Ministry of Foreign Trade and Investment FOREIGN INVESTMENT BUSINESS OPPORTUNITIES IN CUBA Republic of Slovenia October 15, 2013

Sectors where foreign investment is being promoted Petroleum: Risk exploration contracts in Cuba’s Exclusive Economic Zone in the Gulf of Mexico, as well as on land and in shallow water risk exploration contracts. Risk contracts to increase production and recovery of already exploited wells. Energy: Energy generation through alternative renewable sources such as wind and bio- electrical sources. Others: P rojects related to the following areas: production of construction materials, agriculture, chemical industry, sugar sector. Tourism: Construction of new hotel facilities, including the development of real estate business associated to the development of golf courses. Mining: Development of the production of minerals: copper, zinc, zeolite, carbonates, manganese, among others.

TOURISM The purpose of having participation of foreign capital to develop tourism sector in Cuba is to attract external financing sources needed to supplement the domestic financing sources, to increase the access to tourist-issuing markets and to improve the operation know-how. Foreign capital investment projects in the hotel business are those aimed at the construction of hotels, whose investment amounts are deemed significantly high due to their number of rooms to be built and/or their very high standards. Hotel management and marketing agreements. Foreign capital investment projects in the non-hotel business –Investment projects to develop golf courses linked to the development of real-estate projects.

Polos turisticos que se potencian Tourist clusters that are being promoted Cienfuegos Sancti Spiritus (Ancón) Camagüey ( Santa Lucía) Las Tunas (Covarrubias) Holguín (Guardalavaca) Ciego de Ávila Approximate total capacity: rooms. Construction of hotels with no less than 80 rooms.

Promotion of Oil Blocks in the Gulf of Mexico EEZ, shallow waters and land areas Hydrocarbon exploration and production activities are developed by the Cuban national oil company Unión Cubapetroleo (CUPET) or in associations between it and foreign companies. The country has been divided into blocks: 59 in the Exclusive Economic Zone (EEZ) in the Gulf of Mexico and 45 on land and in shallow waters. Any company interested in negotiating a contract to participate in the production of hydrocarbons in the Republic of Cuba should be classified by the National Office of Mineral Resources (ONRM).

 Exploration and exploitation of oil discovered in the contract area shall be done using funding and execution of the Contracting Party who shall assume the risk related to oil Operational Expenses.  If commercial production of hydrocarbons is not obtained, the company has no right to any remuneration.  In the case of reaching commercial production, the company has the right to recover the expenses incurred and receive determined compensation for the risk assumed.  In this association, dividends are not shared in money; the hydrocarbons are shared. Oil produced that remains after the expenses have been recovered by the Contracting Party, shall be the net income and this shall be shared between CUPET and the Contracting Party, depending on the proportions set up. Characteristics of participation contracts for hydrocarbon production

Business Opportunities for the execution of AEI Risk Contracts for knowledge and geological research of base metals of interest in different regions of Cuba We need to continue increasing the geological knowledge of some of the regions of Cuba, superb prospects for the discovery of new deposits of base metals (copper, lead, zinc). To carry out the Risk Geological Research (Prospecting- Exploration) we propose the following four regions in the country:  Central Cuban Region  Ciego-Camaguey-Tunas Region  Holguín-Sagua-Baracoa Region  Sierra Maestra Region

At the beginning, we propose the establishment of International Economic Associations (IEA) to develop risk Geological Prospecting areas; starting from the drawing up of a Feasibility Study; should it be positive, it shall be appropriate to submit it to the competent authorities of the Cuban Government for it to evaluate the establishment of a Joint Enterprise for the exploitation, processing and marketing of minerals contained in the specific mineral deposits that may be of interest. Business Opportunities to execute AEI Risk Contracts for knowledge and geological research of base metals of interest in different regions of Cuba (cont)

Ministry of Foreign Trade and Investment Thank You Republic of Slovenia October 15, 2013