1.  Phoenix Pacific Creation of an energy generating enterprise in Chernobyl zone for production of electric and heat power in the process of utilizing biomass and solid domestic waste

2.  Phoenix Pacific Project goal: Creation of a power generation enterprise in Chernobyl zone for production of electric and heat power with the help of utilizing biomass (wood, peat, grass vegetation) and sorted solid domestic waste of Kiev region (Kiev, Kiev region). Solution of the environmental protection from pollution, which generated of Chernobyl Accident Consequences. Complex solution waste management in Kiev, Kiev region, their ecologically safe utilization, reduction of spaces under land disposal and landfill. Project goal: Creation of a power generation enterprise in Chernobyl zone for production of electric and heat power with the help of utilizing biomass (wood, peat, grass vegetation) and sorted solid domestic waste of Kiev region (Kiev, Kiev region). Solution of the environmental protection from pollution, which generated of Chernobyl Accident Consequences. Complex solution waste management in Kiev, Kiev region, their ecologically safe utilization, reduction of spaces under land disposal and landfill.

3.  Phoenix Pacific PRODUCTION AND SALES PROGRAM The annual volume of wood, peat, biomass and domestic waste utilization – 3,4 mln. cubic meters Annual production of 350, 4 mln. kW/h electric power Annual production of 160 Gcal of heat energy PRODUCTION AND SALES PROGRAM The annual volume of wood, peat, biomass and domestic waste utilization – 3,4 mln. cubic meters Annual production of 350, 4 mln. kW/h electric power Annual production of 160 Gcal of heat energy

4.  Phoenix Pacific Sources of materials using for the power generation enterprise in Chernobyl Zone Types of Materials Annual volume, thou. t Wood obtained in the process of scheduled cleaning of CZ forested areas 140 Grass vegetation in CZ156 Peat excavated in CZ120 Sorted solid household waste from Kiev and Kiev region 250

5.  Phoenix Pacific Allocation Scheme of power generation enterprise in Chernobyl Zone

6.  Phoenix Pacific Selection criteria of a site of the power generating enterprise in the Chernobyl zone 1.Presence of a biomass stocks (wood and grassy), peat deposits, located in immediate proximity from the enterprise and sufficient for maintenance of its capacities 2.Presence of the stable consumer in a zone of electric (more than 35 million kw/hour) and thermal energy (160 thousand Gkal) 3. Presence of the transport infrastructure necessary for placing and functioning of the power generating enterprise (deliveries of the equipment and transportation of a biomass and solid domestic waste) Selection criteria of a site of the power generating enterprise in the Chernobyl zone 1.Presence of a biomass stocks (wood and grassy), peat deposits, located in immediate proximity from the enterprise and sufficient for maintenance of its capacities 2.Presence of the stable consumer in a zone of electric (more than 35 million kw/hour) and thermal energy (160 thousand Gkal) 3. Presence of the transport infrastructure necessary for placing and functioning of the power generating enterprise (deliveries of the equipment and transportation of a biomass and solid domestic waste)

7.  Phoenix Pacific Collection and transportation of solid domestic waste to be used as fuel for the power generation plant (separate project) Creation on existing landfills in Kiev and Kiev region the waste sorting and waste loading complexes with the service in radius of 25-45 km. Fractions selection, which available as fuel for the power generation plant in CZ Preparing of sorted SHW fractions for burning as fuel for the power generation plant Transportation of prepared for waste fraction burning on special heavy- duty road train with trailer (waste capacity 300-350 cubic meters) to power generation plant Collection and transportation of solid domestic waste to be used as fuel for the power generation plant (separate project) Creation on existing landfills in Kiev and Kiev region the waste sorting and waste loading complexes with the service in radius of 25-45 km. Fractions selection, which available as fuel for the power generation plant in CZ Preparing of sorted SHW fractions for burning as fuel for the power generation plant Transportation of prepared for waste fraction burning on special heavy- duty road train with trailer (waste capacity 300-350 cubic meters) to power generation plant

8.  Phoenix Pacific The scheme of production complex

9.  Phoenix Pacific The view of production complex

10.  Phoenix Pacific. The scheme of technological equipment producing electric and heat energy from biomass and sorted waste

11.  Phoenix Pacific. Equipment of power generating enterprise

12.  Phoenix Pacific Rest in Actually ash EPA Barium 100 mg/l 0.37 mg/l Cadmium 1 mg/l 0.10 mg/l Plumbum 5 mg/l 0.58 mg/l Arsenic 5 mg/l 0.05 mg/l Selenium 1 mg/l 0.05 mg/l Chrome 5 mg/l 0.01 mg/l 4-methyl penthanol 7 mg/l 2.0 mg/l Benzol 0.5 mg/l 0.1 mg/l Benzol. N/A 170.0 mg/l Octan Phitalat N/A 4 mg/l Ash content

13.  Phoenix Pacific Emission Norm Actually Macron 0.080 г 0.051г CO (carbon monoxide) 50 ‰ 1 ‰ SO 2 (sulfur dioxide) 150 ‰ 24 ‰ HCI (hydrogen chloride) 50 ‰ 6 ‰ NO X (nitrogen oxides) 200 ‰ 68 ‰ Levels of emissions in smoke gases at burning of alternative fuel

14.  Phoenix Pacific Infrastructure for construction and operation of power generation enterprise A land plot with the area of 31 hectares for construction and operation of the power generation enterprise; Buildings and structures of the administrative facility and three production workshops having the total area of 3 thou. m2, which are situated on the land plot; Peat deposits and land plots with forested areas.

15.  Phoenix Pacific List of licenses and permits for the project Permit to start high-hazard operation No. 1508.06.32-40.30.0 issued to Chernobylelektro Ltd. by the territorial Department of Gospromnadzor Department in Kiev region and the city of Kiev of the State Industrial Safety, Labor Safety and Mining Supervision Department (Gospromgornadzor). Agreement No. 3-21/09, Utilization of Biomass Contaminated with Radionuclides and Generation of Electric Power and Heat in the Restricted Zone and Mandatory Evacuation Zone, of 08.09.2006 signed between the State Department – Administration of the Restriction and Mandatory Evacuation Zone of the Ministry of Emergency Situations (MChS) of Ukraine (AZOiZBOO) and Chernobylelektro Ltd. Order No. 125 of 07.08.07 issued by the State Specialized Enterprize – Center of Processing and Disposal of Man-Made Waste, Tekhnocenter of Radon Ukrainian State Association of MChS of Ukraine about provision of a permit to execute special 2nd category work by Chernobylelektro Ltd. Terms of Reference for the design of an enterprise (plant) in the restricted zone for the purpose of producing electric power from non-conventional sources of materials approved by MChS of Ukraine. Special permit No. 000397 of 11.01.2007 issued to Chernobylelektro by AZOiZBOO of MChS of Ukraine and granting the right to generate and produce electric power and heat. License АВ No. 377783 issued by the State Nuclear Regulation Committee of Ukraine granting the right to process, utilize and disposal of radioactive waste Subprogram “Creation of Technologies and Equipment for Utilization of Biomass and Other Radiation Polluted Materials, Land Reclamation on Their Basis in the Restricted Zone within the framework of the State Program for Mitigation of Chernobyl Accident Consequences.

16.  Phoenix Pacific. Licenses and permits for the project

17.  Phoenix Pacific Total value of the project 180 000 000 Credit term, months 150 Period of grace, months24 Annual % rate6,00% % due for payment6,00%

18.  Phoenix Pacific Credit funds, investment 100%

19.  Phoenix Pacific Capital investment ($$) NAME OF EQUIPMENT Borrowed funds (credit), investment Renault Kerax chassis 2 016 000 Multilifts ( Ecopress HKS-20 ) 524 160 Manipulators PM8522 262 080 Trailers for container 524 160 Mobile compactors EMC МЕGA - 20 5,5 kWt 443 520 Stationary compactor EMC МЕGA - 30 5,5 kWt 423 360 Plug-in container for industrial waste EC 30, capacity 30 m3 322 560 Container for industrial waste HL 16,4 m3 with covered roof 161 280 Container for industrial waste HL 30 m3 with covered roof 161 280 Container for medical waste HL 30 m3 with covered roof 226 800 Container for crop protecting agent and hazardous waste (500 litres) 25 200 Mobile grinding complex for building waste TEREX PEGSON METROTRAK 900-600 НА 665 000 Mobile sorting complex for building waste TEREX Powerscreen Chieftain 600 292 600 Excavating machine JS 220 LCс gydraulic hammer HM 1560 Q 633 080 Excavating machine JS 220 LC 505 400 Shredder for solid domestic waste 1 411 200 Bolting machine for solid domestic waste sorting 745 920 Shredder 1 058 400 Frontlifts "MONITU" 957 600 Ground compactor 806 400 Medical and other hazardous waste utilization complex 705 600 Pre-design and survey works 7 800 000 Projecting works under the project 19 500 000 Construction works 48 178 400 Technological equipment 58 500 000 Specialized equipment 19 500 000 Start-up works under the project 9 750 000 Object delivery 3 900 000 Cost, total $$ 180 000 000

20.  Phoenix Pacific Profit and material losses pro forma statement per 1-15 years of project realization, $$ Months of the project 123456789101112131415 Calendar months of the project year TOTAL Gross income 3 325 136 46 177 502 63 582 002 64 032 002 64 482 002 886 418 658 VAT 554 1897 696 250 10 597 000 10 672 000 10 747 000 147 736 443 Updated gross income 2 770 946 38 481 251 52 985 001 53 360 001 53 735 001 53 735 000 53 734 999 53 734 998 53 734 997 53 734 996 53 734 995 53 734 994 53 734 993 53 734 992 738 682 170 Operational expenses 0 VARIABLE EXPENSES: 0 Fuel 315 000504 000529 200555 660583 443595 112607 014619 154631 537644 168657 052670 193683 596697 268711 2149 003 612 Petroleum 6 30010 08010 58411 11311 66911 90212 14012 38312 63112 88313 14113 40413 67213 94514 224180 072 Motor tires 56 25090 000 1 316 250 Accumulator storage battery 1 5752 5202 6462 7782 9172 9763 0353 0963 1583 2213 2853 3513 4183 4863 55645 018 Electric power 11 97316 000 235 973 Wages of main personnel 1 904 3843 313 000 48 286 380 FIXED EXPENSES: 0 Technical service and repair of fixed assets (motor transport and equipment) 37 40659 85062 84365 98569 28470 67072 08373 52574 99576 49578 02579 58581 17782 80184 4571 069 179 Administrative-management personnel wages 1 495 6171 902 964 28 137 113 Communication and other services 61 237116 097127 669 1 837 031 Assignments 66 804126 651 1 839 916 Electric power 2 7835 277 76 663 Transport 27 83552 771 766 632 Consulting services 99 7541 385 3251 907 4601 920 9601 934 460 26 592 560 Security 44 53684 434 1 226 611 Clerical and other expenses 436 237386 990 5 854 096 Total operational costs 4 567 6928 055 9588 618 4888 662 2528 707 5298 720 8758 734 4888 748 3748 762 5378 776 9838 791 7198 806 7498 822 0798 837 7178 853 667 126 467 106 Amortization 8 335 573 14 135 1691 118 4921 109 7461 101 0831 092 5001 083 9961 075 5721 067 2251 058 9551 050 7611 042 6421 034 5971 026 6261 018 72736 351 664 Credit interest and commissions on the credit 6 617 501 10 800 000 10 419 2319 588 4628 757 6927 926 9237 096 1546 265 3855 434 6154 603 8463 773 0772 942 3082 111 5381 280 769450 00088 067 501 Profit before-tax income (for period) -16 749 8205 490 124 32 828 790 33 999 541 35 168 697 35 994 703 36 820 362 37 645 669 38 470 621 39 295 213 40 119 440 40 943 297 41 766 779 42 589 882 43 412 599 487 795 899 Net operating loss carry-back (at rising) -16 749 820 -11 259 696 -5 769 572000000000000 -33 779 087 Assessable incomes/losses -16 749 820-5 769 572 27 059 219 33 999 541 35 168 697 35 994 703 36 820 362 37 645 669 38 470 621 39 295 213 40 119 440 40 943 297 41 766 779 42 589 882 43 412 599 470 766 631 Income tax 006 764 8058 499 8858 792 1748 998 6769 205 0909 411 4179 617 6559 823 803 10 029 860 10 235 824 10 441 695 10 647 470 10 853 150 123 321 506 Net profit / losses -16 749 820-5 769 572 20 294 414 25 499 656 26 376 523 26 996 028 27 615 271 28 234 252 28 852 966 29 471 410 30 089 580 30 707 473 31 325 084 31 942 411 32 559 449 347 445 126

21.  Phoenix Pacific Pro forma statement of movement of funds, $$ 23456789101112131415 Months of the project1 yearyear TOTAL Sales income 3 325 136 46 177 502 63 582 002 64 032 002 64 482 002 886 418 658 Variable expenses -1 659 558 -2 817 745 -2 848 741 -2 881 287 -2 915 460 -2 929 812 -2 944 452 -2 959 385 -2 974 616 -2 990 152 -3 005 998 -3 022 162 -3 038 648 -3 055 465 -3 072 618-43 116 098 Fixed expenses -1 866 671 -3 850 226 -4 494 266 -4 514 237 -4 534 396 -4 536 059 -4 537 755 -4 539 485 -4 541 249 -4 543 049 -4 544 885 -4 546 758 -4 548 668 -4 550 616 -4 552 603-64 700 921 Payments into the budget -1 538 203 -9 084 238 -11 872 482 -18 703 534 -20 504 559 -20 794 180 -20 997 960 -21 201 598 -21 405 093 -21 608 443 -21 811 645 -22 014 697 -22 217 596 -22 420 340 -22 622 927 -278 797 493 Interests and commissions payments (credit) -6 617 501 -10 800 000 -10 419 231 -9 588 462 -8 757 692 -7 926 923 -7 096 154 -6 265 385 -5 434 615 -4 603 846 -3 773 077 -2 942 308 -2 111 538 -1 280 769-450 000-88 067 501 The outcome from operational activity -8 356 798 19 625 293 33 947 282 28 344 483 27 769 895 28 295 028 28 905 681 29 516 150 30 126 428 30 736 512 31 346 397 31 956 078 32 565 551 33 174 812 33 783 854 411 736 645 Cash flow from investment activity0 Fixed assets acquisition -180 000 00000000000000000 The outcome from investment activity -180 000 00000000000000000 Cash flow from financial activity0 Credit entry 180 000 00000000 Credit repayment00 -13 846 154 -180 000 000 The outcome from financial activity180 000 0000 -13 846 154 -0 Funds0 At the beginning of period0 -8 356 798 11 268 495 31 369 623 45 867 952 59 791 693 74 240 567 89 300 095 104 970 091 121 250 364 138 140 722 155 640 965 173 750 889 192 470 287 211 798 944 1 401 503 890 At the end of period-8 356 798 11 268 495 31 369 623 45 867 952 59 791 693 74 240 567 89 300 095 104 970 091 121 250 364 138 140 722 155 640 965 173 750 889 192 470 287 211 798 944 231 736 645 1 633 240 534 Cash flow-8 356 798 19 625 293 20 101 128 14 498 329 13 923 741 14 448 874 15 059 528 15 669 996 16 280 274 16 890 358 17 500 243 18 109 924 18 719 397 19 328 658 19 937 700 231 736 645 Calculating of debt service ratio, $$ 1 year2 year3456789101112131415ВСЕГО Amortization8 335 573 14 135 169 1 118 492 1 109 746 1 101 083 1 092 500 1 083 9961 075 5721 067 2251 058 9551 050 7611 042 6421 034 5971 026 6261 018 72736 351 664 Net profit for the period -16 749 820 -5 769 572 20 294 414 25 499 656 26 376 523 26 996 028 27 615 271 28 234 252 28 852 966 29 471 410 30 089 580 30 707 473 31 325 084 31 942 411 32 559 449 347 445 126 Credit Interests payments6 617 501 10 800 000 10 419 231 9 588 462 8 757 692 7 926 923 7 096 1546 265 3855 434 6154 603 8463 773 0772 942 3082 111 5381 280 769450 00088 067 501 Credit repayment00 13 846 154 180 000 000 All expenses-1 796 745 19 165 597 31 832 137 36 197 864 36 235 298 36 015 450 35 795 422 35 575 208 35 354 806 35 134 211 34 913 418 34 692 422 34 471 220 34 249 806 34 028 176 471 864 291 All repayments for the period6 617 501 10 800 000 24 265 385 23 434 615 22 603 846 21 773 077 20 942 308 20 111 539 19 280 769 18 450 000 17 619 231 16 788 462 15 957 692 15 126 923 14 296 154 268 067 502 Debt service ratio-0,271,771,311,541,601,651,711,771,831,901,982,072,162,262,381,76

22.  Phoenix Pacific NET PRESENT VALUE (NPV) Year Net cash flow Discount factor Real value of net cash flow 6% (Initial cost)180 000 000 1,0000 -180 000 000 1-8 414 247 0,9434 -7 937 969 28 365 597 0,8900 7 445 352 321 412 906 0,8396 17 978 689 426 609 402 0,7921 21 077 139 527 477 606 0,7473 20 532 866 628 088 527 0,7050 19 801 303 728 699 268 0,6651 19 086 652 829 309 824 0,6274 18 389 346 929 920 191 0,5919 17 709 715 1030 530 365 0,5584 17 047 996 1131 140 341 0,5268 16 404 343 1231 750 115 0,4970 15 778 834 1332 359 682 0,4688 15 171 482 1432 969 037 0,4423 14 582 237 1533 578 176 0,4173 14 011 000 (Disposal value) 33 578 176 0,4173 14 011 000 NPV61 089 984

23.  Phoenix Pacific INTERNAL RATE OF RETURN (IRR) Year Net cash flow IRR Real value of net cash flow 8,96% (Initial cost)180 000 000 1,0000 -180 000 000 1-8 414 247 0,9178 -7 722 655 28 365 597 0,8424 7 046 927 321 412 906 0,7731 16 555 025 426 609 402 0,7096 18 881 686 527 477 606 0,6513 17 895 175 628 088 527 0,5977 16 789 488 728 699 268 0,5486 15 744 567 829 309 824 0,5035 14 757 898 929 920 191 0,4621 13 826 972 1030 530 365 0,4241 12 949 295 1131 140 341 0,3893 12 122 408 1231 750 115 0,3573 11 343 897 1332 359 682 0,3279 10 611 398 1432 969 037 0,3010 9 922 613 1533 578 176 0,2762 9 275 307 (Disposal value) 33 578 176 0,2762 9 275 307 NPV 9 275 307

24.  Phoenix Pacific Payback period, months 134,4 Projected period of credit repayment, months 180 Net Present Value-NPV 61 089 984 Profitability index of investment (PI) for discount of 6% 1,34 Rate of Gross profit margins 93% Rate of Operating profit margins 86% Rate of Net profit margins 39%

25.  Phoenix Pacific Cumulative profile of project’s risks Pic 1. Cumulative index of event probability

26.  Phoenix Pacific Project sensibility to variable expenses changing Level of variable expenses, % to the planning

27.  Phoenix Pacific Project sensibility to product cost changing Cost service level

28.  Phoenix Pacific Project sensibility to the planning production volume changing Rendering service volume

29.  Phoenix Pacific. We are ready to any kind of mutually advantageous cooperation – as in the field of technological decisions and questions of financing and operation of the given project