The Kalgutinskoye deposit is a large world-class tungsten-molybdenum-copper deposit located in southern Altai Mountains near the borders of Mongolia, China and Kazakhstan. It contains over 600 quartz veins with a total length over 7000m. Main ore minerals are tungstenite, molybdenite, and chalcopyrite. The deposit contains high reserves of tungsten, molybdenum, copper, bismuth, and fluorite. Based on extensive exploration including underground workings and drilling, the deposit contains measured, indicated and inferred resources totaling over 18 million tons.

1. Tungsten (WO3) - 203 050 tons Lithium (Li2O) - 18 447 tons
Molybdenum (Mo) - 135 360 tons Rubidium (Rb2O) - 9 040 tons
Copper (Cu) - 575 310 tons Cesium (Cs2O) - 4 282 tons
Bismuth (Bi) - 13 385 tons

2. Kalgutinskoye deposit - is the world-class tungsten-molybdenum-cooper deposit located in the the south-eastern part
of Altai mountains in Kosh-Agach district of Altay Republic near the state boundaries of Mongolia, China and
Kazakhstan.
Currently about 600 quartz veins (including 72 balance veins) and veinlets with the total tracked horizontal length of above 7000 m
were identified at the deposit. About 100 quartz veins were tracked along the strike; from among them max 15 of the main ones
were explored in depth by workings and drillholes. The biggest ore body at the deposit containing up to 40 % tungsten and
molybdenum balance reserves is blind vein №87 characterized by thickness up to 3.2 m, vertical and horizontal length above 400 m.
The main gangue minerals include quartz, muscovite, orthoclase, albite, fluorite, sericite and the main ore minerals include
tungstenite (1-40%), molybdenite (1%), chalcopyrite (1%), beryl (0,1%), sheelite, (0.1%), bismuthinite (0.1%) and subordinate
development of other sulphides (fahlore, chalcocite, covellite, bornite, arsenite, pyrrhotine, galenite and other) and products of their
hypergenesis (limonite, goethite, malachite, azurite). Distribution of tungstenite is extremely nonuniform; its grade in veins varies
from 0% to 30-60 %.
All the above ore minerals are contained as finer dissemination in host rocks as well, forming a wide halo of vein-disseminated
mineralization – greisen fringes up to 1-4 m thick.
Pegmatite type mineralization is represented by quartz, orthoclase, muscovite, molybdenite (0.8%), beryl (0.1%), chalcopyrite (0.1%),
covellite and chalcocite (0.2%), tungstenite (0.1%), pyrite.
Veinlet-disseminated copper-molybdenum (porphyry) ores contain quartz, feldspar, biotite, fluorite (2%), chalcopyrite (0.7%),
molybdenite (0.3%), and tunstenite (0.2%).

3. 1937 – The Kalgutinskoye deposit was discovered by the geologist V.A. Zhurkin who tracked down talus quartz with
molybdenite and wolframite mineralization; samples were collected from a microgranitic storkwork body as well and
analyzed for molybdenum. Later it was named Molybdenovy Shtock (Molibdenum Stock).
1938-40 – Geological exploration and mining of the deposit. These were supervised by M.S. Baklakov. During these years
M.S. Baklakov prepared 10 geological and industrial reports that were substantiating a large scale of the Kalgutinskoye
deposit based on consistent discovery of 60 wolframite-quartz veins and consistent extension of tungsten ore reserves.
1941-1944 – The Oirotskaya exploration and operation crew of Zapsibtsvetgeologia carried out exploration and actual mining
of the Kalgutinskoye deposit under the supervision of the geologists M.G. Rusanov, P.M. Bolshakov, L.M Zaretsky. The
geological exploration carried out made it possible to make estimates of the Kalgutinskoye deposit reserves at: 2843.0 kt ore
reserves, 38.97 kt reserves of tungsten trioxide, 9.913 kt molybdenum reserves.
1948-1954 – In this period the Kalgutinskoye deposit was mined by a cooperative association of prospectors of the Aktashsky
ore mining department of Glavvolfram at the USSR Ministry of Non-Ferrous Metallurgy. During development of one of the
latest adits № 15 massive bonanza wolframite-quartz vein № 87 was discovered at the Kalgutinskoye deposit.
1982-83 – The Yuzhny Kalguty (South Kalguty) deposit was discovered. That was completed owing to geological survey by
V.A. Omelchenko who made a detailed pattern of ore mineralization at the Yuzhny Kalguty deposit.
1979-1992 – the Aktashsky ore mining department resumed geological exploration of the Kalgutinskoye deposit aimed at
prospecting of tungsten ores and start of developing adit №18– an underground working more than 2,500 m long that was to
become the main haulage level.
1992-1998 – B.G. Sementsov made “General Revised Estimation of the Kalgutinskoye Molybdenum-Tungsten Reserves as of
01 January 1997”, with reserves and resources estimated. The main result of the work done was ranking of the Kalgutinskoye
deposit as a large-scale porphyry-copper deposit with copper reserves of 585.0 kt, molybdenum reserves of 147.0 kt and
tungsten of 162.0 kt. B.G. Sementsov described “rare alkaline metals” mineralization with estimation of lithium, rubidium
and caesium resources.
2005-2008 – OOO “Kalgutinskoye” was mining high-grade ores of wolframite-quartz vein № 87, producing 19-21 kt
wolframite ore per summer.
2012-2013 – IMC Montan completed “Report on Mineral Resources of the Kalgutinskoye Tungsten-Molybdenum Deposit”
and confirmed the dominating stockwork porphyry copper-molybdenum mineralization as prospective for commercial
mining.

4. Geological Exploration Scope
Mine workings drivage, in all
including underground
29953 m3
15284 m3
Drilling 33241 m
Sampling 14788 samples
Chemical analysis 31907 tests
Spectral analysis for 28 elements 9104 tests
X-ray radiometric analysis 2345 tests
Technological ore studies 5 samples
The total scope of work undertaken at the Kalgutinskoye deposit is shown in table below:

5. Including total scope of work undertaken at Yuzhno-Kalgutinsky site is shown in table below:
Geological Exploration Scope
Mine workings drivage 14 669 m3
Drilling 7 241 m
Sampling Core sampling 1 910 samples
Slurry sampling 257 samples
Channel and tear sampling 484 samples
Lithochemical sampling 2 222 samples
Technological sampling 1 sample
Analytical studies Spectral analysis for 24 elements 4 580 tests
Mineral analysis of channel sample tailings 81 tests
Chemical analysis WO3 1 896 tests
Cu 1 731 tests
Mo 103 tests
Bi 302 tests
CaF2 1 689 tests
Fire assay Au, Ag 1 338 tests
X-ray spectral analysis 53 tests
Silicate analysis 93 tests
Identification of decorative characteristics 4 tests
Identification of rock category 6 tests
Technological ore studies 1 sample
Description of thin and polished sections 83 thin and polished sections
Physical characteristics of samples 179 tests

6. The Kalgutinskoye ores contain a wide spectrum of metals - copper, tungsten, molybdenum, beryllium, bismuth, lithium,
rubidium, caesium and a number of others. At the deposit there are high reserves of fluorite as well.
Reserve tonnage scale and other factors predetermine feasibility of setting up efficient operations for extraction of a whole
range of minerals.
The following elements – tungsten, molybdenum, bismuth and copper – are of industrial importance.
Chemical Composition of Ores
70-80 % of tungsten is represented by wolframite that can be observed as tabular and lamellar crystals from dust to cross-
section of 25 mm. Infrequently the wolframite crystals are grouped in crystal clusters and intergrowths. Content of WO3 in
saleable ore is from 0.4 to 2.4%
70-80 % of molybdenum is represented by molybdenite that is observed as scales from hundredth fractions to 2-3 cm in
diameter. Molybdenite content varies from 0.19 to 0.55 %.
80-90 % of copper is represented by primary (chalcopyrite) and secondary (chalcosite, covellite, bornite) sulphides. The
average copper content of saleable ore is 0.36%.
Mineral Composition of Ore
Minerals % wt Minerals % wt
Quartz 54.0-85.0 Biotite 0.5-10.0
Feldspar 3.0-20.0 Apatite 0.3
Muscovite 1.5-11.0 Beryl 0.04-0.20
Fluorite 0.5 Pyrite 0.2
Wolframite 0.42-2.0 Bismuthine 0.02-0.1
Molybdenite 0.1-0.85 Chalcopyrite 0.1-2.7
Scheelite 0.1-0.15 Chalcosite 0.2-0.3
Bornite 0.2-0.3 Covellite 0.2-0.3

7. Notes: Total Rare Earth Elements (ΣTR) include - La, Се, Sm, Eu, Тb, Yb, Lu.
Element Content in Veins Content in Greisens Economic Cut-
Off*
Source*
Хmin Хmax X V,% Хmin/Хmax X V,%
W, % 0.006- 4.0 1.2 130 0.003-1.8 0.12 290 0.08-0.11 Chernov et al.,1998
Мо, % 0.02- 4.0 0.88 160 0.003-1.8 0.09 330 0.005-0.2 Pokalov, 1997
Cu, % 0.01- 2.0 0.50 110 0.02-0.50 0.12 90 0.05-0.1 Chernov et al., 1998
Вi, % 0.0006- 1.0 0.16 170 0.001- 0.040 0.006 110 0.002-0.003 Chernov et al., 1998
Вe, g/t 2-1000 130 200 3-150 11 230 11-22 Chernov et al., 1998
Аu, mg/t 1.2-50 19 90 1-61 12 110 200-500 Chernov et al., 1998
Аg, g/t 0.2-40 10 110 0.2-9.4 2.0 130 2-7 Chernov et al., 1998
Рt, mg/t 0.5- 3000 230 260 0.5-1800 200 180
Рd, mg/t 5-700 80 170 2.4-52 16 76
Оs, mг/т 0.5-45 6 210 0.5-92 4 410
ΣTR, g/t 7.5-100 24 110 52-240 150 35 100 Solodov at al., 1998
Li, g/t 10-300 44 140 100-600 340 40 300 Chernov et al., 1998
Cs, g/t 5.2-110 38 71 53-150 110 22 10-30 Kremenetsky et al., 1999
Rb, g/t 30-600 190 76 300-800 560 22 100-200 Kremenetsky et al. 1999

8. The mineralization is polymetallic both geochemically and economically. Of commercial importance alongside with
“greisen” metals (Ве, W, Мо) are Сu and Вi. High content of elements in various geochemical groups - Nb, Та, Вa, U,
Li, Rb, Сs, La, Lu, Аu, Аg, Рt, Рd, Оs, Rh, Сd, Sb, Аs, Pb, Zn, Сr, Мn can be observed.
The ores are characterized by a significant list of ore and vein minerals (over 50). In addition to widespread oxides,
sulphides and sulphosalts native elements – Au, Bi, Cu – can be observed, which characterizes major and giant
fields.High concentrations of precious metals were found in geological formations of the Kalgutinskoye REM greisens
deposit. Gold can be observed in nuggets, high concentrations of the element are found in graphite grains (to 100 g/t)
and in pyrite (54 mg/t). Silver is mainly found in sulphides and sulphosalts (to 7.3 %) and is the major gold impurity.
High concentrations of PGMs are typical for pyrite, wolframite, molybdenite. It is expected that PGM mineral free
forms are present as well. Precious metals are characterized by nested distribution, which indicates prospects of by-
product extraction of precious metals.
The data of the Kalgutinskoye ore forming conditions available are consistent with parameters of forming productive
stages of tungsten-molybdenum ore formation at major deposits of the world, which once again underlines high
prospects of the deposit’s ore field.
Cosmic structures of the Kalgutinskoye REM deposit (the Altai Mountains) were studied using materials of
multispectral satellite survey Landsat; ЕТМ+ and satellite radar mapping SRTM. – The Kaltuginsky granite massif and
the deposit proper are in the inner belt of the structure in a ring 15.2 km in diameter. Ore-bearing prospects of the south-
eastern part of the district were highly assessed.

9. The Kalgutinskoye deposit JORC Equivalent Resources
JORC Resource Category Mineralisation type Ore, kt WO3 av.grade,
%
Mo av. grade,
%
Cu av.grade,
%
Measured Quartz-vein 69,8 2,48 0,40 1,76
Indicated Quartz-vein 102 1,61 0,35 1,89
Measured + Indicated Quartz-vein 172 1,96 0,37 1,84
Indicated Molybdenum in pegmatite 542 0,12 0,72 0,13
Indicated Copper-porphyry stockwork 17 400 0,05 0,04 0,18
Indicated Total 18 044 0,06 0,06 0,19
Measured + Indicated Total 18 114 0,07 0,06 0,19
Inferred Quartz-vein 260 1,80 0,36 0,89
Inferred Quartz-vein in Yuzhno-Kalgutinskoye site 510 0,79 - -
Inferred Near-vein veinlet-disseminated 2 490 0,74 0,20 0,08
Inferred Molybdenum in pegmatite 4 900 0,12 0,17 0,22
Inferred Copper-porphyry stockwork 330 000 0,05 0,04 0,17
Inferred Total 338 420 0,06 0,04 0,17

10. Reserves and Resources of the Kalgutinskoye deposit estimated as of 1997
Reserves and Resources of tungsten-fluorite ore in Yuzhno-Kalgutinskoye site
Mineralisation type Category Ore, thou t Grade, %
WO3 Mo Cu Bi
Quartz-vein (veins and greisen
margins)
B+C1+C2
P1
172
259
1,96
1,79
0,37
0,35
1,83
0,88
0,22
0,12
Veinlet-impregnated near-vein
(site II)
C2
P1
1 186
1 336
0,87
0,62
0,25
0,16
0,09
0,07
0,006
0,005
Rare metal pegmatite (Main rare
metal pegmatite, site II)
С1+С2 5 430 0,12 0,22 0,21 0,012
Stockwork copper-porphyry С1+С2
P1
348 986
2 076 669
0,05
0,05
0,04
0,04
0,16
0,16
0,003
0,003
Mineralisation
type
Category Ore, thou t Grade, % Ore, t
WO3 CaF2 WO3 CaF2
tungsten-fluorite
ore
C2
P1
668,6
990,7
0,89
0,89
19,0
19,0
5951
8817
1130 690
1675 230
Total C2+P1 1 659,3 0,89 19,0 14768 2 805 920

11. Porphyry Copper Ores
Porphyry copper mineralization was explored only on some sites of the mine claim. C1+C2 ore reserves
are 350.0 Mt, P1 resourcesare 2.1 bn t at the average content of 0.06% WO3, 0.04% Mo and 0.17 %Cu.
Given tungsten/copper and molybdenum/copper conversion ratios of 6/1 and of 5/1 respectively, the
average content of copper equivalent in porphyry copper ores will be 0.73%.
Since at present ores involved into surface mining are at the average content of 0.38% Cu (the
Tominskoye porphyry copper deposit, Chelyabinsk Oblast, Russia) and 0.47% Cu (Oyu-Tolgoi, the
largest copper deposit in the world, Mongolia), the Kalgutinskoye ores at the average content of 0.73
(copper equivalent) have good prospects of surface mining at annual production of 10.0 and more million
tonnes.
Presence of mineralization areas at higher Cu and Mo content enables planning porphyry copper ores at
the average content of 1.0-1.5 % for surface mining within first 10-15 years. For example, Las Bambas
operating project, Peru, with resources of 500.0 Mt at the average content of 1.14% Cu has similar ore
parameters.
By-product extraction of such economic components as bismuth, beryllium, lithium, rubidium, caesium,
osmium, niobium, tantalum that are contained in the Kalgutinskoye ores, and infrequently in commercial
content, considerably improves technical and economic indicators of porphyry copper ore surface mining.

12. Quartz-Vein and Pegmatitic Ores
Quartz-vein ores are distinct for higher content of economic components and hence higher commodity value. These ores have been
explored well; and presence of all the required infrastructure and underground workings ensures prompt organization of annual
production of 360.0 kt-1.0 mln. kt.The Kalgutinskoye high-grade ore reserves and resources of 5.2 Mt enable highly profitable
mining of the ore for 15 years.
Tonnages and Average Content of Metals in Quartz-Vein and Pegmatitic Ores
High content of tungsten, molybdenum and copper in quartz veins ensures output of 2.0 kt tungsten and 1.0 kt molybdenum per year at
annual production of 360.0 kt ore.
Tonnages and Average Content of Tungsten and Fluorite in Yuzhny Kalguty Ores
Ore characteristics
Ore
tonnages kt
Average content,% Average content based on
copper equivalent, %WO3 Mo Cu
B+C1+C2 quartz-vein ore 172.0 1.96 0.37 1.83 15.44
P1 quartz-vein ore 259.0 1.79 0.35 0.88 13.37
C2 vein-disseminated ore around veins 1186.0 0.87 0.25 0.09 6.56
P1 vein-disseminated ore around veins 1136.0 0.62 0.16 0.07 3.8
Main rare-metal pegmatite, site II C1+C2 ore 542.0 0.12 0.72 0.13 4.45
Total 3495.0 0.83 0.3 0.23 6.71
Ore Characteristics Tonnages of ore, kt
Average content, %
Average content based on
copper equivalent, %
WO3 CaF2
C1+C2+ P1 tungsten-fluorite ore 1659,3 0.89 19.0 6.55

13. Production and processing of tungsten-molybdenum ores
were carried out at the same time as geological exploration
took place in 2006-2010. Processing was carried out at a
pilot roughing plant using gravity process for tungsten ore
and gravity flotation process for tungsten-molybdenum ore.
The average recovery was 82% tungsten and 78%
molybdenum.
Quality of concentrates produced by means of processing
the Kalgutinskoye ores is confirmed by the following
certificates:

14. Kalgutinskoye Ltd. is looking for strategic partners who have experience of
working or investing in the open-pit and underground mines to exploit a rich
ores of the Kalgutinskoye deposit.
We will be glad to cooperate with domestic and foreign companies that are
interested in getting the raw materials of tungsten, molybdenum, and copper
for further production of these metals.
Mining and processing of the Kalgutinskoye deposit ores - is profitable project with a good financial
result. High profit is achieved due to the high metal content of the rich ores and, as a result, lower unit
costs.
The planned annual production capacity of 360 thousand tons of ore allows to get more than 2,000
tons of tungsten and 1000 tons of molybdenum per year.
Reserves and resources of rich ore of the Kalgutinskoye deposit allow to increase production capacity
to 1 million tons per year for a period of 20 years.
We guarantee to partners and investors favorable conditions of work, as a priority policy of the Altai
Republic government is to support investment projects in the mining sector.

15. Address: 649780, Altay Republic, Kosh-Agach town, Meliorativnaya street 23, office 3
Phone: phone/fax +7 (383) 210-37-87, +7 (495) 645-79-79
E-mail: sibinvest2005@yandex.ru , kalgutinskoe@mail.ru
Web-Site: http://kalgutinskoe.com