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Development and Management of the Zamiin Uud Free Economic Zone Zamiin Uud, Mongolia

JULY 2009

PRESENTATION

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TABLE OF CONTENTS PPRROOJJEECCTT MMAANNAAGGEEMMEENNTT && DDEEVVEELLOOPPMMEENNTT .......................................................................... 2

LLOOCCAATTIIOONN ......................................................................................................................... 2

PPRROOJJEECCTT BBAACCKKGGRROOUUNNDD && IINNFFOORRMMAATTIIOONN ............................................................................ 3

WWWWBB’’SS VVIISSIIOONN FFOORR TTHHEE ZZUUFFEEZZ ......................................................................................... 3

Phase I – Current Status ................................................................................................... 4 Phase II – 900 Hectares .................................................................................................... 4 Phase III – Full Development of 42,000 Hectares .............................................................. 6

International Trade and Services Sector .......................................................................... 12 Industrial Production Sector ............................................................................................. 14 Tourism and Recreation Sector ....................................................................................... 18 Supporting Infrastructure ................................................................................................. 20

WWWWBB’’SS TTEEAAMM && AAPPPPRROOAACCHH ............................................................................................ 22

IINNVVEESSTTMMEENNTT PPLLAANN ........................................................................................................... 24

Sources of Funding ......................................................................................................... 25

EECCOONNOOMMIICC IIMMPPAACCTT .......................................................................................................... 25

SSOOCCIIAALL IIMMPPAACCTT ............................................................................................................... 28

CCOONNCCLLUUSSIIOONN ................................................................................................................... 30

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PPRROOJJEECCTT MMAANNAAGGEEMMEENNTT && DDEEVVEELLOOPPMMEENNTT

WinWheel Bullion Holdings, LLC (WWB) is pleased to submit this presentation to the Mongolian government to become the Management Executor and Strategic Investor for the design, implementation and management of the Zamiin Uud Free Economic Zone (ZUFEZ). The WWB team has the vision, experience and capability to develop the ZUFEZ into Northeast Asia’s premier free economic zone, meeting the highest international standards for industrial zone development and ongoing management. This presentation outlines WWB’s understanding and vision for the ZUFEZ and how WWB proposes to develop the Zone into a world-class industrial, banking, tourist and entertainment center.

LLOOCCAATTIIOONN

Zamiin Uud is a border town in the province of Dornogobi. It is strategically located on the Mongolian-Chinese border and is the primary port of entry for Mongolia, providing border-crossing services for trade and people from China and the rest of the world. Over 80% of Mongolia’s foreign trade runs through Zamiin Uud, including the north-south Russia-Mongolia-China passenger and cargo railway network. Zamiin Uud has an area of 48,700 hectare with a population of approximately 8,000. It is situated roughly 610 km from Ulaanbaatar and about 560 km from Beijing. The immediate area set aside for the ZUFEZ is 900-hectares/9 sq km located directly on the border.

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PPRROOJJEECCTT BBAACCKKGGRROOUUNNDD && IINNFFOORRMMAATTIIOONN

Policy makers and analysts are envisioning the world’s next great market to be Northeast Asia, which includes one-quarter of the Earth’s population – including China, the world’s most populous country; Japan, the world’s second largest economy; the Russian Federation, the largest country in terms of land size; and Mongolia, a country with vast mineral deposits. Northeast Asia is a multi-trillion dollar economy and growing rapidly, where the regional savings level is the highest in the world. In recognition of the emerging economic and industrial development opportunities, in 2003, the Parliament of Mongolia passed the “Law on the Legal Status of the Zamiin Uud Free Economic Zone”. The law allows for the development of industrial, commercial and tourism/entertainment sectors in the ZUFEZ. This law identified and set-aside an initial 900 hectares of land to form the basis of the ZUFEZ. Preliminary discussions have been held on increasing the size of the jurisdictional area for the ZUFEZ from 900 to 42,000 hectares subject to the development and approval of the detailed Master Plan. The strategic objective for developing the ZUFEZ is to make it one of the economic growth engines that will accelerate the growth of Mongolia’s social and industrial sectors and improve the living standards for the Mongolian people. The ZUFEZ will be the focal point for the industrial development for the whole region. Although there is some basic infrastructure in the town of Zamiin Uud, it is insufficient for the development of the ZUFEZ. Further in this presentation, we will identify the infrastructure requirements, which WWB proposes to develop and construct.

WWWWBB’’SS VVIISSIIOONN FFOORR TTHHEE ZZUUFFEEZZ

The ZUFEZ will have three key economic and industrial development sectors:

• International Trade and Services; • Industrial Production; and • Tourism and Recreation.

The following pictures and diagrams summarize WWB’s vision for the development of the ZUFEZ:

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Phase I – Current Status

Phase II – 900 Hectares

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Zamiin Uud Free Economic Zone: Land Use Plan

LAND USE PLAN LEGEND

Classification Classification Use Ratio (%) m² hectare Total 9.000.000 900.0 100

Residential 1.846.668 184.6 20.5 Recreation and

Commercial 1.627.875 162.7 18.1

Free Trade and Commercial Distribution 1.585.179 158.5 17.6

Industrial Complex 1.360.623 136.0 15.1 Industrial

Transportation 349.081 34.9 3.9

Road 756.307 75.6 8.4 Public Park 593.997 59.3 6.6 Public Administration 454.779 45.4 5 Schools 425.491 42.5 4.7

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Master Plan For 900 Hectares

Phase III – Full Development of 42,000 Hectares

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As shown, the ZUFEZ will have villages, town centers, education areas and facilities, commercial sections and the existing town of Zamiin Uud. The development will accommodate warehousing, manufacturing, assemblage, commercial retail, maintenance and repair industry, and distribution businesses. More specifically, within the area depicted and the surrounding hectares, there will be the International Airport; International Convention Center; Gaming and Entertainment; Resorts and Hotels; Shopping Centers; Educational Infrastructure including kindergartens, elementary to high schools, colleges and universities, vocational schools and job training facilities; infrastructure to include roads, water, sewerage, and light rail; hospitals and fire stations; recreation such as theme parks, stadiums, and golf courses; commercial buildings, office buildings, warehouses; and residential development for the ZUFEZ and Zamiin Uud inhabitants. 1,500,000 Capacity City Plan 42,000 hectares are planned to house the 500,000 and 800,000 capacity cities and the 200,000 capacity ecotour, vacation, trek and adventure surroundings. Also incorporated in the plan are road system – highways and railroads – that lead to the main cities in Mongolia. As an international city, Zamiin Uud will connect with the world through its international schools, golf courses, and international airport, uniting residents and travellers alike. 1. 500,000 Capacity City Plan The total area of the 500,000 capacity city plan is 2,200 hectares, developed primarily as a large “life-zone”. The location of the planned city is approximately 5 minutes away from existing highways and railroad, allowing for easy access for the many residents and businesses that will require use of transportation infrastructure. In addition, with the new establishment and expansion of the road system leading directly to the new international airport, the convenience of an international city is pledged. Within the ‘life-zone’ of the city, it is estimated that 3 educational facilities are needed per 5,000 houses, thereby requiring an allocation of about 50 hectares. The density of capacity is minimal and for the purpose of a 500,000 capacity, 125,000 houses will be required at a rate of 4 people per housing unit. In addition, public parks will consist of about 300 hectares with the standard of 6m² per person. These parks will be situated alongside residential communities to foster a clean environment and reduce noise pollution from industrial sectors.

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Commercial areas per city district will be approximately 2, each of which can accommodate a 20,000 capacity (6 hectares per commercial area). 25 commercial areas are expected to be developed with a total combined 150 hectares for the expecting land area use. As an international city, the total area for Free Trade and Commercial Distribution, Casino Zone, and Industrial Areas will be 650 hectares. Industrial Complexes and Industrial Transportation Areas will be located closest to major highway interchanges and the railroad, creating traffic conveniences by eliminating the use of city roads by large trucks. Other administrative organizations and infrastructure will be dispersed within 700 hectares, approximately 30% of the total land use area.

500,000 CAPACITY CITY PLAN

Classification

Area (Unit: Hectare)

Use Ratio % Total 2,200 100.0 Residential 700 31.8 Commercial 600 29.5 Free Trade and Commercial Distribution 160 7.3

Industrial Complex 150 6.8 Industrial Transportation 50 1.8 Casino Zone 300 13.6 Industrial 150 6.8 Infrastructures 700 31.8 Road 250 11.4 Public Park 300 13.6 Public Administration 100 4.5 School 50 2.3

2. 800,000 Capacity City Plan The total land use area of the 800,000 capacity city is planned for 7,100 hectares. The density of capacity is low (100 capacity per hectare) and approximately 200,000 houses will be required at a rate of 4 people per housing unit. The housing area of the residential community is planned for 1,500 hectares.

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It is anticipated that the Commercial sector will require 1,100 hectares, 15.5% of the total use area, to focus on Free Trade and Commercial Distribution. The Industrial Complex will require a further 1,100 hectares to allow for both production and consumption within the city. Green tracks and parks will be designed to use about 500 hectares; 6m² per person. An additional 1,700 hectares will be used for an arboretum connected to the existing lake. Educational facilities and organizations, including universities, will utilize 160 hectares. Other administrative organizations, welfare facilities, and infrastructure are planned to for 3,400 hectares, about 47.9% of the total use area.

800,000 CAPACITY CITY PLAN

Classification

Area (Unit: Hectare)

Use Ratio % Total 7,100 100.0 Residential 1,500 21.1 Commercial 1,100 15.5 Free Trade and Commercial Distribution 400 5.6

Industrial Complex 600 8.5 Industrial Transportation 100 1.4 Industrial 1,100 15.5 Infrastructures 3,400 47.9 Road 700 9.9 Public Park 2,200 31.0 Public Administration 340 4.8 School 160 2.3

3. 200,000 Capacity Ecotour, Vacation, Trek and Adventure Vicinity Plan The total use area is planned for 4,400 hectares. Ecotour, vacations, trek and adventure areas are designed for a 200,000 capacity, considering 44 people per hectare and considering the natural landscape already present in the area. The role of the planned area is also destined for leisure and rest space for the nearby communities.

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200,000 CAPACITY ECOTOUR, VACATION, TREK AND ADVENTURE VICINITY PLAN

Classification

Area (Unit: Hectare) Use Ratio % Total 4,400 100.0 Residential 500 11.4 Commercial 200 4.5 Infrastructures 3,700 84.1 Road 500 11.4 Public Park 2,800 63.6 Public Administration 200 4.5 School 200 4.5

4. Golf Courses, International Schools, and International Airport Plan In consideration of the function of a 500,000 capacity city, a large golf course (108 holes) is set to contribute to the health and rest of the public and to contribute towards the tourism industry. A plan for six, eighteen hole courses covering 1,070 hectares is ideal for the provision of gathering event space, including the hosting of major events such as the PGA tournament. 720 hectares will be used for international schools including one university, three high schools, four middle schools, and one elementary school. The total use area for the international airport is a planned 1,265 hectares.

GOLF COURSES, INTERNATIONAL SCHOOLS, AND INTERNATIONAL AIRPORT PLAN

Classification

Area (Unit: Hectare) Use Ratio % Total 3,055 100.0 Golf Course 1,070 35.0 International School 720 23.6 International Airport 1,265 41.4

The purpose of the ZUFEZ development, as envisioned by WinWheel Bullion, establishes a common vision for the Zamiin Uud area for both the public and private stakeholders to share and to provide a guide for those

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stakeholders to support and implement that vision. Although ZUFEZ is a master planned commercial and industrial center, the vision for the project includes environmental and community components as well. WinWheel Bullion envisions this development to be at the forefront of environmental technology as well as serving as a gateway to Northeast Asia using environmentally sustainable and renewable energy technologies for the development. The preliminary master plan for Zamiin Uud (note: images above) has been completed by Don Bauer, a world renowned master planner who has overseen major developments around the world including the capital city of Nigeria, the 420-square-kilometer Fahad National Park in the Kingdom of Saudi Arabia with 281,000 residents, The Woodlands in Texas (a 25,000-acre project 40 miles northwest of Houston), and the 24,000-acre Banning Lewis Ranch in Colorado Springs, to name a few. Located 350 miles northwest of Beijing, China on the southeast Mongolian border, the Zamiin Uud Free Economic Zone is the result of an unprecedented partnership between the Mongolian government and the United States-based WinWheel Bullion Corporation. Phase I of Zamiin Uud will be a 2,224-acre development that will include construction of a new international airport and a base infrastructure of hotels, resorts, a convention center, shopping complexes, duty free shops, office and commercial buildings, banks and financial institutions, industrial

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complexes, sports stadium, theme park, and golf courses. In addition, residential and community infrastructure will include housing, hospitals, public parks, a retirement community and other supplemental structures.

1. Logistics and Distribution Center

International Trade and Services Sector Located on the border, the ZUFEZ will offer many advantages for promoting international trade, export oriented production and business/commercial services. To support the development of international trade in the zone, WWB will develop, build and operate the following key facilities:

The logistics and distribution center will be a complex with heated, air-conditioned, refrigeration, open and bonded warehouses. The logistics center will have the following main roles:

• Act as a trading center for products produced by Mongolian exporters on one side and products from Chinese and other international exporters to Mongolia on the other. The imported products will be delivered to the center to be sorted and packaged to meet Mongolian standards;

• Supply the manufacturing and assembly plants within the ZUFEZ with raw materials and spare parts;

• Provide processing, storage and bonded facilities for the processing of transit products from China to Russia; and

• Provide significantly expanded container handling and storage facilities from the current levels of 12,000 containers per year.

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2. Trade Show/Convention Center To support the promotion of international trade and provide a showcase for products and goods manufactured and assembled in the Zone, we intend to build a trade show/convention center which will provide year round retail showrooms and special event conventions to support the hotel and tourism sector of the Zone.

3. Banking and Commercial Center To support the development of the ZUFEZ and its various components, it is essential that the Zone have a banking and commercial center that can provide all of the banking and financial service needs to support international trade – investment, commercial and personal banking, insurance, provide credit, money transfer and foreign exchange services. We will build a modern international banking center complex with the latest technologies that will be able to house a number of international bank, insurance and investment management organizations. Given the future growth of natural resource exports from Mongolia to China and the rest of the world, WWB sees that there is a requirement and opportunity for the ZUFEZ to become the clearing house of Mongolian natural resources to be exported. We are therefore proposing to establish a commodities exchange in the Zone that will provide Mongolian mining companies with a centralized facility to sell their resources to the

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international market. This commodities exchange will be housed in the International Banking and Commercial Center.

Our focus will be to establish an industrial park with a business friendly environment that will support the establishment of manufacturing and

Industrial Production Sector WWB fully understands that one of the primary objectives of the Government of Mongolia in establishing the ZUFEZ is to establish a strong and vibrant export-oriented manufacturing industry. It is our intention to fully support and promote this strategic government objective through the development and management of an industrial park that meets the highest international standards. This industrial park will have two main components – small and medium sized enterprises (SMEs) and heavy industries. 1. SMEs

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assembly SMEs. Priority will be given to SMEs that are technology based, environmentally friendly, are export oriented and are part of multi-national supply chain organizations. WWB’s strategy will be to create favorable conditions in the ZUFEZ to attract foreign investment for light equipment and machinery manufacturing and assembly facilities for multi-national corporations and for the final assembly of Chinese manufactured products for export to Europe and North America. Prime candidates for foreign investment will be in the following areas:

• Nano & biotechnology; • Medical/pharmaceutical products; • High tech components and products; • Mining equipment; and • Agricultural equipment.

To support the establishment of these industries we will provide the support required to secure and obtain the necessary financing by financial institutions established in the Zone’s banking and commercial center.

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2. Heavy Industries Mongolia has an abundance of natural resources. However, it does not have the value added processing facilities. It is a government priority to establish these processing facilities – smelters and refineries, to process the raw natural resources for export. As the primary border crossing center, the ZUFEZ is the ideal location for the establishment of these processing facilities. WWB’s longer term investment strategy for the Zone, subject to the expansion of the size of the Zone to accommodate these large processing facilities, is to establish the right conditions for investors to build and operate the heavy industry facilities such as: Oil Refinery – There is a significant amount of oil exploration currently being undertaken across the South-Eastern part of Mongolia. As the exploration phases turn to production, there will be a requirement to build the supporting infrastructure – pipelines and refinery. A refinery will be required for both domestic and export purposes. A refinery in the Zone would become the hub for the pipelines from the various oil producing fields and the central distribution point for shipments within Mongolia and for exports to China.

Vehicle Assembly Plant – Given the proximity of the growing Chinese automotive market, there is an opportunity to establish a vehicle assembly plant with the primary focus to supply the Chinese market. This plant

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could be in the form of either a final vehicle assembly plant or an assembly plant to supply assembled vehicle components to the main assembly plants in China.

Metallurgical Smelter – Mongolia has significant reserves of copper, iron ore, etc. throughout the country. Although there are discussions underway to build a smelter for a specific deposit such as the Oyu Tolgoi, there is a requirement to provide a smelter facility for the other metallurgical deposits, which by themselves alone may not warrant a dedicated smelter. Since the primary customer for the processed minerals would be China, a smelter in the ZUFEZ would provide a central hub for the smelting, storage and shipping of the refined product to China.

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Coal Washing Plants – Mongolia has an abundance of cheap “brown” coal throughout the country. This coal is a high pollutant and has a low purchasing price. As environmental standards increase in China, the sale of this brown coal will become more difficult in the future. Processing the brown coal through a coal wash plant will remove many of the pollutant elements in the coal, resulting in an increase in the calorie content with a significant increase in the selling price of the coal. A coal wash plant in the ZUFEZ would provide a hub for the collection of coal from throughout Mongolia, provide a value added coal washing process and act as a central distribution center for coal being shipped to China.

Establishing a high quality casino and entertainment complex will also play a significant role in attracting foreign investors and wealthy tourists. Leveraging its wealth of global experiences and extensive market research studies that will support its development plans for the ZUFEZ,

Tourism and Recreation Sector One of the significant benefits of the ZUFEZ is its close proximity to China, which has a significant tourist and gaming market capacity. Therefore, it is important to develop this sector which would include hotel and casino complexes, golf courses, entertainment/amusement parks, multi-purpose sports and entertainment complexes, including a football stadium, etc. The casino complex would be the only large scale gaming complex in Northeastern Asia and would be within 1.5 to 4 hours flying time (a new international airport will be built) for customers from oil rich Siberia, Japan, South Korea and Northeast China. Most of these customers currently fly to Macau, South Korea or Malaysia.

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WWB will create a multi-billion dollar leisure, entertainment, gaming and recreation sector in the Zone that will cater to a broadly defined demographic, and that will incorporate the very best elements from the gaming industry in Las Vegas and Macau and from the entertainment and recreation industries in North America, Europe and Asia. Although the casinos will be developed based on the Las Vegas model, they will be tailored to meet the needs and tastes of Asian gamblers. The ZUFEZ will have a distinctly “Asian Las Vegas” style. The WWB strategy for the development of the tourist and recreation sector of the zone will be to:

• Provide favorable conditions that will be very competitive with other similar markets in Asia;

• Establish services aimed at Asian tourists; • Ensure the highest levels of protection and security; • Engage reputable international companies to operate the casinos; • Build world class golf courses with supporting club houses,

restaurants, pools, tennis courts, etc.; • Develop amusement parks, entertainment centers and multi-

purpose sporting complexes with family leisure in mind; and • Of particular interest, will be to build a world class martial arts

complex, which will include educational, training and competition facilities. We also intend to establish this center as the World Headquarters for a number of martial art disciplines.

In order for the gaming industry to be effective and safe, there must be a strong government regulatory and monitoring capability. We understand that this framework does not currently exist in Mongolia. Based on our vast experience in the gaming industry throughout the world, WWB will provide the necessary support to the Government of Mongolia to develop its gaming laws, regulatory framework and monitoring capability free of charge.

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• An international cargo and passenger airport;

Supporting Infrastructure In order to attract investors, tourists and gamblers to the ZUFEZ, there will be a requirement to invest significant amounts for supporting infrastructure. It will be difficult to attract investors and visitors without having world class infrastructure in place. WWB is committed to building the required supporting infrastructure, including:

• Internal roads and connecting road transportation networks; • Rail network to connect the container and logistics distribution

center and the heavy industry sector with external rail lines; • Water and sewage systems; • Heating supply systems; and • Power plant and utility networks.

There will also be a requirement for the development and construction of social infrastructure to support the population growth of Zamiin Uud/ZUFEZ. In developing our social infrastructure requirements, we are forecasting the following population growth projections:

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Population 2009 10,000 2015 250,000 2025 1.500,000

To support the population growth, WWB will incorporate the following social infrastructure requirements into its investment plans:

• Residential housing (single homes and apartments) for both the employees during the planning/construction period and for permanent residents;

• Health care facilities – hospital, clinics; • Vocational training centers, schools and universities; • Social/community centers; • Commercial centers – retail, supermarkets, restaurants, hotels,

etc.; and • Parks and green spaces.

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WWB understands that the Government of Mongolia will have to have a presence in the ZUFEZ for a variety of government activities such as customs, tax collection, security/police, fire department, immigration/visas, etc. To provide the necessary facilities for government operations, WWB will build office and support facilities for government administration purposes on 100 hectares set aside outside the 900 hectare ZUFEZ. In developing the ZUFEZ, WWB clearly understands that this is a regional industrial development initiative. Although the current law for the ZUFEZ has only allocated 900 hectares for the Zone, to develop all of the Zone components will require an expansion of the Zone beyond the 900 hectares. Once the Master Implementation Plan has been finalized and approved, we anticipate that the law will have to be amended to expand the Zone to 42,000 hectares, and to include the heavy industry components, the Zone will most likely have to be increased to 100 sq km. For development planning purposes, requirements for the whole region (ZUFEZ, Town of Zamiin Uud and outlying areas for Zone expansion) will be addressed together. The infrastructure requirements will be designed to meet both immediate and future Zone growth needs. During the initial phases of the Zone’s development, we will also include development activities within the existing town of Zamiin Uud. There will be a requirement to provide housing, hotel accommodation and related services for the large number of management and support personnel working on the ZUFEZ initiative. These immediate requirements will be met by taking advantage of the town’s existing infrastructure. Some upgrades will be required to existing systems.

WWWWBB’’SS TTEEAAMM && AAPPPPRROOAACCHH

WWB is committed to developing the ZUFEZ a Free Economic Zone, which meets international standards and will attract investors and visitors from around the world. The composition of our consortium reflects our commitment to successfully developing the Zone and can have as partners international companies such as Parsons, Fluor, Quantum Fund, Credit Suisse, CitiBank, Hoover companies, American Indian Casinos, international financial groups and industrials, etc. WWB is open to partnering with other investor groups who may have already expressed an interest to the Government of Mongolia in participating in the ZUFEZ initiative. As the project evolves and becomes more visible, there will be many more interested parties who will wish to participate. Together with the government ZUFEZ Administrative Office, we will review and agree upon new partners/participants.

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WinWheel Bullion’s Approach In order for the ZUFEZ to be successfully developed WWB understands that the ZUFEZ must be developed together with the Government of Mongolia, for the benefit of the Mongolian people. Therefore, throughout the development of the ZUFEZ, the following guiding principles will be applied:

1. This is a strategic Public Private Partnership (PPP) initiative between the Government of Mongolia and WWB.

2. This is a Free International City development with various sectors - industrial, residential, destination (casinos, international conventions, theme park), banking, etc.

3. This is a Mongolian nation building initiative – therefore every effort will be made to maximize Mongolian involvement/participation – companies, employment and supplies & materials during the planning, implementation and ongoing operational phases. This is an opportunity to strengthen existing Mongolian companies, establish new companies and create permanent skilled and non-skilled employment opportunities.

We will establish a ZUFEZ management framework will include both a Joint Working Group and an Advisory Board: Joint Working Group – This WWB/Government working group will support overall project co-ordination and communications. It will be the primary vehicle for managing liaison activities with government organizations to assist the government in developing and approving required supporting government policies, laws, procedures and standards. We propose that this Joint Working Group should be formally institutionalized as a government agency to develop and manage a national strategy for all FEZs in Mongolia to ensure that there is a “national” strategic approach to managing the various FEZs as a single coordinated national industrial development initiative. We will provide the necessary support to establish this Agency. Advisory Board - Within one year, we propose to establish an Advisory Board with membership comprised of seasoned and internationally renowned individuals to act as a Steering Committee. These individuals will help promote the ZUFEZ internationally and provide supporting advise to ensure that the ZUFEZ is developed to international standards. In developing the ZUFEZ, WWB will apply a multi-phased implementation approach, each with distinct objectives and deliverables. These project phases are:

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Phase 1 Planning Activities – Year 1 Activities include: master implementation plan, detailed

urban plan, environmental impact & management plans, socio-economic impact studies, including developing capacity building programs.

Phase 2 Infrastructure Development – Years 2 & 3 Design and implementation of basic infrastructure to support

investment requirements. This would include: water and sewage pipelines, power plant, roads, etc.

Phase 3 Investment Implementation – Years 2 and onward Design and implementation of specific individual investment

initiatives. Phase 4 Ongoing Zone Operational Management Activities – Years 3

and onward – Ongoing Zone operations support and management services.

IINNVVEESSTTMMEENNTT PPLLAANN

As the strategic investor, WWB is planning to develop the ZUFEZ by investing its own resources as well as attracting funds from domestic and foreign investors. WWB will provide the initial funding for project planning and design activities and infrastructure development, which will create the favorable environment to attract investors. Specialized facilities and supporting requirements will be designed and funded by the individual investors themselves. Our estimated investment projections over the next 20 years are: ZUFEZ Component USD (in millions) Start-up planning & design activities $ 20 Initial infrastructure (water, utilities, etc.) 600 Permanent long term infrastructure 10,500 International airport (including temporary) 4,000 Airport support businesses 3,000 International banking center 5,000 Logistics/distribution center 1,000 Industrial park 30,000 Technology center 5,000 Convention center complex 800 Medical center and facilities 3,000 Entertainment & recreation facilities 2,500

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Training & education facilities 5,000 Casino hotels and resorts 15,000 Public safety & administration 2,000 Housing 18,750 Community amenities 5,000 Contingency 8,930 Total Estimated Investment over 20 Years $ 120,000

• WWB Group of Companies – WWB’s own direct investment in specific ZUFEZ components

Sources of Funding USD120 billion represents a large investment. No single organization can provide all of the funds or financing. Our investment financing strategy is based on maximizing funding availability from a variety of sources. These sources include:

• Private individuals – private wealth funds for specific investments • Investor companies – corporate investments in operations in

support of their global investment strategy • Venture capital, including stock market – funding for new start-up

companies • Bank financing – direct investment loans for specific investments • International Financial Institutions – loans from organizations such

as the World Bank and Asia Development Bank • Donor Governments – foreign aid by other governments to support

the Mongolian government’s ZUFEZ initiative EECCOONNOOMMIICC IIMMPPAACCTT

WWB estimates that development of the ZUFEZ will have an overall positive economic impact of up to one third of Mongolia’s current GDP, which was estimated to be $8.5 billion for 2007. This will mean between USD $2 to $3 billion of yearly economic impact from the ZUFEZ. The ZUFEZ will function as the economic gateway to Northeast Asia, and this impact will be felt in the economy of Mongolia and surrounding nations in an unprecedented manner. The current economic development of Northeast Asia is remarkable by any standard. The Northeast Asia Region combines China, Eastern Russia, North and South Korea, Mongolia and Japan. Northeast Asia has about one-quarter of the Earth’s population, which includes the world’s most populous country - China, the

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world’s second largest economy – Japan, the largest country in terms of land size – the Russian Federation, and some of the world’s largest untapped mineral deposits – Mongolia. The region as a whole could be considered a $13 trillion dollar plus economy, with a savings level in terms of foreign reserves of $2.1 trillion. China, due to its size, is the strategically dominant economic force in the area, but Mongolia, due to its strategic positioning between Russia and China, its mineral resources, its inherent status as a key link in the transportation network, and its free market policies, has emerged as a natural business hub for trade and commerce in the region going forward. To date, China has been the central core of economic development in the region, and most of its surrounding neighbors consider China as the major economic force in the area meaning that a China-market focus has dominated economic policy thinking. However, since the election of a non-Communist government in 1990, Mongolia has been pursuing policies of open markets and free trade. This has allowed creative forces to emerge with new ideas for capitalizing on Mongolia’s special situation in terms of location and economic freedom. The Zamiin Uud Free Economic Zone is an innovative response to the opportunities ahead. The ZUFEZ, as established by the Mongolian Governmen,t will serve to bring to bear all the natural economic advantages that Mongolia possesses as the primary north-south transport and communication linkage in the greater development of Northeast Asia. WWB has embraced this new market and will develop the ZUFEZ – on the road of Kublai Khan – which will be the neutral zone in which East and West can meet without concern or hesitation about doing business with Northeast Asia. There are four critical factors that will also lead to structural shifts of Mongolian development toward trade and commerce. First, is the strong desire of the Mongolian policy leadership to diversify the economy away from the volatility associated with an over dependence on commodities markets. Second, is the locational advantage of Mongolia situated between Russia, the greatest energy supplier in Eurasia and China, the greatest energy and materials buyer in Northeast Asia. Third, is the near-term transportation infrastructure developments in road and rail that insure that Mongolia will have the physical capability to fulfill the promise of serving as the major road and rail transit link between the heartland of China and Russia and Europe. The final factor is communications development (Zamiin Uud has a super high-speed fiber-optic cable and VSAT system, cable TV, FM radio, mobile telecommunication, internet connections and electronic mail), wholesale distribution development, commercial office development and financial institution development that will make the transit hub concept work at the juncture with China – all notably encompassed by the ZUFEZ. There are many historical precedents for such development of transit hubs into commercial, financial

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and entertainment centers and one need only look to other hub cities of the world such as New York City, Rotterdam, Singapore and Hong Kong as clear cases in point. Moreover, Mongolia has created a predictable and enforceable legal climate for foreign investors. Mongolia fully complies with the Trade-Related Investment Measures Agreement of the World Trade Organization. Mongolia is a member of the World Intellectual Property Organization and joined with eleven International Conventions on intellectual property rights, including the Berne Convention on Copyright, the Paris Convention on Protection of Industrial Property and the Madrid Agreement on International Registration of Trademarks. Mongolia joined the New York Convention on the Recognition and Enforcement of Arbitral Awards and is a signatory of the Washington Convention of the Investment Disputes between States and Nationals of other States. These safeguards are fundamental to business confidence and flows of foreign direct investment. The prospects of trade, the openness of the economy, and the safety of investment mean that businesses can grow in directions that they choose without interference. The ZUFEZ is already functioning as a gateway to Northeast Asia and as an international regional headquarters in a safe and predictable environment. No excise, added value tax, or import custom duty will be levied on items imported to Zamiin Uud. WWB will hold the right to give concessions to individual casino resorts with full gaming options. Investment into the construction of storage facilities, cargo terminals, and hotels in Zamiin Uud businesses will be exempt from income tax for five consecutive years beginning from the commencement of operations and granted a 50% income tax concession for three consecutive years thereafter. How can the impact of the ZUFEZ in terms of job creation and economic impact be judged? The Dominican Republic is a good example of a country with a successful Free Trade Program containing most of the international best practices and maintains as objectives: job creation, foreign exchange generation and stimulation of non-traditional exports. The Dominican FTZ program currently has 520 operating enterprises, 171,000 direct jobs, and a total investment level of $1.3 billion. Total foreign exchange earnings represent another $1 billion. The Dominican FTZ program has effectively addressed the chronic unemployment of the country and it is doubtful that other alternatives would have performed as well. Technology transfer has been successful as reflected in the number of Dominican-owned operating enterprises. A new and sophisticated national entrepreneur class has been created, well versed in the export activity. Foreign exchange reported to the national treasury in the amount of $1 billion makes a significant contribution to foreign exchange reserves.

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As a result of WWB’s initiative, ZUFEZ will be recognized as an international regional headquarters and as a safe and predictable business and social environment globally linking regional and local economies with the rest of the world. The recruiting of many diverse manufacturing plants and major international distributors to ZUFEZ by WWB will create international exposure for ZUFEZ and Mongolia, which will create interest in foreign investment and travel to Mongolia. This investment and return will improve road infrastructure, tele-communications, civil aviation, insurance, business exhibition services, airport services, travel agents, hotel & casino industry, and many others. Thus, it can be said that the road to a stable Mongolia and a new era of strategic partnership with the international community is through the ZUFEZ.

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WWB estimates that development of the ZUFEZ will result in the creation of up to 250,000 new jobs, both direct and indirect. The current labor force of Mongolia is approximately 1 million, with jobs broken down into sectors as follows: agriculture - 40%, industry - 12% and services - 48%. The unemployment rate is low, but the percent of the population below the poverty line is approximately 36%. Because of the efforts of WWB to develop the ZUFEZ, there will be thousands of new jobs in new sectors and industries. For example, development of the ZUFEZ will bring new infrastructure including drilling programs for new drinking water and waste water systems, sewage systems and irrigation systems. In addition, new job opportunities will be opened up in new hi-tech sectors including security systems, new power systems, new lighting systems, new telephone systems and new Hi-Speed Internet companies. The construction of the International Airport and additional transportation infrastructure including new Immigration & Customs Facilities, Air and Ground Freight Facilities and other airport support facilities will bring what have traditionally been good, high paying job opportunities to the region. To support the large ZUFEZ area and its businesses and housing areas, efficient new means of public transportation will need to be constructed and operated including light rail, new roads and highways. New support facilities will be constructed to take care of the needs of an expanding ZUFEZ population including a modern new Hospital, outpatient Medical and Dental Facilities, Air Ambulance Helicopter and Med-Evac, new schools, pre-school and child care facilities, job training centers, adult education and universities. With the ZUFEZ will come jobs in industry as companies throughout the world recognize that ZUFEZ will serve to bring to bear all the natural economic advantages that Mongolia possesses as the primary north-south transport

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and communication linkage in the greater development of Northeast Asia. Industry can be expected to include major international companies wishing to locate within the ZUFEZ such as Bio Diesel & Bio Jet Fuel Production Facilities, a Structural Insulated Panel Production Facility, an R.O.D.E. Engine Assembly Facility and other industrial/light industrial and major international companies. Other major companies will be similar to the likes of Wal-Mart, Westinghouse, Nike, Adidas, Cushman & Wakefield, Orvis, General Electric, Hewlett Packard, IBM, Home Depot, Proctor and Gamble, and others. Finally, hotels and entertainment, a new Convention Center, seven World Class 5 Star Resorts with additional hotels and restaurants, world class shopping & entertainment and golf courses will need many new service oriented employees. Communities and offices, construction housing, an employee housing village, international communities and villages, high density residential, office/retail buildings, office/warehouse buildings, hi-rise office buildings and WWB’s own high rise office building will be constructed to take care of the housing and supporting infrastructure needs of the population of the ZUFEZ. The construction and ongoing support of the ZUFEZ, including the planting of over 2 million trees and plants will provide additional new jobs in the construction and service industries. The influx of an additional 250,000 new jobs and opportunities for the population of Mongolia will bring tremendous new positive social changes. Since 1990, Mongolia has undergone dramatic socio-economic and political changes from a centrally planned system to a market economy. There have been significant socio-economic achievements, but challenges still remain since there are issues such as 36% of population living below the poverty line, widening disparities between urban and rural areas, and poverty in urban centers due to in-migration from rural areas. Issues such as increased school dropout rates, abandoned and street children, working children, commercial exploitation of children and trafficking of women and girls show that the extent of social issues needing improvement in Mongolia is striking. The cost of providing social services to a population dispersed over such a vast territory is high, and a challenge for a small, developing nation with a weak rural economy. It is difficult to reach many of the poor in the rural areas because they are scattered, isolated and mobile. Besides migration between urban centers and the countryside, there are also movements from borders and remote areas to the center and from cities to foreign countries. All this movement has rendered large sections of the population, especially women and children, more vulnerable and economically insecure. The addition of 250,000 new jobs to the country of Mongolia would promote opportunities for a significant portion of the population. The ZUFEZ would also allow the country to use funds generated from the ZUFEZ to improve conditions for the general population by strengthening of capacity of service

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providers and local decision makers to provide parent/caregiver & volunteer training and education, to improve early childhood care and development /outreach and early childhood development activities, to monitor child growth & development, to improve community based information and monitoring systems, to aid in micronutrient supplementation, to promote potable water supply and sanitation systems, to promote HIV/AIDS/STI preventions, and to promote an environment fit for children. Participation of community members in community-identified projects will increase with additional funding and will allow parents and community members to collaborate more often with professionals and trained volunteers, trainers and advisors. Community members will be able to participate in annual project planning and in working groups to strengthen partnerships between local leaders and communities. The bottom-up approach from the addition of new jobs and new opportunities in the ZUFEZ will ensure that community problems are identified and addressed including issues related to child health, nutrition and preschool education, and increasing coverage of basic services through promotion of outreach activities and mobilization of local resources. Partnerships with international NGOs such as World Vision International, Save the Children Fund (UK), Catholic Church Mission, Mercy Corps, and with national NGOs such as Mongolian Family Federation for World Peace and Unification help to strengthen families and other groups as well. But, in the end, the best fix for social problems and other issues is the provision of an opportunity to obtain job training and to put that training to use on one of the more than 250,000 new job opportunities that will be provided as a result of the development of the ZUFEZ by WWB.

CCOONNCCLLUUSSIIOONN

The ZUFEZ will function not only as a gateway to Northeast Asia, but will be interdependent from the rest of the economies of Mongolia and surrounding nations. Globally, it will be recognized as an international regional headquarters in a safe and predictable business and social environment. In process, regional and local economies will be linked together through the ZUFEZ. The rural economies of Mongolia will become active participants in global businesses and further enhance an open market system in Mongolia. WWB will facilitate the recruiting of many diverse manufacturing plants and major international distributors to the ZUFEZ. The international exposure in Mongolia will create interest of foreign investment and travel to Mongolia. The investment and return will improve road infrastructure, telecommunications, civil aviation, home ownership, education, business

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exhibition services, airport services, travel agents, hotel & casino industry, and many, many others. The road to a stable Mongolia and a new era of strategic partnership with the Unites States, Korea, China, Russia, Japan, Europe and the rest of the world is through the Zamiin Uud Free Economic Zone.

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For Additional Corporate Information, Please Contact: Jack R. Urich, PhD Chairman WinWheel Bullion Holdings, LLC Newport Beach, California 92660 U.S.A. Tel: +1.213.718.2222 E-mail: jurich@winwheelbullion.com

Alex Horbasz Senior Vice President Asia Operations WinWheel Bullion Holdings, LLC Ulaanbaatar, Mongolia Tel: +976.99113791 E-mail: ahorbasz@winwheelbullion.com Dr. S. Otgonbaatar CEO WinWheel Bullion Mongolia Co., Ltd. Ulaanbaatar, Mongolia Tel: +976.99116717 E-mail: winwheelbullion3@hotmail.com