American Appraisal Report PDF File Final 19.03.2015

APPRAISAL REPORT
FENI INDUSTRIES AD.

KAVADARCI, MACEDONIA
ASSET VALUATION
December 31, 2014
Contract No.: 4022/2014
Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

CONTENTS
LETTER OF TRANSMITTAL 1
ASSUMPTIONS AND LIMITING CONDITIONS 6
NARRATIVE REPORT 8
DESCRIPTIVE INFORMATION 9
INTRODUCTION 9
THE PROPERTY APPRAISED 9
Country Data 9
Brief Description of the History and Nature of the Business 10
The Property Appraised 12
Real Estate 12
Machinery and Equipment 19
Intangible assets 33
Construction in progress 33
Closure cost 33
APPRAISAL METHODOLOGY 34
Introduction 34
Cost Approach 34
Market Approach or Sales Comparison Approach 37
Income Approach 37
VALUATION/SPECIFIC PROCEDURES 38
Real Estate 38
Machinery & Equipment 42
Intangible assets 49
Construction in progress 49
Closure cost 49
Insurance Value 50
CONCLUSION 51
EXHIBITS

American Appraisal Magyarország Vagyonértékelő Kft.
American Appraisal Hungary Co. Ltd.
H-1132 Budapest, Váci út 18.
tel +36 1 388 9903 / 388 4189
fax +36 1 388 9594
Leading / Thinking / Performing
Contract No. 4022/14

Cunico Marketing FZE
Mr. Paras Chandgotia
Corporate Finance Controller
Jafza View 18
office 0906, Jebel Free Zone
P.O. Box 262635 Dubai
United Arab Emirates
January 30, 2015
We have completed the appraisal of certain properties exhibited to us as that of
FENI Industries AD
located in Kavadarci, Macedonia
and submit our findings in this report.
The purpose of our investigation was to express an opinion of the Fair Market Value of the
company’s designated fixed assets, on the premise of continued use, for accounting purposes,
and of the Cost of Reproduction New, for insurance placement purposes, as of December 31,
2014.
This appraisal is an update of the previous valuation (December 31, 2011) of the company.
We understand that our cost and value conclusions will serve to enable FENI Industries AD to
account for the value of the company's assets in accordance with IAS 16 standard (International
Accounting Standards) and to insure its owned property.
Fair Market value is defined as the estimated amount at which the property might be expected to
exchange between a willing buyer and a willing seller, neither being under compulsion, each having
reasonable knowledge of all relevant facts.
When market value is established on the premise of continued use, it is assumed that the buyer
and the seller would be contemplating retention of the property at its present location as part of the
current operations. An estimate of market value arrived at on the premise of continued use does

2
not represent the amount that might be realized from piecemeal disposition of the property in the
marketplace or from an alternative use of the property.
Cost of Reproduction New (CRN) or Cost New is defined as the amount required to reproduce
the entire property at one time, in like kind and materials, in accordance with current market prices
for materials, labor, and manufactured equipment, contractors' overhead and profit, and fees but
without provision for overtime, bonuses for labor, and premiums for material of equipment. Cost of
Reproduction New, as defined, is synonymous with the insurance-industry term Replacement Cost.
Cost of Replacement New (COR) is defined as the estimated amount required to replace the
asset at one time with a modern new unit using the most current technology and materials, labor,
and manufactured equipment, contractors' overhead and profit, and fees, but without provision
for overtime, bonuses for labor, or premiums for material or equipment.
The cost new refers to cost of reproduction new (CRN) or cost of replacement new (COR).
The Depreciated Replacement Cost (DRC) or Cost New Less Depreciation (CRNLD) was
estimated by adjusting the cost new for physical deterioration and functional obsolescence
where it was deemed necessary.
To arrive at estimates of fair market value in continued use, the Cost of Replacement or
Reproduction New Less Depreciation (CRNLD) has to be adjusted for eventual economical
obsolescence (impairment of assets) as required by IAS36. Determination of the extent of
economical obsolescence is excluded from the scope of this investigation. Therefore please note
that the term 'Fair Market Value’ included in the report is equivalent with the Cost of Replacement
or Reproduction New Less Depreciation (CRNLD) before any economic obsolescence has been
applied.
The insurance policy of the company was not available as of the date of the valuation, therefore
to arrive the Cost New of the insurable properties we have excluded from consideration items
such as land, licensed vehicles, supplies, materials on hand, inventories, company records, and
any current or intangible assets that might exist.

3
Our report comprises:
This letter, which summaries the appraisal procedure used in the investigation and presents
the conclusion of value.
Assumption and Limiting Conditions
A narrative report, identifying the property appraised, a description of the nature and extent
of the investigation and the conclusions of value.
Exhibits:
Location map
Site plan
Real estate value calculations
Photos
CD containing the complete report in electronic format and the list of fixed assets
showing the Fair Market Value, Cost New and Insurable Value for each item
Certificate of Appraisers
In estimating market value on the premise of continued use for the real estate and machinery and
equipment, consideration should be given to:
The extent, character, and utility of the property
Location, size, and utility of the land
The estimated cost to acquire new or construct, or to acquire used if comparable property
was available, plus the cost to erect or install as an integrated entity
For estimated cost new, a deduction for depreciation, or loss of value, arising from
condition, utility, age, wear and tear, and obsolescence
For the cost of comparable used property, a positive or a negative adjustment to the
market price to reflect the difference in condition and utility between the item under
appraisement and its normal market comparative

4
Dealers’ prices for machinery and equipment in operative condition, plus allowances for
freight and installation
The appraisal procedures used to arrive at estimates of cost and value for the property are
further described in the following narrative sections of the report.
Based on our investigation and the procedures described in this report, it was concluded that,
as of December 31, 2014, the rounded Fair Market Value of the appraised assets is ONE
HUNDRED EIGHTY EIGHT MILLION NINE HUDRED THOUSAND EURO (EUR 188,900,000),
and the rounded Cost of Replacement New of the insurable properties, as of the same date, is
FOUR HUNDRED THIRTY ONE MILLION NINE HUNDRED THOUSAND EURO (EUR
431,900,000).
In accordance with the request of the Client, we also provided the Net Book Value of the assets
and the “Revaluation Loss/Gain” values as well.
Fair Market Cost New

Revaluation
Accounting Gross Book Nett Book Cost New Value in of Insurable Remaining
Denomination Loss/Gain
Code Value (EUR) Value (EUR) (EUR) Continued Properties Life (Year)
(EUR)
Use (EUR) (EUR)
002000 Concession licenses 118,946 90,611 155,480 90,611 0 N/A
Other intangible
007000 418,006 238,373 503,258
assets 238,373 0 N/A
010410 Land 4,749,246 4,490,662 6,141,170 6,141,170 1,650,508 N/A
011311 Buildings 34,251,444 30,929,908 66,929,720 32,555,280 66,929,720 1,625,372 28,9
011350 Fixtures and Fittings 869,927 759,417 3,749,008 829,091 3,749,008 69,674 7,0
011380 Infrastructure 4,850,178 4,383,676 20,902,134 4,617,509 20,902,134 233,833 16,4
011390 Closure cost 5,366,610 4,292,868 9,465,946 4,292,868 0 N/A
012150 Industrial equipment 149,998,480 107,505,963 316,020,860 120,490,841 316,020,860 12,984,878 9,3
013000 Vehicles 2,717,091 2,038,498 3,602,747 1,989,061 -49,437 7,0
Maintenance
013100 227,976 112,466 604,087
equipment and tools 166,700 604,087 54,233 4,1
013220 Kress vehicles 6,566,535 5,064,190 10,907,212 5,221,184 10,907,212 156,994 10,8
013310 Office equipment 145,428 75,202 250,565 100,502 250,565 25,301 4,4
013320 It office equipment 131,960 92,636 177,680 99,469 177,680 6,833 6,6
013410 Furniture 141,100 89,676 230,363 104,786 230,363 15,110 5,5
013510 Computers 113,480 51,224 196,911 72,779 196,911 21,556 3,2
Construction In
CIP* 11,894,260 11,894,260 11,894,260
Progress * 11,894,260 11,894,260 0 N/A
Total 222,560,667 172,109,629 451,731,400 188,904,484 431,862,799 16,794,855 11.9
Rounded 451,700,000 188,900,000 431,900,000 16,800,000
*at reported cost

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Furthermore, in accordance with the request of the Client, we also provide the values expressed
in US dollar terms. Accordingly, the Cost of Replacement New and the Fair Market Value, as of
December 31, 2014, using an average exchange rate of 1.216 US Dollars per EURO, is
estimated as follows:

Revaluation Remaining
Accounting Gross Book Nett Book Cost New Value in of Insurable
Denomination Loss/Gain Life (Year)
Code Value (USD) Value (USD) (USD) Continued Properties
(USD) /WARL/
Use (USD) (USD)
Other intangible
007000 508,295 289,862 611,961
010410 Land 5,775,079 5,460,641 7,488,730 7,488,730 2,028,089 N/A
011311 Buildings 41,649,725 37,610,740 94,189,240 39,628,950 94,189,240 2,018,210 28.9
011350 Fixtures and Fittings 1,057,831 923,451 5,268,930 1,013,826 5,268,930 90,375 7.0
011380 Infrastructure 5,897,811 5,330,546 29,376,326 5,652,440 29,376,326 321,894 16.4
011390 Closure cost 6,525,793 5,220,123 11,510,581 5,220,123 0 N/A
012150 Industrial equipment 182,398,014 130,727,152 384,281,076 146,516,752 384,281,076 15,789,600 9.3
013000 Vehicles 3,303,980 2,478,812 4,380,937 2,418,696 -60,116 7.0
Maintenance
013100 277,218 136,759 734,569
equipment and tools 202,707 734,569 65,948 4.1
013220 Kress vehicles 7,984,901 6,158,050 13,263,159 6,348,955 13,263,159 190,904 10.8
013310 Office equipment 176,841 91,445 304,687 122,211 304,687 30,766 4.4
013320 It office equipment 160,463 112,646 216,059 120,955 216,059 8,309 6.6
013410 Furniture 171,577 109,045 280,121 127,420 280,121 18,374 5.5
013510 Computers 137,992 62,288 239,444 88,500 239,444 26,212 3.2
Construction In
CIP* 14,463,409 14,463,409 14,463,409
Progress * 14,463,409 14,463,409 0 N/A
Total 270,633,567 209,285,151 566,798,292 229,813,716 542,617,019 20,528,565 11.9
Rounded 566,800,000 229,800,000 542,600,000 20,500,000
*at reported cost
We have not investigated the title to or any liabilities against the property appraised and no
responsibility is assumed for these matters.
Respectfully submitted,
AMERICAN APPRAISAL HUNGARY CO. LTD.
Ágoston Jakab
Managing Director
Investigation and Report by:
Tamás Berszán B.Sc. Mech. Eng. Real Estate, BA

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ASSUMPTIONS AND LIMITING CONDITIONS
This service was performed with the following general assumptions and limiting conditions:
1. To the best of our knowledge, all data, including historical financial data, if any, relied upon
in reaching opinions and conclusions or set forth in this report are true and accurate.
Although gathered from sources that we believe are reliable, no guarantee is made nor
liability assumed for the truth or accuracy of any data, opinions, or estimates furnished by
others that have been used in this analysis.
2. No responsibility is assumed for matters legal in nature. No investigation has been made of
the title to or any liabilities against the property appraised. We have assumed that the
owner’s claim is valid, the property rights are good and marketable, and there are no
encumbrances that cannot be cleared through normal processes, unless otherwise stated
in the report.
3. The value or values presented in this report are based upon the premises outlined herein.
4. The date of value to which the conclusions and opinions expressed apply is set forth in the
report. The value opinion presented therein is based on the status of the economy and on
the purchasing power of the currency stated in the report as of the date of value.
5. This report has been made only for the use or uses stated, and it is neither intended nor
valid for any other use.
6. Possession of this report or any copy thereof does not carry with it the right of publication.
No portion of this report (especially any conclusion, the identity of any individuals signing or
associated with this report or the firms with which they are connected, or any reference to
the professional associations or organizations with which they are affiliated or the
designations awarded by those organizations) shall be disseminated to third parties through
prospectus, advertising, public relations, news, or any other means of communication
without the written consent and approval of American Appraisal.
7. Areas, dimensions, and descriptions of property, if any, used in this analysis have not been
verified, unless stated to the contrary in the report. Any areas, dimensions, and descriptions
of property included in the report are provided for identification purposes only, and no one
should use this information in a conveyance or other legal document. Plats, if any, presented
in the report are intended only as aids in visualizing the property and its environment.
Although the material was prepared using the best available data, it should not be
considered as a survey or scaled for size.

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8. Unless stated to the contrary in the report, no environmental impact study has been ordered
or made. Full compliance with all applicable laws and governmental regulations is assumed
unless otherwise stated, defined, and considered in the report. We have also assumed
responsible ownership and that all required licenses, consents, or other legislative or
administrative authority from any applicable government or private entity organization have
either been or can be obtained or renewed for any use that is relevant to this analysis.
9. The value estimate contained within the report specifically excludes the impact of
substances such as asbestos, urea-formaldehyde foam insulation, other chemicals, toxic
wastes, or other potentially hazardous materials or of structural damage or environmental
contamination resulting from earthquakes or other causes, unless stated to the contrary in
the report. It is recommended that the reader of the report consult a qualified structural
engineer and/or industrial hygienist for the evaluation of possible structural or environmental
defects, the existence of which could have a material impact on value.
10. If we made a physical inspection of the property, the inspection was made by individuals
generally familiar with real estate and building construction. However, we do not opine on,
nor are we responsible for, the structural integrity of the property including its conformity to
specific governmental code requirements, such as fire, building and safety, earthquake, and
occupancy, or any physical defects that were not readily apparent to the appraisers during
their inspection.
11. It is assumed that all applicable zoning and use regulations and restrictions have been
complied with unless a nonconformity has been stated, defined, and considered in the
report. Further, it is assumed that the utilization of the land and improvements is within the
boundaries of the property described and that no encroachment or trespass exists unless
noted in the report.
12. No soil analysis or geological studies were ordered or made in conjunction with the report,
nor were any water, oil, gas, or other subsurface mineral and use rights or conditions
investigated, unless stated to the contrary in the report.
13. No responsibility is assumed for changes in values occurring often in extraordinary economic
situations resulting from economic processes that cannot be detected or foreseen during the
appraisal process and may have impact on the value of the real estate property.

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NARRATIVE REPORT

9
DESCRIPTIVE INFORMATION
INTRODUCTION
As noted in the preceding letter of transmittal, the purpose of our assignment is the valuation of the
assets included in the inventory of Feni Industries AD and provided by the management. For that
purpose, we have estimated the market value of the company’s designated fixed assets, as of
December 31, 2014, on the premise of continued use.
This appraisal is an update of the previous valuation (December 31, 2011) of the company.
The following narrative report sections include descriptions of the company and the property
appraised; appraisal procedures; conclusion; and attachments comprised of summarized property
description; summary of cost and value conclusions; and assumptions and limiting conditions.
THE PROPERTY APPRAISED
Country Data
Macedonia is situated in the center of the Balkan Peninsula occupying 25,700 square kilometers
area. It borders Kosovo, Albania, and Greece. The country The country has a population of
2,062,294 (official estimation /December 2012/).
The climate of the mountainous Macedonia is continental with warm summers and cold winters.
Macedonia is populated with 82 persons per square kilometers. The gross wages are about 518
Euros per month.
Macedonia was in 80% rural society after World War II. In 2000, it was estimated that the rural
population still accounts for 60% of total. It is difficult to predict future urban-rural changes, but
if Macedonia follows the example of other Balkan countries, it will experience a rapid shift toward
urbanization.
The country exports (metallurgy, ferro-nichek, textile) were the most affected, leading mass lay-
offs in the industrial sector. Macedonia, together with Kosovo and Albania, is still in a post

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communist transition phase. Manny basic market needs are not fulfilled, which generates a
recurrent and endemic source of business development for small and medium companies.
In 2014, Macedonia will continue to develop slow and steady. The major challenges remain the
level of unemployment and the lack of significant foreign investment, which is partially linked to
the absence of political solution around the name of the country (a bilateral issue with Greece)
for the entry in the EU and NATO.
Economic Indicators
2012 2013 2014F
GDP Growth (%Y-I) -1.50% 0.00% 3.20%
Inflation 4.75% 1.40% -0.50%
Unemployment 30.60% 28.65% 27.90%
Account Balance (% GDP) -7.20% -6.20% -7.90%
Non-Performing Loans (for May) -2.50% -1.90% n.a.
(source: State Statistical Office of the Republic of Macedonia)
Since the second half of 2009, Skopje has become a secure place for real estate activity: the
cadastre is efficient, the land registry is completed and building cannot be erected easily without
permit.
Real estate price remain high compared to the size of the market. It is explained by the low
market liquidity limiting price competition. In addition low property taxes allow owner to wait for
years without taking risks,
In general, the construction quality is poor, with little investment made for acoustic and thermal
insulations (Macedonia knows very high differences of temperature, in addition to expensive
energy costs) or for the common areas.
Brief Description of the History and Nature of the Business
FENI Industries AD (hereinafter referred to as “FENI Industries” or “the company”) is a joint stock
company, located in Kavadarci, Macedonai. The company was established under the name
FENI by the Government of the former county – SFR Yugoslavia in 1976 and production started

11
in 1982. The main activity includes mining, ore processing and production of ferronickel from
nickel.
After two years of production, the company ceased production until 1991 when a new company,
FENIMAK was established which rented properties under FENI Ownership and continued
production until 1999, when production ceased again.
In 2001, FENI was privatized and sold to the French company, Societe Commerciale de Metaux
et Mineraux (SCMM) and changed its name to FENI Industries AD. Then ub January, 2005, the
company was taken over by the present owner, the Resources Holdings BV from the
Netherlands, of which ultimate parent companies are International Mineral Resources AG and
BSG Resource BV.
In 2004, the company signed a concession agreement with the Government of Macedonia to
explore the ore reserves in Rzanovo mine located 36 kilometers from Kavadarci, for a period of
20 years, with the possibility of renewal for another 20-year period. The total ore reserves in
the open pit at Rzanovo are estimated at 4.5 million metric tons of ore. This concession includes
also the right to exploit the underground mine, with reserves estimated at 13 million metric tons
of ore. The underground mine is planned to be exploited until 2023.
In addition to the mine in Rzanovo, the company holds a license to explore the open pit in
Studena Voda mine, Macedonia, with 1.7 metric tons of ore and a planned exploitation period
from 2013-2016.
The total estimated reserves of ore available for the company’s production is about 22.6 million
metric tons.

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The Property Appraised
Technical Description of the Property, Plant and Equipment
Real Estate
Land
According to land ownership documents No 673,733 and 685, FENI Industries AD owns land in
two locations: the Smelter Site and Slag Site. The land at the Smelter Site is the largest holding
with total area of 890,497 square meters, used for production activities (ore processing).
Land at Slag Site, Property Deed No. 673 and 733, is used for storing the slag from the
production process over a total area of 237,475 square meters. “M2” has total area of 112,645
square meters and is still in the process of registration since it was only recently acquired. The
land parcels and area are outlined in the table below.
Property Area
Parcel number
Deed No. (sq.m.)
1290 890,497
685
Total Location Smelter (Kadastrial Municipality – Sivec) 890,497
Cairce 58,838
Cairce Smokva 7,737
Crkvata 3,768
673 Tisovec 33,288
Kale 1,006
Markova Spatala 268
Total Location Vozarci (Kadastrial Municipality – Slag) 104,905
Cuckite 12,533
Dupkite 4,352
Gornickite 7,617
733 Rovit Kamen 11,091
Roviti Kamen 91,594
Roviti Kamenja 5,383
Total Location Sivec (Kadastrial Municipality – Slag) 132,570
Total M2 registration process 112,645
Grand Total 1,240,617

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Buildings and Infrastructure
The buildings and infrastructure comprise production buildings, warehouses, silos, pump
stations, office buildings, restaurant buildings, ambulance building, laboratory, fixtures and
fittings and other infrastructural structures and facilities (roads, border, and water and hydraulics
network). Buildings and infrastructure are present in two separate locations: the Mine and the
Smelter (production site).
Mine Site
The mine is located next to the village of Rzanovo, approximately 45 kilometers south of the
FENI Industries AD factory. The mine is not included in the company's register as the
exploitation is only held under concession. The mine is connected to the factory by a 36
kilometers long conveyor belt running across the mountain.
Buildings located at the mine are classified according to their use and functions as follows:
- The warehouses and workshops are single empty spaces, with a clearance height of
three meters, a steel load-bearing structure, corrugated sheet or masonry walls;
- Administrative building - two levels, with reinforced concrete structure and masonry
- walls; and
- Accommodation buildings - wooden construction, disused and in poor condition.
The total gross floor area is approximately 7,657 square meters.
We have completed a desk-top appraisal of the buildings of the mine based on furnished
information.
The main data of the buildings are summarized in the following table:

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Year of Gross Net floor

External Internal
Bldg. No. Building Designation constru floor area area Structure Roof Woodw ork Installations Condition Notes
finishes finshes
c-tion (sq.m .) (sq.m .)
1 Petrol station 1978 77 73 monolythic reinforcing plane metal concrete, terracottaDisperse coatElectricity,Water-supply, canalization good
2 Vehicles w orkshop 1978 792 754 metal reinforcing plane metal concrete Plate Electricity good
3 Wood-frame building - offices 1978 314 299 w ooden w ooden, slope w ooden terracotta paint Electricity,Water-supply, canalization satisfactorily
4 Vehicles w orkshop 1978 419 399 metal metal, slope metal concrete Plate Electricity good
5 Mechanical w orkshop 1978 101 96 monolythic w ooden, slope metal concrete coat Electricity satisfactorily
6 Offices 1978 11 10 monolythic w ooden, slope w ooden concrete non Electricity satisfactorily
7 Warehouse 1978 11 10 w ooden w ooden, slope w ooden w ooden floor paint Electricity good
8 Container - office 1978 43 41 metal metal, slope metal metal paint Electricity good
9 Security house 1978 24 23 monolythic metal, slope metal concrete coat Electricity,Water-supply, canalization good
10 Fuse w arehouse 1978 17 16 monolythic reinforcing plane metal concrete coat non good
11 Gunpow der w arehouse 1978 267 254 monolythic metal, slope metal concrete Disperse coat non good
12 Main transformer for the mine 1978 777 740 monolythic metal, slope metal mosaic, concrete Disperse coatElectricity,Water-supply, canalization good
13 Transformer station 1978 55 52 monolythic w ooden, slope metal concrete coat Electricity good
14 Security house 1978 7 7 metal metal, slope metal metal Plate Electricity good
15 Toilets, restaurant, w arehouse 1978 2,601 2,477 monolythic reinforcing planeuminium, w oode
c oncrete, terracotta coat ricity,Water-supply, canalization, he good
16 Boots w ashing 1978 14 13 monolythic metal, slope metal terracotta coat Electricity,Water-supply, canalization good
17 Warehouse 1978 98 93 monolythic w ooden, slope w ooden concrete coat Electricity satisfactorily
18 Warehouse for oils 1978 6 6 monolythic w ooden, slope w ooden concrete non Electricity good
19 Wood-frame building - w arehouse 1978 27 26 w ooden w ooden, slope w ooden non Plate Electricity good
20 Compression station 1978 26 25 monolythic metal, slope metal non non Electricity good
21 Accommodation w ood-frame buildin 1978 698 665 w ooden non non concrete non non poor for w aste
22 Accommodation w ood-frame buildin 1978 698 665 monolythic non non concrete non non poor for w aste
23 Doctor's office Sv.Petre 1978 98 93 monolythic w ooden, slope non concrete coat non poor not in use
24 Security house 1978 11 10 monolythic metal, slope w ooden concrete coat Electricity good
25 Office, w arehouse, w orkshop 1978 420 400 monolythic metal, slope w ooden concrete, terracotta coat Electricity,Water-supply, canalization good
26 Dining room and toilet 1978 47 45 monolythic metal, slope w ooden concrete, terracotta coat Electricity,Water-supply, canalization good
7,657 7,292

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Smelter Site
The production site (Smelter) is located in the outskirts of Kavadarci, about ten kilometers from
the city.
The plant units of FENI Industries AD are large buildings with wide spans. The plant buildings
are classified according to use and functions as follows:
• Production halls are multi-level, large-span structures with a steel and reinforced
concrete supporting frame and different clearance height levels. The levels are mostly
galleries serving for access to the technical equipment, while in some places the levels
are separated by reinforced concrete floors. Generally, the technical equipment on each
level has been built around the main machinery.
• Auxiliary buildings and workshops are mainly multi-level, with reinforced concrete
structures and corrugated sheet or masonry walls. The auxiliary units include sub-
stations, compressor section, steam station, central factory's laboratory, electric-repair
unit, fuel-oil depot, air-blowing section, covered warehouses and penthouses.
Improvements include the elements of the infrastructure including roads, pipelines, drainage
networks, rail tracks and the equipment of the energy and communal services. The first table
below presents the gross and net book value of buildings and infrastructure per department.

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Since our previous appraisal prepared in 2006, the following key projects – implementation of
various foundations, podiums, and support structures related to the technological investments -
were realized at the plant:
2006 Refurbishment of Electric Furnace No 1

Granulation line no 1
2007 Bernardi dryer 1
Stamler 1
New chain Lepol Grate line 1
2008 Construction of Elector Static Precipitator (ESP) No 3
Extension current slag disposal
Bernardi dryer 2
Bernardi dryer 3
Ramp to discharge ore lignite station
2009 Bernardi 2 feeder(Cederaptis)
Optical line along the belt to Rzanovo (was finished -
started earlier)
2010 Crusher for slag
Compensation station electricity
Refurbishment of Electric Furnace 2
2011 By passes from South and North for direct feeding of ore
ESP4
MMD Crusher
Granulation line 2
New chain Lepol Grate in line 1
XRF lab
Stamler 2
Road for new slag disposal
Transport of small fraction
From 2011 to the end of 2014 Bullduzer1psTMLOD98018,169,926
Kress1psPF887/201122,321,867
ESP4Project1ps156,585,532
Peletizer project 1pcs37,897,1
SitnaFrakcija201228,829,427
Constraction25-27ObliqueRzanov
ROAD FOR SLAG DISPOSAL
DRYR-ALC TOURNAI
WASTE WATER
BURNERS FOR ROTARY KILNS-BRENE
NORDBERG NW 106 PORTBALE PLANT
Nordberg NW 200 HPC Portbale p
Fine screening plant with hifh
Closure sost - Smelter79,426,0
The main data of the buildings are summarized in the following table:

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Year of Year of Gross Net floor

A.
Bldg. No Building Designation construc- recon- floor area area Structure Roof Woodw ork External finishes Internal finshes Installations Condition Notes
Code
tion struction sq.m . sq.m .
Sm elter Buildings-Non Production

1 BS1.1 Headquarters 1978 2001/2011 1,853 1765 monolythic reinforcing plane aluminium, w ooden Marble, terracotta Disperse coat Electricity,Water-supply, canalization, heating good
2 BS1.2 Technical building 1978 1,274 1213 monolythic reinforcing plane w ooden Marble, terracotta w ooden panelling Electricity,Water-supply, canalization, heating good
3 BS1.3 Technical building (Free Economic Zone) 1978 2001 943 898 monolythic reinforcing plane w ooden Marble, terracotta w ooden panelling Electricity,Water-supply, canalization, heating good
4 BS2 Main security gatehouse 2001 213 203 monolythic w ooden, slope w ooden, metal concrete, terracotta facing bricks Electricity,Water-supply, canalization, heating good
5 BS3 Central restaurant 1978 2001/2005 924 880 monolythic reinforcing plane aluminium, w ooden terracotta, mosaic Disperse coat Electricity,Water-supply, canalization, heating good
6 BS4 Laboratory 1978 2,786 2653 monolythic w ooden, slope aluminium, metal Marble, terracotta coat Electricity,Water-supply, canalization, heating good
7 BS5 Warehouse 1978 29 28 monolythic metal, slope metal concrete Disperse coat Electricity good
8 BS6 Transformer station 1978 86 82 monolythic reinforcing plane metal concrete Disperse coat Electricity satisfactorily
9 BS7 Security gatehouse 1978 26 25 monolythic reinforcing plane aluminium terracotta facing bricks Electricity,Water-supply, canalization, heating good
10 BS8 Maintenance w orkshop and spare parts w areh 1978 3,830 3648 monolythic reinforcing plane w ooden, metal concrete, terracotta Disperse coat Electricity,Water-supply, canalization, heating good
11 BS9 Hanger - Motor vehicles repair shop 1978 1,369 1304 metal metal, slope metal concrete Plate Electricity good
12 BS10 Hanger - Motor vehicles repair shop 1978 1,369 1304 metal metal, slope metal concrete Plate Electricity,Water-supply, canalization good
13 BS11 Old fire department 1978 788 750 monolythic w ooden, slope w ooden Concrete, mosaic Disperse coat Electricity,Water-supply, canalization, heatingsatisfactorily not in use
14 BS12 Doctor's office 1978 323 308 monolythic reinforcing plane aluminium, w ooden terracotta, mosaic Disperse coat Electricity,Water-supply, canalization, heating good
15 BS13 Restaurant for Smelter 1978 327 311 monolythic reinforcing plane aluminium, w ooden terracotta, mosaic Disperse coat Electricity,Water-supply, canalization, heating good not in use
16 BS14 Main electrical sub-station (Transformer station 1978 3,722 3545 monolythic reinforcing plane metal mosaic, concrete Disperse coat Electricity,Water-supply, canalization, heating good
17 BS15 Dressing room for Smelter 1978 2001/2010 1,019 970 monolythic reinforcing plane aluminium, w ooden mosaic, concrete Disperse coat Electricity,Water-supply, canalization, heatingsatisfactorily
18 BS16 Unloading station (for lignite) 1978 231 220 metal metal, slope metal concrete Plate Electricity,Water-supply, canalization good
19 BS17 Storage space for lignite and coke 1978 1,848 1760 monolythic metal, slope non concrete Concrete, plate Electricity good
20 BS18 Open w arehouse (for ore) 1978 3,203 3050 reinforcing, metal metal, slope non concrete Plate non good
Sm elter Buildings-Production
21 BS19 Production building (electrical furnaces, conver 1978 14,585 13890 metal metal, slope metal concrete Plate Electricity,Water-supply, canalization good
22 BS20 Semi-open w arehouse (for limestone) 1978 105 100 monolythic metal, slope non concrete Non non good
23 BS21 Transformer station (on first, south stock pile) 1978 56 53 monolythic reinforcing, slope metal concrete Disperse coat Electricity good
24 BS22 Production building (pelletization, grids) 1978 4,443 4231 metal metal, slope metal concrete Plate Electricity,Water-supply, canalization good
25 BS23 Water supply 1978 1,515 1443 monolythic metal, slope metal concrete Disperse coat Electricity,Water-supply, canalization good
26 BS24 Carload scale w ith equipment (for vagons) 1978 4 4 monolythic reinforcing plane metal concrete Disperse coat Electricity good
27 BS25 Fine ore crushing 1978 812 773 metal metal, slope metal concrete Plate Electricity,Water-supply, canalization good
28 BS26 Reloading tow er 1978 564 537 metal metal, slope metal concrete Plate Electricity,Water-supply, canalization good
29 BS27 TS 1978 227 216 monolythic reinforcing plane metal concrete Disperse coat Electricity good
30 BS28 Production building (grinding, separation, filterin 1978 4,637 4416 metal metal, slope metal concrete Plate Electricity,Water-supply, canalization good
31 BS29 Boiler plant 1978 643 612 metal metal, slope metal Concrete, mosaic Plate Electricity, heating good
32 BS30 Reloading pump station for crud oil 1978 176 168 metal metal, slope metal concrete Plate Electricity good
33 BS31 Carload scale w ith equipment 1978 4 4 monolythic reinforcing plane metal concrete Disperse coat Electricity good
34 BS32 Shelter plateau for unloading of rail cars (for or 1978 2006 1,575 1500 metal metal, slope non concrete non Electricity good
35 BS33 Petrol station 1978 14 13 monolythic reinforcing plane metal concrete Coat Electricity,Water-supply, canalization good
36 BS34 Pouring of oil 1978 34 32 monolythic reinforcing plane metal concrete Coat Electricity good
37 BS35 Car w ash 1978 21 20 monolythic metal, slope metal terracotta Coat Electricity good
38 BS36 Vehicles service ramps 1978 105 100 monolythic non non non concrete non good
Total 55,680 53,029

18
The total built-up area of the buildings and open-air warehouses is approximately 55,700 square
meters. The buildings are connected by a large number of trestles.
The main buildings with necessary inter-floor areas, railways and crane road, foundation under
machines and other technological equipment were built in the period 1976 - 1978. The buildings
are in good condition. However, there are some defects such as corrosion of metal parts, leaks
in some joints and defects in some concrete and wooden elements. However, the buildings meet
the requirements for their function. The built-up volume is used according to the purposes of
production. There are free plots of land between the buildings for additional construction.
Due to the specificity of the technological processes, alternative use of the production buildings
is very limited.
Other Improvements
Other improvements on the factory site include fences, asphalt roads and parking areas which
are in good condition, open-air concrete sites and open- air warehouses.
We have personally inspected the site on January 19 - 20, 2015.
Factors Affecting the Value of the Property:
- good location and accessibility;

- development fitting to its surroundings;
- taking into consideration environmental protection issues;
- good infrastructural conditions and its positive effect on the surroundings;
- high quality development.

19
Machinery and Equipment
Mine Site
The mine operates two major types of excavation:

- open pit mining; and
- underground mining operation.
The process for the excavation of waste from the open pit consists of: drilling drills, blasting
drills, loading of the excavated mass and transport to the waste deposit, crushing, a fall through
the ore chute on to conveyor belts. The excavation and transportation of waste during
preparatory operations is carried out by rail.
Underground mining starts after the finalization of the open pit mine. With underground mining
the sides of the ore body would be mined experimentally - that is, the ore which could not be
optimally mined from the surface. The process for underground mining consists of: drilling drills,
blasting drills, loading and transport to the ore chute, where it is added to the horizontal system
of conveyor belts along with the ore from the open pit.
The sides of the ore body are mined from the surface. The main equipment is as follows:
I. Mine-plant conveyor belt track (asset code P2)
-Over ground part - band width 610 mm -Underground part - band width 8 10 mm and
9 reloading station length ~ 1900 m
B–1 908 m Sections – over cca 12 m of metal and concrete

1 - 2/3a 2,331 m supports, 12 roll carriers. In flat section – bearing
2/3a – 3aB 1,675 m structures over 6 m; across 4 m – roll unit placed
3AB – 3B4 1,903 m on steel rope ɸ18 - ɸ20
3B4 – 4/5 3,115 m
4/5 – 5/6 6,052 m II. Tunnel
5/6 – 6/7 9,900 m
6/7 – 7AB 8,155 m The tunnel is 18 m high and 3.5 km long excavated
7AB – Silo 2,263 m through strong rocks, without fixing.
It is equipped with a rail road (not in use) and two
cable lines, one stand – by. Underground part of
belt conveyor mine – plant (asset code P1 - # 12-
17) passes through the tunnel.

20
TORO BTH 002FE (Tamrock) - purchased second hand from Albania.

GETMAN - 2 pcs (vehicles ## 859 and 860)
III. Crushing installations (ASSET CODE PI)
This consist of a feeder (1), chain conveyor belt (2), shaker feeder (3) and a mobile jaw crusher
from Iowa Manufacturing Company - USA.
Fill-up installations consist of the following components: the first fill-up installation runs from
elevation 865 to elevation 717, while the other two installations are from elevation 820 to
elevation 717. There are two identical crushing installations. One has an engine which is out of
order and as at the valuation date is not in use (#5).
Compressor:
- Kaeser CSDX 137 - bought 2005 (asset code P1 - # 10)

- Fagram - in use from 1981 (P1 - # 10)
Smelter Site
All installations in the Smelter are used on 2,060,000 tons of nickel ore per year with 1.03% of
Ni and 31.45% of Fe and produce 17,000-20,000 tons of nickel in the form of Ferronickel with
25-40% of nickel. The ore that comes from the mine trough the stripe conveyer is primary
crushed and with granulation -127+0(mm).
The ore thus crushed undergoes to fine crushing which is carried out by a secondary cone
crusher (P6 - McKKE code 06 101 5) with a medium size of 2,130 mm and with adjustment on
the output side of 25.4 mm, engine power 220.8 K Wand capacity 544 t/h.
Two tertiary cone crushers (P6 - McKKE code 061045 and 061046) with 2,130 mm and adjusting
of the output side of 9.5 mm, engine power 220,8 KW and capacity of 327 t/h.
The fine crushing is predicted to operate at 3,600 h/year. The drive is equipped with screening,
measuring and de-dusting system. The crushed ore of -12.7+0 mm is delivered to the stock piles
with stripped transporters.

21
Filling and homogenization are carried out by mobile filler (stacker) and the furnace delivery is
made by two portal deliverers (reclaimers) - McKKE codes 061095 and 061096.
- Speed of filling: 550 t/h

- Speed of delivery: 350 t/h
The homogenized ore (P6 - 061225) is then transported to the drier where moisture is reduced
to 0.5%.
- Type of drier HARDING CLASS XH-24

- Nominal diameter: 3,048 mm
- Length: 30,480 mm
- Capacity: 290 t/h with 5% of water (H2O)
- T output gases - 430 kelvin degrees (K)
- V output gases - 68, 11 6 N m3/h
- Heavy oil consumption 2.0 t/h
The material is dried to 100%-600 m and 80%-297 m in two identical dry mills (P7 - 0810 15 and
08 11 10) using beads with the following characteristics:
- D=4,260 mm
- L=6,100 mm
- Engine power- I ,840 KW
- Capacity= 134.7 t/h
The mills are equipped with de-dusting system and air classifiers. The milled material goes to a
dry magnetic separator (P7 - 081638 - 081645) type: STEARNS MAGNETlCS-HST
- D*L = 9 15*2,032 mm
- Power of the magnetic field 1,240-2,125 gausses
The non-magnetic part goes to storage silos for dry Ni-concentrate and the magnetic part goes
to wet mills (081205 H 08 12 10) type KOPPERS
- D =3,500 mm
- L =5,640 mm
- Power =85 I K W
- Capacity = 67.35 t/h per section

22
From the wet mills, the material goes in hydro-cyclones (P7 - 08 12 15 and 08 12 16). The
granulation -44 m goes 10 wet magnetic separators and the granulation + 44 m goes to remilling.
The wet magnetic separators (P7 - 081234, 081240 - 08 1249) are type "STEARNS & WPD"-
three grades.
- D=9 15 mm
- L=3,050 mm
- Power=5.5 K W; 23 rotations/min
- Power of magnetic fie ld - 1,300-2,0 I 0 gausses
- Capacity=67.35 t/h per section
From the wet magnetic separation, the non-magnetic part goes to the Ni-thickener and the
magnetic part to the Fe-thickener.
The pulp thus produced is filtered in stripped drum vacuum filters with the following features
(there are 14 filters of this kind; 3 for Fe-concentrate (P8 - 101430 - 101432) and I I for
Niconcentrate (P7 - 101205 - 10 1211 and 10 1213 - 201216)
- Type of filters EINCO

- D= 3,558 mm
- L= 6,096 mm
- Vacuum= 508 mm Hg
- Flow rate= 454 I/min
- Effective surface= 70 m2
- Rotations= I- I 0 rotations/min
Thus a filter "cake" is produced with 27% H2O, which together with the dry Ni-concentrate, a
pulp of thickeners and water goes into two "LITLLEFORD" (P8 - 101492 and 101493), model
KM 10000 EP3 mixers, one of which has the following features:
- D= 1,580 mm
- L= 5,000 mm
- Power 368 KW
- Capacity 270 t/h
- Volume= 10,000 I
The mixed material goes into disintegrators (P8 - 101495 and 101496) with a capacity of 300 t/h.

23
Pelletizers
There are five pelletizers made of construction steel (P9 - 121100 - 121104). The side walls and
the bottom of the dish are covered with material, type: "XEXTEEMESH". There are fixed plowing
spades made of carbon steel and with ceramic edges.
The purpose of the pelletizers is to enlarge the size of the material i.e. for making pellets:
- Capacity 80 t/h on one pelletizer

- Diameter of the disk 7,600 mm
- Height of the side walls 580 mm
- Angle of incline of the pelletizers 45 to 48 degrees
- Engine power 2x73.6 KW
- Velocity of the engine 1,750 to 8,600 rotations/min
- Disc velocity 3.3-6.6 rotations/min
Lepol grate
Indefinite chain made of high alloyed steel with drive and return station and intake and
repression chambers made of steel tin. The Lepol-grate (121140 and 12 11 30) serves for the
strengthening and ignition of the pellets.
- Capacity - 127 t/h

- Type of grate-3,942 BZS
- Width of grate -4,067 mm
- Overall width of the bearings of the grate-4,745 mm
- Length of the grate-42,200 mm
- Height of the auxiliary chimney -22,500 mm
- Diameter of the auxiliary chimney - 3,600 mm
- Construction of the chain of the grate - for overloading
- Drive engine -100 HP
Heavy oil station
There is a horizontal cylinder with piston distributors and joint pipes. The station is used for
heating the heavy oil.
- Capacity -100 m'

- Diameter -3,250 mm
- Length -13 ,725 mm

24
High voltage fans
The purpose of these is to create pressure - for the removal of gases from the Lepol-grate - (P9
- 12 1228 and 13 1229) Rotary kiln system.
- Capacity 277 m3/sec. T-110 degrees

- Energy of drive engine -2, 140 HP
- Velocity of the engine 990° /min
- Static pressure 360 mm VS
- Capacity-102 m'/sec. T- 415°C
- Static pressure 370 mm VS
- Energy of drive engine 8 10 HP
Rotary kiln
Steel cylinder with angle of 2 degrees, length of 75 m, and diameter of 6 m lined with refractory
material. In the assembly of the kiln there are four spoon-like feeders for lignite and one for coke,
six fans on the shell of the kiln for blowing air and ten thermocouples aligned by the length of
the kiln.
The function of the rotary kiln is the pre-reduction of the ignited pellets. There are two Rotary
kilns (P9 - 12 1180 and 12 11 64).
- Engine power-2x600 HP
- Engine velocity - 1500°/min
- Kiln velocity - 0.3- 1.5°/min
- Capacity -95.6 t/h pre-reduced pellets
The pre-reduced pellets are heated to 900°C and stored in the equalizing bunker with a capacity
of 60 m3.
Electro-furnance
The purpose of the electro-furnace is to melt and completely reduce the charge of pre-reduced
pellets made in the rotary kiln, up to the desired FeNi percentage. The electro furnace (P 10 -
141105 and 141106) has a closed rectangular form with hanging roof, lined with appropriate

25
refractory materials. There are two identical electro-furnaces. The electro-furnace consists of
the following components:
1. Charging system
The purpose of the charging system is to transport the pre-reduced pellets from the equalizing
bunker of the rotary kiln to the charging bunkers of the electro-furnace.
The charging system is automated and equipped with the following parts:
- One transfer car (PI 0 - 141204 and 14 1203) for one electro-furnace
- Capacity 100 t
- Length 12 000 10 m
- Width 3,500 mm
- Velocity 100 m/min
- Drive 4 engines with 10 HP each at equal current
- Four containers at one electro-furnace lined with refractory material with capacity of
11 m3
- Two charging cranes (P I 0 - 141130 and 141030) for one electro-furnace, capacity of
load cca 35 t, lifting speed 25 m/min
- 14 charging bunkers on one electric furnace with bell -like system of closing, lined with
high-aluminum refractory material, capacity 28.5 m'
- 28 charging tubes for charge feeding from the bunkers into the furnace, lined with
refractory material, the diameter is 300 mm
2. Characteristics of the electro-furnace (PI0 - 141105 and 141106)
- Dimensions of the electro-furnace (exterior 34,100x14,300x6,600 mm; interior

33,140x12,540x5,350 mm)
- Power of electro-furnace (active power 55 MW)
- Capacity of electro-furnace (94.6 mt/h pre-reduced pellets; 7.1 mt/h 16% FeNi;
85,95 mt/h slag; 112.000 m3/h exhaust gases at temperature of 1200°C).

26
3. Constituent parts of electro-furnace
a) System for electric feeding of the electro-furnace
- Three, 28MVA mono-phase transformers for each furnace plus one.

- Six "Soderberg" electrodes in line with diameter of 1,650 mm, with maximum density
of 3.28 A/sm2, range of secondary voltage in connection 400-600 V, current per electrode
70 KA, regulatory pace I,000-1,800 mm with maximum regulation velocity of 6-15 m/sec.
b) System for slag and metal tapping
- Four tapping holes and channels for tapping slag at temperature of 1.650°C
- Two tapping holes and channels for furnace one and 4 for furnace 2, for tapping metal
at temperature of 1.550°C
- The height distance between the slag and metal tap holes is 900 mm
- One auxiliary hole for forced tapping of slag and metal
- Four tapping machines, type "BEJLI", equipped with pneumatic driller and hydraulic
gun.
c) Takeoff system for gas
- Two hot chimneys lined with refractory material with diameter of 1.200mm
- Two systems for cleaning exhaust gases from the electro-furnace, "VENTURI" scrubber
with double cooling and de-dusting with water. Every system has a fan with capacity of
22.400 m3/h at 81°C, and equipped with analyzer and register-device for the chemical
content of the exhaust gases
d) Cooling system for the electro-furnace
- Closed system with water quantity of 650 m3/h, exit temperature of 25°C, temperature
growth of 12°C and system pressure of 4 bars
- Open system with water quantity of 600 m3/h, exit temperature of 35°C, temperature
growth of 5°C and system pressure of 2 bars
- The bottom cooling system contains 8 fans with capacity of 10.000 m3/h air per fan
e) System for measuring the temperature of the electrofurnace on the side and end walls,
on the electro-furnace cover and bottom
j) System for transport of slag 10 the waste deposit

27
- 10 unlined pots with steel casting and volume of 17 m3

- 4 special vehicles for slag transport from the furnace to the waste deposit
Refinery department
The raw Ferro-nickel that comes out of the electro-furnace is tapped into pots (P 11 – 161360 -
161364) with capacity of 45 t, for desulfurization. The pots are equipped with a tap hole transport
car for raw material and there are four of this kind.
Set up, carrying and transport of the metal in the refinery is effected with two (100 tons each)
cranes 100125 t (P II - 161405 and 161406). The raw Ferro-nickel is tapped from the electro-
furnace with a temperature of I,550°C with the following chemical content:
Ni------------------------------16%
C-------------------------0.1-0.2%
S-------------------------0.6%max
Rest ------------------------0.2 %
Fe residual to 100%
From the transport car, the pot is lifted by one of the cranes and delivered for reheating and
equalizing of the content in the mixer (induction furnace) 110 t, 2,000 K W, 600V, 3 phases 50
Hz. This furnace can heat up 45 t of metal by 100°C in an hour and during this time melt 3 t of
cold metal.
The furnace is equipped with one inductor, inclined and lined with high quality refractory
material. The furnace has an independent hydraulic and cooling system. The metal thus heated
at 1,600°C, is delivered at a turntable scale of 100 t from here to the desulphurization system.
This system is composed of an inclined foundation and system of supplements.
The pot is set on the inclined foundation and the hose for blowing supplements (petrol, coke,
lime, and calcium carbide) is connected taking into account that the means for transportation is
nitrogen under pressure, which is directed towards the level of the metal in the pot, inclined
below 45°, and it is blown in. After the blowing in, the pot is inclined to the other side and the
carbide slag is pulled out.

28
This metal after desulphurization has the following content:
Ni------------------------------16%
C 0---------------------------0.6%
S --------------------------0.04 %
S i---------------------------0.1 %
C----------------------------1.62%
Other ---------------------0.05%
Fe residual up to--------100%
The desulphurized metal in a quantity of 28.7 to 33 t is delivered to one of the two 33 t L-D
converters for enriching and refining. Oxygen is blown in with a spear from the upper part of the
converter in a quantity of 70 to 100 Nm3/min cooled with water. The coo ling additive is added
from the top.
The resulting slag is poured into 10 pots with a capacity of 17 m3 which are transported to the
waste deposit with KRESS vehicles. The gases are cleaned through double water washing and
then coo led with a hood on each converter separately. The refined metal is poured from the
converter into a transporting pot of 25 t lying on a self-moving transportation car.
The temperature of the metal from the converter is about 1,600°C and once at the specified
content it is poured in a holding furnace for reheating and correction before it is cast. This furnace
has capacity of 40 t, transformer of 5.000/6.250 KVA, 110 KV /6,3 KB, 3 phases 50 Hz, three
electrodes with diameter of 305 mm. The furnace has a special cooling system and hydraulic
system. The performance of the furnace is up to 36 t in order to raise the temperature to 1,500
to 1,600°C in one hour and at the same time to melt 1 t of solid ferronickel material.
Inside the furnace additives can be used to correct the ferronickel content and slag can be taken
out. Once the specified temperature and quality have been reached, the material is granulated
in the nickel granulation system. The final product comes in granules, a shape that is rare and
much appreciated by customers.
The granules are then loaded into trucks, either in bulk or packed into bags, depending on the
customers' preference, and shipped to many different European destinations.

29
Laboratory
The Laboratory is filled out with equipment for determining the physical features of different
kinds of nonmetals (different levels of moisture and granulometry content), processing samples
of ore, nonmetals and metals.
The Laboratory has the capability for chemical analysis of all kinds of ore, nonmetals etc. and
numerous elements: K, Na, Ca, Mg, Si, P, S, C, Fe, Ni, Co, Cu, Cr, Mn, Po, Zn, CI, Br, As, Sb,
AI, Ag, An, Te etc.
It can perform complete analysis of water from different origins, determining a large number of
solid and liquid fuels, oils and gases. The laboratory can also conduct mineralogical petrographic
examinations of ores and nonmetals, research for enriching mineral raw materials (by
gravitational methods, magnetic separation, flotation etc.), metallurgical research (palletizing,
pre-reduction, oxide-reduction frying) as well as other types of research.
The more important equipment is as follows:
- X-ray fluorescent spectrometer (quant-meter), type 72.000C ARL Switzerland

Depending on the preparation this can give results on 18 elements in time frames from
45 to 60 seconds.
- Atomic absorber model 703 PERKIN ELMER, with an analyzing capacity of 20 elements
for which we have lamps at our disposal up to a concentration of PPm and with graphite
sample pot (furnace) which is a component of the absorber and PPm concentrations.
- LECO CS-analyzers for carbon and sulfur, type 46 from USA with which the carbon and
sulfur can be determined in different materials in time frames of 30-60 sec. There are
two such devices.
- Gas chromatograph SIGMA 2 PERKIN ELMER-for different gas analyses
- Equipment for different analyses of different parameters of fuels and oils
- Equipment for separation and flotation, wet and dry separators and different flotation
machines.
- Heat microscope for determining the melting interval and monitoring temperature
changes.
- Differential thermo analyzers - DTAITGA from Netsch
- Other equipment - besides process control, this equipment can serve for different
examinations of different materials.

30
Energy department
The electric energy is supplied by a line 2 x 110 KV Dubrovo, 110 KV from HEP "Tikvesh" to the
Smelter transformation is performed from 110 KV to 35 KV and 6 KV and is delivered in this
form to the Smelter. The supply for the mine and transport system carried by a line of 110 KV
from the smelter to the mine. In the case of disruption of the normal supply, DEC is automatically
switched on and maintains the electricity supply to critical consumers.
Specification of the equipment and aggregate capacity
- 2 TP 110/35KV 100 MW
- 3 TP 110/6KV 20 MW
- 1 TP 110/6KV 6.25 MW
- 2 DEC 6KV 2.2 MW
- Cable distribution
- 13 110 KV lines and transforming fields
- 46 6KV fields
- Commanding, protection, measurement and regulation
- Compressing station
- 1 turbo compressor for air Q=6,700 Nm3/h, p=10 bars
- 2 screw L250 compressors Q=1,600 Nm3/h, p=8.75 bars
- 4 moisture separators 3,200 Nm3/h
- 2 air driers 6,400 Nm3/h
- Pipe assembly and metal construction
- 3 air tanks with V=8.7 m3
- Assembly of electrical equipment
- Instrumentation
- Capacity: 6.400 Nm3/h dried air with p=8.75 bars
6.700 Nm3/h non-dried air with p=10 bars
- AKU Battery
Total capacity of the Smelter amounts 266.25 KVA.

31
Water supply
The water supply comes naturally from the river Dabnishka, while water from Tikvesh Lake is
delivered with pumps and distributed to precipitators where rough precipitation is carried out.
From here it goes to tanks for FP water and industrial water, and there is a natural supply of
water to the smelter for the technical processes and the Fire Protection network.
One part of the industrial water goes to the de-carbonization plant and another part goes to the
precipitating basin and through the KSU reactor where it is chemically treated, and then passed
through sand filters and pumped and distributed to the consumers. De carbonized water is
delivered to the coo ling tower. The cooling system is closed and there is some loss because of
the method used for cooling.
The precipitating basin serves for precipitating suspended solids from the wet separation
process. The surplus water is distributed for separation and the suspended sol ids (precipitate)
are occasionally cleaned with a grafer and disposed of into a waste deposit. The supply of
sanitary water is made through the public water system. At the outlet of the smelter there is a
cleaning station for the sewer.
Specifications and capacity of the equipment
- De-carbonizing plant with a capacity of 600 m3/h p=60 mmVS

- De-mineralizing plant with a capacity of 70 m3/h
- Cooling tower with approx. 90 MW power
- Pump station for the cooling tower with a capacity of 10,000 m3/h and p=65 mmVS
- Pump station on Tikvesh Lake with a capacity of 940 m3/h
- Precipitating basin
- 2 tanks for technological water with a total capacity of 3,000 m3
- Precipitators for precipitating fresh water
- "PUTOX" cleaning station
- Steam plant
o 3 boilers with Q= 12.5t/h p=8.8 bars with full armature
o 1 supply tank
o 2 condensing tanks
The product of the steam plant is dry condensed steam with a pressure of 8 bars which is used
for heating the heavy oil and during the winter fo r hot water heating in the Smelter area.

32
Machinery and equipment consists of the following group of assets in the Company's fixed asset
register:
Industrial machinery and equipment
This account comprises the most important production equipment and machinery, including the
following components: receiving conveyer belts, crushers, vibrating feeders, car shakers, double
drum hoist and monorail, transfer belts, bag houses, mills, cyclone systems, transport systems,
screw feeders, pumps, magnetic separators, thickener, rotative vacuum filter drum, vacuum
receiver, feed bin, mixers, disintegrator, discs pelletizer, elevators, fans, kiln burner sets, rotary
kiln refractory, bin lignite storage, weigh belt feeders, containers, crane bails, furnance, bunkers,
tapping machines, tapping, ladle, transfer cars, coke bins, converter, scrubbers, casting
machines, cranes, transformers, water pumps, generators, compressors, power lines, piping
systems, cooling tower, tanks, steam generators, fuel feeder station, laboratory equipment,
special vehicles.
The following table presents the gross and net book value of all machinery and equipment items
as of December 31, 2014.
Summary of book values of machinery and equipment as at December 31, 2014
Accounting Gross Book Nett Book Gross Book Nett Book Gross Book Nett Book
Denomination
Code Value (Dinar) Value (Dinar) Value (USD) Value (USD) Value (EUR) Value (EUR)
011390 Closure cost 329,946,715 263,931,530 6,525,793 5,220,123 5,366,610 4,292,868
012150 Industrial equipment 9,222,116,546 6,609,617,089 182,398,014 130,727,152 149,998,480 107,505,963
013000 Vehicles 167,050,552 125,329,711 3,303,980 2,478,812 2,717,091 2,038,498
Maintenance
013100 equipment and tools 14,016,272 6,914,579 277,218 136,759 227,976 112,466
013220 Kress vehicles 403,719,777 311,353,479 7,984,901 6,158,050 6,566,535 5,064,190
013310 Office equipment 8,941,127 4,623,499 176,841 91,445 145,428 75,202
013320 It office equipment 8,113,083 5,695,412 160,463 112,646 131,960 92,636
013410 Furniture 8,675,001 5,513,375 171,577 109,045 141,100 89,676
013510 Computers 6,976,923 3,149,307 137,992 62,288 113,480 51,224
Total 10,169,555,996 7,336,127,981 201,136,779 145,096,320 165,408,660 119,322,723

33
Intangible asset
The intangible assets are in two accounting groups, mainly mine concession, and used software
for production and for administration purposes.
The following table presents the gross and net book value of all intangible assets
Accounting Gross Book Nett Book Gross Book Nett Book

Denomination
Code Value (USD) Value (USD) Value (EUR) Value (EUR)
013000 Concessions Licences 144,638 110,182 118,946 90,611
017000 Other Intangible Assets 508,295 289,862 418,006 238,373
Total 652,933 400,044 536,952 328,984
Construction in progress
Construction in progress includes certain items not capitalized as at the valuation date as
follows:
Amount of Amount of Amount of

Name of Project project in project in project in
mkd EUR USD
ALC2 and BURNERS 155,077,736 2,522,352 3,067,178
GAS CLEANING SYSTEM IN EF 14,628,540 237,934 289,328
GUATEMALA SINTER PLANT 6,661,526 108,350 131,754
other projects 113,511,987 1,846,282 2,245,077
PET COKE BURNERS ON LEPOL GRATES 297,561,621 4,839,864 5,885,270
REPLACEMENT CHAIN FOR LEPOL GRATE No.2 128,718,875 2,093,623 2,545,844
SLAG-CRUSHING AND SCREENING 15,115,454 245,854 298,958
Grand Total 731,275,740 11,894,260 14,463,409
Closure Cost
There are two items in a separate accounting group (011390) covering the closure costs of the
mine and the smelter sites. the accounting data of these two items is summarized as follows:
Accounting Gross Book Value Nett Book Value Gross Book Value Nett Book Value
Denomination
Code (USD) (USD) (EUR) (EUR)
011390 Closure cost 6.525.793 5.220.123 5.366.610 4.292.868

34
APPRAISAL METHODOLOGY
Introduction
This section of our report describes the methodology used to arrive at an estimate of depreciated
cost of replacement new as market value of the designated assets appraised. The following
paragraphs will describe the general methodology used in this engagement.
Three internationally accepted methods of valuation must be considered in any appraisal of the
subject assets. These three approaches are referred to as the cost approach, the market
approach, and the income approach.
The cost approach considers the cost to reproduce or replace the property appraised. From this
amount an allowance is deducted for any depreciation or obsolescence present, whether arising
from physical, functional, or economic causes.
The market approach, also denominated the sales comparison approach, considers prices
recently paid for similar property, with adjustments made to the indicated market prices to reflect
the condition and utility of the appraised property relative to the market comparative.
In the income approach, an estimate is made of prospective economic benefits of ownership.

These amounts are discounted and/or capitalized at appropriate rates of return in order to provide
an indication of value.
Cost Approach
The cost approach estimates value based on the cost of reproducing or replacing the property
less depreciation arising from physical and functional obsolescence if present and measurable.
The cost approach is based on the proposition that the informed purchaser would pay no more for
a property than the cost of producing a substitute property with the same utility as the subject
property.
Cost New
The cost new is the starting point for estimating the depreciated costs and market value of the
appraised fixed assets. The cost new corresponds to the cost of reproduction new (CRN) or cost
of replacement new (COR).

35
Cost of Reproduction New (CRN) is defined as the estimated amount required to reproduce a
duplicate or a replica of the entire property at one time in like kind in accordance with current market
prices for materials, labor, and manufactured equipment, contractor's overhead and profit, and
fees, but without provision for overtime, bonuses for labor, or premiums for material or equipment.
Where the cost data for the cost of reproduction new (CRN) of the property was not available due
to technological and/or design changes for the subject property, the cost new was instead
considered equivalent to the cost of replacement new (COR).
Cost of Replacement New (COR) is defined as the estimated amount required to replace the
entire property at one time with a modern new unit using the most current technology and
construction materials, labor, and manufactured equipment, contractor's overhead and profit, and
fees, but without provision for overtime, bonuses for labor, or premiums for material or equipment.
Depreciated Replacement Cost
The next step was to adjust for physical and functional deterioration the cost new (CRN/COR) to
arrive at estimates of depreciated replacement cost (DRC) or cost new less depreciation
(CRNLD). To estimate the DCR/CRNLD a straight-line depreciation method was used.
Physical deterioration is a form of depreciation and is the loss in value resulting from
normal use of the facilities and from exposure to the elements.
Functional Obsolescence is defined as a loss in value normally caused by

improvements in methods, design, layout, materials, or technology that results in
inadequacy, overcapacity, excess construction, lack of utility, or excess operating costs
on the part of the subject property.
Physical deterioration is estimated based on an economic age-life method. The estimated

economic life and effective age(s) of the improvements were based on an inspection of the
property and consideration of current market conditions.
In order to estimate the physical depreciation, Normal Useful Lives of the Fixed Assets were
estimated. Normal lives for the subject assets were determined by first classifying all assets in
different groups and subgroups. Each asset was given a normal life according to the group it

36
belonged to.
The estimated useful lives, as expressed in terms of years and applicable to each of the asset
groups, are applicable beginning with the starting date of depreciation and were estimated giving
consideration to:
Type, character, and reasonable longevity for the designed use under anticipated
operating conditions;
Functional obsolescence normally expected;
Degree of adaptability to expansion, changes in the state of the art, and to other types of use
and occupancy upon termination of the expected initial use for presently foreseeable
purposes.
Market Value Development
According to IAS standards, in order to arrive at estimates of market value in continued use, the
depreciated cost new (DRC) has to be adjusted for economical obsolescence. Determination of
the extent of economical obsolescence is excluded from the scope of this investigation.
The third element of obsolescence after the used physical and functional deterioration is defined
as follows:
Economic Obsolescence
Loss in value resulting from influences external to the property itself. Causes may include
reduced demand for the product; dislocation of raw material supplied; increasing costs
of raw materials, labor, utilities, or transportation while the selling price of the product
remains fixed or increases at an appreciably lower rate; legislation and environmental
considerations.
The cost approach ordinarily supplies the most reliable indication of the value of the land
improvements, special purpose buildings, structures of special design and machinery
and equipment.

37
Market Approach or Sales Comparison Approach
The market approach establishes value through analysis of past or recent sales of comparable
property. The market approach is based on the proposition that the informed purchaser would
pay no more for a property than the cost of acquiring an existing property with the same utility.
In the valuation of real estate, similar properties recently sold or offered for sale in the current
market are analyzed and compared with the property being appraised, with adjustments being
made for differences in such factors as time of sale, location, type, age and condition of
improvements and prospective use.
The market approach ordinarily supplies the most reliable indication of the value of the land,
marketable buildings including non-special purpose structures such as offices,
warehouses, residential facilities, marketable general purpose machinery and
equipment, etc.
Income Approach
In the income approach, an estimate is made of prospective economic benefits of ownership.

These amounts are discounted and/or capitalized at appropriate rates of return in order to provide
an indication of value.
The income approach ordinarily supplies a very reliable indication of the value for income
producing properties by analyzing the property's ability to provide sufficient net annual return on
investment capital. In these cases, the income approach is an important means of developing a
value indication because it reflects the perception of a possible buyer which could perceive the
property as a direct source of revenue and thus a potential investment property.
In the income approach, an estimate of value is developed for the property by capitalizing the
projected net income at a rate commensurate with investment risks inherent to the ownership
of the property. Such a conversion of income considers competitive returns offered by alternate
investment opportunities. When properly applied, this approach is generally considered to
provide a reliable indication of value for income generating properties.
The income capitalization approach has not been applied for this valuation.

38
VALUATION/SPECIFIC PROCEDURES
The specific methods and procedures that were carried for each major group of assets are
discussed below.
Real Estate
Land
Our appraisers conducted an overall market review of value for land in the appraised areas to
arrive at average unit market values for the land. Experts operating in the market, city authorities
were contacted as part of our investigation.
Land value was estimated exclusively by the market approach thus reflecting sales and offerings
of comparable land holdings in the area, region or country, adjusted to reflect the characteristics
of the land subject to appraisal. The cost and income approaches were not deemed applicable
to appraise these types of assets.
In the valuation of the land plots, in addition to the zoning and current use, consideration was
also given to other factors concerning data as:
- neighborhood
- distance from the town
- accessibility of the area
- accessibility of the site
- public utility services
The land areas were not included in the asset list however we have taken them into
consideration in our valuation as owned property. The estimated value of these land parcels is
included in our summary of real estate values.
For establishing the value of the land parcels belonging to FENI INDUSTRIES AD, we have
gathered local and country real estate data. This data derived from local real estate agents,

39
public advertisements, advertisements on the Internet, as well as information obtained at the

given locations, which are as follows:
Land Market Prices
Price
Location Area
USD USD/m2
(m2)
Skopje, Vizbe govo 3,150 124,784 40
Skopje 11,000 374,352 34
Krusevo 2,600 139,631 54
Skopje, Pintija, 8,616 781,919 91
Sasa
Ohrid lake 7,780 149,998 19
Our investigation yielded unit costs varying from EUR 1 to 6.5 per square meter for land used
for mines (1 euro per square meter) and for industrial purposes (6.5 euro per square meter).
Based on the investigation and premises outlined, the indicated market value of the land areas
is concluded to be EUR 6,141,170, USD 7,488,730
Buildings, Land improvements
To determine the depreciated cost new of the buildings and structures only the cost approach
was applied. The value of these assets has been established on the basis of their technical
design, their age and technical condition.
The CRN/COR data were taken from our own data base compiled from local building
contractors, brokers and international data bases, and have been supplemented with
information gathered during our personal inspections.

40
For establishing the value of buildings and land improvements, we have relied on unitary costs
as follows:
FI. High UNIT CRN

Type of Building Structure Wall
max (m) (EUR)
Production Building 4, 6 CON BRI, CP 700
6, 8 900
>8m 1,200
Industrial/Warehouse/Auxiliary Facilities 4 CON BRI, CP 500
CON MET,WOO 400
MET MET, WOO 500
Industrial/Warehouse/ Auxiliary Facilities 8 CON BRI, CP 700
MET,WOO 500
MET MET, WOO 400
Industrial/Warehouse/Auxiliary Facilities 12 CON BRI, CP 800
Office Building CON,BRI BRI,CP 750
Administrative Building CON WOO/MET 650
Transformer House (Workshop/Garage,
Other) 3.5 CON/BRI CON/BRI 600
4 CON/BRI MET/WOO 800
Main Power Facility- Stages 12 CON/BRI CON/CP/BRI 500
Pumping Station 10 CON CON/CP 1,000
Stack 2,500
Pressure pipeline of the cooling water
d=2000 mm MET 2,000
Pipeline bridge MET MET 800
Cooling tower 7 CON CON/CP 500
Container 3 MET MET 300
Fence CON/MET 80
Road/plateau CON 70
Railroad Tracks CON,MET 800
Bridge (railway) CON,MET 12,000
Canopy CON/MET 300
Supporting wall CON 100

41
Based on the investigation and premises outlined, the indicated Depreciated Replacement Cost
of the Real Estate is estimated to be, rounded, EUR 44,143,050 or USD 53,783,946 as of
December 31, 2014.
Depreciated
Smelter Slag
Summary of COST APPROACH Mine Site Replacement
Site Site
Cost
LAND (EUR) 5,790,000 351,170 0 6,141,170
LAND (USD) 7,040,000 448,730 0 7,488,730
BUILDING (EUR) 31,897,890 0 657,390 32,555,280
BUILDING (USD) 38,829,810 0 799,140 39,628,950
LAND IMPROVEMENT (EUR) 5,400,600 0 46,000 5,446,600
LAND IMPROVEMENT (USD) 6,610,266 0 56,000 6,666,266
TOTAL (EUR) 43,088,490 351,170 703,390 44,143,050
TOTAL (USD) 52,480,076 448,730 855,140 53,783,946

42
Machinery and Equipment
Machinery and equipment units for which a known used market exists were appraised by means
of the market approach. Application of the approach involved an analysis of the used equipment
market to measure the value level of exchanges of comparable property. In addition to the value
level of exchanges, it was essential to determine the availability and desirability of particular types
of items, since supply and demand are the predominant factors influencing marketplace
transactions.
The used equipment market in Kavadarci, Macedonia is practically non-existent with only a few
dealers buying and selling used equipment. The majority of equipment available for sale to dealers
is relatively old, obsolete, and in fair to poor condition. There is an active used equipment market
in Western Europe, however, which was used to judge comparable units in Kavadarci, Macedonia.
Data for the market approach was obtained from information catalogs of similar items offered for
sale, confidential information relative to sales of similar assets, discussions with local and national
used equipment dealers and brokers, and a statistical compilation as to the average selling price
of classes of units by age and condition, reflecting both desirability and availability. After market
data was collected, the property subject to appraisal was studied to determine its condition, past
maintenance history, reconditioning or retrofitting history, and other factors of usage which would
affect its comparability to the item exchanging in the market. Both positive and negative attributes
of the property were judged and measured against the characteristics of the comparable.
For equipment of standard manufacture, current manufacturer’s price lists, price quotations, and
price catalogs were used to determine cost new. Cost new of equipment of special design or
fabrication was based upon current market prices for labor, materials, and manufactured
components, plus design fees, engineering fees, and overhead and profit. Allowances for freight
and installation were sometimes required. The deductions for physical deterioration and
functional obsolescence reflected observed condition; past maintenance and rebuilding history;
current utilization; and planned future utilization.
We have taken into consideration the applicability of all three approaches to value, namely the
cost approach, the market approach and the income approach. The cost approach was

43
considered most suitable as it provided the most reliable indication of the value of special
machinery and equipment.
In accordance with the request of the client, we have completed the appraisal as of December
31, 2014. During our work, we have made a personal inspection of the sites and have been
provided with information on location.
In the first step of the appraisal, we determined the depreciated replacement cost of the assets
with application of the age/life method for each item. Age is the effective age estimated by us
which is dependent on the physical condition of the asset and does not necessarily corresponds
with the chronological age of the asset. Normal life depends on the type of the assets.
We would like to note that useful lives relate to the period of economic income production and
should not be confused with the physical life expectancy of an asset. Few improvements are
permitted to fully deteriorate due to functional and/or economic obsolescence or physical
deterioration. Most either are removed from their site or are substantially renovated and
modernized well in advance of this.
Adjustment for functional obsolescence was applied in case of those items the reconstruction
of which has not been carried out with the use of state-of-the-arts materials and construction
method and thus there is loss of value due to technology that results in inadequacy, i.e. in case
of the furnace, since due to the wet ore it is able to operate with fewer efficacies.
The used data are included in the following table:

44
Remainin
Cost of Economica Funkcional Physical Depreciated
Tech Tech Origina Effectiv g Useful
Asset type Tech description unit Replacement l Useful obsolescenc deteriorato Replacement
identification data l year e age Life
New EUR Life (Year) e% n% Cost EUR
(Years)
Dyer Bernardi 2 300mt/h 1 # 2007 1,268,800 7 0% 4.60 65% 438,927 2.42
Precipitator 1 # 2007 2,589,600 20 0% 6.90 34% 1,697,603 13.11
Converter refurbishment 1 # 2010 1,133,600 7 0% 3.90 56% 501,271 3.10
Peletization Ore feeding 1 # 2011 1,289,600 7 0% 4.10 58% 537,166 2.92
Lepol Grate 1 refurbishment 1 # 2011 2,527,200 7 0% 3.10 44% 1,423,207 3.94
Crusher 1 # 2011 395,200 25 0% 4.10 16% 330,891 20.93
Lepol Grate 1 refurbishment 249,600 20 0% 3.90 20% 200,626 16.08
Electric Furnace 1 1 # 1982 36,920,000 30 0% 15.20 51% 18,156,256 14.75
Electric Furnace 2 1 # 1991 36,920,000 30 0% 12.60 42% 21,408,122 17.40
Complettly changed the
internal bricks, +2
Electric Furnace 2 refurbishment gates 1 # 2010 7,924,800 10 0% 3.70 37% 5,000,940 6.31
Converter 1 1 # 1982 7,384,000 30 0% 21.00 70% 2,204,043 8.95
Converter 2 1 # 1991 7,384,000 30 0% 21.00 70% 2,204,043 8.95
Conveyor Belt Production plant 56,160 20 0% 14.50 73% 15,433 5.50
Power line 1x110 kv 45 km 1982 4,992,000 25 0% 14.40 57% 2,123,366 10.63
3 pieces Saacke,
Boilers oir burners 12t/h; 350m2; 22m3 1982 1,924,000 20 0% 15.60 78% 423,543 4.40
Granulator 1 516,880 20 0% 15.30 76% 121,747 4.71
Complettly changed the
internal bricks, +2
Electric Furnace 1 refurbishment gates 1 # 2006 7,831,200 10 0% 7.90 79% 1,647,540 2.10
Over head conveyor
belt and construction,
From the mine to with 0610mm, total
Conveyor Belt the plant lenght 36,792.5 m 908 m 1982 755,040 20 0% 15.90 79% 156,042 4.13
Over head conveyor
belt and construction
From the mine to average 5m, total
Conveyor Belt the plant lenght 36,792.5 m 2331 m 1982 1,934,400 20 0% 15.90 79% 399,537 4.13
Over head conveyor

45
Remainin
(Years)
Over head conveyor
Over head conveyor
Over head conveyor
Conveyor Belt the plant lenght 36,792.5 m 6052 m 1982 5,033,600 20 0% 15.90 79% 1,037,424 4.12
Over head conveyor
Over head conveyor
Over head conveyor
Control system 1 # 5,699,200 20 0% 17.50 88% 706,477 2.48
Conveyor Belt Production plant 2,288 20 0% 14.20 71% 669 5.85
Dust transport system 1 # 221,520 30 0% 15.90 53% 103,879 14.07

46
Remainin
(Years)
Conveyor Belt Production plant 1 # 257,920 20 0% 14.30 72% 72,877 5.65
Pelletizer 1 # 417,040 20 0% 16.10 81% 80,593 3.87
Pelletizer 1 # 417,040 20 0% 16.10 81% 80,593 3.87
Pelletizer 1 # 208,000 20 0% 11.10 55% 92,597 8.90
Pelletizer 1 # 208,000 20 0% 11.10 55% 92,597 8.90
Pelletizer 1 # 1,466,400 20 0% 16.10 81% 282,934 3.86
Pelletizer 1 # 275,600 20 0% 11.10 56% 122,605 8.90
Pelletizer disc pelletizer pellet size 10-9mm 1 # 1982 369,200 30 0% 21.10 70% 109,299 8.88

47
Remainin
(Years)
3 chamber, dryer,
heater, afterburner,
Capacity 127t/h; with:
Lepol Grate 1 4m; L= 42.2m 1 # 1982 11,128,000 30 0% 21.40 71% 3,206,702 8.64
3 chamber, dryer,
heater, afterburner,
Capacity 127t/h; with:
Lepol Grate 2 4m; L= 42.2m 1 # 1991 11,128,000 30 0% 25.70 86% 1,607,867 4.33
Pelletizer 1 # 268,320 20 0% 14.40 72% 75,449 5.62
Pelletizer 1 # 268,320 20 0% 14.40 72% 75,449 5.62
Pelletizer 1 # 268,320 20 0% 14.40 72% 75,449 5.62
Pelletizer 1 # 268,320 20 0% 14.40 72% 75,449 5.62

48
Remainin
(Years)
Precipitator 1 # 1982 1,112,800 20 0% 14.40 72% 312,942 5.62
Precipitator 1 # 1991 1,112,800 20 0% 14.40 72% 312,942 5.62
Precipitator fan 1 # 268,320 20 0% 14.30 72% 76,306 5.69
Precipitator fan 1 # 268,320 20 0% 14.30 72% 76,306 5.69
D=6m; L=75m; 6 fans,
2 degree; 95,6 tonna/h;
Rotary kiln 1 2000 tonnes 1 # 1982 25,896,000 30 0% 21.30 71% 7,506,392 8.70
D=6m; L=75m; 6 fans,
2 degree; 95,6 tonna/h;
Rotary Kiln 2 2000 tonnes 1 # 1991 25,896,000 30 0% 21.30 71% 7,506,392 8.70
Rotary kiln burner
equpment set1 1 # 1982 2,038,400 15 0% 11.00 73% 546,361 4.02
Rotary kiln burner
equpment set1 1 # 1991 2,038,400 15 0% 11.00 73% 546,361 4.02
Rotary kiln 1 refurbishment 1 # 1982 1,081,600 15 0% 11.00 73% 288,628 4.00
Rotary Kiln 2 refurbishment 1 # 1991 1,081,600 15 0% 11.00 73% 288,628 4.00

49
Based on the investigation and procedures described above, the total Depreciated Replacement
Cost of the Machinery and Equipment and the total Cost New and the Cost New for the insurable
properties were concluded to as follows:
Fair Market Fair Market Cost New of Cost New of Remaini

Accounting Cost New Value in Cost New Value in Insurable Insurable ng Life
Denomination
Code (USD) Continued (EUR) Continued Properties Properties (Year)
Use (USD) Use (EUR) (USD) (EUR) /WARL/
011390 Closure cost 11,510,581 3,815,258 9,465,946 3,137,550 11,510,581 9,465,946 6.6
Industrial
012150 equipment 384,281,076 146,516,752 316,020,860 120,490,841 384,281,076 316,020,860 9.3
013000 Vehicles 4,380,937 2,418,696 3,602,747 1,989,061 7.0
Maintenance
equipment and
013100 tools 734,569 202,707 604,087 166,700 734,569 604,087 4.1
013220 Kress vehicles 13,263,159 6,348,955 10,907,212 5,221,184 13,263,159 10,907,212 10.8
It office
013320 equipment 216,059 120,955 177,680 99,469 216,059 177,680 6.6
013410 Furniture 280,121 127,420 230,363 104,786 280,121 230,363 5.5
013510 Computers 239,444 88,500 196,911 72,779 239,444 196,911 3.2
Total 415,210,633 159,761,454 341,456,371 131,382,872 410,829,696 337,853,623 6.4
Rounded 415,000,000 160,000,000 342,000,000 131,000,000 411,000,000 338,000,000
Intangible assets
The intangible assets used by the company are serving its business therefore we accepted the
normal life and net book value for each item as it is recorded in the books of the company.
Construction in progress
The construction in progress was accepted at reported cost.
Closure cost
The closure costs were not revaluated.

50
Insurance Value
Based on the asset register and our experience, for insurance purpose we excluded the cost new
value of the item, which generally cannot insured together with the industrial or technological items
or simple not need to insured. These items are the land, the intangible assets and the licensed
vehicles.
The following table shows the insurance value by asset group:
Cost New of Cost New of

Insurable Insurable
Accounting Code Denomination
Properties Properties
(USD) (EUR)
002000 Concession licences
007000 Other intangeble assets
010410 Land
011311 Buildings 94,189,240 66,929,720
011350 Fixures and Fittings 5,268,930 3,749,008
011380 Infrastructure 29,376,326 20,902,134
011390 Closure cost
012150 Industrial equipment 384,281,076 316,020,860
013000 Vehicles
013100 Maintenance equipment and tools 734,569 604,087
013220 Kress vehicles 13,263,159 10,907,212
013310 Office equipment 304,687 250,565
013320 It office equipment 216,059 177,680
013410 Furniture 280,121 230,363
013510 Computers 239,444 196,911
CIP* Construction In Progress* 14,463,409 11,894,260
Total 542,617,019 431,862,799
Rounded 542,600,000 431,900,000
*at reported cost

51
CONCLUSION
Based on our investigation and the procedures described in this report, it was concluded that,
as of December 31, 2014, the rounded Fair Market Value of the appraised assets is ONE
HUNDRED EIGHTY EIGHT MILLION NINE HUDRED THOUSAND EURO (EUR 188,900,000),
and the rounded Cost of Replacement New of the insurable properties, as of the same date, is
FOUR HUNDRED THIRTY ONE MILLION NINE HUNDRED THOUSAND EURO (EUR
431,900,000).
In accordance with the request of the Client, we also provided the Net Book Value of the assets
and the “Revaluation Loss/Gain” values as well.

Revaluation
Accounting Gross Book Nett Book Cost New Value in of Insurable Remaining
Denomination Loss/Gain
Code Value (EUR) Value (EUR) (EUR) Continued Properties Life (Year)
(EUR)
Use (EUR) (EUR)
Other intangible
007000 418,006 238,373 503,258
010410 Land 4,749,246 4,490,662 6,141,170 6,141,170 1,650,508 N/A
011311 Buildings 34,251,444 30,929,908 66,929,720 32,555,280 66,929,720 1,625,372 28,9
011350 Fixtures and Fittings 869,927 759,417 3,749,008 829,091 3,749,008 69,674 7,0
011380 Infrastructure 4,850,178 4,383,676 20,902,134 4,617,509 20,902,134 233,833 16,4
011390 Closure cost 5,366,610 4,292,868 9,465,946 4,292,868 0 N/A
012150 Industrial equipment 149,998,480 107,505,963 316,020,860 120,490,841 316,020,860 12,984,878 9,3
013000 Vehicles 2,717,091 2,038,498 3,602,747 1,989,061 -49,437 7,0
Maintenance
013100 227,976 112,466 604,087
equipment and tools 166,700 604,087 54,233 4,1
013220 Kress vehicles 6,566,535 5,064,190 10,907,212 5,221,184 10,907,212 156,994 10,8
013310 Office equipment 145,428 75,202 250,565 100,502 250,565 25,301 4,4
013320 It office equipment 131,960 92,636 177,680 99,469 177,680 6,833 6,6
013410 Furniture 141,100 89,676 230,363 104,786 230,363 15,110 5,5
013510 Computers 113,480 51,224 196,911 72,779 196,911 21,556 3,2
Construction In
CIP* 11,894,260 11,894,260 11,894,260
Progress * 11,894,260 11,894,260 0 N/A
Total 222,560,667 172,109,629 451,731,400 188,904,484 431,862,799 16,794,855 11.9
Rounded 451,700,000 188,900,000 431,900,000 16,800,000
*at reported cost

52
Furthermore, in accordance with the request of the Client, we also provide the values expressed
in US dollar terms. Accordingly, the Cost of Replacement New and the Fair Market Value, as of
December 31, 2014, using an average exchange rate of 1.216 US Dollars per EURO, is
estimated as follows:

Revaluation Remaining
Accounting Gross Book Nett Book Cost New Value in of Insurable
Denomination Loss/Gain Life (Year)
Code Value (USD) Value (USD) (USD) Continued Properties
(USD) /WARL/
Use (USD) (USD)
Other intangible
007000 508,295 289,862 611,961
010410 Land 5,775,079 5,460,641 7,488,730 7,488,730 2,028,089 N/A
011311 Buildings 41,649,725 37,610,740 94,189,240 39,628,950 94,189,240 2,018,210 28.9
011350 Fixtures and Fittings 1,057,831 923,451 5,268,930 1,013,826 5,268,930 90,375 7.0
011380 Infrastructure 5,897,811 5,330,546 29,376,326 5,652,440 29,376,326 321,894 16.4
011390 Closure cost 6,525,793 5,220,123 11,510,581 5,220,123 0 N/A
012150 Industrial equipment 182,398,014 130,727,152 384,281,076 146,516,752 384,281,076 15,789,600 9.3
013000 Vehicles 3,303,980 2,478,812 4,380,937 2,418,696 -60,116 7.0
Maintenance
013100 277,218 136,759 734,569
equipment and tools 202,707 734,569 65,948 4.1
013220 Kress vehicles 7,984,901 6,158,050 13,263,159 6,348,955 13,263,159 190,904 10.8
013320 It office equipment 160,463 112,646 216,059 120,955 216,059 8,309 6.6
013410 Furniture 171,577 109,045 280,121 127,420 280,121 18,374 5.5
013510 Computers 137,992 62,288 239,444 88,500 239,444 26,212 3.2
Construction In
CIP* 14,463,409 14,463,409 14,463,409
Progress * 14,463,409 14,463,409 0 N/A
Total 270,633,567 209,285,151 566,798,292 229,813,716 542,617,019 20,528,565 11.9
Rounded 566,800,000 229,800,000 542,600,000 20,500,000
*at reported cost
We have not investigated the title to or any liabilities against the property appraised and no
responsibility is assumed for these matters.

EXHIBITS

REAL ESTATE
 Location map
 Site plan
 Value calculations
 Photos (including machinery and equipment)

COST APPROACH Summary of Fair Market Value Appr. Date 31.dec.14
Property:CUNICO FENI, Kavadarci-Macedonia
SMELTER SITE
YEAR YEAR EFF. ECO. Unit Cost GROSS NET Aquisition CRN CRN Physical Funct. CRNLD Remain. CRNLD
Asset Code Building Designation OF OF AGE LIFE EUR/unit FLOOR AREA FLOOR AREA from 2007 Depr. Depr. useful
No. CONSTR. RECONSTR. Yrs Yrs 2014 Sq.m Sq.m (EUR) (USD) % % (EUR) life (USD)
Smelter Buildings-Non Production 104%
1 BS1.1 Headquarters 1978 2001/2011 28,3 65 520 1.853 1765 964.000 1.360.000 44% 0% 544.000 36,70 662.000
2 BS1.2 Technical building 1978 35,7 65 500 1.274 1213 637.000 897.000 55% 0% 287.000 29,30 349.000
3 BS1.3 Technical building (Free Economic Zone) 1978 2001 26,7 65 480 943 898 453.000 638.000 41% 0% 267.000 38,30 325.000
4 BS2 Main security gatehouse 2001 14,6 60 500 213 203 107.000 151.000 24% 0% 81.000 45,40 98.000
5 BS3 Central restaurant 1978 2001/2005 24,4 60 520 924 880 480.000 676.000 41% 0% 285.000 35,60 347.000
6 BS4 Laboratory 1978 35,4 65 540 2.786 2653 1.500.000 2.110.000 55% 0% 682.000 29,60 829.000
7 BS5 Warehouse 1978 36,0 60 470 29 28 14.000 20.000 60% 0% 5.600 24,00 6.800
8 BS6 Transformer station 1978 35,8 65 470 86 82 40.000 56.000 55% 0% 18.000 29,20 22.000
9 BS7 Security gatehouse 1978 36,0 60 470 26 25 12.000 17.000 60% 5% 4.800 24,00 5.800
10 BS8 Maintenance workshop and spare parts warehouse 1978 35,5 60 470 3.830 3648 1.800.000 2.530.000 59% 0% 736.000 24,50 895.000
11 BS9 Hanger - Motor vehicles repair shop 1978 36,1 55 420 1.369 1304 575.000 809.000 66% 5% 197.000 18,90 240.000
12 BS10 Hanger - Motor vehicles repair shop 1978 36,1 55 420 1.369 1304 575.000 809.000 66% 5% 197.000 18,90 240.000
13 BS11 Old fire department 1978 36,0 55 470 788 750 370.000 521.000 65% 5% 128.000 19,00 156.000
14 BS12 Doctor's office 1978 36,2 55 470 323 308 152.000 214.000 66% 5% 52.000 18,80 63.000
15 BS13 Restaurant for Smelter 1978 35,5 60 420 327 311 137.000 193.000 59% 0% 56.000 24,50 68.000
16 BS14 Main electrical sub-station (Transformer station) 1978 36,9 65 570 3.722 3545 2.120.000 2.980.000 57% 5% 915.000 28,10 1.110.000
17 BS15 Dressing room for Smelter 1978 2001/2010 22,8 50 400 1.019 970 407.000 573.000 46% 5% 221.000 27,20 269.000
18 BS16 Unloading station (for lignite) 1978 35,3 60 1.870 231 220 432.000 608.000 59% 0% 178.000 24,70 216.000
19 BS17 Storage space for lignite and coke 1978 35,3 60 2.500 1.848 1760 4.620.000 6.500.000 59% 0% 1.900.000 24,70 2.310.000
20 BS18 Open warehouse (for ore) 1978 16,3 60 310 3.203 3050 500.000 1.510.000 2.130.000 27% 0% 1.100.000 43,70 1.340.000
Smelter Buildings-Production 0
21 BS19 Production building (electrical furnaces, convertors, storage and loading) 1978 27,4 65 1.560 14.585 13890 27.000 22.800.000 32.100.000 42% 5% 13.200.000 37,60 16.100.000
22 BS20 Semi-open warehouse (for limestone) 1978 34,8 45 310 105 100 33.000 46.000 77% 5% 7.500 10,20 9.100
23 BS21 Transformer station (on first, south stock pile) 1978 34,0 40 620 56 53 35.000 49.000 85% 5% 5.200 6,00 6.300
24 BS22 Production building (pelletization, grids) 1978 22,8 50 2.080 4.443 4231 9.240.000 13.000.000 46% 0% 5.020.000 27,20 6.100.000
25 BS23 Water supply 1978 36,5 60 520 1.515 1443 788.000 1.110.000 61% 5% 308.000 23,50 375.000
26 BS24 Carload scale with equipment (for vagons) 1978 36,3 55 470 4 4 2.000 2.800 66% 5% 680 18,70 830
27 BS25 Fine ore crushing 1978 35,0 55 2.080 812 773 1.690.000 2.380.000 64% 0% 614.000 20,00 747.000
28 BS26 Reloading tower 1978 34,9 55 1.870 564 537 1.050.000 1.480.000 63% 0% 384.000 20,10 467.000
29 BS27 TS 1978 33,3 35 520 227 216 118.000 166.000 95% 5% 5.700 1,70 6.900
30 BS28 Production building (grinding, separation, filtering, mixer) 1978 35,0 55 2.290 4.637 4416 10.600.000 14.900.000 64% 0% 3.860.000 20,00 4.690.000
31 BS29 Boiler plant 1978 36,0 55 420 643 612 270.000 380.000 66% 5% 93.000 19,00 113.000
32 BS30 Reloading pump station for crud oil 1978 34,2 45 520 176 168 92.000 130.000 76% 0% 22.000 10,80 27.000
33 BS31 Carload scale with equipment 1978 33,2 35 470 4 4 2.000 2.800 95% 5% 100 1,80 120
34 BS32 Shelter plateau for unloading of rail cars (for ore) 1978 2006 25,6 50 360 1.575 1500 57.000 626.000 881.000 51% 306.000 24,40 372.000
35 BS33 Petrol station 1978 33,3 35 360 14 13 4.900 6.900 95% 5% 240 0,00 290
36 BS34 Pouring of oil 1978 33,2 35 310 34 32 10.000 14.000 95% 5% 500 1,80 610
37 BS35 Car wash 1978 35,2 45 260 21 20 5.500 7.700 78% 5% 1.200 9,80 1.500
38 BS36 Vehicles service ramps 1978 33,4 35 210 105 100 22.000 31.000 95% 5% 1.000 1,60 1.200
39 0000002348 PergolaForWarehousePl7360/11 2011 4,5 35 4.519 4.700 6.600 13% 0% 4.100 30,50 5.000
40 0000002349 RoomForScale2Pl5699/11 2011 3,6 35 2.783 2.900 4.100 10% 0% 2.600 31,40 3.200
41 0000002458 CampSecurityHouse1psPl7687/111 2012 2,0 35 1.856 1.900 2.700 6% 0% 1.790 33,00 2.200
42 0000002499 ConnectedWithCode 2348-Pergola 2012 2,1 35 490 510 720 6% 0% 480 32,90 580
43 0000002500 AdmBuildingConnecteCode2352262 2012 2,0 35 4.432 4.600 6.500 6% 0% 4.340 33,00 5.300
44 0000002510 NewHallMetaleksOR.36293OD20695 2012 2,0 35 99.517 103.000 145.000 6% 0% 97.200 33,00 118.000
45 0000002511 NEWpLACEfORcLEANINGpl1190/2012 2012 2,1 35 495 510 720 6% 0% 480 32,90 580
46 0000002537 Dizajncentar-UrbanPlanBildings 2012 2,0 35 25.952 27.000 38.000 6% 0% 25.480 33,00 31.000
47 0000002546 HouseForDizelAgregatPl7943/121 2013 1,0 35 2.199 2.200 3.100 3% 0% 2.140 34,00 2.600
48 FA00070 HOUSEWAP FOR KRESS PL3884/12 2013 0,9 35 1.168 1.200 1.700 3% 0% 1.170 34,10 1.400
49 FA00075 CONSTRUCTIONSCALE1GATE2PL7944/ 2013 1,0 35 3.765 3.800 5.300 3% 0% 3.690 34,00 4.500
50 FA00121 EQUIPMENT FOR WSHING TRUCK 2014 1,0 35 72.807 73.000 103.000 3% 0% 70.900 34,00 86.000
Total 55.680 53.029 591.302 64.518.720 90.796.640 31.897.890 38.829.810
COST APPROACH Summary of Fair Market Value Appr. Date 31.dec.14
Property:CUNICO FENI, Kavadarci-Macedonia
SMELTER SITE
Designation - Land Improvements YEAR YEAR EFF. ECON. unit SITE SITE CRN CRN Physic. Funct. CRLND Remain. CRLND
OF OF AGE LIFE Lin Meters Sq.m Deprec. Depr. useful
CONSTR. RECONSTR. Yrs Yrs (EUR) (USD) % % (EUR) life (USD)
LAND IMPROVEMENTS
1 Fencing 1978 n/a 21,0 25 80 m 3.800 304.000 428.000 84% 5% 48.000 15,00 58.000
2 Gates 1978 21,0 25 1.040 piece 3 3.120 4.400 84% 5% 500 15,00 610
3 Pavements 1978 25,9 30 200 sq.m 1.500 300.000 422.000 86% 5% 41.000 10,10 50.000
4 Chimnes (concrete) 1978 26,6 35 2.430 m 120 291.600 410.000 76% 5% 70.000 9,40 85.000
5 Sidewalk 1978 21,0 25 200 m 1.000 200.000 282.000 84% 5% 32.000 15,00 39.000
6 Roads 1978 27,0 35 60 sq.mm 60.000 50.000 3.000.000 4.220.000 77% 5% 684.000 9,00 832.000
7 Light 1978 20,9 25 200 piece 200 40.000 56.000 84% 5% 6.500 15,10 7.900
8 Pools 1978 25,9 30 940 cubic m 2.500 2.350.000 3.310.000 86% 5% 322.000 10,10 392.000
9 Railway 1978 40,4 60 1.040 m 7.000 7.280.000 10.200.000 67% 34% 2.360.000 -4,40 2.870.000
10 Supporting Wall 1978 21,1 25 90 m 300 27.000 38.000 84% 5% 4.200 14,90 5.100
11 Pipebridge 1978 21,0 25 1.040 m 3.000 3.120.000 4.390.000 84% 5% 504.000 15,00 613.000
12 Asphalt Paving 1978 20,9 25 60 sq.m 10.000 600.000 845.000 84% 5% 98.000 15,10 119.000
13 Parking 1978 21,3 25 60 sq.m 1.000 60.000 84.000 85% 5% 8.800 14,70 11.000
14 Landscaping 1978 20,3 25 10 sq.m 50.000 500.000 704.000 81% 5% 93.000 15,70 113.000
15 Basement for Kress 2011 5,1 50 5.008 5.008 6.778 10% 5% 4.500 44,90 6.778
16 Renovation 2011 3,8 25 128.615 128.615 174.078 15% 0% 109.000 21,20 174.078
Utilities
1 Pipeline (diameter 1500,steel) 1978 21,0 25 520 m 800 416.000 586.000 84% 5% 67.000 15,00 81.000
2 Pipeline underground (diameter 508,steel) 1978 20,9 25 520 m 8.100 4.212.000 5.930.000 84% 5% 681.000 15,10 828.000
3 Water 1978 20,5 25 30 m 6.100 183.000 258.000 82% 5% 33.000 15,50 40.000
4 Sewage 1978 20,5 25 30 m 6.000 180.000 253.000 82% 5% 32.000 15,50 39.000
5 Stream 1978 20,7 25 30 m 2.500 75.000 106.000 83% 5% 13.000 15,30 16.000
6 Heating 1978 20,7 25 30 m 2.500 75.000 106.000 83% 5% 13.000 15,30 16.000
7 Electricity 1978 21,1 25 40 m 15.000 600.000 845.000 84% 5% 94.000 14,90 114.000
8 Telecommunication 1978 21,1 25 40 m 10.000 400.000 563.000 84% 5% 62.000 14,90 75.000
9 Oil 1978 21,1 25 40 m 1.300 52.000 73.000 84% 5% 8.100 14,90 9.800
10 Gas 1978 21,2 25 40 m 2.000 80.000 113.000 85% 5% 12.000 14,80 15.000
TOTAL 24.482.342 34.407.256 5.400.600 6.610.266
CRN CRN CRLND CRLND

Summary of COST APPROACH
(EUR) (USD) (EUR) (USD)
LAND 5.790.000 7.040.000 5.790.000 7.040.000
BUILDING 64.518.720 90.796.640 31.897.890 38.829.810
LAND IMPROVEMENT 24.482.342 34.407.256 5.400.600 6.610.266
TOTAL 94.791.062 132.243.896 43.088.490 52.480.076

Mine Site 2014
Property:CUNICO FENI, Rzanovo-Macedonia 31.dec.14
Year Year eff. eco. unitary CRN Gross Net CRN CRN Physical Funct. CRLND CRLND Remaining
Department
Bldg Asset Code Building Designation of of age life EUR floor area floor area EUR USD Depr. Depr. EUR USD useful
code
No. constr. reconstr. yrs yrs 2014 sq.m sq.m % % life
1 BM1 P110 Petrol station 1978 33,7 40 520 77 73 39.900 56.000 84 15 5.300 6.400 6
2 BM2 P110 Vehicles workshop 1978 36 40 364 792 754 288.200 406.000 90 15 38.000 46.000 4
3 BM3 P110 Wood-frame building - offices 1978 35 35 312 314 299 0 0 100 100 0 0 -
4 BM4 P110 Vehicles workshop 1978 36 40 364 419 399 152.500 215.000 90 15 20.000 24.000 4
5 BM5 P110 Mechanical workshop 1978 36 40 364 101 96 36.700 52.000 90 15 4.900 6.000 4
6 BM6 P110 Offices 1978 34 35 312 11 10 3.300 4.600 97 15 180 220 1
7 BM7 P110 Warehouse 1978 36 40 312 11 10 3.300 4.600 90 15 460 560 4
8 BM8 P110 Container - office 1978 36 40 312 43 41 13.400 19.000 90 15 1.800 2.200 4
9 BM9 P110 Security house 1978 2004 29 40 312 24 23 7.500 11.000 73 15 1.900 2.300 11
10 BM10 P110 Fuse warehouse 1978 36 40 364 17 16 6.100 8.600 90 15 830 1.000 4
11 BM11 P110 Gunpowder warehouse 1978 36 45 364 267 254 97.100 137.000 80 15 20.000 24.000 9
12 BM12 P110 Main transformer for the mine 1978 36 50 468 777 740 363.600 512.000 72 15 95.000 116.000 14
13 BM14 P110 Transformer station 1978 36 50 468 55 52 25.600 36.000 72 15 6.700 8.100 14
14 BM13 P110 Security house 1978 36 40 312 7 7 2.300 3.200 90 15 280 340 4
15 BM15 P110 Toilets, restaurant, warehouse 1978 2001 26 45 416 2.601 2.477 1.082.000 1.520.000 58 15 404.000 491.000 19
16 BM16 P110 Boots washing 1978 36 40 312 14 13 4.300 6.100 90 15 560 680 4
17 BM17 P110 Warehouse 1978 36 45 364 98 93 35.500 50.000 80 15 7.300 8.900 9
18 BM18 P110 Warehouse for oils 1978 36 45 364 6 6 2.300 3.200 80 15 470 570 9
19 BM19 P110 Wood-frame building - warehouse 1978 33 35 364 27 26 9.900 14.000 94 15 460 560 2
20 BM20 P110 Compression station 1978 36 50 572 26 25 15.000 21.000 72 15 4.000 4.900 14
21 BM27 P110 Accommodation wood-frame building Sv.Petre 1978 2001 26 35 468 698 665 0 0 74 100 0 0 -
22 BM28 P110 Accommodation wood-frame building Sv.Petre 1978 2001 26 35 468 698 665 0 0 74 100 0 0 -
23 BM31 P110 Doctor's office Sv.Petre 1978 35 35 468 98 93 0 0 100 100 0 0 -
24 BM34 P130 Security house 1978 36 45 364 11 10 3.800 5.300 80 15 750 910 9
25 BM35 P130 Office, warehouse, workshop 1978 36 45 468 420 400 196.600 277.000 80 15 40.000 49.000 9
26 BM36 P130 Dining room and toilet 1978 36 45 468 47 45 22.100 31.000 80 15 4.500 5.500 9
7.657 7.292 2.411.000 3.392.600 657.390 799.140
Designation - YEAR EFF. ECON. CRN SITE SITE C.R.N CRN Physic. Functional C.R.N.L.D C.R.N.L.D
Land Improvements OF AGE LIFE EUR Lin Meters Sq.m EUR USD Deprec. Deprec. EUR EUR
CONSTR. Yrs Yrs '000 7% % %
LAND IMPROVEMENTS 168.800 238.000 46.000 56.000
TOTAL 168.800 238.000 46.000 56.000
C.R.N CRN C.R.N.L.D C.R.N.L.D

Summary of COST APPROACH EUR USD EUR EUR
LAND
BUILDING 2.411.000 3.392.600 657.390 799.140
LAND IMPROVEMENT 168.800 238.000 46.000 56.000
TOTAL 2.579.800 3.630.600 703.390 855.140

Property:CUNICO FENI, Kavadarci-Macedonia LAND VALUATION as of December 31 , 2014
Unit price Fair Market Value Fair Market Value

DESIGNATION Property Deed No Place Number of Ownership Paper Surface
EUR/SQ:M (EUR) (USD)
Smelter Site 685 Sivec 1291/1 890.497 6,5 5.790.000 7.040.000
Total Location Smelter (Kadastrial M.-Sivec) 890.497 5.790.000 7.040.000
Slag Site 673 Cairce by list 58.838 1 59.000 72.000
Slag Site 673 Cairce Smokva by list 7.737 1 7.700 9.400
Slag Site 673 Crkvata by list 3.768 1 3.800 4.600
Slag Site 673 Kale by list 1.006 1 1.000 1.200
Slag Site 673 Markova Stapala by list 268 1 270 330
Slag Site 673 Tisovec by list 33.288 1 33.000 40.000
Total Location Vozarci (Kadastrial M.-Slag) 104.905 104.770 127.530
Slag Site 733 Cuckite by list 12.533 1 13.000 16.000
Slag Site 733 Dupkite by list 4.352 1 4.400 5.400
Slag Site 733 Gornickite by list 7.617 1 7.600 9.200
Slag Site 733 Rovit Kamen by list 11.091 1 11.000 13.000
Slag Site 733 Rovit Kamen by list 91.594 1 92.000 112.000
Slag Site 733 Roviti Kamenja by list 5.383 1 5.400 6.600
Total Location Sivec (Kadastrial M.-Slag) 132.570 133.400 162.200
M2 in registration process 112.645 1 113.000 159.000
Total slag site 350.120 351.170 448.730
TOTAL 1.240.617 6.141.170 7.488.730
COST APPROACH Summary of Fair Market Value
Property:CUNICO FENI, Kavadarci-Macedonia as of December 31, 2014.
Summary of COST REPRODUCTION NEW Smelter Site Slag Site Mine Site CRN
LAND (EUR) 5.790.000 351.170 0 6.141.170

LAND (USD) 7.040.000 448.730 0 7.488.730
BUILDING (EUR) 64.518.720 0 2.411.000 66.929.720

BUILDING (USD) 90.796.640 0 3.392.600 94.189.240
LAND IMPROVEMENT (EUR) 24.482.342 0 168.800 24.651.142

LAND IMPROVEMENT (USD) 34.407.256 0 238.000 34.645.256
TOTAL (EUR) 94.791.062 351.170 2.579.800 97.722.032

TOTAL (USD) 132.243.896 448.730 3.630.600 136.323.226
Summary of COST APPROACH Smelter Site Slag Site Mine Site FMV
LAND (EUR) 5.790.000 351.170 0 6.141.170

LAND (USD) 7.040.000 448.730 0 7.488.730
BUILDING (EUR) 31.897.890 0 657.390 32.555.280

BUILDING (USD) 38.829.810 0 799.140 39.628.950
LAND IMPROVEMENT (EUR) 5.400.600 0 46.000 5.446.600

LAND IMPROVEMENT (USD) 6.610.266 0 56.000 6.666.266
TOTAL (EUR) 43.088.490 351.170 703.390 44.143.050

TOTAL (USD) 52.480.076 448.730 855.140 53.783.946
FENI INDUSTRIES AD

FENI INDUSTRIES AD

FENI INDUSTRIES AD

FENI INDUSTRIES AD

CD CONTAINING THE COMPLETE REPORT AND ASSET
LIST IN ELECTRONIC FORMAT

CERTIFICATE OF APPRAISER
I certify that, to the best of my knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, unbiased professional
analyses, opinions, and conclusions.
I have no present or prospective interest in the property that is the subject of this report,
and have no personal interest or bias with respect to the parties involved.
My compensation is not contingent on any action or event resulting from the analyses,
opinions or conclusions in, or the use of, this report.
The analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the national and international uniform
standards of professional appraisal practice.
I have made a personal inspection of the property that is the subject of this report.
Anyone providing significant professional assistance is identified on the signature page

of this report.
…………………………..
Tamás Berszán

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APPRAISAL REPORT

FENI INDUSTRIES AD.

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Leading / Thinking / Performing

Contract No. 4022/14

We have completed the appraisal of certain properties exhibited to us as that of

located in Kavadarci, Macedonia

and submit our findings in this report.

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Our report comprises:

Assumption and Limiting Conditions

The extent, character, and utility of the property

Location, size, and utility of the land

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Fair Market Cost New

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Fair Market Cost New

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

ASSUMPTIONS AND LIMITING CONDITIONS

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

THE PROPERTY APPRAISED

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Brief Description of the History and Nature of the Business

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

The Property Appraised

Technical Description of the Property, Plant and Equipment

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Buildings and Infrastructure

The total gross floor area is approximately 7,657 square meters.

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Year of Gross Net floor

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

2006 Refurbishment of Electric Furnace No 1

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Year of Year of Gross Net floor

Sm elter Buildings-Non Production

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

We have personally inspected the site on January 19 - 20, 2015.

Factors Affecting the Value of the Property:

- good location and accessibility;

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

Machinery and Equipment

The mine operates two major types of excavation:

I. Mine-plant conveyor belt track (asset code P2)

9 reloading station length ~ 1900 m

B–1 908 m Sections – over cca 12 m of metal and concrete

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

TORO BTH 002FE (Tamrock) - purchased second hand from Albania.

III. Crushing installations (ASSET CODE PI)

- Kaeser CSDX 137 - bought 2005 (asset code P1 - # 10)

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

- Speed of filling: 550 t/h

- Type of drier HARDING CLASS XH-24

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

- Type of filters EINCO

Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset Management

- Capacity 80 t/h on one pelletizer