Disposal of Kentau processing complex JSC «Tau-Ken Samruk" (hereinafter - the Company) is announcing disposal of Kentau ore processing complex. Assets of processing complex are owned by JSC "ShalkiyaZinc LTD", which in turn is a 100% subsidiary of the Company. The Company considers following options of asset disposal: 1) Sale of assets to single buyer; 2) Piecemeal sale of assets to unlimited number of buyers. A brief description of Kentau processing complex The processing complex is located in Kentau, 192 km from Shymkent. The project of the processing plant was developed by "Uralmekhanobr" for a maximum capacity of 4 mln. tonnes of ore per year. The plant was put into operation in 1965. During 2004-2008, the plant, treating Shalkiya ore, has been producing lead & zinc concentrates. In November 2008, processing operations were suspended at the plant. Following activities have been carried out at the plant since 2003: - Repair and maintenance operations for 3 mln. USD during 2003-2006; - Replacement of all flotation machines for 10 mln. USD during 2006-2007; - Replacement of pump units and construction of lime facility in 2008. Main production facilities of Kentau processing complex Total area of Kentau processing plant is 48,071 m2. Land area - 11,99 hectares, including 7,1 hectares in private ownership, 4,89 hectares in long-term lease until 2028. Part of processing plant territory belongs to JSC "PC Yuzhpolimetall ", including: 1 440 m2 of 6 336 m2 of grinding section; 2 376 m2 of the 7 722 m2 flotation section of the main processing building. The boundaries between the properties of «ShalkiyaZinc LTD" and JSC "PC Yuzhpolimetall" were drawn at the each section of the main building. The processing plant includes: Access railway tracks; Ore storage and unloading sites; Medium and fine crushing sections; Main building; Filtering site; Open thickening section with pumping station; Reagents production section; Research Laboratory; Chemical Laboratory; Administrative building. The owner of tailings are the municipal authorities of Kentau.
List of main machinery and equipment units is given below: Machine and equipment type Commissioning year Crushing site Screening machine ГР-173 2 units 1965 Cone crusher КСД-2200 2 units 1972 Screening machine ГИТ-52 2 units 1972 Cone crusher КМД-2200 2 units 1972 Main building. Grinding section Grinding Mill МШЦ 3,8х4,5 3 units 1965 Grinding Mill МШЦ 3,6х4,0 4 units 1965 Grinding Mill МШЦ 2,1х3,0 1965 Classifier 2КСН-3000 3 units 1965 Main building. Flotation section Flotation machine ФМ-6,3-10-ти камерная -11 units 2007 Flotation machine ФМ-6,3-12-ти камерная -1 units 2007 Flotation machine ФМ-3,6-2-х камерная -2 units 2007 Flotation machine ФМ-3,6-12-ти камерная -1 units 2007 Flotation machine ФМ-7 14 units нд Agitator 2007 Sludge pumping chamber 4 units 2007 Pump of sludge pumping chamber 4 units 2007 Pumping section Pump - 17 units 1965 Site of filtering and thickening Thickener 1 3 units 1967 Drum type vacuum filter БОУ-40 4 units 1965 Vacuum air pump ВВН-50 2 units 1965 Belt Conveyer 3 units 1985 Scraping feeder Рв 1 1985 Weight lifting equipment Bridge crane гп 50 tn 1965 Bridge crane гп 16 tn 1965 Bridge crane гп 250 tn 1965 Bridge crane гп 5 tn 1965 Bridge crane гп 5 tn 1965 Bridge crane гп 10 tn 1965 Bridge crane гп 30 tn 1965 Reagent preparation site Mixing machine 2 units 1965 Pump - 8 units 1985 Drain pump - 2 units 1985 Ventilator 1985 Tailings site Drain pump - 3 units 1967
Machine and equipment circuit diagram Grinding section
Flotation section Potential buyers provide the following list of necessary documents: 1. Application form with : Proposed acquisition share and conditions (price, conditions and terms of payment); Potential buyer s business profile; 2. Audited financial statement for the previous 3 years and the last quarterly financial statement prior to the date of application with the detailed notes; 3. Credit record for the last 5 years; 4. Information about change in participants/shareholder for the last 6 months; 5. Copies of constituent and entitlement documents (Articles of Incorporation, Charter with all amendments registered in the Justice Department, certificate (statement) of state registration) of legal entities, stocks (share of participation) and owner of a legal entity; 6. Copy of resolution of the legal entity authorized body or owner about chief executive officer appointment, copy of chief executive officer appointment order (with company s seal affixed); 7. Copies of documents certifying the right of signing documents and contracts with Tau- Ken Samruk JSC on behalf of the legal entity, owner (authorization, document with authorized signatures of CEO, Chief Accountant and seal impression); Additional documents to be submitted by non-residents: 1. Legalized copies of constituent documents (Charter, Article of Incorporation) with translation in Russian;
2. Documents certifying appointment of the board, its competence and regulation of the legal entity s board (resolutions/orders of the board members appointment) with translation in Russian. After signing non-disclosure agreement, the Company will provide detailed information on the assets of processing complex. Tau-Ken Samruk JSC mail address: 8 D.Kunayev Street, Izumrudnyi kvartal administrative building Block B, 13th floor Yessil district, Astana, 010000 The Republic of Kazakhstan Registry office: Tel.: +7 (7172) 55-95-72 Fax: +7 (7172) 55-27-80 e-mail: info@tks.kz Contacts for inquiry: Zhakeev Ermekbay Director of investment department y.zhakeyev@tks.kz 8 (7172) 55 93 51