ZincOx

completed

ZincOx is the owner and operator of the first zinc oxide recycling plant (KRP – Phase 1) in South Korea which will soon complete its first year of operations and should achieve full production by end of 2013. ZincOx has carried out ten years of research and development (R&D) into reprocessing Electric Arc Furnace Dust (“EAFD”), for zinc and iron recovery. EAFD is a hazardous waste, generated by the scrap-based steel-making in electric arc furnaces. Zinc is widely used in the non-ferrous and steel industry for galvanized coating of steel product, greatly improving corrosion resistance. ZincOx’s approach is also energy efficient with higher zinc and iron recovery than conventional technologies (e.g. Waelz Kiln technology) and produces two specific products without the generation of any waste. The two products are a) a high grade zinc (58-62%) concentrate (HZO) suitable for sale to zinc smelters; b) a low quality intermediary iron (50-58%) product (ZHBI) suitable for sale back to the scrap recyclers that supply the EAFD. Globally, there is 7 million tons per year of EAFD produced of which more than 61% is presently disposed in hazardous landfill site, without any metal recovery.ZincOx’s long-term objective is to scale up its success in Korea as well as own and operate a network of similar recycling plants covering each of the major steel recycling regions in the world. In the coming years, ZincOx is considering replicating the Korean plant in Turkey, Thailand and Russia, where feasibility studies are in process of being commissioned. Feasibility studies will include, among others, securing long-term EAFD supply contracts as a requisite for project implementation. In Thailand and Turkey, industrial land plots have been already secured. Completion of the feasibility studies, including Environmental and Health Assessment (EHA) report, should take approximately from 10 months (Turkey) to up to 20 months (Russia). The scope of IFC investment is to support the pre-operating and research and development expenditures related to the proposed projects in these three countries (the “Project”). As ZincOx has been focusing its financing resources on the construction and operation of its Korean recycling plant, IFC’s support in funding the upcoming projects is vital for the Company and its future expansion plans.