LETTER TO CALL FOR INVESTMENT

TO: INVESTMENT PARTNER

Dear Sirs

By this letter, Thu Do Company (the owner of  Yen Na-Yen Tinh gold mine) believes that the collaboration with You on exploration and mining works for precious minerals will bring a lot of success.

We would like to introduce the case of gold mine project in Yen Na-Yen Tinh communes, Tuong Duong District, Nghe An Province. Let us briefly introduce as follows:

1- Yen Na-Yen Tinh Gold Mine is primary gold (endogenic gold) mine that has been licensed by Viet Nam Goverment granted to exploration works by exploration licence No 633/GP-BTNMT dated 28/3/2008.  Just After exploration licence granted, Thu Do Company hired the Quoc Bao Consultant and Construction Company Jsc conducting the exploration (prospecting) works after The Technical Proceedure of the Regulation of Vietnam Minerals Law. The exploration Report of Yen Na-Yen Tinh Gold Mine has been verified and accepted by the National Reserve Mineral Commitee of Ministry of Natural Resource and Environment (MONRE) with the volume of ore reserve of 14,530.65 tons, equivanlent to 122 Reserve Caterogy at 84 kg of Gold Metal plus 10 bordered resource blocks with the 333 reserve Caterogy resource of 296 kg of gold metal. Total Resource in this mine is about 380 kg of gold metal. According to the evaluation of some experienced geological experts, if conduct the deeper mining work, the gold volume will reach over 10,000 kg (10 tons).

The exploration woks carried in this mine includes:

-          Drilling works: 464m/10 bore holes (the deepest hole at 75m depth, still in the gold-bearing rocks with the gold content in some sites more than 20gr/ton)

-          Geological Mapping in the area of 126.7 ha

-          Geophysical Suveying with 400 points of transverse electric polarimetry, 224 points of deep electric polarimetry.

-          Exploration Tunnel Diving (Cross Measure Drifting or Horzontal Tunnel) 298m/21 tunnels

-          Exploration Trench Excavation 1,150m³.

-          Analytical works: Au and Ag content analysis: 398 samples; Total Silicate chemical analysis: 20 samples, Plasma-ICP: 30 samples, Small Weighting measure: 25 samples; Reflective petrographic analysis: 30 samples, Thin Section: 50 samples, Physico-mechanical indices: 35 samples, Techological test: 1 sample

The eploration results show that there 6 primary gold ore bodies has been found in the exploration area at the depth to 40m (temporary estimation), while the calculation of ore reserve not include the whole depth of ore bodies due to not enough drilling data.

           

2. According the Vietnamese Minerals Law, the order of next steps have to be conducted as follows:

-         The investment owner (Investor) build the mining and processing Plan and summit it to MONRE (in fact Thu Do Company conducted this step already). 

-         Buiding Joint Venture with a Partner to collaborate in mining and processing works.

-         After having the collaboration agreement with a partner to form a Joint Venture and they transfered money as agreed, during 90 working  days, Thu Do Company will finish all procedure to get the mining licence granted by Goverment Authorised Body (organisation))

-         The Investor build the Environmental Protection Plan (DTM or EIA- Environmental Impact Assessment) and summit to Nghe An  Provincial Authority (Nghe An People Commitee) to verify then pass it to MONRE to grant mining licence.

-        Whenever having all requirement documents, Authorised Body grants the mining Licence to Investor/Owner (Our Company completed the docies and summited them to MONRE already, recently these Docies are reviewed and checked, summited to authorised Officer and waiting for His/Her signature.

-        After having the mining licence, the Investor/Owner conduct compesation for the land needed for mining activities and assistant works. These works should be done with Tuong Duong District and Nghe An Province authorities.

-        The Joint Venture show the investment certified Licence with the name of both partners in this. 

-        Conducting mining and processing works as veryfied Plan.

 

 3. In collaboration  works for mining in this mine:

The tempolary value of first investment is 25,000,000 (25 millions) USD. Thu Do Company offers the Parther to invest 80% the first value (20 Millions USD) under the kind of contributing  investment Capital, keeping the legal right of recent mine’s owner (Thu Do Company) .

After You go to see the Yen Na-Yen Tinh mine yourself , Thu Do Company will dicuss with you more detail works .

We are looking forward your Attention in this mine.

Thank you very much  and Best Regards

 

On Behalf of Thu Do Company

Deputy General Director

NGUYEN HOAI DUC