Korea Resources Investment & Development, Inc.

Korea Resources Investment & Development INC.

ceaselessly searches throughout the world to secure overseas mineral and energy resources, which are the foundations of the wealth and economic growth of any nation in the 21st century.

Our company, with the decision that efforts put in towards securing of mineral and energy resources, which are the foundations of the motive power for national growth, would enable our nation and domestic corporations to acquire global competitiveness, is currently pursuing business activities of development of and investment into overseas resources.

Recently, it is the international trend that the countries with abundant natural resources are maximizing their interests by weaponizing their resources. Accordingly, Korea Resources Investment & Development INC. has swiftly taken moves to participate in businesses related to the molybdenum mine in Peru and bituminous coal in Indonesia as well as to pursue exploration and development of mineral resources in other overseas countries to secure the manpower and relevant rights necessary for the development of the overseas resources in order to cope with this current international trend of weaponization of the resources.

The staffs and the executives of Korea Resources Investment & Development INC. have dedicated to and are making our utmost efforts to attain the status of a leading global resources company. Moreover, we shall always bear in mind that Korea Resources Investment & Development INC. would not exist if it were not for our shareholders and investors, and would be grateful for your continued concerns and supports in order for the company to achieve sustained growth in the future.

Resource Development

Molybdenum

Molybdenum trioxide (MoO₃) powder

ㆍAlloying element for key steel products including stainless steel and heat-resistant steel, etc.

ㆍCatalyst in petroleum chemical industry

Molybdenum Alloy

ㆍHigh-temperature structural material used in missile and airplane, etc.

ㆍHigh-temperature electrical material used in filament support, electric furnace and electrode

Domestic consumption of molybdenum used for a wide range of applications in Korea is approximately 20,000 tons per annum, most of which rely on importation. In particular, its export is being strictly regulated in line with the policy of China on regulation of rare earth resources in recent years. Accordingly, Korea is having difficulties in securing a stable supply of molybdenum.

Therefore, our company is concurrently pursuing overseas mine development projects and processing business in Korea for molybdenum, a mineral that plays the role of salt for a wide range of key industries at home and abroad.

Currently, our company is making direct purchases at the overseas mining sites and processing them in Korea to supply them to our customers in Korea. Moreover, we are pursuing direct development of the molybdenum mine in the Janchiscocha mining district in Peru. If we were able to manufacture the processed molybdenum products in full scale through the development of the local mines in Peru, we would not only be able to supply molybdenum at more competitive prices but also increasingly expand our market shares at home and abroad.

Bituminous coal

Coal and which are the fundamental motive power of modern industry, is at the summit of the hierarchy of all resources in their applicability and are essential resources that the modern industries cannot do without.The coal industry is the area of the natural resource that our company has observed closely with the greatest interest since we commenced our resources development business in earnest in 2009.

A total of 7 billion tons of coal has been produced throughout the world annually since 2009 with China accounting for the largest proportion with annual production of more than 3 billion tons. The domestic annual consumption of coal in Korea is in the range of 2~4 million tons.

We have a particular interest in the bituminous coal among numerous categories of coals and we acquired PT.TUC in Feburary 2014 which have been executing contractor works such as coal getting and overburden at the MPP bituminous coal mine in the Kalimantan district of Indonesia, which is one of the foremost countries with an abundance of natural resources.

MPP mine is currently being operated by the LG International (one of the largest corporation for developing resources in KOREA). It is a high caliber mine with production volume of approximately 3 million tons in 2013. Through our equity in PT.TUC, our company's profitability will be greatly improved and we will have established a bridgehead to secure bituminous coal in Indonesia.

Copper

Copper is one of the metals that human beings are most familiar with as it had been closely related to our livelihood and lifestyle from the time immortal. It is used most widely in overall aspects of diverse industries including various metal industries and electrical industry due to its outstanding malleability and ductility.

The total annual consumption of copper throughout the world is approximately 20 million tons with China consuming the largest proportion of this at approximately 9 million tons per annum. The annual consumption of copper in Korea is approximately 720,000 tons. The consumption of copper has shown a trend of continued increase over the last 5 years and copper is a mineral for which stable demand is guaranteed in the future due to its close relationship with industries and the essential properties only of copper.

Our company has been making investments in and developing the Musoshi Mine in the Democratic Republic of Congo with continued interest in copper since the end of 2009. Given the characteristics of the Musoshi Mine, which used to be an operating mine in the past, sufficient reserve is guaranteed. It will provide a new momentum to our resources development business upon completion of the development of this mine.


Rare earth resources

Mongolia is one of the 7 major countries with abundant natural resources in the world with approximately 31 million tons of rare earth resources, which accounts for approximately 16% of the worldwide rare earth resources reserves.

We are swiftly taking measures in Mongolia in preparations for the forecast increase in the price of rare earth resources expectedly due to the reduction in the quantities mined, thereby resulting in inadequate supply, by China.

Having entered into and executed agreement for exploration and development of mineral resources in Mongolia with the Korea Institute of Geoscience and Mineral Resources (KIGAM), a research institute under the umbrella of the Ministry of Trade, Industry and Energy, we shall secure the rare earth resources in Mongolia.

Furthermore, we shall put more efforts to start trading of the rare earth resources through China, Kyrgyzstan and Russia that we are currently executing and reviewing.

Manganese

Manganese (Mn) is an essential resource for the steel industry with 90% of the total production infused into this industry.

A total of 35 million tons of manganese was mined in 2012 and China consumed the largest proportion with the total consumption that included the 12.4 million tons imported in 2012 in addition to the manganese mined within China (4 million tons in 2011).

The petroleum reserve that played the major role in economic growth of Gabon, a country in the Central Africa with abundant natural resources, is estimated to last only for another 20 years. Accordingly, the Gabon government, being confronted with the reality of depletion of its petroleum resource, is aiming to put the focus on other resources development products with the manganese mining, which was confirmed to have the potential capacity to produce 5.7 million tons per annum (the 4th in the world in 2013) is receiving highlight as the new bridge head of economy of Gabon, which is aiming to increase the annual production capacity to the rank of 1st in the world.

Korea Resources Investment & Development INC. is a shareholder of BHK Resources INC.. which is currentlyexecuting the manganese development project in Gabon under the name of “Ndjole Project" with an investment of ＄1.5 million thus far (completed the initial drilling exploration). We, through the BHK Resources, will be fully prepared to commence full-scale production of manganese by pursuing additional explorations and development within the next 2~3 years.