Gets even better, page 8The following are the key infrastructure...

Gets even better, page 8

The following are the key infrastructure features of SCM Vallenar Iron Company’s
geological district that are favorable to a mine development scenario:
· SCM Vallenar Iron Company’s geological district is located 51 kilometers southeast
of the Port Of Huasco. SCM Vallenar Iron Company possesses legal title to a
maritime concession covering over an area known as Punta Alcalde, which the
Sub-secretariat of the Chilean Navy, has determined to be the only area within the
vicinity of the Port Of Huasco that has sufficient draft in which to construct a port
facility capable of operating with Cape size ships. The Punta Alcalde maritime
concession is located 12 kilometers south of the Port of Huasco. Other
corporations with industrial activities in the Port Of Huasco have indicated their
interest in exploring the possibilities of entering into an agreement with SCM
Vallenar Iron Company in which they would participate in the construction and
operation of a port at Punta Alcalde capable of handling cape size ships.

· Ferronor S. A., a privately owned Chilean railway company owns and operates a
railway cargo transportation service into the Port Of Huasco. Compañía Minera del
Pacífico (CMP) uses this railway for the transportation of its iron ore to its
metallurgical plant located in the Port Of Huasco. SCM Vallenar Iron Company’s
geological district is located 7 kilometers west of Ferronor’s rail line and Ferronor
has indicated its interest in providing railway cargo transportation services to SMC
Vallenar Iron Company.
· SCM Vallenar Iron Company’s geological district is located 10.5 kilometers south of
the city of Vallenar and 2.5 kilometers from the Pan American Highway. In Vallenar
there exists a readily employable work force. The work force would live in the city;
be bused to and from work, thus eliminating a necessity of having to construct and
operate an onsite accommodations camp facility.
· A high voltage electrical power transmission line owned by Transelec S. A., a
private Chilean company traverses SCM Vallenar Iron Company’s geological
district. Transelec has indicated its willingness to sell electrical power to SCM
Vallenar Iron Company through this electrical power transmission line. ENDESA
S.A. and Empresa Eléctrica Guacolda S. A. are privately owned Chilean corporations
that have electrical power generating plants in the Port Of Huasco and both
corporations are currently expanding the electrical power generating capacities of
their existing plants.
· An internal roads network constructed by SCM Vallenar Iron Company provides
motor vehicle access to all areas of SCM Vallenar Iron Company’s geological
district.