVEST: January 2018 1 Investment proposal Machinery construction and metallurgy Production of metal powder

Project overview: Market prerequisites: Setting up a metal powder production with • Lack of competition - the plant of the the use of water atomization method on JSC present project will be the first plant in Excavator base its field in Kazakhstan. Investment amount: US$ 23,308 thousand • Export potential. Currently, the largest Products: consumer of metal powders is China, which imported about 116 thousand PZhR Iron powder tons in 2016. Location: • Low production cost. Kazakhstan South Kazakhstan Oblast produces industrial steel scrap in Project implementation period: excess amounts, therefore, it can be 24 years, including 1 year of construction used as the main raw material in the Target markets: Kazakhstan, Russia and production of metal powders, which will China significantly reduce the cost of production. Suppliers: local metallurgical enterprises and scrap buyers Consumers: production sites

Project profitability Key investment indicators

40,000 80% Indicator Result 35,000 70% Investment amount, US$ 23,308 30,000 60% thousands 48% 25,000 50% Project NPV, US$ thousands 6,795 40% 40% 20,000 40% IRR, % 23.3% 25% 15,000 30% US$ thousandsUS$ 14% 10,000 20% EBITDA margin, % 27%

5,000 10% Payback period, years 5.1

19,705 24,856 28,463 31,926 36,377 0 0% Year Year 3 Year 4 Year 14 Year 24 Discounted payback period, years 7.7 Revenue, US$ thousands EBITDA matgin, %

Initiator of the project Excavator JSC The initiator and executor of the project, Excavator JSC, was founded in 1958. The Company provides a plot (divisible) with existing factory buildings for plant construction Metal powder production plant*

Strategic investor’s equity *New LLP will be established to implement this project and to obtain investment preferences. participation

KAZAKH INVEST: January 2018 1 Investment proposal Metallurgy and mechanical engineering

Launch of long products manufacturing at Aktau Foundry in Aktau city

Project description: Market background: This investment project provides for the launch of Growth in consumer demand for long products. production of long products at the Aktau Foundry, According to Metal Expert forecasts, in the non- carried out as part of a comprehensive residential construction sector, the main drivers of reengineering program. demand will be actively initiated government programs and measures to stimulate industrial Production capacity: production and investment. In the conservative 180,000 tones/year scenario, demand is expected to grow by 3-5%. Project objectives: Import substitution. Growth in consumer demand •Creation of an efficient integrated business for long has sharpened competition between domestic product production and its sale on domestic and producers and suppliers from the Russian foreign markets; Federation. Also, in Kazakhstan there are no enterprises producing a full range of long products. •Obtaining high quality, competitive products using Export Development. Over the past five years, advanced approved production technologies Kazakhstan mainly exported rebars (among long corresponding to the world class level of the long products). In the structure of exports, the share of products manufacturing. Tajikistan in the total volume of exports of rebars is Products: rebar, I-beam, structural channel, angle. 73% (86,663 tons); Russian Federation and Initiators: ALZ LLP and BCC Invest. Kyrgyzstan account for 11% (13,217 tons) and 10% (12,031 tons), respectively.

Key investment indicators Project profitability

30% Indicator Results 250,000 25% 26% 22% Investment amount, US$ thousands 79,348 200,000 15% 11% 12% 13% 20% Project NPV, US$ thousands 59,687 150,000

IRR, % 15.9% 100,000 10% EBITDA margin, % 19%

50,000

140,554 134,421 146,270 151,734 198,625 240,821 247,970 US$ thousands US$ Payback period, years 9.7 0 0% Year Year Year Year Year Year Year 4 5 6 7 15 23 24 Discounted payback period, years 16,4 Revenue, US$ thousands EBITDA margin, % Technological process: Project loaction: Furnace-charge preparation Mangystau oblast, Aktau, Industrial area Furnace-charge loading into the furnace Steel desulfurization Nur-Sultan Steel deoxidation Drainage of steel into the Aktau Foundry intermediate ladle Steel casting into CCM(a) mold

Pulling the ingots with the dummy bar Almaty Workpiece cooling

Final product

KAZAKH INVEST: September 2019 Investment proposal