1. NIS & ATOMENERGOPROEKT JOINT PROJECT FOR MINING AND PROCESSING OF OIL SHALE ON ALEKSINAC DEPOSIT (SERBIA) October 2012, Belgrade, Serbia 1

2. Agenda 1.Introduction 2.NIS overview 3.ATOMENERGOPROEKT overview 4.TTU-Ltd overview 5.Benefits of joint participation 6.References in the field of oil shale 7.Current projects 8.UTT-3000 technology overview 9.Technology comparison 10.UTT-3000 advantages 11.Aleksinac project overview 12.UWB sounding for geological prospecting & exploration 2

3. Introduction Global reserves of oil shale (in terms of oil) are many times larger than those of conventional oil. Estimates of global deposits range from 2.8 to 3.3 trillion barrels Estimates of Serbia deposits are 1.5 million barrels 3

4. NIS One of the largest vertically integrated companies for the production of crude oil and gas in Southeast Europe The company for exploration, production and refining of crude oil and natural gas as well as sales and distribution of a wide range of petroleum products It possesses: Crude oil and natural gas production Refineries in Pancevo and Novi Sad Own retail network Energy business Oilfield Services Petrochemistry Business center in Novi Sad 4 Indicator2011 Revenues, bln RSD187,05 EBITDA, bln RSD52,39 Employees9076* * Including NIS first chance

5. ATOMENERGOPROEKT OJSC "Saint-Petersburg Research and Design Institute ATOMENERGOPROEKT (JSC" SPbAEP ") established on September 1, 1929. 118 power plants, including 18 nuclear power plants in 19 countries were built and put into operation based on SPbAEP designs. The Institute has been involved in the oil shale industry since 1950s, has designed 3 oil shale fired power plants, and all existing UTT-3000 and UTT-500 ATOMENERGOPROEKT today has: more than 80 years of successful operation about 1800 highly experienced specialists projects successfully implemented in 19 countries certified quality management system ISO 9001 JSC SPbAEP head office 5

6. TTU-Ltd TTU Ltd – company possessing method patents and installations for processing oil shale by solid heat carrier (UTT) Established by specialists in the field of oil shale processing in 2006, reorganized in 2009 Goal of the company – development and distribution of technology for the processing of low-calorific solid fuels by high speed pyrolysis method Galoter Number of patents – 24 Number of inventors involved – 37 6

7. Benefits of joint participation NIS refining complex includes two individual locations: Pancevo and Novi Sad which are suitable for processing shale oil ATOMENERGOPROEKT has ultimate experience and exclusive rights to the design of UTT-3000 installations TTU-Ltd is the owner of patents and technology provider 7

8. References of ATOMENERGOPROEKT Ilmarine Factory Tallinn, 1950-53UTT-50 facility with bunker-type and drum- type reactors 50 t oil shale / day (R&D) KivioiliKivioili, 1953R&D UTT-200 facility200 t / day KivioiliKivioili, 1963R&D UTT-500 facility500 t / day Oil FactoryNarva, 1975-1980Two commercial UTT-3000 facilities 6000 t / day Power Technological Plant Slantsy, 1994-2006Project 3xUTT-30009000 t / day Viru Keemia Group Kohtla Yarve, 2006Project 1xUTT-30003000 t / day Oil shale based Power & Technological Facilities Oil shale based Power Facilities 8

9. Estonian PP, Narva, 1969-73, 1610 MWe, 84 MWt 9 Designed by ATOMENERGOPOEKT

10. Oil Factory 2хUTT-3000, Narva, 1980-84, 6660 tpd oil shale 10 Today known as Enefit-140, designed by ATOMENERGOPOEKT

11. UТТ-3000 in Kohtla Jarve, VKG Oil AS 11 Today known as Petroter, designed by ATOMENERGOPOEKT

12. ATOMENERGOPROEKT Current projects Nuclear Power Plants 2xVVER-1200 Leningradskaya NPP-2 Saint Petersburg, Russia. 2xVVER-1200 Baltic NPP Kaliningrad, Russia. FN-800 Beloyarskaya NPP, Ekaterinburg, Russia. 4xVVER-1000 Tianwan NPP, Tianwan, China. VVER-1000 Busher NPP, Iran. VVER-440 Kola NPP, Russia 12

13. ATOMENERGOPROEKT Current projects Oil Shale Projects 18xUTT 3000 El Lajun, Jordan INCOSIN 24xUTT 3000 Al Atarat, Jordan INCOSIN 24xUTT 3000 Bayer, JordanINTER RAO UES 2xUTT 3000 Sultani, Jordan JOSECO 8xUTT 3000 Bayer, Jordan GLOBAL OIL SHALE Co. 2xUTT 3000 Mishor Rotem, Israel INTER RAO UES 2xUTT 3000 Mishor Rotem, Israel GLOBAL OIL SHALE Co. 24xUTT 3000 Sangruntau, Uzbekistan UZBEKNEFTEGAZ 24xUTT 3000 Tichara, MyanmarSNOG Ltd. 8xUTT 3000 Tarfaya, MoroccoZONA ENGINIRIE S.A.R.L. 13

14. The Essence of Processing Thermal decomposition of kerogen is the base of all oil shale processing methods. Maximum liquid yield can be achieved at the end point of thermobitumen decomposition. The higher the temperature the more coke and gas are formed. Heavy oil in conditions of tough permeability of fractured rock or in coarse fragmented shale is also condensed and polymerized forming coke and gas and lowering liquid yield. The point of total decomposition of thermobitumen varies for different kinds of oil shale as per temperature as well as per yield of coke which depends on H/C ratio. This is why in-situ heating process will never exceed energy efficiency 40-50% leaving carbon and heavy oil in-situ. 14

15. The Essence of Processing Thermal decomposition of kerogen is the base of all oil shale processing methods. Maximum liquid yield can be achieved at the end point of thermobitumen decomposition. The higher the temperature the more coke and gas are formed. Heavy oil in conditions of tough permeability of fractured rock or in coarse fragmented shale is also condensed and polymerized forming coke and gas and lowering liquid yield. The point of total decomposition of thermobitumen varies for different kinds of oil shale as per temperature as well as per yield of coke which depends on H/C ratio. This is why in-situ heating process will never exceed energy efficiency 40-50% leaving carbon and heavy oil in-situ. 15

16. UТТ-3000 Flowsheet 16

17. Balance scheme Raw Oil Shale 2,500 thsnd t (500 thsnd t.o.e.) Gas petrol 22 thsnd t (21.7 thsnd t.o.e.) Gas 101.7 thsnd t (82.5 thsnd t.o.e.) Steam 900 thsnd t (56.7 thsnd t.o.e.) Heavy oil 139.9 thsnd t (120.1 thsnd t.o.e.) Medium oil 117.5 thsnd t (106.7 thsnd t.o.e.) Diesel fraction 29.6 thsnd t (28.9 thsnd t.o.e.) Petrol fraction 40.5 thsnd t (39.8 thsnd t.o.e.) UTT-3000 installation outlet 456.4 thsnd t.o.e. Efficiency 91,3% Synthetic oil 350 thsnd t (317.3 thsnd t.o.e.) Electricity 374.2 mln kWh (32.2 thsnd t.o.e.) Electricity 203.6 mln kWh (17.5 thsnd t.o.e.) Steam and heat 100,040 Gcal (10 thsnd t.o.e.) Efficiency: On commodity products -80.0 % General (incl. own needs)-85.5% 17

18. Other known technologies Shell ICP Chevron Crush ATP Processor 18

19. Other known technologies 19 Lurghi-Lurgas Petrosix Kiviter / Fushun Process IGT Union B

20. Technology comparison 20 Final result show how much share of in-situ oil shale energy goes to the profit forming: PROFIT = Final result * Oil Shale Resource Energy in BOE * Oil Price Source: RESOURCE- Evaluation Model for Choice of Oil Shale Mining and Processing Technologies, 28 th Oil Shale Symposium, October 13-17, 2008

21. UТТ-3000 Advantages 21 Source: Marketing researches by TTU Ltd submitted to NRA, Jordan, 2010

22. Opportunities and Prospects The opportunity of processing of hydrocarbonaceous wastes in UTT – used tires (up to 10% wt), oil soaked soils (20-25 % from volume of oil shale), tars, cakes, etc, will provide an additional output of liquid distillates Shale oil can be used as the activator for processing the heavy oil residues (tar, malta, black oils). In thermal processes of heavy oil residue processing (visbreaking and thermocracking), application of oil shale activators increases the yield of light products from 20% up to 60%, and in hydrogenization processes (hydrocracking) the yield of light products for one cycle increases from 50% up to 90%, thus process speed is 2 times higher, and working pressure is 2 times lower. The UTT installations can be added with oil&gas fired power plants with the capacity of up to 100 МW per unit. The opportunity of regulation of an output of liquid and gaseous products from UTT over a wide range allows the plant to be quickly switched from fuel production to electric power generation and to serve as peak smoothing power generation facility. The UTT complex can be added with cement works - for the production of cement it is possible to use cement clinker produced from cyclonic shale ashes, limestone, fuel and energy. UTT can be added with melting oven to melt ash – it will enable production of clinker and extract metals from ash. 22

23. Environmental 23 Subject of Impact SourceContaminantsNote, concentration AtmosphereChimneysDustMeets to EU norms SO2Meets to EU norms COMeets to EU norms CO2Meets to EU norms NoxNone HydrocarbonsWithin allowed limits for refineries SoilAsh stockAshInert, solid, non-dusting OverburdenFIlled back to exhausted space of quarry and reclaimed WaterNo leakages into environment Analogue: Operating plant Petroter based on UTT-3000 located in confines of Kohtla Jarve town in European Union.

24. Standard EE 0579981-NJ ST 9:2005 "Oil Factory Products" 24 ProductsSpecsApplication Heavy oil1040 kg/m 3 Used for asphalt in road construction Heavy-medium fraction 1035-1050 kg/m 3 Used as fuel oil in big boilers and power plants Total oil Grades A, B, C Pour point -10..-40 ºС 1010-890 kg/m 3 Used in boilers of any capacity, does not require heating in winter time Shale fuel oil Grades L-1, L-2, L-3 880-1010 kg/m 3 Used as light fuel oil in boilers, in gas turbines, for marine oil production Semi-coke gas1.15 kg/m 3 Used in boilers

25. Aleksinac oil shale deposit The exploration area is located in the south-eastern part of Serbia. Potential reserves (resources) of oil shale on the territory under exploration Aleksinac estimated at 2 billion tons. Organic content up to 16.6% and an average oil content of 8.95%. 25 Source: Project of geological exploration of Aleksinac deposit, NIS, 2010

26. Aleksinac oil shale deposit q Oil shale Brown coal 26 Source: Project of geological exploration of Alecsinac deposit, NIS, 2010

27. Aleksinac oil shale deposit Geological section of the Aleksinac deposit 27 Source: Project of geological exploration of Aleksinac deposit, NIS, 2010

28. Structure of proposed production 28 Mining Oil Shale 5 mln tpy Overburden Filling back 5 - 7 mln tpy Processing Oil Shale 5 mln tpy Processing 5 mln tpy Shale Oil 0,5 mln tpy QuarryRetorting unitDistillation Unit Gas 0,5 mln tpy & Recovered Heat 115,000 toe Electric power 1,600 mln kW-h (200 MW) Electric power 1,600 mln kW-h (200 MW) NIS refineries NIS pipeline, railroad Turbine House Petrol, Diesel oil, Fuel Oil, Asphalt

29. Shale oil as activator for heavy oil processing Shale oil can be used as the activator for processing the heavy oil residues (tar, malta, black oils, thick crude) in oil refineries. In thermal processing of the heavy oil residues (visbreaking and thermo- cracking) application of oil shale activators increases the yield of light products from 20% up to 60%, and in hydrogenization processes (hydrocracking) the yield of light products for one cycle increases from 50% up to 90%, thus speed of process is 2 times higher, and working pressure is 2 times lower. Proper industrial test runs were made in Angarsk petrochemical plant. Use of 500 thousand ton of shale oil as activator in NIS refineries for processing 5 mln ton of crude oil will increase yield of petrol and diesel oil. 29

30. Proximate economic evaluation of Aleksinac project 5 mln tpy (8,600 bopd) 30

31. UWB sounding for further geological prospecting & exploration Elaborated method of impulse Ultra Wide Band Electro Magnetic Sounding (UWB) allows to find the oil shale layers and distinguish them by rich and poor grades. Risky costs of prospecting works are ten times lower in comparison to drilling. 31

32. UWB sounding for further geological prospecting & exploration 32

33. UWB sounding for further geological prospecting & exploration 33

34. Conclusion 34 The Republic of Serbia, in partnership with NIS, Atomenergoproekt and TTU-Ltd possess all necessary resources, capacities, experience, funds, skills and access to technology required to implement the project of development of oil shale starting from Aleksinac deposit, and expanding the experience to other deposits, and to include oil shale into the energy balance, being friendly to the environment and for the benefit of the Serbian people.

35. Thank you! October 2012, Belgrade, Serbia 35