In Greenland nothing is possible. Although. In Greenland everything is possible. How can we help you

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2 In Greenland nothing is possible Although In Greenland everything is possible How can we help you

3 AGENDA About XS Legal Framework Grenland in brief Fundamental license terms Setting up an entity in Greenland Bringing people into Greenland Personal income tax 18 in The Minerals Act

4 XPLORATION SERVICES GREENLAND A/S Martin Sandy Shalmi (1968), CEO, M.Sc. Economy & Politics (1991) +25 years background in administration, accounting and business development in Greenland. Initiator and co-owner of a range of frontier service companies e.g. GeoLAB Greenland ApS Arctic Core Drilling A/S Frederikshåb Betoncentral ApS (construction, excavation, oil distribution) Greenland Petroleum Services A/S Xploration Services Greenland A/S Deputy Chairman of Greenland Business Association, board member since 2002-> Chairman Sermersooq Business Council, CFO of NunaMinerals Implemented IFRS & IAS 34, 2009/2010 IPO (112 mdkk) and listing at Nasdaq OMX Copenhagen, June 2008 Board member Nalunaq Gold Mine A/S, 2007

5 XS offers turn-key solutions Administration * Planning * Logistics * Camps * Geology Turn-key Solutions Administration Staffing Planning HSE/ERP Drilling Logistics Camp Rental Site Management Geological Support

6 XS offers turn-key solutions Administration (Pay roll, Taxes, Book keeping, Visa & Work permits, Management, Liaison) Exploration planning (Budgeting, Permitting, Procurement, Tendering) Logistics (Freight, Forwarding, Customs Clearing, Incoming, Support office) Camp rental (Turn-key camp setup with all infrastructure) Camp management (Staffing, Catering, Cleaning, Site Management, Medical, Emergency Response Planning) Geological services (Prospecting, Core logging, Drilling supervision) Diamond core drilling (BQ, NQ & HQ)

7 XS offers turn-key solutions

8 Selected Customers and Services North American Nickel Inc. London Mining Greenland A/S Coastal Ventures A/S 21st North ApS Moxie Pictures Cougar Helicopters Inc. Others Setting up branch office X X X X Advisory services & Liaison X X X X X X X Pay roll, Taxes & Book keeping X X X X X X Visa & Work permits X X X X Translations (GL-UK-DK) X X X X X Exploration Planning & Management X X X X X X Budgeting X X X X X X Tendering X X X Procurement X X X X X X Permitting X X X X X X Support office on call 24/7 X X X X X X X Logistics, Freight, Forwarding & Customs clearing X X X X X X Incoming, Transfer service & Accommodation X X X X X X Procurement X X X X X X Warehousing / Lay down X X X X X X Camp solutions X X X X X X Staffing X X X X X X Catering & House keeping X X X X X X Site Management X X X X X X Medical / HSE / ERP X X X X X X Geological support X X X X X Core logging X X Geophysics X Remote sensing X Drilling supervision X X

9 LEGAL FRAMEWORK OF GREENLAND Constitution for the Kingdom of Denmark [5 June 1953] Home Rule [1 May 1979] Self-governance Act [21 June 2009] Minerals Act [7 December 2009] Trade Act [27 March 2006] Law on large scale Projects [29 November 2013] Various Tax Laws

10 GREENLAND IN BRIEF 1/3 Area: 2,166,086 km 2 Ice free area: 410,449 km 2 Population: 56,171 (July 2017) Urbanisation: Parliament: Cabinet: Municipalities: Corporate tax rate: 17 towns and 54 settlements 31 persons elected for 4 years 10 ministers Kujalleq, Sermersooq, Qeqqata, Qaasuitsuup 31.8% (30% license holders) Personal income tax: 42-44% (above DKK 48,000) Gross personal tax: 35%

11 GREENLAND IN BRIEF 2/3 No one can own land in Greenland Industrial areas, Apartments and houses in towns are scarce Workforce 30,000 mostly non-skilled workers Very few companies with international experiences Very poor language skills apart from Greenlandic/Danish Copenhagen, Keflavik & [Iqaluit] are hubs to Greenland Monopoly on sea transport of goods to Greenland

12 GREENLAND IN BRIEF 3/3 NO ABORIGINAL ISSUES STABLE POLITICAL SYSTEM LOW LEVEL OF CORRUPTION THE STATE MONOPOLIES ACTUALLY WORK FAVORABLE LICENSE TERMS RELATIVELY SIMPLE TAX REGIME - NO VAT

13 FUNDAMENTAL LICENSE TERMS Prospecting license gives non-exclusive rights to prospect for minerals except hydrocarbons and radioactive elements Exploration license gives exclusive rights to explore an area except for hydrocarbons and radioactive elements Progressive increasing work commitments [$] If you only sit on the license and do not explore, it can be revoked Possible to get an special exploration license for radioactive elements Exploitation license is granted for 30 years with extension possible for another 20 years Royalties applies, but is off set in reduced corporate tax

14 SETTING UP A BUSINESS ENTITY Limited company A/S Ltd Plc Small Limited Company ApS LLC Subsidiary of a foreign company Registered Branch Office Virtual Branch Office

15 GER All companies doing business in Greenland must register at the central business registry (GER) The CEO of limited companies are personally responsible for the payment of all taxes The trade act sets up additional requirements for doing business in Greenland these may apply for both Licensees and Subcontractors All companies must file an annual income statement to the tax authorities this is not publicly accessible

16 WHO CAN WORK IN GREENLAND Greenlanders have a preferential for all positions that requires skilled or non skilled workers and for all positions on see. But who is a Greenlander? Someone born in Greenland and who has lived there the first 5 years of his/her life People who have worked in Greenland for 7 out of the last 10 years have equivalent rights So does people married to people fulfilling these requirements

17 WHO CAN WORK IN GREENLAND Nordic citizens does not need a Work & Stay permit all others do For activities in accordance with the minerals act you can bring in labour for a period of 3 months. Applications for a Work & Stay permit must be filed by the Greenlandic company and the worker in Danish Furthermore VISA may be needed Primarily for non-eu citizens

18 BEWARE Labour market laws in Greenland are preceptive so you must comply weather you like it or not. The Holiday act : 12% of all pay The Pregnancy/Maternity act Workers Compensation Industrial Illness Insurance

19 PERSONAL TAX GROSS TAXATION Limited tax liability if your working period in Greenland is longer than 13 days but less than 183 days. Working period includes rest days also if they are accumulated and spent at home. Applicable if you mainly perform specific tasks in connection with prospecting, exploration or exploitation of mineral resources and have not been taxable to one of the Greenlandic municipalities in the last 6 months. You will be taxed on all income from work performed in Greenland. Income includes bonus, rest days, free board and lodging and other fringe benefits. 35%, which is a final tax

20 THE MINERALS ACT 18 Licensee must to the greatest extent possible use Greenland enterprises for contracts, supplies and services Licensee must to the greatest extent possible use labour from Greenland Licensee must conduct surveys and prepare and implement plans to ensure that exploration or exploitation of mineral resources is socially sustainable Licensee must document this

21 PARTNERING Situated in the capital Nuuk, with a strong network of local contractors reaching all towns and settlements in Greenland and a proven track record Xploration Services Greenland A/S Is your natural choice as your Business Partner in Greenland

22 In Greenland nothing is possible Although In Greenland everything is possible How can we help you