Kazax Minerals Inc.

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Kazakhstan

Why Kazakhstan is attractive for investors:

• Stable economy with strong economic growth projections;
• Strategic geographic location between 3 out of the 5 "BRICS" countries - Russia, China and India;
• Abundant reserves of accessible mineral and fossil fuel resources;
• Skilled and relatively inexpensive labour force;
• One of the most attractive tax regimes among CIS countries according to the World Bank and IFC.

Kazakhstan Economy

Kazakhstan is the largest economy in Central Asia and its GDP growth has outperformed those of the major CIS countries over the last few years, making it the most stable economy in the region. The country's competitive geographical location at the junction of Asia, Europe and the Middle East enables access to the rapidly growing markets of Russia, India and China, creating unique opportunities for investors and local companies. A highly developed banking system, stable institutions and a government policy platform aimed at positioning the country among the 30 most competitive nations worldwide by 2050 has significantly improved investor sentiment.

Mining Industry

The mining industry, along with oil and gas, dominates the economy with mining and metals contributing approximately 19 per cent of the country's GDP and 16 per cent of exports. Kazakhstan's mining industry value is set to soar in the next four years reaching approximately US$29.5 billion by 2017 according to Business Monitor. Nevertheless the industry has considerable potential for further growth. Only about 10%-15% of Kazakhstan's explored reserves are in operation and in iron ore only 19 of 55 large deposits are currently in operation. The Kazakhstan Government has recently implemented new geological exploration policies providing better access to geological data. With a commitment to modernise the mining industry it invested US$52.8 million in geological exploration in 2013 and plans to increase investments to US$385.2 million by 2019.

More information about Kazakhstan is available from the website www.government.kz, the official website of the Government of Kazakhstan.