COAL

Telf AG''s principal partners and suppliers of coal are: LLC "Razrez "Bungurskiy-Severniy", Russia; and JSC "Shubarkol Komir", Kazakhstan.

Telf AG exports coal mainly by sea through Ust-Luga and Riga ports in the Baltics, through Nakhodka and Vostochny ports in the Far-East and through major ports in the Black Sea and Azov sea areas, primarily from Mariupol.

Exports by railway lines include Poland, Ukraine and other Eastern European countries.

Total export volumes in 2010-2012 amounted to 8 million mt, in 2013 Telf AG sold approximately 5 million mt, in 2014, approximately 5.5 million mt.

COAL SPECIFICATIONS

JSC SHUBARKOL-KOMIR

Item	Unit	Brand	Value
Total Moisture	%	AR	13.5
TM-IM	%		6.2
Gross Calorific Value	kcal/Kg	AD	6,590
Net Calorific value	kcal/Kg	AR	5,855
Inherent Moisture	%	AD	7.3
Ash	%	AD	5
Volataile	%	AD	39.1
Fixed Carbon	%	AD	52.4
Fuel Ratio		AD	1.34
Total Sulphur	%	AD	0.51
Grindability	HGI		55
Carbon	%	Dry	72.1
Hydrogen	%	Dry	5.19
Nitrogen	%	Dry	1.79
Oxygen	%	Dry	14.94
Phosphorus	PPM	Dry	0.03
Fluorine	PPM	AD	68
Chlorine	PPM	AD	276

Ash analysis

Item	Unit	Brand	Value
SiO2	%	Dry	48.5
Al2O3	%	Dry	22.3
TiO2	%	Dry	0.84
Fe2O3	%	Dry	9.15
CaO	%	Dry	5.84
MgO	%	Dry	2.48
K2O	%	Dry	1.02
Na2O	%	Dry	1.95
SO3	%	Dry	6.05
P2O5	%	Dry	1.12
Mn3O4	%	Dry	0.1

AFT

Item	Unit	Brand	Value
Initial Deformation	C	(Oxid.)	1260
Hemisphical Deformation	C	(Oxid.)	1300
Flow Deformation	C	(Oxid.)	1330

Sizing

Item	Unit	Brand	Value
<2mm	%		23.2

COAL SPECIFICATIONS

LLC RAZREZ "BUNGURSKIY-SEVERNIY"

Washed coal (Ash 10%)	As Received	Dry Basis	Dry Ash free Basis
Moisture (max) - 10%	-	-	-
Ash (max)	9%	10%	-
Volatiles (max)	15.5%	16%	17%
Total sulphur	0.5%	0.6%	0.6%
Gross calorific value (min)	6900 Kcal/kg	7300 Kcal/kg	8200 Kcal/kg
Net calorific value (min)	6700 Kcal/kg	7100 Kcal/kg	8000 Kcal/kg

LOW ASH UNWASHED COAL SPECIFICATIONS

Unwashed coal (Ash 11%)	As Received	Dry Basis	Dry Ash free Basis
Moisture (max) - 10%	-	-	-
Ash (max)	11%	12%	-
Volatiles (max)	15.5%	16%	17%
Total sulphur	0.5%	0.6%	0.6%
Gross calorific value (min)	6600 Kcal/kg	6900 Kcal/kg	8200 Kcal/kg
Net calorific value (min)	6400 Kcal/kg	6700 Kcal/kg	8000 Kcal/kg

REGULAR ASH COAL SPECIFICATIONS

Unwashed coal (Ash 16%)	As Received	Dry Basis	Dry Ash free Basis
Moisture (max) - 10%	-	-	-
Ash (max)	16%	17.5%	-
Volatiles (max)	15.5%	16%	17%
Total sulphur	0.5%	0.6%	0.6%
Gross calorific value (min)	6150 Kcal/kg	6350 Kcal/kg	8200 Kcal/kg
Net calorific value (min)	6000 Kcal/kg	6200 Kcal/kg	8000 Kcal/kg