UPDATE
A. a description of the issuer’s business operations:
The Issuer has acquired 74% of SStartrade SA, a Swiss corporation. This Swiss company controls 100% of the shares of
two companies in Russia: one is LLC Gaysky, a steel plant in the Orenburg region; and the other is a gold mining
company, LLC Favorit Centre. Changes in licensing procedures, limit the size of each property for which a license may be
granted to 100 square kilometers (the property in question, known as the Kadara property, is 237.17 square kilometers),
LLC Favorit Centre’s license to conduct geological surveys and to conduct extraction work on a property located in the
Trans-Baikal region of eastern Russia, is now required to be divided into three licenses, all of which are in process. The
license reissue process has been ongoing for nearly one year.
In August, 2018, the State Authority in Russia for subsoil usage advised the Issuer that the reissue of the licences will
take still some time, with no indication on how much time, and therefore what makes state is the original license which
remains current.
The delays in the reissue of the Issuer’s license have brought the company to pursue other opportunities, while the
operations regarding the Kadara concession continue.
For the purpose of strict observance of this License Agreement, and accomplishment of the extraction of
