Acari Iron Ores Proposal Exploitation 1.1 Billion Dollars Noe Peru

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Acari iron Peru, Eng. Noe Rodriguez Email: [email protected] Skype noerods

ACARI IRON ORE CONCESSION

ECONOMIC PROPOSAL FOR THE

EXPLORATION AND EXPLOITATION

2011

ACARI

CONCESSION

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ECONOMIC PROPOSAL FOR THE EXPLORATION AND EXPLOITATION

OF ACARI CONCESSION

WE ARE THE OWNER OF THE MINING RIGHT IN ACARI, FOR WHICH PRESENT THE FOLLOWING

ECONOMICAL PROPOSAL:

GENERAL INFORMATION OF ACARI ANNEX N°1

STAGE N°1 – PRE-EXPLORATORY OPERATION ANNEX N°2

STAGE N°2- EXPLORATION ANNEX N°3

STAGE N°3- EXPLOITATION IRON ORES AND SPONGE IRON ANNEX N°4

TERMS AND CONTRACTUAL CONDITIONS ANNEX N°5

ADDITIONAL INFORMATION ANNEX N°6

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ACARIPROJECT/GENERAL INFORMATION ANNEX N°1

NAME OF THE PROJECT : ACARI

SIZE OF PROPERTY : 800 HAS.

LOCATION : BELLA UNION, CARAVELI, AREQUIPA-

PERU.

DISTANCE FROM PACIFIC OCEAN : 29 KM

DISTANCE TO SAN JUAN PORT : 60 KM

MAIN OUTCROPS OF IRON ORE : THE VEIN°4 HAS AN OUTCROP OF

1800 METERS OF LENGTH BY 4.50

METERS OF WIDTH (APPROXIMATELY).

QUALITY OF IRON ORE : MIXTURE OF HEMATITE - MAGNETITE

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ANNEX N°1

GEOPHYSICAL STUDIES DONE : STUDY OF ENGINEER GEOLOGIST,

WHO PRESENTS THE DIAMOND

DRILLINGS AND INITIAL RESERVES

OF 1'382.320 METRIC TONS

(DRILLED BY PREVIOUS COMPANY)

AND HIGHLY PROBABLE OF

1’556,840 METRIC TONS OF IRON

ORE MAGNETITE-HEMATITE OF HIGH

CONCENTRATION (TOTAL 3 MILLION

TONS)

GEOPHYSICS STUDIES DONE : BY QUANTEC GEOSCIENCE OF PERU

(CANADIAN), STUDY PRESENTS 02

MAGNETIC BODIES OF 136 MILLION

CUBIC METERS (M3).

INFERRED RESOURCES BY GEOPHYSICS : OVER 500 MILLIONS TONS IRON ORE

(OBTAINED: 136M. M3 X 3.7 TONS/M3)

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ANNEX N°1

CHEMICAL ANALYSIS : Fe AL2O3 MgO CaO

62.3% 1.4% 0.7% 0.62%

Cu K NA S

0.01% 0.08% 0.01% 0.11%

TYPE OF IRON ORE : HEMATITE (Fe2O3) = 68%

MAGNETITE (Fe3O4) = 32%

MAGNETIC CONCENTRATION : FOR LUMPS ORES

FORECASTING Fe CONTENT = 63-64%

FOR FINES ORES

Fe CONTENT = 64-65%

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CANADIAN GEOPHYSICAL STUDY PRESENTS 02 MAGNETIC BODIES OF

136 MILLION CUBIC METERS (M3), FOR TOTAL 500 MILLION TONS.

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TERRESTRIAL MAGNETOMETRY BY CANADIAN COMPANY

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ACARI PROJECT – PRE-EXPLORATORY OPERATION ANNEX N°2

ANTECEDENTS

THIS DEPOSIT WAS ONE OF PREVIOUS MINES, WHICH WAS OPERATED UNTIL 1969 WITH

FINANCING OF “AMERICAN OVERSEAS FINANCE OF NEW YORK” AND MINING BANK OF PERU

(BANCO MINERO DEL PERU), HAVING EXPORTED TO JAPAN OVER 8 MILLIONS TONS OF HIGH

CONCENTRATION IRON ORE, DURING 6 YEARS OF OPERATIONS.

OBJECTIVE

TO CARRY OUT A PRELIMINARY VERIFICATION OF THE POTENTIAL IRON ORE RESOURCES IN

ACARI PROJECT TO PROVIDE SECURITY TO THE INVESTOR ABOUT THE IRON ORE VOLUME AND

IRON ORE QUALITY, IN ACCORDING TO THE FIRST DRILLING RESULTS, THE INVESTOR GROUP CAN

DECIDE TO CONTINUE OR RETIRE TO THE CONTRACT.

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PRE-EXPLORATORY OPERATION STUDIES ANNEX N°2

THE STUDIES OF THIS STAGE WILL BE AS FOLLOWS:

1. TERRESTRIAL GEOPHYSICS (MAGNETOMETRIC AND GRAVIMETRY), TO VERIFY THE EXISTENCE

OF MAGNETIC BODIES THAT CAN APPEAR UNDER THE ANOMALIES DETECTED IN THE STUDY

OF CANADIAN COMPANY QUANTEC GEOSCIENCE OF PERU, IT MEANS FROM 600 METERS

UNDER OF THE ACARI SURFACE.

2. ARE REQUIRED 2 DIAMOND DRILLS UNDER VEIN 4 WITH A DISTANCE OF 300 METERS

BETWEEN EACH DRILL AND A DEPTH OF 500 METERS IF THE CONTINUATION OF THE

MINERALIZATION ALLOWS IT.

3. SHOULD BE DRILLED OTHER DIAMOND DRILLS UNTIL VERIFYING THE CENTER OF THE

DETECTED MAGNETIC BODIES IN THE STUDY OF QUANTEC GEOSCIENCE OF PERU.

THE DRILLINGS WILL ALLOW THE POSSIBLE DETECTION OF OTHER NONFERROUS MINERALS

WITH COMMERCIAL VALUE AND ALLOW ALSO THAT THE INVESTOR GROUP DECIDES TO CONTINUE

OR TO SUSPEND THE DIAMOND DRILLS ACCORDING WITH THE INITIAL OBTAINED RESULTS

ABOUT THE QUALITY OF THE IRON ORE, IN OTHER MINERALS AND THEIR CONSEQUENT

COMMERCIAL VALUES.

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PRE-EXPLORATORY OPERATION BUDGET (STAGE N°1) ANNEX N°2

1.1.1. GEOPHYSICS

TERRESTRIAL MAGNETOMETRIC STUDY LINE OF 80 KM READING WITH A MINIMUM OF 10

METERS EACH AND 30 POINTS MINIMUM OF GRAVIMETRY FOR AN EXTENSION OF 700

HECTARES AND UNDER OF 600 METERS FROM THE SURFACE (WEST SIDE).

REFERENCIAL BUDGET : US$ 50,000.00

REFERENCIAL TIME : 30-45 DAYS.

2.2.2. DIAMOND DRILL

INCLUDING PERMITS, ENVIRONMENTAL IMPACT STATEMENT (EIS), GOVERNMENT

PROCEDURES, CONSTRUCTION OF PLATFORMS AND 2000 METERS OF DIAMOND DRILLS,

MINIMUM FOR AN EXTENSION OF 800 HECTARES.

REFERENCIAL BUDGET : US$ 550,000.00

REFERENCIAL TIME : 180 DAYS.

TOTAL ESTIMATED INVESTMENT BUDGET : US$ 600,000.00

REFERENCIAL TIME : 4 MONTHS

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ACARI PROJECT/EXPLORATION (STAGE N°2) ANNEX N°3

INCLUDES THE DEVELOPMENT OF THE ENVIRONMENTAL IMPACT STUDY (EIS) AND

UPGRADES NECESSARY GOVERNMENTAL, GOVERNMENT PERMISSION FOR

CONSTRUCTION OF 20 INITIAL DRILLING PLATFORMS (CATEGORY1) AND UPGRADES

REQUIRED.

THE GOAL IS TO DRILL ALL THE MINERALIZED ZONES INDICATED BY GEOPHYSICAL

STUDIES UNTIL A MAXIMUM PERMISSIBLE MINERALIZED DEPTH IN ORDER TO GET AN

INDICATED/MEASURED JORC RESERVES IN ALL DEPOSIT.

TO ACHIEVE OBJECTIVES STATED PROVIDED THE FOLLOWING PARAMETERS, LIMITS:

1. NUMBER OF HOLES SHOULD BE NO LESS THAN 75 DIAMOND DRILLS.

2. THE DISTANCE BETWEEN EACH DRILL TO BE NO LESS THAN 200 METERS.

3. DEPTH OF EACH DRILL TO BE NO LESS THAN 300 METERS INSIDE OF MINERALIZED

ZONE

4. THE PROGRAM OF DIAMOND MUST BE AT LEAST OF 22.000 LINEAR METERS INSIDE

OF THE MINERALIZED ROCK.

TOTAL ESTIMATED INVESTMENT DRILLING BUDGET : US$ 5 MILLIONS

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ACARI PROJECT/EXPLOITATION: 2,000,000 MT/MONTH ANNEX N°4

STAGE N°3 (ALSO NEEDED TO HAVE MIXED PRODUCTION WITH SPONGE IRON 5MTPA)

THE INVESTMENT BUDGET FOR PRODUCING 24MTPA OF IRON ORE, IT IS ESTIMATED AS

FOLLOWS:

- MINE AND INFRASTRUCTURE $166’000,000.-

- PROCESSING PLANT $ 190’000,000.-

- CONVEYOR BELT (40 KMS) $200’000,000.-

- PORT AND INFRASTRUCTURE $230’000,000.-

- SERVICES $ 24’000,000.-

- CONTINGENCY $ 90’000,000 .-

ESTIMATE SUB-TOTAL $900’000.000.-

THE OPERATIVE CAPITAL FOR 3 MONTHS IS ESTIMATED IN US$ 267’000,000.-

TOTAL INVESTMENT : $ 1,167’000,000.00 ($ 1,17 BILLION)

OPERATING BUDGET (EXPLOITATION, CRUSHING/CLASSIFICATION, MAGNETIC

CONCENTRATION, TRANSPORTATION TO PORT AND SHIPPING EXPENSES), IS ESTIMATED AT

U.S.$ 44.50 X TM.

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ANNEX N°4

A FORE CASTING OF INCOME / EXPENSES FOR THE FIRST YEAR IS ESTIMATED AS FOLLOWS:

INCOME/FIRST YEAR

24’000,000 MT X FOB$ 120.- X MT $2,880’000,000.-

EXPENSES/FIRST YEAR

24’000,000 TM X $44.50 X TM $1,068’000,000.-

GROSS PROFIT / FIRST YEAR: $ 1,812'000, 000.-

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TERMS AND CONTRACTUAL CONDITIONS ANNEX N°5

WE PROPOSES AN ASSOCIATION TO SELL 60% OF ACARI MINING RIGHTS TO THE INVESTOR

GROUP, WHICH INCLUDES THE PAYMENT TO THE MINING GROUP FOR DOWN PAYMENT AND

FOR THE PROBABLE/PROVED RESERVES IN 3 MILLIONS METRIC TONS. THE ACCOMPLISHMENT

OF THE PRE-EXPLORATORY OPERATION, FINAL EXPLORATION AND THE PAYMENTS FOR ALL

THE RESOURCES AND MINERAL RESERVES THAT CAN BE DETECTED IN THE INITIAL AND FINAL

EXPLORATION.

THE INVESTMENT BUDGET FOR THE PRE-EXPLORATORY OPERATION IS ESTIMATED IN $

600,000 AND ITS SCOPES AND DETAILS CAN BE FOUND IN THE ANNEX N°2.

THIS STAGE WILL DEFINE A PRELIMINARY QUANTIFICATION OF IRON ORE RESOURCES AND

OTHER SUBSTANCES’ IN THE ACARI PROJECT. TO ACHIEVE A DIAMOND DRILL MESH SCHEDULE

TO DEVELOP STAGE 2 (ANNEX N°3) IN THE FINAL EXPLORATION.

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ANNEX N°5

THE EXPLORATION OF THE DEPOSIT HAS THE OBJECTIVE TO EVALUATE INTEGRALLY THE IRON

ORE DEPOSIT UNTIL 2000 METERS UNDER NEATH OF THE ACARI SURFACE. IF THE STUDIES

SHOW MINERALIZATION WITH ACCEPTABLE COMMERCIAL VALUES OF IRON Fe AND/OR OTHER

SUBSTANCES IN ORDER TO DEFINE GRADUALLY THE INDICATED RESERVES FOR ESTABLISHING

A PAYMENTS CHRONOGRAM TO THE MINING GROUP, ACCORDING WITH THE ADVANCE AND

VALUATION OF THE QUANTIFIED RESOURCES AND RESERVES.

WE PROPOSE A FIDUCIARY AGREEMENT (ESCROW) WITH AN INTERNATIONAL BANK, ACCEPTED

BY THE INVESTOR GROUP. THE MINING GROUP SHOULD TRANSFER TO THE FIDUCIARY BANK

THE 60% OF ACARI MINING RIGHTS AND ALSO THE INVESTOR GROUP SHOULD COMPLY

STRICTLY WITH THE INVESTMENT COMMITMENTS AND FIRST DISBURSEMENTS FOR THE

MINING GROUP. IN ORDER WHEN THE INVESTOR GROUP FINISHES FULFILLING ALL

COMMITMENTS, THE FIDUCIARY BANK SHOULD TRANSFER THE 60% OF THE MINING PROPERTY

OF ACARI TO THE INVESTOR GROUP.

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ANNEX N°5

INTEGRAL STAGE N°2/EXPLORATION (ANNEX N°3), WILL HAVE TO BE FULFILLED BY THE

INVESTOR IN 5 SUB-STAGES, WHICH WILL BE DEFINED IN A CHRONOGRAM OF EXPLORATION.

ONCE THE EXPLORATORY PRE-OPERATION IS CONCLUDED IN EACH OF THE 05 SUB-STAGES,

THE GROUP INVESTOR WILL HAVE TO PUT INTO EFFECT THE PAYMENTS TO THE MINING GROUP,

ACCORDING TO THE VALUATION OF THE RESERVES OPEN PIES, AT THE RATE OF A VALUE BY

METRIC TON, ACCORDING TO THE QUALITY THAT CONTAINS.

FOR THE EFFECTS OF VALUATION OF THE RESERVES DETECTED IN VEIN 4 IN STAGE PRE-

EXPLORATORY, OUTSIDE THE VOLUME OF 3 MILLION METRIC TON PROBED/PROBABLE, THE

VALUE BY METRIC TON IS $2,50 USD, OF SUCH RESERVES PROJECTED IN THE 1.800 METERS

OF LENGTH, BY ALL THE DEPTH THAT CONTAINS.

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ANNEX N°5

FOR THE EFFECTS OF VALUATION BY EACH METRIC TON OF INDICATED AND DISCOVERED

RESERVES IN THE STUDIES OF EXPLORATION OF THE STAGEN°2, DETERMINES IT HAS A VALUE

EQUIVALENT TO THE 0,4% OF THE VALUE IS DETERMINED AVERAGE OF THE IRON ORE SPOT-

FINES F.O.B (INDIA, AUSTRALIA AND BRAZIL), IN AGREEMENT WITH SPECIALIZED PUBLICATION

CRU-MONITOR IMMEDIATELY PREVIOUS TO THE DATE OF VALUATION, WHENEVER THE IRON

MINERAL OF PROJECT ACARI HAS A CONTENT BETWEEN 50-55% Fe (TOTAL IRON) AND OF

0,25% OF THE SAME AVERAGE, BY THE RESOURCES BETWEEN 40-50% PROPORTIONAL Fe

(IRON) AND VALUES FOR THE ENDS.

IT IS PROPOSED THE SIGNATURE OF THE FIDUCIARY CONTRACT TO THE INVESTOR GROUP

SHOULD DEPOSIT TO THE ESCROW BANK THE SUM CORRESPONDING TO THE 3 MILLION

METRIC TON OF EXISTING RESERVES PROVED/PROBABLE PLUS DOWN PAYMENT. ALSO, IF

THERE WILL BE OTHER MINERAL SUBSTANCES IN THE RESOURCES TO DETERMINE IN PROJECT

ACARI LIKE GOLD, SILVER, RECEIVES OR ANOTHER MINERAL OR METAL WITH COMMERCIAL

VALUE, SHOULD BE PAID BY THE INVESTOR GROUP TO THE MINING GROUP IN THE SAME

PROPORTIONAL PROPORTIONS AND/OR MEASURES, THAT THE APPLIED ONES IN THE IRON

ORE.

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ANNEX N°5

IT IS SETTLED DOWN THAT THE RESERVES DETECTED IN VEIN 4, OUTSIDE THE 3 PROBABLE

PROVEN MILLION METRIC TONS, SHOULD BE PAID TO THE MINING GROUP, AT THE END OF THE

PRE-EXPLORATORY OPERATION.

IT IS SETTLED DOWN THAT THE PAYMENTS THAT INVESTOR GROUP SHOULD CARRY OUT TO THE

MINING GROUP FOR THE VALUATION OF INDICATED RESERVES WILL HAVE TO CORRESPOND TO

60% OF SUCH VALUES, CONSIDERING THE SAME PROPORTION OF SHARES THAT SHOULD

RECEIVE THE INVESTOR GROUP. IF THERE WILL BE OTHER MINERAL SUBSTANCES HAVE IN THE

RESOURCES TO DETERMINE IN PROJECT ACARI LIKE GOLD, SILVER, RECEIVES OR ANOTHER

MINERAL OR METAL WITH COMMERCIAL VALUE, SHOULD BE PAID BY THE INVESTOR GROUP TO

THE MINING GROUP IN THE SAME PROPORTIONS, THAT THE APPLIED ONES IN THE IRON

MINERAL.

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ANNEX N°5

IT IS CONSIDERED THAT THE VALUATION OF MINERALS AND Fe THAT ARE DISCOVERED DURING

RESERVATIONS EXPLORATION STUDIES MUST BE ADJUSTED TO SECURITIES OF THE MONTH

PRIOR TO EACH SUB-STAGE INDICATED, AS WELL AS THE MINING GROUP IN EACH SUB-STAGE

INDICATED MAY CHOOSE THE CURRENCY OR VALUE OF THE FIRST DISBURSEMENT PHYSICAL

GOLD, ACCORDING TO THE QUOTE OF THE MONTH PRIOR TO EACH RESPECTIVE RECOVERY AND

LIQUIDATION.

NOTED THAT ALL THE TERMS AND CONDITIONS PRESENTED IN THIS CHAPTER SHALL BE

IMPROVED, EXPANDED OR CORRECTED IN TALKS TO DEFINE DESERVING VERY CLEARLY THE

TRUST AGREEMENT BETWEEN THE PARTIES.

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PROCEDURE AND DETAILED CONDITIONS FOR THIS JOINT VENTURE

BUSINESS PROPOSED

1. OBJECT OF THE ASSOCIATION:

(A) INVESTMENT IN EXPLORATION UNTIL OBTAIN A MINIMUM RESERVE OF 30 MILLION TONS OF

IRON ORES, AND TO INVEST TO EXPLOIT AND EXPORT 10 MILLION TONS OF Fe IRON ORES PER

YEAR, WITH LATER AND SIMULTANEOUS MANUFACTURE OF 5 MILLION TONS OF SPONGE IRON

(TO DECREASE THE FREIGHT COST TO ASIA, IT IS PREFERRED TO MAKE SPONGE IRON).

(B) TO CONTINUE THE EXPLORATION, WITH THE SAME TERMS OF POINT (A) UNTIL ACHIEVING

RESERVES OF 300 MILLIONS TONS.

2. TYPE OF CONTRACT OF ASSOCIATION:

JOINT VENTURE, WITH SALE OF SHARES (STOCKS) THROUGH FIDUCIARY CONTRACT (ESCROW).

3. SHARES SALE:

PROPOSED THE SALE OF 60% OF SHARES AND RIGHTS OF THE CONCESSIONS TO THE

INVESTOR GROUP.

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4. SALE PRICE:

THE SALE PRICE OF 60% OF THE SHARES AND RIGHTS OF THE CONCESSION TO THE INVESTOR

GROUP WILL BE AS FOLLOWS:

(A) FULFILLMENT OF INVESTMENT COMMITMENTS OF EXPLORATION AND EXPLOITATION,

POINT (1).

(B) “CASH PAYMENTS” AGAINST THE ACCOUNT OF THE FUTURE PROFITS OF MINING GROUP.

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5. VALUE OF SALE BY METRIC TON OF IRON ORE IN SITU:

FOR THE EFFECTS OF VALUATION PER EACH METRIC TON OF INDICATED RESERVES AND

RESOURCES DETERMINED IN THE EXPLORATION STUDIES, THIS SETTLES DOWN A VALUE

AVERAGE OF THE IRON ORE SPOT-FINES F.O.B (INDIA, AUSTRALIA AND BRAZIL), ACCORDING

WITH SPECIALIZED PUBLICATION CRU-MONITOR IMMEDIATELY PREVIOUS TO THE DATE OF

VALUATION.

(A) FOR MEASURED RESERVES THE VALUE. WITH 60% Fe TOTAL IRON, WILL BE OF 0.60% PER

METRIC TON IN SITU.

(B) FOR INDICATED RESERVES THE VALUE WITH 60% Fe TOTAL IRON, WILL BE OF 0.40% PER

METRIC TON IN SITU.

(C) FOR INFERRED RESERVES, THE VALUE WITH 60% Fe TOTAL IRON WILL BE OF 0.30% PER

METRIC TON IN SITU.

(D) IF THE AVERAGE OF LAWS OF Fe TOTAL IRON IN THE DRILLS WERE INFERIOR VALUES

AVERAGE TO 60% Fe TOTAL IRON, THE FIXED PRICES WILL BE REDUCED PROPORTIONALLY

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AND IF WERE OBTAINED HIGHER VALUES AVERAGE TO 60% Fe TOTAL IRON, THE FIXED PRICES

WILL BE INCREASED PROPORTIONALLY.

(E) WITH RELATIONSHIP TO OTHER SUBSTANCES THAT CAN BE DETECTED IN THE

EXPLORATION, THE VALUES OF SALE OF MINERALS, THEY WILL BE APPLIED IN SIMILAR AND

PROPORTIONAL FORM TO THE ONE USED IN THE VALUES OF SALE FOR METRIC TON OF

FERROUS ORES.

(F) THE VALUES OF SALE OF THE FERROUS AND NOT FERROUS SUBSTANCES WILL BE

LIQUIDATED, WITH REFERENCE TO THE PRICE IN THE INTERNATIONAL MARKET OF THE

PREVIOUS MONTH.

(G) THE INVESTOR GROUP WILL ONLY PAY 60% OF THE TOTAL APPRAISEMENT OF MEASURED

RESERVES, INDICATED AND INFERRED THAT IS POSSIBLE TO DETERMINE IN THE STAGE OF

EXPLORATION.

6. COMMITMENTS OF THE INITIAL INVESTMENT (STAGE 1):

IT IS ESTABLISHED THAT IN THIS STAGE, INVESTMENTS WILL BE DUE TO CARRY OUT IN A

PROGRAM STEP BY STEP, IN ORDER TO REDUCE TO THE MINIMUM, ANY TYPE OF POSSIBLE

INITIAL RISK, UNTIL OBTAINING A CLEAR EVIDENCE OF THE POSSIBILITIES TO CUBE (VALUE)

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ACCEPTABLE VOLUMES OF MINERAL OF IRON (TOTAL Fe), AND OTHER MINERALS THAT CAN

EXIST IN THE ALL AREA OF CONCESSIONS AND TO VERIFY THE CONCENTRATION AND QUALITY

OF THE MINERAL.

THE INVESTMENT COMMITMENTS SHALL BE THE FOLLOWING:

(A) GEOPHYSICAL

FOR THE VERIFICATION AND THE INITIAL CONFIRMATION OF THE ABNORMALITIES AND

MAGNETIC BODIES, THEY WILL ONLY BE REQUIRED 200 LINES OF 1 KM DE TERRESTRIAL

MAGNETOMETRY WITH OVER HOUSER EQUIPMENTS OR SIMILAR AND 50 POINTS OF

GRAVIMETRY.

(B) DIAMOND DRILLS

IT WILL ONLY BE REQUIRED TWO DRILLS OF 150 METERS DEPTH EACH ONE, TO FINISH THE

VERIFYING OF QUALITY OF THE MINERAL IN THE MAIN MAGNETIC BODIES.

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(C) OPERATIVE AND ADMINISTRATIVE EXPENSES

INCLUDING COMMUNITARIAN AGREEMENTS (DIA), AND OTHERS.

7. FULFILLMENT OF COMMITMENTS INVESTMENT (STAGE 2):

THE INTEGRAL EXPLORATION, EXPLORATORY COMMITMENTS, WILL BE BASED ON AN

EXPLORATION PROGRAM TO BE DEFINED THAT INCLUDES THE FOLLOWING:

(A) TOTAL AND COMPLETE GEOPHYSICS.

(B) DIAMOND DRILLS

(C) OPERATIVE AND ADMINISTRATIVE EXPENSES INCLUDING THE MAINTENANCE IN

COMMUNITARIAN AGREEMENTS AND DEVELOPMENT OF ANY STUDY OR EXTENSION THAT IS

REQUIRED.

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8. LIMITS AND CONDITIONS OF EXPLORATION:

(A) WHOLE FERROUS EXPLORATION STAGE YOU WILL HAVE A MAXIMUM DURATION OF 18

MONTHS AND THE EXPLORATION OF OTHER MINERAL SUBSTANCES, WILL BEGIN IMMEDIATELY,

AND SHOULD HAVE A MAXIMUM DURATION OF OTHER 18 MONTHS FROM THE DATE OF

DETECTION OR DISCOVERY.

(B) THE EXPLORATION WILL COMPREHEND, TO ALL MINERAL FERROUS RESOURCE THAT WILL

BE, AT LESSER THAN 500 METERS OF AVERAGE OF DEPTH OF EACH CONCESSION AND FOR THE

NON FERROUS RESOURCES THE EXPLORATION WILL BE MADE IN ALL ITS DEPTH.

(C) ONCE ENDED AND VERIFIED THE GEOPHYSICAL STUDY WITH THE COMPLETE

MAGNETOMETRY AND GRAVIMETRY, WITH DEVELOPMENT OF MAGNETIC BODIES IN 3D. THE

MINING GROUP WILL PROPOSE TO THE INVESTOR GROUP A PLAN AND TIMELINE OF

DIAMANTINE DRILLINGS, WHICH WILL FIX A MINIMUM OF LINEAL METERS OF DIAMANTINE

DRILLINGS TO DEVELOP, AND THE TERM OF DURATION.

(D) THE EXPLORATION WILL OBTAIN THE QUALIFICATION 43101 OR JORC, AS PRIORITY FOR

EACH 30 MILLION METRIC TONS OF MEASURED RESERVES.

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(E) THE EXPLORATION WILL OBTAIN THE QUALIFICATION 43101 OR JORC, AS PRIORITY FOR

THE REMAINING 50% OF RESERVES, AS INDICATED RESERVES.

(F) THE EXPLORATION WILL OBTAIN THE QUALIFICATION 43101 OR JORC OF THE OTHER 50%

OF REMAINING RESERVES, AS INFERRED RESERVES.

(G) IN CASE THEY ARE DISCOVERED OTHER MINERAL SUBSTANCES WITH COMMERCIAL

VALUES AS Au, Ag, Cu, Pb, Zn AND ANY OTHER MINERAL, THE INVESTOR GROUP WILL PUT

UNDER AN OBLIGATION TO SCAN INTEGRAL AND COMPLETELY SUCH RESOURCES AT ONE TIME

NOT GREATER THAN 18 MONTHS, FROM THE DATE OF THE DISCOVERY.

9. INVESTMENT COMMITMENT EXPLOITATION (STAGE 3):

THE INVESTMENT COMMITMENT EXPLOITATION WILL BE AS FOLLOW:

(A) FOR THE FIRST MEASURED RESERVES OF 30 MILLION METRIC TONS, THE INVESTOR

GROUP WILL INVEST IN A PROJECT OF EXPLOITATION AND EXPORT OF MINERAL OF IRON WITH

A MINIMUM CAPACITY OF 10 MILLIONS METRIC TONS PER YEAR AND LIKEWISE IN A PLANT OF

SPONGE IRON OF CAPACITY FROM 5 MILLIONS METRIC TONS PER YEAR.

(B) ALTHOUGH, THE EXPLORATIONS WILL CONTINUE FOR EACH NEW MEASURED RESERVE OF

30 MILLION METRIC TONS OF IRON MINERAL, THE INVESTOR GROUP WILL MAKE THE

ESTABLISHED INVESTMENTS IN THE POINT (A).

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(C) ALTHOUGH THE INVESTOR GROUP WILL WANT TO CHANGE THE INVESTMENT OF

EXPLOITATION AND EXPORT OF IRON ORES, FOR A TOTAL PRODUCTION OF SPONGE IRON, THE

MINIMUM CAPACITY OF PRODUCTION WILL BE 50% OF THE SUITABLE ONE IRON ORES, THAT IS

TO SAY 5 MILLION METRIC TONS PER YEAR.

(D) THE INVESTOR GROUP WILL INVEST 100% IN THE INDICATED PROJECTS IN THE POINT (C),

FOR THE WHICH THE 40% OF THE SHARES (STOCKS) OF THE MINING GROUP WILL BE GOLDEN

SHARES (STOCKS), WITHOUT ANY DILUTION, AND WITHOUT DECREASING.

(E) THE TOTAL AMOUNT OF THE VALUE, OF EACH 30 MILLION METRIC TONS OF MEASURED

RESERVES, PLUS THE VALUES OF INDICATED RESERVES AND INFERRED INDICATED IN THE

POINT (5), WILL BE PAID BY THE INVESTOR GROUP TO THE MINING GROUP, IN A TIMELINE TO

BE DEFINED IN THE CONTRACTUAL NEGOTIATIONS.

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10. TIMELINE OF CASH PAYMENTS TO MINING GROUP:

THE TIMELINE OF PAYMENTS WILL BE AS FOLLOW:

(A) DOWN PAYMENT AT THE MOMENT OF SIGNATURE OF CONTRACT

NOTE: THIS DOWN PAYMENT YOU WILL MAKE TO THE FIDUCIARY BANK (ESCROW), AGAINST

THE MINING GROUP GIVE TO FIDUCIARY BANK THE 60% OF CONCESSION RIGHTS OWNERSHIP,

TO BE TRANSFERRED TO INVESTOR GROUP WHEN FULFILLED THE WHOLE INVESTMENT

COMMITMENT.

(B) PAYMENTS OF USD $ 400,000.- EVERY 3 months AFTER THE SIGNATURE OF THE

CONTRACT, DURING THE ALL STAGE OF EXPLORATION.

(C) CASH PAYMENTS FOR THE MINING GROUP WILL BE COUNTED AGAINST THE ACCOUNT OF

THE FUTURE PROFITS OF MINING GROUP.

11. DETAILS OR MAGNIFICATIONS:

THE PRESENT TERMS AND CONDITIONS WILL BE EXPANDED, DETAILED OR CLARIFIED IN THE

NEGOTIATIONS OF THE FINAL CONTRACT AMONG THE PARTS, EQUALLY OTHER TERMS AND

CONDITIONS NOT INDICATED PRESENTLY, THEY WILL BE INCORPORATED IN SUITABLE

NEGOTIATIONS.

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ACARI PROJECT/INFRASTRUCTURE ANNEX N°6

ACARI OWNS TRAILS OF ACCESS

INSIDE CONCESSION FOR 60TONS TRUCKS.

AT 12 KM OF THE PANAMERICAN HIGHWAY

PORTS AND DISTANCES FROM ACARI

1. PISCO/230 KM (10M SEA DEEP)

2. SAN JUAN/60 KM (15M SEA DEEP)

3. SEA BAY/42 KM (27M SEA DEEP)

TO BE CONSTRUCTED LICENSE OBTAINED

ELECTRIC LINE AT 15 KM.

WATER AT 18 KM.

ACARI

PROJECT

1

2

3

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PICTURES OF ACARI IRON CONCESSION

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PICTURES OF ACARI IRON CONCESSION

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If interested, contact authorized agent:

Regards.

Eng. Noe Rodriguez

Company: ARKESA

Emails: [email protected]

Phone: +511-392-2233

Mobile: +51-992456967

Fax (USA): +1-206-3330645

Skype: noerods

Acari Iron Ores Proposal Exploitation 1.1 Billion Dollars Noe Peru

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