YOUR IDEAL PLATFORM FOR BUSINESS SINALOA NATURAL RESOURCES & PRIVILEGED LOCATION Located in Northwestern Mexico, Sinaloa is strategically positioned to do business with the US, Canada and Asia. A CLEAR MAP FOR GROWTH Activities to Incubate Value Biotechnology Nutraceutics Automotive Activities to Promote Electronic Eq. Tourism Food Processing Tools & Mach. Chemical Ind. Auto parts Foundation Activities Software Mining VA Logistics Serv. Energy Healthcare Food production Entertainment Time MINING IN SINALOA A Three Centuries History The mining industry development commenced in 1771 and achieved its maturity on 1794. During 1804, mine production was concentrated mainly in gold and silver in five different Mines in Culiacan. Iron Ore operations began during the year 2007, providing a first mover advantage to any potential newcomer investor in the resources industry in Sinaloa. There are plenty opportunities available for an early stage industry with an outstanding growth potential. SINALOA´s commitment to the Iron/Ore industry is paramount for our joint goals to promote, and attract investments in exploration and exploitation, and help you to achieve your business strategy by providing you with a economically feasible iron ore deposit. 1Former currency in Spain CURRENT MINING PRODUCTION 2006 M INERAL Total Precious Gold Silver Industrials Iron Copper Lead Zinc 2007 Volume $ Volume $ (M T) (K M XP) (M T) (K M XP) 50,716 117 1 116 50,599 44,000 366 2,688 3,545 915,497.60 693,156.60 246,770.60 446,386.00 222,341.00 17,424.00 30,744.00 43,008.00 131,165.00 116,089 19 0.2 19 116,070 110,000 27 2,325 3,718 392,000.57 127,227.43 37,083.43 90,144.00 264,773.14 42,900.00 2,468.57 92,982.86 126,421.71 Source: Secretary of Econom ic Developm ent of Sinaloa, Mining Prom otion Direction and Head of Mining Production Departm ent. Current Mining Projects Project Santa Cruz de Alaya Andrea 7 (Badiraguato) Campanillas y Nazareno La Rastra -Chacala El Champiñón Comoa Cristo Redentor Mina El Gallo El Realito Jojue La Máxima Lluvia de Oro Lluvia de Plata Los Tajos Magenta En g lis h Ve rs io n Alay a Andrea 7 Campanillas Chacala Champiñon Comoa Crist o Redent or El Gallo El Realit o Jojue La Máx ima Lluv ia de Oro Lluv ia de Plat a Los Tajos Magent a 20 Real de Oro San Agustín San Juan Veinte Onzas Yolanda Mu n ic ip a lit y Co s a lá Ba d ira g u a t o Elo t a Co s a lá Ch o ix Co s a lá Ch o ix Ba d ira g u a t o Cu lia cá n Ch o ix Ba d ira g u a t o Co s a lá Ro s a rio Ba d ira g u a t o Cu lia cá n Sin a lo a d e l Le y v a Sa n Ig n a cio Ba d ira g u a t o Cu lia cá n Cu lia cá n 21 Mineral de Zamora Elo t a Zamora 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Real de Oro San Agust ín San Juan Veint e Onzas Yolanda ENERGY AND WATER Feasibility analysis are underway in order to install a LNG Plant at the Topolobampo seaport. Two worldwide corporations are interested to invest in this project An Iron/Steel project will ensure local demand for a LNG Plant. Sinaloa is committed to promote the conversion of two thermoelectric power plants to LNG. An Iron/Steel project secures supply demand for a LNG plant, and additionally, a LNG plant will secure continuous energy supply in in the long term, to and from different locations in the Pacific Basin. ENERGY AND WATER Power Generation 9 power plants; 1,743 MW total demand Investment opportunities for green power generation: Wind power and micro hydro powerplants. Water availability 11 rivers that provides 49% of the total affluent to the Sea of Cortes. 11 dams; total storage capacity of 22,906 (Mm3) 1 additional dam to be completed by 2010. BUSINESS CONSISTENCY Sinaloa provides competitive incentives to attract foreign investment. - Preferential treatment on acquisitions of industrial land & warehouses. - Substantial tax reductions: • • • • • • • Public Registry of Property tax State payroll tax. Real State acquisition Use of Land tax Water supply and sewer rights Construction permits Used motor vehicles tax - Custom tailored incentives packages. - Permanent support from CIT’s key-account executives. E L C IU D A D A N O R E N A T O V E G A A L V A R A D O , G o b e rn a d o r C o n s t it u c io n a l d e l E s ta d o L ib r e y S o b e r a n o d e S in a lo a , a s u s h a b it a n t e s h a c e s a b e r: Q u e p o r e l H . C o n g r e s o d e l m is m o , s e le h a c o m u n ic a d o lo s ig u ie n t e : E l H . C o n g r e s o d e l E s t a d o L ib r e y S o b e r a n o d e S in a lo a , r e p r e s e n ta d o Q u in u a g é s im a Q u in ta L e g is la tu r a , h a t e n id o a b ie n e x p e d ir e l s ig u ie n te , por su DECRETO NÚMERO 166* L E Y D E F O M E N T O A L A I N V E R S IÓ N P A R A E L D E S A R R O L L O E C O N Ó M IC O D E L E S T A D O D E S IN A L O A T ÍT U L O I D IS P O S IC IO N E S G E N E R A L E S A R T ÍC U L O 1 o . E s t a L e y e s d e o r d e n p ú b lic o y d e in t e r é s s o c ia l, d e o b s e r v a n c ia g e n e r a l e n e l E s ta d o d e S in a lo a . S u a p lic a c ió n c o r r e s p o n d e a l E je c u t iv o d e l E s ta d o p o r c o n d u c t o d e la S e c re t a r ía d e D e s a r r o llo E c o n ó m ic o y a a q u e lla s in s ta n c ia s p re v is t a s e n la m is m a Ley. A R T ÍC U L O 2 o . L a p r e s e n t e L e y t ie n e p o r o b je t o im p u ls a r e l d e s a r r o llo e c o n ó m ic o d e l E s t a d o , a t r a v é s d e l e s t a b le c im ie n t o d e p o lít ic a s q u e e s t im u le n la in v e r s ió n y e l e m p le o y f a v o re z c a n la c o n s o lid a c ió n d e la a lia n z a e s t r a t é g ic a e n t re e l G o b ie rn o y lo s s e c t o re s p r iv a d o y s o c ia l d e S in a lo a . D e n t ro d e l o b je t o d e la L e y s e b u s c a r á c u m p lir c o n lo s s ig u ie n te s f in e s : I. F o m e n t a r la in v e r s ió n p a ra e l d e s a r r o llo e c o n ó m ic o d e la E n t id a d s o b r e b a s e s s u s t e n ta b le s , p r o m o v ie n d o n u e v a s in v e r s io n e s y f a v o r e c ie n d o e l c r e c im ie n t o d e la s y a e x is t e n t e s ; II. P r o m o v e r la d e s r e g u la c ió n e c o n ó m ic a y s im p lif ic a c ió n a d m in is t r a t iv a a f in d e c r e a r u n e n to r n o a lta m e n t e f a v o r a b le y c o m p e t it iv o p a r a im p u ls a r la s a c t iv id a d e s e c o n ó m ic a s ; * P u b lic a d o e n e l P .O . N o . 1 4 3 , d e 2 7 d e n o v ie m b r e d e 1 9 9 6 . SUMMARY Our Government best interest is to pursue the Iron/Steel industry development in the state, by supporting news inversors in the search of economically viable ore bodies State Attributes Water storage ( 22,096 Mm3 .) 9 power plants (Total demand available 1,743 Mwatts.) LNG Plant readily operational at the time n the Iron/Steel processing plant commence operations. JOIN US FOR FURTHER DISCUSSIONS CONCERNING THIS PROJECT VISITING US IN SINALOA FOR ALL THESE…SINALOA IS YOUR IDEAL BUSINESS PLATFORM