Refinery, for the Internal Supply of Ecuador

MUELLE

HYDROCARBON STORAGEAND PROCESSING COMPLEX LATIÑOSA MANABI-JARAMIJO

Detailed Description of the Project Background Exactly eleven years ago, and seeing, the needs that his country dra- gged into the oil derivative supply systems, emerged from the SR. DILMER PALACIOS ANDRADE the desire and more, than a simple desire, an urgent need to build two large works of progress or mega projects that will carry forward an industrialization and modernization of the systems of supplies of petroleum, fuels, derivatives and petro- chemicals, in the Latin American zone, with the main focus in Ecua- dor. The country has an important geographical position in South America. We are listed as the center of the world, but also, it has a province that is conducive to the construction of a dock, with its respective fuel storage center, and precisely because of its geographical location we speak of MANABI-JARAMIJO. Currently, Latin America does not have a storage complex that responds to the growing demand for oil, fuels and derivatives. There is no storage complex that meets the demand of both Latin America and the Caribbean area. The LATIÑOSA HYDROCARBONS AND PROCESSING STORAGE COM- PLEX is born, to solve the existing problem and as the only viable alternative for all of South America and the Caribbean. With the supply interrupted by PDVSA, the crisis worsened, increasing every day the shortage of all the countries that make up MERCOSUR. With the full operation of the Hydrocarbons Storage and Processing Complex, you will take an efficient respite in the supply, storage and distribution of hydrocarbons, which will meet all the expectations of a growing market, throughout the Latin American area and Carib- bean

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The Latin American zone demands day-to-day conditions that meet the needs of a serious, reliable supplier, and that maintain the constant and fluid supply of fuels, that is not interrupted by storage capacity problems, and which, in turn, have as a simultaneous equipment a dock that allows the arrival of larger tonnage ships. CORPORATE VISION OF THE PRESIDENT & CEO As a corporate policy COPROPECAENERGY S.A., it has been propo- sed to encourage projects of high importance within a sector that stimulate foreign and national investment, in order to generate resources that allow sustainable development within the Ecuadorian oil market. OBJECTIVE OF THE CONSTRUCTION OF THE SPRING Latiñosa The construction of the Latiñosa pier comes to respond and satisfy the entire area, mainly to Ecuador. The Complex of Storage of Hydro- carbons and Processing Latiñosa, would come to fulfill a specific function as a supplier to the countries that make up Mercosur (Pana- ma, Colombia, Peru, Chile, Paraguay, Uruguay, Argentina, Bolivia and Brazil) Las Antillas (Aruba, Curaçao , Puerto Rico, Dominican Republic, Haiti, Jamaica, Bonaire) including the Central American zone, which are countries considered RETAILERS, precisely because they do not have a dock and storage complex with a capacity like the one we intend to build. COPROPECAENERGY S.A., is not a TRADING or RE-SELLER is a MAJOR supplier, and as such, does not lose the optics and opportunity to serve a market segment as important as this. For example, these regional buyers do not have a storage structure of more than 50,000 (MT) metric tons of fuel or crude, and are unable to access purchases from other suppliers, which, in their market policy do not meet purchase orders or sale of less than 100,000 (MT) metric tons per month. It is a market where COPROPECAENERGY S.A., is penetrating without problems, we are not talking about starting or conquering a

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market, but it is already prepared and ready to be served by COPRO- PECAENERGY S.A. Each regional buyer generates a volume of purchases per year of 600 thousand metric tons of fuels, and its average monthly consumption is 50 thousand metric tons, which represent USD 180 million dollars in purchases annually. The entire area generates purchases in the order of USD 1.9 billion per year or more. This is where COPROPECAENERGY S.A., will play and do an important job as a supplier MAJOR, serving a market segment as important as the one we have mentioned. COPROPECAENERGY S.A., works and will work under the model and commercial policies of large companies or multinational corporations. These MAJOR industries in turn develop an important commercial work (MARKETING), which consists in bringing the product directly to the final consumer, breaking a long and endless chain of intermediation. IMPLEMENTATION OF THE HYDROCARBON STORAGE COMPLEX AND PROCESSING COMPLEX PROJECT The construction of the “Latiñosa” hydrocarbon storage complex whose storage capacity will be 36,650,000 barrels, equivalent to 5 million metric tons per month between oil, fuels and derivatives, vastly exceeding all installed capacity in the area. Currently, COPROPECAE- NERGY S.A, has established very important conversations with financial institutions that can contribute about USD 8 or 9 billion dollars. This financing will be negotiated directly by the CEO of COPROPECAE- NERGY S.A., and the team of economic advisers of both parties. It will be a 100% PRIVATE work, the Ecuadorian government will only provide its collaboration, facilitate and expedite environmental per- mits, operating licenses and the immediate approval of a law, which allows the development of all projects to be executed in the 2020/2026 period under The management and administration of CO- PROPECAENERGY SA, which will be developed under the Organic Code of Production, Commerce and Investments within the regime of a Special Economic Development Zone (ZEDE) that will be implemented jointly with the improvement of the investment project.

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SEA PORT GROUP: It is an American company, specialized in the construction of docks and ports, has a vast experience of more than 30 years, and has made constructions and designs according to the needs, of the countries where they have made works for ships of great draft. SEA PORT GROUP, carries out all maritime research and studies where construction is required and finally issues its comments. COMPLEX OF STORAGE OF HYDROCARBONS AND LATIÑOSA PROCES- SING At present COPROPECAENERGY, S.A., has very advanced conversations with a company specialized in the construction and design of tanks according to the type of fuel to be stored, and they are built according to the strictest certifications of North American international regulations. METHOD OR SYSTEM TO BE USED FOR DEBT PAYMENT COPROPECAENERGY S.A., belongs to the HOLDING PALACIOSANDRA- DE. In 2016 COPROPECA CA, initiated conversations to obtain an allocation from the NNPC / SHELL (NATIONAL NIGERIAN PETROLEUM COR- PORATION) owned by the government of Nigeria, for the amount of 2 million barrels of Bonny Light oil per month, equivalent to 24 million barrels per year, with their respective license authorized by the NNPC / SHELL and certified and registered by the Ministry of Energy and Petroleum of Nigeria, to market and export such product. This Nigerian oil allocation is intended to be implemented in two directions: 1) The commercialization of 50% of this quota destined in the payment of the debt that COPROPECAENERGY SA, will contract with the financial institution that will endorse the project of the construction of the COMPLEX OF STORAGE OF HYDROCARBONS AND PRO- CESSING Latiñosa Manabí Jaramijo. 2) The remaining 50% will be processed and distilled at the Latiñosa refinery, for the internal supply of Ecuador. This license and allocation

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of oil of which we talked about previously, will allow to commercialize a maximum of 5 million barrels of crude oil per month to international or multinational buyers, duly qualified, that mean USD 3,300 million annual dollars in sales. We can say with total certainty that we will have a current asset that will exceed all expectations. These assignments (Title-Holder), as you can see, will have an asset that will support an excellent return on investment (IRR). However, every investment presents risks, but the investment risk on this project we are talking about is not a threat so that a financial institution does not approve or endorse the financing of the work, and not approve the viability of the project. Unlike other countries in the area where country risk is considered at 50%. COPROPECAENERGY S.A., has the capacity to pay the debt that it will contract with the investing party or the financial institution that provides us with the credit line, or by demonstrating the financial capacity with a bank guarantee. Our calculations based on our own experience in the hydrocarbons market, indicate that the debt is feasible to pay in 12 years minimum and maximum 15 years without including the grace period contem- plated for 2 years. In addition, in advance we have established very effective communications with other international suppliers of excellent commercial reputation, with the aim of expanding our network of reliable and safe suppliers, which we will present to our customers to give them a much safer alternative in the constant supply, Towards a selective market that demands quality service every day and is comprised of three very fundamental aspects: COMPETITIVENESS, PRICES AND COMPLIANCE IN TIME AND FORM. However, in parallel to all this we are in the process of registering with other oil companies in the world to expand our annual oil quotas. and increase our ability to pay and systematically sell. One of the primary objectives is to try to pay the financial commitments in the shortest possible time. We have three very important aspects to carry out this purpose as they are: market insurance, very competitive prices and, exact and precise compliance in the delivery times of products anywhere in the world.

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BENEFITS: These investments or mega projects will have a very important social impact on the qualified Ecuadorian working class, immediately generating new sources of work, direct labor, benefiting thousands of Ecuadorian families. The environmental impact is rated at a very minimal percentage. These works will be carried out by specialized companies with state-of-the-art technology, not affecting the ecosystem because its construction and development has the strictest standards in environmental protection and that do not affect the ecosystem. Previous research carried out by COPROPECAENERGY S.A., has shown that the country needs to meet the constant demand for fuels, so it is necessary to create one of the most important, efficient and innovative loading and unloading points, with cutting-edge and sophisticated technology. This important project of SPRING CONSTRUCTION AND STORAGE HY- DROCARBON COMPLEX AND PROCESSING PROCESSING, will allow the anchoring of ships of 240 thousand barrels of fuels (RAW / FUEL), which will increase stokc levels of petroleum derivatives in the Latiño- sa terminal, located in the province of Manabí (Jara- mijo). Below we present illustrative images as you wish to build as a model of what the new storage terminal (Tank Sto- rage) and Latiñosa dock will be like: (Place images here) Location Jaramijo, Province of Manabí, Ecuador:

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General Location

NEW “Latiñosa” REFINERY Another of the major projects that COPROPECAENERGY SA, wishes to develop in the medium term, is the construction of a 100% PRIVATE oil refinery, with a refining capacity of 250 thousand barrels of crude oil per day, about 7.5 million barrels per month . As the demand for internal and external consumption in the region increases, we will increase the production capacity of the different types of fuels, according to the existing demand. The “Latiñosa” refinery will refine 70% more than the facilities that Ecuador currently has, ESMERALDAS, LA LIBERTAD Y SHUSHUFINDI. LATIÑOSA Refinery, will be built under the system of NO pollution to the environment, and all its operability, operation and generation of energy will be with renewable or wind energy. The surplus energy pro- duced by the refinery will serve to generate electricity in the community where the refinery is located, greatly benefiting the community. This will allow exporting finished products with a shorter period of naviga- tion for any oil tanker. From Ecuador, orders coming from Latin America and the Caribbean can be met, practically in their entirety. CAPACITY OF REFINATION IN ECUADOR Our country has three important refineries: 1.- Esmeraldas Refinery 110,000 thousand barrels per day 2.- La Libertad refinery 45,000 thousand barrels per day 3.- Shushufindi Refinery 20,000 thousand barrels per day

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The three refineries do not work at 100% of their capacity, they refine 175,000 barrels of oil per day, and although this allows for safe and timely supply as a country, we continue importing fuels that exceed 500 million dollars, in imports of fuels and materials cousins. Pais Barril/Día Año Bahamas 0 2018 Isla Gran Caiman 0 2018 Dominica 0 2018 Republican Dominican 0 2018 Granada 0 2018 Haiti 0 2018 Jamaica 0 2018 Puerto Rico 0 2018 San Cristobal y Nieves 0 2018 Santa Lucia 0 2018 San Vicente y Grenadians 0 2018 Antigua y Barbuda 0 2018 Curacao 0 2018 Aruba 0 2018 Barbados 0 2018 Bonaire 0 2018

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MARKET ANALYSIS: The entire South American continent is going through serious supply problems, for fundamental reasons: 1.- Most of the countries that make up MERCOSUR do not have ade- quate ports or docks that allow the entry of ships with capacities greater than 50 thousand metric tons of fuels, nor do they have a storage system that meets the needs. In addition, large international corporations do not have the commercial policy of serving purchase orders of less than 100 thousand metric tons of fuel. COPROPECAENERGY S.A., has the capacity to serve and supply the entire Latin American area, entire Central America and the Caribbe- an (see comparison chart). The commercial and friendly relations established in advance with our suppliers, within the primary market (Refineries) will allow us to supply 21 countries of the region periodically and systematically without any problem, rotating a little more than 2 million metric tons of monthly fuel, and generating more than USD 1.8 billion in gross sales, and collecting profits in the order of USD 180 million dollars monthly. OFFER AND DEMAND The country or area we are talking about, by their own characteristics they are always trying to buy in a secondary market, which is not reliable, since they are mostly TRADINGS, this sales figure does not have its own quotas or fuel allocations available at any time, and generally, they always tend to NOT FULFILL the orders they receive from their customers because these in turn are intermediaries. COPROPECAENERGY S.A., is not trading or intermediary, is a MAJOR supplier within a secure, reliable market, with inventories available at any time to supply immediately, taking into account the times deter- mined by a SELLER / BUYER contract.

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SWOT ANALYSIS The SWOT analysis (Strengths, Opportunities, Weaknesses and Threats) or also known as strategic analysis, allows us to present to the investor or potential investors, the core and urgent need to develop these two important works in the region, having as a central base of operations the Manta province. STRENGTH COPROPECAENERGY S.A., is a member of the PALACIOSANDRADE Holding, which has extensive experience based on 10 years of hard work in the oil industry, knows very well the ups and downs that every market presents. Likewise, he knows very well the types of markets and their behaviors, we cannot forget that its president & CEO DILMER PALACIOS ANDRADE is a professional in positioning and development of new markets and markets. Professional in business leadership and marketing psychology, etc. In addition, his extensive experience allows him to manage and develop five very fundamental procedures within a market as complex and fluctuating as hydrocarbons. Next, we describe: 1.- Economic situation and its probable evaluation. 2.- The possibility of market absorption. 3.- Development of needs. 4.- Characteristics of manufactured products. 5.- The activity of the competition. COPROPECAENERGY S.A., has a team of highly professional executives knowledge- able in the hydrocarbons market.

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OPPORTUNITIES COPROPECAENERGY SA, It is entering a growing market with supply deficiencies, where supply and demand is the one who imposes the rhythm of a market that demands better service, price, quality, per- sonalized attention and the exact and precise fulfillment of its needs Our corporation has that virtue of adjusting to the fluctuations of a market as a whole. COPROPECAENERGY S.A., knows the competition, knows the distribution of products and most importantly the market to which we are focused on establishing our leadership flag. In addition, we know when to expand our services and our market. WEAKNESSES We have a financial capacity, which allows us to develop this project perfectly and is not available to any Latin American country. THREATS We can safely say that COPROPECAENERGY S.A., at this time does not face threats that put the investment and development at high risk, of a project as large and as important as THE HYDROCARBON STORAGE COMPLEX AND PROCESSING Latiñosa. NATIONAL EXPENSE FOR THE IMPORT OF ECUADOR FUELS Ecuador spends approximately USD 400 million annually on imports, but this index will increase to USD 555 million more to buy oil derivatives in the international market to supply the country's domestic consumption, and this is becoming more expensive to the government of Ecuador. The high prices of a barrel of crude oil in the world, triggered the cost of a barrel of derivatives in the last six months, according to our consultations The Ecuadorian government estimated spending 376.95 million dollars throughout the year, but that figure fell short of the accelerated rise in international prices.

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Importing the essential fuels for the commercial, industrial and transportation sector will cost Ecuador this year 885 million dollars, only in the first half of the year the government of the Country allocated 330 million dollars to meet the needs of the domestic market. The difference, 555 million (until reaching 885 million until December). Refiners operating in the country do not have sufficient capacity to process crude. Variations in the price of petroleum derivatives in the international market will not affect users at the moment, "because they are not paying more (money) for the gallon of gasoline, diesel, or electricity." The fuel used is subsidized, because international prices are no longer those charged by the State (to Ecuadorians). Therefore, the affected area is the social one “since it is the fiscal budget that is absorbing everything”. The oil company planned to buy a barrel of diesel (42 gallons) for $ 25, but ended up paying $ 49.69, an increase of 98.76%. COPROPECAENERGY S.A., looks with deep concern that Ecuador's oil business could collapse, due to the increase in the price of crude oil derivatives, since the country imports to cover domestic demand. The lack of refineries in the country can cause losses, because the money that will be used to import fuels could be equal to or greater than what is received from the sale of crude oil. These figures could increase to more than 1,200 million dollars per year for the importation of fuels, whose value has grown along with the price of crude oil. Observe the behavior of the increase in oil consumption in relation to the year 2008, it was 78%, with a tendency to increase significantly so far in 2018. With the exposure we have just made, with respect to the expenditure that Ecuador makes in the periodic import of fuels, we do not intend to exercise an unfair marketing (DOMPIMG) to the country's internal distribution network, but rather to produce savings of more than USD 550 million annually in fuel and raw material import expenses.

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GENERAL LINES, STRATEGIC OBJECTIVES, POLICIES THAT THE PROJECT RESPONDS. General lines. Ecuador: Integration and energy development in Latin America. New International Geopolitics. Diversify economic relationships according to the geostrategic areas of interest. Strategic Objectives: Increase fuel production capacity. Maximize the economic value of Ecuadorian crude. Strengthen the quality of life of Ecuadorians. Politics: Ensure during the design, construction and operation phases, the trai- ning of Human Resources and the Social Commitment, ensuring Stan- dardization and the application of Best Practices, in harmony with the Environment. Results of the Geopolitical study of the locality and the Country Description of the study area The canton of Manta belongs to the province of Manabí, on the Coast of Ecuador. It is delimited by the cantons Portoviejo, Rocafuer- te, Manta, Montecristi and Jaramijó. The settled population is 715,440 inhabitants (43.45% of the province and 4.15% of the country) on an area of 2,374.20 km2. (12.56% of the territory of the province and 0.92% of the country). This population sits especially in the urban areas of Portoviejo and Manta, with a total of 554,952 inhabitants.

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Demographic Aspects It should be noted that the information presented by the Manta parish includes only the rural population, since this was the target group to which the surveys were directed. According to SIISE version 4.5 data, the canton had 196,243 people in 2001, given the population projections made by ENTRIX Inc. the population would be 242,268 inhabitants: The canton has the urban parish Manta and the rural parishes of San Lorenzo and Santa Marianita. In the parish of San Lorenzo, almost 90% of the interviewees are ethni- cally recognized as mestizos, while only 2% say they belong to the montubio conglomerate (important nationality in the province of Manabí). For the Santa Marianita parish, 98.3% of the interviewees recognized themselves as mestizos, which would imply that in both areas there is practically no presence of nationalities, indigenous or ancestral peoples. According to SIISE 4.5 data, population growth amounted to 3.4% for urban areas and 0.92% for rural areas. The average annual population growth of the entire canton would be 3.24% according to the projections made by ENTRIX Inc., while the gross “real” population growth of the year 2001, with respect to the projections would be 19%.

Tanks only for crude

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Problems to solve Obtaining the financing required for the success of the Project Ensure the operation of the LATIÑOSA HYDROCARBON STORAGE COMPLEX AND PROCESSING Project. Guarantee the placement of products in international markets Legal nature of the business Start of Operations Date: July 2020 Project Promotion Unit: COPROPECAENERGY, S. A. Location: Manabí Province, Ecuador Installation Type: SPRING AND STORAGE FUEL STORAGE COMPLEX. Project Classification: Crude Transportation and Fuel Storage Complex. Location Jaramijo, Manabí Province, Ecuador

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General Location Micro Location The Area selected as a result of the Environmental Baseline Project study, is the one with the greatest landscape alteration, so the impact on the environment is minimal, in addition to being the only one in which no bodies of water were found and being the least Biotic diversity of the three studied, from the archaeological point of view, the area in question is the one with the lowest archaeological sensitivity and, from the socio-economic and cultural point of view, it is the one that represents the greatest benefits for the implementation of the project due to the Existing population dispersion and population density obtained from on-site studies. The total area selected is 1,749.1700 Ha and the coordinates of the polygonal are described in the attached map, and are as follows: Management Team:

JUNTA DIRECTIVA TOTAL: COPROPECAENERGY S.A. VACANTES:

PRESIDENTE

LEGAL AIT ASUNTOS PCP AUDITORIA VACANTE VACANTE PUBLICOS VACANTE VACANTE 5 15 VACANTE 43 2 3

GERENTE GENERAL

FINANZAS TECNICA Y PLANIFICACION RECURSOS ADMINISTRACION DESARROLLO SIAHO VACANTE OPERACIONES Y GESTION HUMANOS Y RECURSOS SOCIAL VACANTE 15 VACANTE VACANTE VACANTE VACANTE VACANTE 16 149 9 10 30 7

Business Environment Analysis

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Competitive Environment Latin America has great commercial potential for the placement of crude oil derivatives, due to the lack of refining capacity, which means that many of the oil producers in the area have to import gasoline and other derivatives. Show opportunity identification In Latin America, the demand for petroleum products will experience a strong increase in the next twenty years, from 5.23 million b / d in 2008, the demands will reach 7.39 million b / d in 2030. Outside Latin America and Caribbean, there are other markets where demand will grow, including the west coast of the United States and China. These growing markets offer a clear export opportunity to refineries with the capacity to supply those markets. Therefore, there is a clear need for additional refining capacity throughout Latin America and the Caribbean. In addition, special reference is made to the possibility of exports to China, for which there is a huge demand for the future of petroleum products. Operations Plan Activity planning, construction of physical facilities. Critical Factors Operations Plan = Project execution plan. Sustain sales and production break-even point. Price strategy. Procurement Plan Support selection of technologies. Support geographic location selection. Indicate Plan Incorporation, Workforce Trai- ning.

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Project Execution Plan The LA TIÑOSA HYDROCARBON STORAGE AND PROCESSING COM- PLEX Project comprises the different Phases and areas that are briefly illustrated in the graph: Individual Plans / Strategies: Project Integration Management, Pro- ject Scope Management, Project Time Management, Project Cost Control Management, Project Quality Management, Project HR Ma- nagement, Project Relations and Communications Management, Management of Project Acquisitions, Project Risk Management. Considering the characteristics of the LATIÑOSA HYDROCARBON STO- RAGE COMPLEX and PROCESSING project, detailed previously in this document, the basic tools used to control the execution of the activities are: The master schedule of physical planning, or, project activities by phase, on the project horizon. Gantt diagrams. The estimated investment or financial budget in the project horizon. The biweekly and monthly physical and financial execution monitoring reports. The purchase of the “Primavera 6” software is currently being planned, as support for project planning activities. The selection of this tool considered some factors, including its applicability and use for Engineering and Construction projects, the advantages offered by the software for cross-analysis of various plans and / or projects in execution, the flexibility and variety of reports and information that can be extracted. Control Plan Criteria As part of the planning control activities, work will be carried out on the definition and formalization of the following processes in the project:

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Communication process. Documents control. Standardization of administrative and technical control formats. The physical execution will be monitored based on the approved scope, documenting and monitoring the planned execution versus the actual one, and its deviation. This information will be used to pro- pose mitigation or time optimization plans. Physical Planning Schedule The Project Management COMPLEX HYDROCARBON STORAGE AND PROCESSING LATIÑOSA, will carry out a set of activities associated with compliance with the master schedule, which will be developed based on the accelerated execution strategy established for the Pro- ject. These activities are: Cadastral Survey, Land Acquisition, Environmen- tal Baseline Study, Conceptual Engineering, Financing Management and the Accelerated Social Investment Plan. Likewise, it was established to comply with the contracting of: Basic Engineering, Environ- mental Impact Study and Site Studies (Surveying, Geotechnical and Geophysical Studies on land and sea) and subsequent Procurement, Construction and execution of the Dock Construction Project and LATIÑOSA Fuel Storage Complex. The Project Execution Strategy diagram is shown below, HERE IS PLACED THE EXECUTION AND COMPLETATION DIAGRAM. WHAT INCLUDES; CONCEPTUALIZATION VISUALIZATION, BASIC ENGI- NEERING, ENVIRONMENTAL STUDIES, PROCURE, PREPARATION OF THE SITE, I.P.C. AND THEN THE SCHEDULE WITH THE ACTIVITIES OF THE PROJECT WITH THE SCOPE AND THE PLANNED TIME OF EXECUTION

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Financial Planning Schedule To guarantee the availability of the necessary resources and carry out the execution of the Project activities, Management will prepare the required investment planning throughout the project time. The Project Management will rely on the Accounting Department of the company, for the accounting management and execution of the payments requested and authorized by the Management, based on the approved budget. The project resource planning is detailed below. THE FIGURES ARE ONLY REFERENTIAL. YOU MUST CHANGE THE YEARS AND UPDATE. Implementation of a database and control of project documents. Software and tools verification. Together with the Project Systems Group and Engineering Manage- ment, the implementation of the Software to organize the database and control of the project documents will be evaluated. Matrix of distribution of project documents. Matrix of distribution of Technical Engineering Documents, the Engi- neering Team is defining the coding and numbering of units and facilities of the project for the Indexing of documents of the basic engineering phase. Audit plan and program, Internal and external project surveillance. The Audit and Surveillance procedures are in the survey phase, as well as the plan and schedule of internal and external audits of the project (contractors and suppliers). Support to Project Managers. Currently, all the Managements are supported in the survey and documentation of procedures and formats.

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To Engineering Management in the definition and selection of best practices, for the evaluation and approval of Engineering processes. To the Technical Commission of Basic Engineering, giving support in the Monitoring of the real execution of the following activities. Development of the Program and Plan for the implementation of the Quality Management system for the project. Identification and Documentation of the processes of all the Mana- gement that make up the project. Definition and Documentation of the procedures, Manuals, Plans and Formats of the Management System based on the requirements of the ISO-9001 standard. TO UPDATE. Evaluation of Contractors and Suppliers through visits and surveillance. Implementation of the Audit and Surveillance Program for the internal management system and for Contractors and Suppliers. Evaluation audits of the management system to be implemented and identification of improvement areas. Definition and documentation of procedures, inspection plans and tests for future phases of the project (Procurement and Construction). Implementation of audits and surveillance of the Procurement and Construction phases, on site and Facilities of Suppliers and Contrac- tors. Continuous improvement assistance to the Management and project areas. Support the selection of technologies We are currently in the phase of selecting technologies for the process units with a closed license of the Project. Support geographic location, production facilities, offices, processes.

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Based on the survey of the Environmental Baseline in the entire study area for the location of the project, possible alternatives will be defined. In these areas, specific studies were carried out to determine the socio-environmental sensitivity of each one, based on the Methodo- logy of Prioritization of Envergadura Projects, with the participation of a multidisciplinary team of experts for each of the components to be analyzed, based on what is established in the Ecuadorian Environ- mental legislation (Environmental Regulation for Hydrocarbon Ope- rations in Ecuador. Executive Decree 1215), which will allow establishing the ranking of each of these and their sensitivity. From the socio-environmental and cultural point of view, the selected area is the least sensitive. Management Plan Mission Provide for the year 2020 the operational and service infrastructure required in the Project “SPRING CONSTRUCTION AND FUEL STORAGE COMPLEX LA TIÑOSA. View Fully satisfy the demand for fuels from the Ecuadorian market, and export the available surpluses to strategic markets. Provide and support the respective organizations, indicate key posi- tions (partner, direct and contracted) Form the structure. Job descriptions, profiles, CVs and technical sheets ANNEXES: Job Description and Technical Sheets PROJECT ORGANIZATION OBJECTIVE: To form a technical team of high professional profile and of excellent performance, necessary to carry out the supervision and control of the execution in each one of the phases of development of the Project.

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GOALS: To have offices of the Project Management in Manta, to incorporate at least 40 Ecuadorian and foreign professionals in the different areas of the organization, to hire an international consultant for specialized technical support to the Project Management. ANNEXES: Job Description and Technical Sheets Financial Economic Plan Economic model of the business. Financial and economic progress of the business, critical factors: program of expenses and investments, income, taxes, cash flow. Varia- tions, IRR, NPV, RSI (ROI), return on net assets, own capital (K), external capital (K), time to achieve sustained gains, indicators on borrowing capacity and legal aspects. Profit and loss statements (G&P), and appropriation of funds and cash (Cash). The studies detailed below will be carried out within the Visualization phase: Evaluate the feasibility of the Project Develop strategies and scenarios to maximize the economic value of the project. Identify potentials, business opportunities and risks. The results of the study include: Operating Financial Model: 1.- Sensitivity Analysis. 2.- Financial Strategy. 3.- General Accounting and Tax Analysis. 4.- Financial Risk Analysis. 5.- Financial Structure.

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WORK CAPITAL Until the date of submission, and taking into account that the project is in the visualization stage, the Working Capital policy has not yet been defined, therefore, information from the market was used. Regulations applicable to Value Added Tax (VAT) The VAT paid on local purchases of goods and services, related to the refinery's construction activities, would result in a VAT tax credit, as sales of petroleum products are taxed at a 12% VAT rate. The local purchase aznd import of raw materials for the processing of petroleum derivatives (crude) are taxed at 12% VAT. The local sale of fuels and / or petroleum products carried out by the RDP would be taxed at 12% VAT. Currency Exit Tax All transfers made abroad for payment, even if they are imports, are subject to the payment of the 2% foreign exchange tax, the project must pay this tax for: Payment of purchases of machinery necessary for the operation of the refinery. Disbursements made for payments of financial debt to foreign entities and for purchases of raw materials (crude) abroad. Payments related to imports of raw material or payments made to place accounts receivable abroad (that is, not made through the Ecuadorian financial system) are subject to this tax. Municipal taxes. The estimated 0.15% on the basis defined by the difference between total assets, and short-term liabilities from the date of calculation. Contribution to the Superintendence of Companies.

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The estimated 0.10% on the basis defined by the difference between total assets, and short-term liabilities from the date of calculation. Municipal Patent Amount to be paid on an annual basis, between US $ 10 and US $ 5,000 in each municipality where economic activities are carried out. In the operational financial model of the base case, the payment of a maximum annual amount is considered. Additional Comments to the effective regulations Based on legislation for public companies approved on October 16, 2009, COPROPECAENERGY, S.A., would be classified as the subsidiary of a public company. Under this scheme, it is understood that the subsidiary of a public company in Ecuador will not be covered by income tax exemptions, and must pay the tax based on the regulations. Additionally, these companies could be exempt from paying taxes on the importation of machinery. Considering the significant impact of income tax and machinery imports, the consultant would recommend COPROPECAENERGY, S.A., to make tax exemption consultations with the authorities. Interest paid Interest paid on loans with foreign entities are deductible, and the following criteria should be considered: 1.- Loans with foreign entities or their renegotiations are registered with the Central Bank. 2.- The interest rate applied to the loan does not exceed the highest rates established in the Central Bank at the time of loan registration. The income tax has been deducted on interest payments (reduced to 5% in 2009, on a temporary basis, the tax applied in 2010 will be 25%).

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Interest paid on foreign loans subscribed with foreign affiliates are deductible if the ratio between total external indebtedness and equity does not exceed 300%. Interest on foreign loans is deductible, and not subject to income tax deduction, if these are paid exclusively by the government to entities that grant government loans or guaranteed by multilateral institutions such as the World Bank, the Andean Development Corporation, the Inter-American Development Bank, registered with the Central Bank. The key condition is that the interest rates of these institutions do not exceed the limit defined by the Central Bank. Operational Ratios The main operational ratios related to the profitability of the project are described below: Sources of Financing Main criteria of Indebtedness. . The first option for financing is equity, and the second is the Multila- teral Agencies, and if only additional financing is required, Commer- cial Banks. • The total debt in US dollars is assumed, there is no risk of fluctuation. • Although the loans in the market offer variable interests (Libor + Spread), it is assumed that COPROPECAENERGY, S.A., will be able to agree on a Swap Interest Rate, and therefore, set its interest disburse- ment flows. • The interest rates of the Multilateral Agencies and Commercial Banks have been estimated above average. Each of them can change depending on each particular negotiation. • It is assumed that the total interest accrued during the grace period is capitalized.

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Results The results obtained from the sensitivity analysis, carried out in order to evaluate, the impact that certain changes in the variables identi- fied as keys for the business may have on the internal rate of return of the cash flow for COPROPECAENERGY S.A. are detailed below. To select the main variables assumed in the economic and financial model to be sensitized, a Tornado Analysis was performed. This analysis is a tool that allows to determine the relevance and impact of the variations in any of the variables considered in the IRR (IRR) if the rest of the variables remain stable. Selected variables: Price and cost of the product. Project utilization level. Inflation rate in Ecuador. (CPI) Fixed costs, such as the percentage of investment. Working Capital Ratios. Additionally, alternative scenarios were considered in relation to the following variables: Import tariff of machinery. Social and Socio-Productive Development Plan Present social programs Accelerated Social Investment Plan OBJECTIVE: Increase the quality of life permanently of the inhabitants of the parishes located in the area of direct influence of the Project GOALS: Manta rural parishes drinking water; Provision with medical equipment to the sub health centers of Manta; drilling of two (02) water wells to supply rural parishes in Manta.

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ACCELERATED SOCIAL INVESTMENT PLAN HERE TO UPDATE AND DEFINE THE DESCRIPTIONS TO BE MADE CONCLUSIONS: Previous research carried out by COPROPECAENERGY S.A., has shown that the country needs to meet the constant demand for fuels, so it is necessary to create one of the most important, efficient and innovative loading and unloading points, with cutting-edge and sophisticated technology. This important project of CONSTRUCTION OF THE SPRING AND COM- PLEX OF STORAGE OF HYDROCARBONS AND LATIÑOSA PROCESSING, will allow the anchorage of ships of 240 thousand barrels of fuels (CRUDE / FUEL), which will increase the Stokc levels of petroleum derivatives in the Latiñosa terminal, located in the province of Manabí (Jaramijo). These investments or mega projects will have a very important social impact on the qualified Ecuadorian working class, immediately generating new sources of work, direct labor, benefiting thousands of Ecuadorian families. The environmental impact is rated at a very minimal percentage. These works will be executed by specialized companies with cutting-edge technology, not affecting the ecosystem because its construction and development has the strictest standards in environmental protection. With this presentation made to the institutions interested in this mega project, we clearly demonstrate our business vision, which we are sure will serve in a potential way and will lead us towards a new model of economic, social and industrial takeoff that our Latin American area needs so much and Caribbean.

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Our country has been blessed to have oil fields, one of the non-renewable natural resources and of great commercial power, that if we know how to exploit with the help of God we can make our ECUADOR very prosperous, and a model to be followed by many countries of Our Latin American continent. A country with oil industrialization, which achieves economic, social and self-sustainable stability, a prosperous country that stimulates foreign investment. Thank you; REVISED BY THE COMPANY: COPROPECAENERGY, S. A. PRESIDENT: ING .: DILMER PALACIOS ANDRADE.

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Panoramic view of the complex storage with sinks for the treatment of liquids under Rules API 4-21

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