Arktur, Ltd., Agricultural Firm

General Director - O. Polyah

Arktur Ltd. is the company engaged with the development of Karavan Deposit and Cheremushne Deposit and the production of quartz and building sands occurring in these deposits. The main consumers of quartz sands include traditionally businesses of the glass industry, as well as those of the chemical, building materials industries that employ these sands in the production of various refractories, ceramics, epoxy resins, and compounds. Businesses manufacturing reinforced concrete products, brick, plasters, etc. are among the main consumers of building sands.

Our Company exploits Karavan and Cheremushne Quartz Sand Deposits located in Kharkiv Oblast, Ukraine. As far as the chemical and grading properties of the sands occurring in these deposits are concerned, they have no analogs not only in Ukraine but also in Europe. As similar sands, those occurring in Novoselivka Deposit (Nova Vodolaga, Kharkiv Oblast, Ukraine) can be mentioned.

Expected production capacities of these deposits can be within 600000-1000000 MT per year. The deposits are exploited by open-cast mining.

The development of Karavan Deposit has been carried out from April 2003. Because of a skillful management of the Company, there are employed professional specialists of various levels, professional drivers, excavator operators, and tractor operators. In the development of the deposit, advanced techniques of open-cast mining are employed including the introduction of new production processes.

Paralleled with the development of Karavan Deposit is the preparation of Investment Projects of developing Cheremushne Deposit, which is one of the largest quartz sand deposits in Ukraine and Europe.

Our Company already supplies building sand to various consumers including Nova Vodolaga Concrete Product Plant.
By now, preliminary negotiations of quartz sand supplies have been held with Poltava Medical Glass Factory, Gostomel Glass Container Plant, Float-Glass Plant under construction in Klin, Moscow Oblast, Russia (the construction is performed by Glaverbell - Austria).

KARAVAN DEPOSIT

Karavan Deposit is located at: the west outskirts of Karavan Village, Lyubotyn, Kharkiv Oblast, Ukraine.

GEOGRAPHICAL COORDINATES:

Point No. 1
Northern latitude - 49°54'47''
Eastern Longitude - 35°52'11''

Point No. 2
Northern latitude - 49°54'47''
Eastern Longitude - 35°52'21''

Point No. 3
Northern latitude - 49°54'56''
Eastern Longitude - 35°52'11''

Point No. 4
Northern latitude - 49°54'54''
Eastern Longitude - 35°52'28''

This deposit is located at 30 km south-westward from Kharkiv, at 6 km from Lyubotyn. Kharkiv - Kyiv European classified highway (Е - 40) runs at a distance of 6 km, a territorial classified highway Т-2108 is located at a distance of 8 km.
Located in close vicinity to the deposit are railway stations of the Southern Railways:
At a distance of 6 km - Lyubotyn Station; 4 km - Sovnarkomivska Station, 4 km - Pyrogivka Station.

Karavan Deposit is an established manufacturing complex with a developed infrastructure (manufacturing facilities, power transmission lines, gas trunk pipelines, and a developed network of motor roads and approach lines).

The area of Karavan Deposit (as of 2003) is 6 hectares. The total thickness of quartz sands within the deposit is 9.7 meters to 19 meters and, in average, 15.1 meters. The overburden thickness varies from 0.7 meters to 13 meters and, in average, is 5.4 meters.

QUALITY INDICES OF QUARTZ SANDS

Sand Grade in Site as a Whole - ВС-050-1

Components:
SiO2
By series sample - 95,9-99,2%
By well - 97,9-98,56%
By estimated block - 98,5%
At site - 98,5%

Al2O3
By series sample - 0,22-1,67%
By well - 0,36-1,02%
By estimated block - 0,58%
At site - 0,58%

F2O3
By series sample - 0,02-0,28%
By well - 0,03-0,26%
By estimated block - 0,05%
At site - 0,05%

TiO2
By series sample - 0,01-0,36%
By well - 0,01-0,15%
By estimated block - 0,03%
At site - 0,03%

NATURAL RADIONUCLIDE CONTENT INDICES

Activity (Bq/kg)
Radionuclide
232Th
1 (wet) - 3,7
2 (yellow) - 4,7
3 (quartz) - 2,5
TLV (NRBU-97, section 8. 5. 1) - 260
226Ra
1 (wet) - 4,1
2 (yellow) - 5,2
3 (quartz) - 3,1
TLV (NRBU-97, section 8. 5. 1) - 370
40K
1 (wet) - 9,5
2 (yellow) - 11,2
3 (quartz) - 4,3
TLV (NRBU-97, section 8. 5. 1) - 4800

CHEREMUSHNE DEPOSIT

Cheremushne Deposit is located at: the south outskirts of Cheremushne Village, Valky District, Kharkiv Oblast, Ukraine.

GEOGRAPHICAL COORDINATES:

Point No. 1
Northern latitude - 49°51'00"
Eastern Longitude - 35°47'47"

Point No. 2
Northern latitude - 49°50'45"
Eastern Longitude - 35°47'57"

Point No. 3
Northern latitude - 49°50'15"
Eastern Longitude - 35°47'59"

Point No. 4
Northern latitude - 49°50'19"
Eastern Longitude - 35°47'18"

Point No. 5
Northern latitude - 49°50'30"
Eastern Longitude - 35°47'15"

Point No. 6
Northern latitude - 49°50'58"
Eastern Longitude - 35°47'24"

This deposit is located at 40 km south-westward from Kharkiv, at 15 km from Lyubotyn, at 12 km from Valky. Kharkiv - Kyiv European classified highway (Е - 40) runs at a distance of 6 km, European classified highway E-105 runs at a distance of 12 km.
Located in close vicinity to the deposit are railway stations of the Southern Railways:
At a distance of 8 km - Ogultsy Station, 8 km - Pyrogivka Station.

Cheremushne Deposit is a unique natural complex of quartz sand reserves which sands, by their quality indices, are one of the best in Europe. According to estimates, the exploitation of Cheremushne Deposit with a quartz sand production of 500,000 to 1,000,000 MT per year is possible for more than 50 years.

The area of Cheremushne Deposit (as of 2003) is 150 hectares. The total thickness of quartz sands within the deposit is 7.2 meters to 18.8 meters and, in average, 12.5 meters. The overburden thickness varies from 5 meters to 40 meters and, in average, is 19.9 meters.

QUALITY INDICES OF QUARTZ SANDS

Sand Grade in Site as a Whole - ВС-050-1

Components:
SiO2
By series sample - 97,68-99,77%
By well - 98,67-99,316%
By estimated block - 98,94-99,03%
At site - 99,03%

Al2O3
By series sample - 0,01-1,23%
By well - 0,1-0,56%
By estimated block - 0,228-0,336%
At site - 0,27%

F2O3
By series sample - 0,008-0,34%
By well - 0,027-0,07%
By estimated block - 0,043-0,059%
At site - 0,048%

TiO2
By series sample - 0,006-0,17%
By well - 0,012-0,33%
By estimated block - 0,032-0,056%
At site - 0,039%

INVESTMENTS

Based on the uniqueness of quartz sands of both Karavan Deposit and Cheremushne Deposit, our Company invites all the interests - either businesses, enterprises, organizations or individuals - to participate in Investment Projects associated with the construction, on the base of the above deposits, of a Float-Glass Plant and Mining and Dressing Enterprise.

According to the estimates by specialists of the Ministry of Environment and Natural Resources of Ukraine, the total value of marketable products, quartz sands in an undressed form, that have been included in the reserve estimate, is, in the current prices as of 2003 at the minimum cost:
- For Karavan Deposit: USD 5,000,000;
- For Cheremushne Deposit: USD 60,000,000.

The costs of full work to set the deposits on production shall be:
- For Karavan Deposit: USD 100,000;
- For Cheremushne Deposit: USD 350,000

Investments into the development of these deposits would allow the investment portfolio to be formed and net profits to be started gained in 1 to 2 years.