1 January 2008 UI Energy Corporation Challenge the Future & Change the World.

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January 2008

UI Energy Corporation Challenge the Future & Change the World

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Forward Looking Statements

This document includes forward-looking statements. Forward-looking statements are not guarantees of performance. Although UI Energy Corporation believes its expectations reflected in forward-looking statements are based on reasonable assumptions, no assurance can be given that these expectations will be achieved. Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements include, among others: the timing and extent of changes in commodity prices for crude oil, natural gas and related products, foreign currency exchange rates, and interest rates; the timing and impact of liquefied natural gas imports; the extent and effect of any hedging activities engaged in by UI Energy Corporation; the extent of UI Energy Corporation’s gas properties’ the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; the availability and cost of drilling rigs, experienced drilling crews, materials and equipment used in well completions, and tubular steel; the availability, terms and timing of governmental and other permits and rights of way; the availability of pipeline transportation capacity; political developments around the world; acts of war and terrorism and responses to these acts; weather; and financial market conditions. In light of these risks, uncertainties and assumptions, the events anticipated by UI Energy corporation’s forward-looking statements might not occur. Forward-looking statements speak only as of the date made and UI Energy Corporation undertakes no obligation to updated or revise its forward-looking statements, whether as a result of new information, future of new information, future events of otherwise.

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I. Introduction

II. Current Business

III. Future Business

Table of Contents

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I. Introduction UI Group

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I. Introduction Joint Venture Partners of UI Energy

Bina Bawi (Iraq) Bazian (Iraq) Gulf of Mexico (USA)

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I. Introduction

Corporate Structure

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I. Introduction

Classification Contents

CEO Kyu Sun Choi

Date of Establishment Aug. 1, 1987

Listed Code

Issued Shares

Kosdaq Stock Market (050050)

36million shares

Market Capitalization USD 220 million (end of Dec., 2007)

Major Shareholders UI enc Corporation 10.72%

Kyu Sun Choi Executive Vice-President of UI Energy Corporation 7.24%

Jeffrey Jones, former Chairman of US Chamber of Commerce & Industry 0.70%

Major Business Areas Energy development, installation and management of electric power generation equipment, medical equipment supply and mineral resources development

Headquarter / Contact 9th Floor, Sambu Bldg 676 Yeoksam-dong, Gangnam-gu, Seoul / 02-3445-5586

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II. Current Business Areas of oil exploration and production operation

Gulf of Mexico

West AfricaAccra, Ghana

Middle East Iraq

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II. Current Business

Bina Bawi (Iraq) Bazian (Iraq)

1. Estimated oil reserves 1.6 billion barrels 0.5 billion barrels

2. UIEnergy’s share of reserves 0.16 billion barrels (10%) 25 million barrels (5%)

3. Daily production 21,971 barrels 3,424 barrels

4. Working interest

Oil Search Ltd. 30%

Prime Natural Resources Inc. 30%

PetOil Holdings 20%

Hillwood Energy international 10%

UI Energy Co. 10%

Korea National Oil Corporation (38%)

SK Energy (19%)

Daesung Industry, Samchunri, Bum-A Resource Development (Each 9.5%)

GS Holdings, Majuko Trade (Each 4.75%)

UI Energy Co. (5%)

5. Capital expenditure

(UIEnergy’s share)USD 3.2 billion ( USD 0.3 billion ) USD 1.0 billion (USD 50 million)

6. Estimated amount of dividend

(USD 80 per barrel)USD 3.2 billion USD 0.5 billion

7. Estimated dividend per year USD 0.16 billion USD 25 million

8. Expected commencement of production

Mar. 2009 Dec. 2009

Summary of petroleum exploration and development projects

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II. Current Business Kurdistan Concession Map

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II. Current Business

Accra , off shore Ghana Gulf of Mexico (5 blocks)

1. Estimated oil/gas reserves 450 million 144 billion cubic feet of gas

2. UIEnergy’s share of reserves 34 million 10 billion cubic feet of gas

3. Working interest

Afex Int’l 25%

Realto 10%

CMI 32.5%

UI Energy Co. 7.5%

Concluded exclusive joint venture contract with CMI corporation, 100% subsidiary of Transocean (Listed company in US New York stock exchange with around USD 53 billion market capitalization) which is the largest offshore drilling company in the world. The JV agreement allows UI Energy to take at least 20% of all CMI’s stakes in all its projects.

4. Current activities Contract negotiation in progress Drilling in process

5. Capital expenditure

(UIEnergy’s share) - USD 6.3 million

Summary of petroleum exploration and development projects

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II. Current Business

Packaged Power StationMedical Equipment

1. Area Kurdistan area, northern Iraq

2. The other party of contract Autonomous Government

3. Description of businessConstruction and Installation of 306 MW Packaged Power Station

Construction of 400-bed hospital and supply of medical equipments for that hospital

4. Current activitiesSupplied 1st shipment of 51 MW PPS manufactured by Hyun-dai Heavy Industries Co. and test run in progress

Construction of 400-bed hospital in Sulaymaniyah city

5. Sales amount USD 21.2 million USD 2.1 million

6. Expected sales amount USD 272.2 million USD 33.3 million

7. RemarksA single largest contract ever signed by companies listed on KOSDAQ

Other Business

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III. Future Business

Drilling Service Business Construction Business Iron Mining Business

1. Area Kurdistan area, northern Iraq

2. Description of business

Provide drilling service to operating companies

Construction of pipelines and other infrastructures

Executed memorandum for 800-km2 iron mining development project in Penjween area, Sulaymaniyah

3. Current activitiesExpected to sign service contract with Korean Consortium for Bazian Block

Business development in progress

Signed joint venture agreement with Nokan, a local company, and Kurdistan Autonomous government

4. Expected sales amount

USD 1.7 billion USD 2.2 billion USD 111.1 million

5. RemarksKNOC is expected to open local office 1st Qtr, 2008

Completed iron ore sample analysis by Korea Institute of Geoscience & Mineral Resources

Other Business