Creation of industrial complex for extraction and complex waste-free processing of peat with acquisition of soil modificator «AridGrow» for production of environmentally clean agricultural products 1

Factors of success of the project 2 Population increase The limited area of arable land Erosion, salinization, desertification of soil Increase in fertilizer consumption up to 14% annually Increase in fertilizer prices up to 30% annually

Structure of the object Peat extracting section: Milled peat 600 thousand m3 per annum 3 Fuel and energy complex: Electric power Energy resources Diesel fuel Fish breeding complexes Peat processing section: Soil modificator : 480 thousand м3 per annum Pelletized soil conditioner :15 thousand tn per annum Bioadditive : 72 thousand м3 per annum The boundaries of the project Prospects of development

Peat in the Chuvash Republic 38 peat deposits 656 ha Total geological reserves of peat 10038,5 thousand tn With relative humidity of 40% thousand м3 4

Advantages of fertilizers - soil modificators In short terms create self-renewable sustainable fertile soil system Reduce pollution degree and soil salinity Reduce irrigation water consumption by 3-4 times Completely replace synthetic mineral fertilizers Minimize soil revegatation costs when preparing planting area (with $ / m2 up to 1-2 $ / m2) Increase survival rate of plants transplanted Increase crop capacity by 30% 5

Projects and results The territory of Sakhir in Bahrain 6 Cucumber plantation «AridGrow» (Qatar) Lawn grass (United Arab Emirates, Qatar, Bahrain)

Commodity market of soil modification fertilizers 7 Volume of world consumption of fertilizers – 70 млрд.$ Persian Gulf countries– 21,2 bln $ (106 mln м3) Russia External market Internal market Main consumers of soil modification fertilizers: Kingdom of Bahrain Qatar Iran Jordan Interested in buying: Egypt China Turkmenistan Kazakhstan

Project performance evaluation Main indicators of the project performance evaluation ( years): Net Present Value of the project (NPV) 14,9 mln. EUR (596,5 mln. RUR) Pay-Back Period of the project (РВР) 5,5 years Internal rate of return of the project (IRR) 54,8% Profitability of sales under the project36,71 % Net profitability under the project27,34% 8 Project cost mln. EURO (1290 mln. RUR) Attracted investment 24 mln.EURO (893 mln. RUR.) Number of new jobs 154

Risks of the project Changes in the USD exchange rate Risks connected with specificity of deliveries to the Gulf States Political situation in the world Legislative risks connected with imposition of export customs duties Increase in freight tariffs for transit by railway and sea shipping 9

Advantages of the Chuvash Republic in the project implementation Availability of peat deposits with peat reserves of appropriate quality and quantity Availability of stock-farms and poultry farms on the nearest territory (supply of primary products for additive production) Developed transport infrastructure Competitive salaries 10

11 Project implementation will make possible: Creation of conditions for the sustainable development of agriculture in the Chuvash Republic Reduction of risks of fires in peat bogs Increase of population employment rate in the sphere of peat extracting and processing as well as in agriculture Positioning of the Chuvash Republic as the region planting ecologically clean products

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Investors are invited Corporation of Development of the Chuvash Republic, JSC General Director – Anatoly Danilov Tel: (8352)