The ProjectThe ProjectAlluvial GoldAlluvial Gold

The ASYL MURA CompanyThe ASYL MURA Company

THE CONTENTSTHE CONTENTS

1. The Project Resume

2. The Information on the Company

3. Geology and Infrastructure

4. The Site Map

5. The Working Stages

6. The Results of the Works Produced in 2007

7. The Photo Report on the Works Performed

8. The Project Economic Data

The Asyl Mura Company (the company of the Asia Invest group) is a subsoil user and performs the exploration work in two targets:

Severo-Dzhungarskaya area of alluvial gold;

Lower part of the Biyen river in Almatinskaya oblast.

In compliance with the worked out and approved projects, using experience of Russian companies and applying new innovative technologies, the company plans:

To finish the exploration works by 2009;

To confirm and enter reserves by C1-C2 categories in the State Reserves Committee’s books;

Prepare the deposit for development.

The company plans to find the strategic investor or to place the information at stock markets in order to organize financing of the deposit development.

The Project ResumeThe Project Resume

The company was established in 2005 with the purpose of performing the subsoil use activity;

In December 2005 it was declared the winner of the state tender for obtaining the subsurface rights to 2 targets;

The targets are located in Almatinskaya oblast, Karasaisky district, the coast of the Alakol lake, mouths of the rivers Rgaity, Zhamanty, Tentek, Kolpakovskaya depression (~60 km of the route Ucharal-Dostyk).

Service Suppliers and Contractors: Laton-Geoservice – exploration, geophysics; Geokhim Exploration – geochemistry of heavy concentrate; Alex Stewart – analysis, inspection services; Falcon International, Atlas Copco – equipment suppliers; Urangeologorazvedka – drilling equipment; Yuli Star River – quarry machinery; Trias Ltd., Topaz 2000 – drilling works.

The Information on the CompanyThe Information on the Company

On December 8, 2006 the company obtained the subsurface use right for two contracts (No.2211 and No.2212) for production of alluvial gold exploration works:

Severo-Dzhungarsky fields (Alakolsky and Kolpakovsky areas);

Lower part of the Biyen river.

The total area of the territories is more than 1.100 km2.

The signature bonuses have been paid in full (200 000 USD) for two contracts.

In May 2007 the exploration work projects were approved in Yuzhkaznedra Territorial Administration.

In June 2007 the company started the exploration works.

The obligations of social programs of 2007 and personnel training were fulfilled.

The Information on the CompanyThe Information on the Company

The targets have been known for 150 years and gold prospectors developed them time and again. Prospectiveness of the area has been proved by research works conducted in 1950-1980;

The project innovation is development of the gold prospects known earlier using a new centrifugal concentration technology to catch fine-grained gold making up to 70% of the estimated reserves;

The contract areas located near settlements (Koktuma, Akshy, Dzerzhinskoye) are crossed by motor roads and railways in several places. There are some power transmission lines, communication lines, water sources in the contract territory.

Geology and Infrastructure Geology and Infrastructure

The map of the Exploration Area The map of the Exploration Area

The Working StagesThe Working Stages

The Field Development:

After completion of the exploration works and field preparation for development, it is planned to purchase Falcon centrifugal concentrator to extract gold from proven goldfields with capacity up to 200 m3 of sands per hour;

Estimated gold content in rocks (0,7-0,8 g/m3) will ensure production up to 1 ton of commercial products per year;

Sale of products is possible at different stages of concentration: Gold concentrate; Dore bead; Gold in bars.

The Results of the Works The Results of the Works Produced in Produced in 20072007

Pursuant to the Work Program for 2007 approved with Yuzhkaznedra Territorial Administration, in June 2007 detailed prospecting works and drilling were started in Alakolsky area;

In December 2007 the data and working diagrammatical sections will be plotted on the fact map that will allow for evaluation of the gold content in aurigerous levels (sands), the number of levels, their capacity and estimated areal extension as well as for specifying of the exploration drilling borders for 2008;

Coarse gold of 2-3mm in diameter and up to a dozen of gold grains per washing were found in some samples taken in the trenches and developments in the area of the mouth of the Rgaity river. This fact indicates high gold contents up to 10-16 g/m3 in this mine.

In September 2007 geophysical studies using the method of near-field transient electromagnetic sounding were started within the limits of Severo-Dzhungarsky field in Kolpakovsky and Yrgaity areas. Based on the work results, the areas of boulder and pebble deposits with sand and clay fill assessed as prospective for gold quests were discovered. (They are set off in red color on the graphs).

The Apparent Resistivity Section. Yrgaity Area.

The Results of the Works The Results of the Works Produced in Produced in 20072007

The Results of the Works Produced in The Results of the Works Produced in 20072007

Sections of Longitudinal Conductivity (A) and Parameter ΔS (Б) by Profile I (Zh), PK-80-100.

Kolpakovsky Area.

The Results of the Works The Results of the Works Produced in Produced in 20072007

Basing on the results of analyses made in the laboratory of LLC ALEX STEWART ESSAY AND ENVIRONMENTAL LABORATORIES in Kara-Balta city in December 2007, the gold content by production levels was determined as follows:

Yrgaity area – mountain mouth – the average content is 3.5 g/m³ Yrgaity area – alluvial cone- the average content is 2.3 g/m³

The Photo Report on the The Photo Report on the Works PerformedWorks Performed

The Bed of the Rgaity River

Drilling in Alakolsky Area Trenches on the Terraces in the Bed of the Rgaity River

The Photo Report on the Works The Photo Report on the Works PerformedPerformed

The stages of the sample washing using the centrifugal concentrator and finishing the samples on the tray

The Photo Report on the Works The Photo Report on the Works PerformedPerformed

Centrifugal Concentrator OPG-1M Prospecting Tray with Gold Particles

The Project Economic Data The Project Economic Data

The gold prospective reserves (R2+R3) at Asyl-Mura field are 80 tons;

The volume of investments in the exploration works of the project is $3.2 mln.;

The investments of 2007 is $1.2 mln.;

In 2007 $750 ths. was spend for purchasing of the necessary equipment. The geologic crew consisting of 14 people works permanently at the field;

In compliance with the exploration work program, it is expected to receive the data and approve the reserves by C1-C2 categories in 24 months. It is expected to receive up to 15 tons of the approved gold reserves using the coefficients given in the Procedure Manual for Conversion of Potential Resources in Reserves issued by the Geology Committee.

The Project Economic Data The Project Economic Data

The Costs for Purchase of the Equipment for Development of Asyl Mura Gold Placer:

Quarry machinery – 18 units (bulldozers, auto crane, dumper, loader) – $1,227.6 ths.;

Production equipment 10 units (washing complex, water pumps, boarding cars) – $3,070 ths;

Power transmission line (10 km) – $100 ths.;

Transportation costs – $219.88 ths.;

Contingency – $439.76 ths.

TOTAL costs for organization of the exploration is $5,057.24 ths.

If the gold extraction volume is 15 tons for 10 years (1.5 tons per year in average), the proceeds from the gold sale in money terms (taking into account the market price of gold equal to 800 dollars per troy ounce) will be about $375 mln.);

After approval of the reserves by C-1 and C-2 categories with State Reserves Committee of the Republic of Kazakhstan the price of the company will increase dozens of times

The Project Economic Data The Project Economic Data