Ann: Corporate Update May 2017, page-3

Although this report is from February, it has some useful info which we should all pay attention to:

Strengths:
-over 600 mil ton reserve
-low initial investment
-high quality coking coal
-low cost jurisdiction
-TIG owns port & road

Weaknesses:
limited access to port due to freeze-up (access June to October)
3rd world environment
shortage of local skilled labour

Opportunities:
develop to over 2 mil t/p/a
2nd port (deepwater and longer shipping window)
long term supply contracts with China

Threats:
Russian Bureaucracy (cumbersome)
local fisheries & indigenous people
short term mining contracts

But all in all, TIG has positioned itself to deal with Russian Bureaucracy by having significant Russian
shareholders, reopening a remote region that was almost dead and grow through cashflow.

Key points from the Feb article above:
-200K ton to be sold in 2017
-400K ton to be produced in 2017
-2018, 600K ton p/a
-potential of 2 mil t/p/a within a few years with huge mine life (tier 1 asset)
-120 employees (10-12 Moscow based)
-skilled pay: 80K-100K Roubles/mo.....twice that for engineers & highly skilled professionals.
-500 employees by '19-'20

@ sub 5c/share, this should become an evident bargain once revenue starts to flow late July.

All of this ,of course, IMO only and investors should do their own DD.