Beal Resources Limited

World Class Iron Ore Deposit

Confidential for information purposes

Armenia

  • Landlocked mountainous country in the Caucasus region of Eurasia,
    located at the crossroads of Western Asia and Eastern Europe
  • Mines produce copper, zinc, gold and lead
  • Land area 29.743m km²
  • Capital Yerevan
  • Population 3.2 million
  • Elected Government
  • Maximum Corporation tax rate 20%

Armenia Facts

Background

  • A former republic of the Soviet Union, Armenia is a unitary, multiparty, democratic nation-state with an ancient and historic cultural heritage.
  • Armenia is an emerging democracy and a member of various international organisations including the United Nations, the Council of Europe, Asian Development Bank and the World Trade Organisation.
  • Steady economic progress has earned Armenia increasing support from the IMF, World Bank, ERBD who are extending considerable grants and loans.
  • Armenia mines produce copper, zinc, gold and lead – vast majority of energy is produced with fuel imported from Russia.
  • Armenia ranked #28 in the 2008 Index of Economic Freedom, ahead of countries like Austria, France, Portugal and Italy.
  • There have been outbursts of fighting between Armenia and Azerbaijan since the end of September 2020 in the long-running Nagorno-Karabakh decades-old conflict.

Key Country Data

  • Land Area
    29,743km² (141ˢᵗ globally)
  • Capital
    Yerevan
  • Currency
    Armenian Dram
  • Population
    ~3.2 million (135ᵗʰ globally)
  • GDP Nominal (2009E)
    ~US$8.7 billion
  • GDP per capita (2009E)
    US$2,658
  • International Reserves (2009)
    US$2.013 billion
  • Inflation (2010E)
    4.2%
  • Government
    Presidential Republic
  • President
    Armen Sarkissian
  • Prime Minister
    Nikol Pashinyan
  • Government Bond Ratings
    Moody’s Rating/Outlook: Ba2/STA

Location / GDP Breakdown


Mine Location

Huge Resource which formed part of the strategic reserves of Rustavi Steel Plant operated since 1944

All infrastructure in place

Near local iron ore mining town of  Vanadzor

Large demand in region

Beal Deposit

Located 8 km from the regional center Kirovakan and 10km from Vanadzor, in the Lori Province

2 km from Pambak railway station

Area is characterized by temperate climate and relatively abundant precipitation

Development of the field part open cast, part underground

Reserves and Ore Concentrate

Exploration Target:

  • 191 mt C2 Category
  • 250 mt P1 category

Ore Concentrate:

  • Approximately 37%-43% Fe

Infrastructure

  • Location: Project site located 10km from Vanadzor town
  • Utilities: Considerable access to critical infrastructure elements such as power, water and housing without excessive capital expenditure
  • Road: dual carriageway leading from Yerevan to the site in very good condition
  • Rail: Pambak railway station is 2km from site, linked by highway to ore field
  • Port: Major port within 500 km (on the Black Sea in Georgia)

Business Plan

  • Initial focus is the direct shipment of high grade ore
  • Mine to be developed as part open pit / part underground mining
  • Project costs to first stage US$5m
  • Pilot plant operations US$15m

Iron Ore to Steel Project

  • Potential create an integrated mining to steel production operation (ore → concentrate → steel products (1mtpa)
  • Conversion of concentrate to steel using DRI method (hydrogen) at adjacent chemical plant (5km rail from mine site)
  • Such process very uncommon but possible due to location of mine to chemical facility, low opex costs, and existence of infrastructure, save for DRI process facility to be constructed

Next Steps

  • SRK Updated Competent Persons Report
  • Commencement of further drilling to confirm the JORC resource / reserve
  • Completion of detailed bank feasible study (SRK Consulting)
  • Consideration of development of DRI steel production facility

Mining Consultant (Competent Persons)

SRK Consulting is an independent, international consulting practice that provides focused advice and solutions to clients, mainly from earth and water resource industries. For mining projects, SRK offers services from exploration through feasibility, mine planning, and production to mine closure. Formed in 1974, SRK now employs more than 1000 professionals internationally in over 40 offices on 6 continents. The Group’s independence is ensured by the fact that it is strictly a consultancy organisation, holding no equity in any project, and with ownership primarily by staff. This permits our consultants to provide clients with conflict-free and objective support on crucial issues. This is particularly important for due diligence and feasibility studies, which form a large part of SRK’s business. SRK Consulting employs leading specialists in each field of science and engineering. Its seamless integration of services, and global base, has made the company a leading international practice in due diligence, feasibility studies and confidential internal reviews.

Among SRK’s 1500 clients are most of the world’s major and medium-sized metal and industrial mineral mining houses, exploration companies, banks, petroleum exploration companies, construction firms and government departments.

Disclaimer

This document has been prepared for Beal Resources Ltd (“the Company”). It is private and confidential and intended solely for the use of a person or entity named below and their advisors.

This document is an information memorandum only and is not a prospectus within the meaning of the Prospectus Rules published by the Financial Services Authority in the United Kingdom or the Prospectus (Directive 2003/71/EC) Regulations 2005 of Ireland and has not been approved by any competent authority in the United Kingdom or Ireland. This document is in no way to be construed as a public offer or an invitation to subscribe for any shares. This document does not constitute an offer to the public as referred to in section 85 of the Financial Services and Markets Act 2000 (as amended). This document is not an offering document for the purposes of section 49 of the Investment Funds, Companies and Miscellaneous Provisions Act 2005 of Ireland. 

This document’s sole purpose is to assist the recipient in deciding whether he wishes to invest in the Company and it is intended for use only by the person to whom it is addressed, and his/her professional advisors. The Directors stress that information contained in this memorandum is confidential and proprietary to the Company, and emphasise that it is to be read solely by the person to whom it is addressed, and his/her professional advisors. As this document is confidential, it may not be reproduced in whole or part nor may its contents be distributed in written or orally nor may it be used for any other purpose other than that for which it is intended. Whilst the Company, its officers and agents have taken reasonable care in the preparation of this document, the information contained herein is not exhaustive and its accuracy is not guaranteed. 

The Company makes no representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this memorandum. This memorandum does not purport to contain all the information that may be required to evaluate an investment and any recipient hereof should conduct its own independent analysis of the Company and the data contained or referred to herein. Accordingly, no statement, whether contained in this document or made in the course of negotiations, should constitute an offer of any kind. An investment in the Company is speculative in nature and involves risk and may not be suitable for all recipients of this document. Investors must be prepared to bear the economic risk of this investment for an indefinite period and be able to withstand a total loss of the investment. Potential investors are advised to immediately consult their investment advisor, accountant or solicitor before making any decisions. 

This document is based upon the current intentions and beliefs of the Directors and may require modification in light of subsequent experience. This document should not be distributed, published, reproduced or otherwise made available in whole or in part or disclosed by recipients to any other person and, in particular, should not be distributed to persons with addresses in Canada, Australia, the Republic of South Africa, Japan or the United States or in any other country outside the United Kingdom or the Republic of Ireland where such distribution may lead to a breach of any law or regulatory requirements. This presentation contains confidential information which can not be disclosed to unauthorized persons, and may not be reproduced in whole or in part. This presentation is designed to assist interested parties in understanding the potential of the asset and does not purport to give complete information of which to base any investment decision.

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