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Mehdiabad Zinc Project

• K.D.D. Group purchased the equity for Mehdiabad Zinc Company (MZC).

• Mehdiabad mine, including 342 million tons of lead and zinc with a medium alloy of 5.5% zinc and 2% lead as well as 113 million tons of barite with an average specific weight of 3.8 gr/cm3, the following plans have been formulated for extraction and processing of the reserves and soon a great evolution will be witnessed in the lead, zinc and barite industries of the country. On this basis development plans for Mehdiabad Mining Complex are as follows:

• Collection of 118 million tons of tailings in the first 4 years

• Establishment of a 100-thousand-ton factory for zinc bullion within 3 years

• Establishment of a 100-thousand-ton factory for zinc concentrate within 3 years

• Establishment of a barite processing factory with an initial capacity of 1 million tons within 18 months

• The mine is a world-class oxide, sulphide and mixed oxide/sulphide zinc, lead and silver deposit. It has more than 400 million metric tons of reserves, 70% of which is zinc and the rest are lead, silver and barite.

• The exploration and feasibility activities relating to the project have been carried out.

• MZC has negotiated a Memorandum of Understanding (MOU) with relevant authorities and a directive was signed by the parties to enter into an MOU and then formalise the necessary agreements for Mehdiabad Zinc Mine.