Business proposal Isotope Osmium-187

Prepared by JSC “Progress-88” Ltd.

2/18-21 Kolokolnaya str. Saint-Petersburg RUSSIA, 191025 Tel: +7 (812) 712-3219 Fax: +7 (812) 764-0472 progress-88@mail.ru www.progress88.com

2012

Dear Sirs! ZAO "Progress-88' was founded in 1995 within "The Fund of Presidential Programs". The goal posed before the Company was to produce pure and extra pure materials of the rare elements group. The survey works and works execution have become the main activity of the Company. Under the unique technological scheme of processing we have made of the available certificated raw material Os 187 in quantity more than 3 kg, having high isotope - 99,54 % and chemical - more than 99,98 % cleanliness that is confirmed by certification in IGAS Research laboratory No. 0000135 - 27.04.2010. Stable isotope Os 187 owing to its very small prevalence and high cost can be used as an opportunity of an output on the advanced boundaries of development of technologies and as the mortgage in foreign banks. Os 187 it is used in the military purposes, in the space industry, in high technologies, in creation of solid-state lasers, devices of exact prompting, the chemical industry, etc. One of perspective directions of use Os 187 - is use in medical diagnostics, treatment of ontological diseases and creation of medicines. At present time our company cooperates with world famous English University of Warwick in which the group of scientists of England and Scotland (Dr. Abraha Habtemariam, Dr. Ana M. Pizarro, Dr. Arindam Mukherjee, Dr. Pieter C. A. Bruijnincx, Dr. Nicky J. Farrer) under direction of professor Peter Sadlera (Peter J. Sadler) is engaged in studying of metals in medicine. Our company has given Os 187 to this group of scientists for its use in several projects, such as use Os 187 in biomolecules (DNA and a protein), researches by means of a nuclear magnetic resonance, etc. "Progress-88" has got all the necessary licenses for the execution of operations with precious metals. The documents include the Certificate of the special registration SZGIPN No. 0140004954 issued 05.03.2010 and the letter from the State Guard of Russia of the Finance Ministry of the Russian Federation No.3210.104.186\803 from the 15th March 2002 allowing stable osmium isotope Os 187, produced by the company, realization in domestic and foreign markets. The manufacturer: ZAO "Progress-88" confirms: presence in a warehouse of potassium osmate with stable isotope Os 187 with isotope concentration not less than 99,54 %, made in territory of the Russian Federation.

Product Quantity, in gram

Chemical purity, in %

Isotope concentration,

in %

Content OS 187,

in % OS 187 (potassium

osmate) 3378,83 99,9855 99,54 52

The above-stated goods is not under the mortgage or arrest. In connection with above stated ZAO "Progress-88" suggests you to consider following variants of cooperation with us:

• to get available potassium osmate on a contractual price and to conclude the contract on the further delivery of potassium osmate in the quantities, interesting you;

• to get as the mortgage with a contractual price under delivery of the credit; • could be considered and other variants of cooperation.

Regards, General Director of ZAO “Progress-88” Krylova E.P.

Appendix 1

Cost estimating issued in Germany.

Appendix 2

Certificate of Analysis (isotopic purity) issued by IGAS Research.

Appendix 3

Certificate of Analysis (chemical purity) issued by IGAS Research.

Appendix 4

Packing list of the material.

Appendix 5

Certificate of State Registration.

Appendix 5 Sequel

Certificate of State Registration (translation).

Appendix 6

Certificate of registering a legal entity with tax authorities.

Appendix 6 Sequel

Form # 1-1-registration

Seal FEDERAL TAXATION AUTHORITY

CERTIFICATE

On tax registration in the tax authority of the Russian legal entity at its location within the territory of the Russian Federation

The present certificate confirms that the Russian legal entity Closed Joint – Stock Company “Progress-88”

(full name according to the foundational documents)

OGRN 1027809171840

is registered in accordance with the articles of the Tax Code of the Russian Federation 01, July, 2003 (day, month, year)

in the tax authority at the location of the Interdistrict Tax Inspection of the Federal Taxation Authority No. 9 in Saint-Petersburg

7840(name of the tax authority and its code)

and serialization of the Identification Number of the Tax-payer INT 7825055243 the code of registration purpose CRP 784001001

The certificate is subject to replacement in case of the said information change.

Deputy Head of the Tax Inspection signature N.A. Pavlova Seal

Federal Tax Authority of Russia Interdistrict Inspection of the Federal Tax Authority # 9 Saint-Petersburg

Series 78 No. 006512550

Certificate of registering a legal entity with tax authorities (translation).

Appendix 7

Certificate of special registry with North Western State Inspection of Assaying Monitoring Department of the Russian State Assaying Department.

Appendix 7 Sequel

Ministry of Finance of the Russian Federation Russian State Assay Office CERTIFICATE on the Special Registration

The 5th March 2010 No.0140004954 According to the Federal Law "On Precious Metals and Precious Stones” Closed Joint Stock Society Full name of the legal entity, its territorial separate subdivision with indication

23189158 Code OKPO

"Proress-88" 49013of the head Organization or the full name of the individual entrepreneur

Code OKOGU

16 Code OKFS

ZAO "Prooress-88" 67Short name of the legal entity, its territorial separate subdivision

Code OKOPF

191025, St.Petersburg, Kolokolnaya str., bld.2/18. office 20 Location address of the legal entity. registration address of the individual entrepreneur

40298566 Code OKATO

The addresses are mentioned in the Card of the Special reqistration Address of the factory or of the territorial separate subdivision

Specially registered in North-Western state inspection of the assay control of the Russian State Assay Office as the legal entity Legal entity, legal entity in territorial separate subdivision, individual entrepreneur Operating with precious metals and precious stones. The Certificate is valid until the 5th March 2010 Issued first time The Card of the special registration in the state inspection of the assay control of the Russian state assay office, containing the data on the specially registered object including activity data, is attached to the Certificate. The Certificate should be replaced in case of the reorganization of the registered object and/or of change of the data given in it. Head of the North-Western State Inspection of the Assay Controlsignature (N.N.Tambovtsev)

Certificate of special registry with North Western State Inspection of Assaying Monitoring Department of the Russian State Assaying Department (translation).

Appendix 8

Letter from State Depository for Precious Metals of the Ministry of Finances of the Russian Federation.

Appendix 8 Sequel

Letter from State Depository for Precious Metals of the Ministry of Finances of the Russian Federation (translation).

Appendix 9

Letter by Ministry of Economic Development and Commerce of the Russian Federation.

Appendix 9 Sequel

State emblem MINISTRY OF ECONOMIC DEVELOPMENT

AND COMMERCE To General Director

of the RUSSIAN FEDERATION of JSC “Progress-88”, Ltd. (MINECONOMDEVELOPMENT OF RUSSIA)

1st Tverskaya-Yamskaya str.,1,3, Moscow Krylova E. P. GSP-3, A-47 125993 Kolokolnaya str., 2/18, office

20 Tel. (495) 694-03-53, Fax (495) 251-69-65 Saint-Petersburg, 191025

E-mail: mineconom@economy.gov.ru OKPO 00083204, OGRN 1027700575385

INT/KPP 7710349494/771001001 April, 08, 2008 No. D12-1485

To No. of ________

The department of State regulation of foreign economic activity of Russian Mineconomdevelopment has considered Your appeal dated April, 02, 2008 No. 08 concerning the necessity to obtain a license on exporting potassium osmate salts on the base of stable isotope osmium 187 from the Russian Federation and within the limits of competence informs you of the following. The clause on the order of radioactive substances and products on their base export from the Russian Federation, approved by the Government of the Russian Federation resolution No. 291 of the 16th March 1996, does not apply to the products that belong to the subgroup 2845 90 9000 0 TN VED of Russia. In view of the aforesaid, non-tariff regulation (licensing) measures from Mineconomdevelopment of Russia do not apply to the products, classified by code 2845 90 900 0 TN VED of Russia. At the same time let us note that in conformity with the clauses of the article 40 of the Customs Code of the Russian Federation, the classification code of commodities in accordance with the Foreign Economic Commodity Nomenclature is determined upon declaring the commodities with Customs authorities. In case an infringement of the commodity classification regulations upon declaring arises, the Customs authorities are entitled to carry out the classification of the commodities independently.

Deputy Director of the Department of State regulation of the Foreign Commerce Signature Zingman V.Ya.

I.N. Bibnev 950 97 85

Letter by Ministry of Economic Development and Commerce of the Russian

Federation (translation).

Appendix 10

Certificate by the Export Control Centre “ExCont” (Page 1 of 4).

Appendix 10 Sequel

Certificate by the Export Control Centre “ExCont” (Page 2 of 4).

Appendix 10 Sequel

Certificate by the Export Control Centre “ExCont” (Page 3 of 4).

Appendix 10 Sequel

Certificate by the Export Control Centre “ExCont” (Page 4 of 4).

Appendix 10 Sequel

Centre of industry development projects

System of export control identification

System “ExCont” ®

194044, Saint-Petersburg, Krapivny pereulok 5, Tel (812) 303 9976, Fax (812) 380 1674, http://www.excont.ru

Special permit by the Commission on Export Control of the Russian Federation on realization of independent identification commodities and technologies expertise activities performance for exporting control purpose concerning products under all controlled lists,

Minutes # 1 of the 11th January 2002, registered under #1 by Mineconomdevelopment of the RF of January 21, 2002

CERTIFICATE # 001/1344-03 by the independent identification commodity (technology) expertise for export control purpose in 4 sheets

The certificate is valid only for particular commodities,

exported within the bounds of foreign economic dealership Period of certificate validity till the 10th July 2003

I. INTRODUCTORY PART

1.1. Expertise Customer: JSC “Progress-88”, Ltd., Russia, 191025, Saint-Petersburg, Nikolskaya pl., 6, ap.39,

tel.: 112-32-19, fax: 164-18-07 1.2. Agreement on expertise realization # 03/455, application #03/455-01 of the 9th April 2003 1.3. Expertise description: initial 1.4. Prepared by an expert: Kozyreva E.V. 1.5. Data on foreign economic dealing 1.5.1. Number and date of the contract: Contract # 05-S of the 31st March 2003 1.5.2. Delivery destination country: Switzerland 1.5.3. Russian participant of foreign economic dealing: JSC “Progress-88”, Ltd., Russia, 191025, Saint-Petersburg, Nikolskaya pl., 6,

ap. 39. 1.5.4. Foreign participant of foreign economic dealing: HAMAX HandelsgesmbH, Austria, Singerstrasse, 4/13, A-1010, Vienna. 1.6. List of documents, submitted by the Expertise Customer:

Document type Issued by Headline or brief contents Number and date Contract JSC “Progress-88”

HAMAXHandelsgesmbH Foreign trade contract 05-S

March 31, 2003 Certificate FGUP GNIPIRMP “Giredmet” Isotopic and impurities

composition of potassium osmate powder on the base of isotope 187 Os composition , batch #1, order # 86-03, 253-03

Serial number 10600.03 February 13, 2003

Specification JSC “Progress-88”

Specification of exported through the customs border commodity

Without number

Testing report MS & GC Lab Report on impurities and isotopic composition testing

10600.03 February, 13, 2003

1.7. List of commodity samples, submitted by the Expertise Customer: commodity samples were not submitted 1.8. Expert’s application for submitting additional materials: applications for submitting additional materials were not sent in 1.9. List of documents produced or entered during the expertise:

Document type Issued by Headline or brief contents Number and date Statement JSC “CPRP” Statement on expertise object

visual identification 10600.03 April, 10, 2003

1.10. Issues raised by the Expertise Customer for supplementary considering during the identification expertise: no issues were raised

Notice: only the original certificate signed and sealed is valid sheet 1

Approved

General director Signature

Kirakozov S. N. April 10, 203

Certificate by the Export Control Centre “ExCont” (translation) (Page 1 of 4).

Appendix 10 Sequel

Centre of industry development projects Certificate # 001/1344-03 April, 04, 2003 II. RESEARCH PART

2.1. Techniques and methods applied in expertise: in conformity with “ExCont” system systematic documents. 2.2. Expertise objects specification:

## Commodity name, as in document clause 1.5.1

Name by commodity manufacturer

Manufacturer (creator)

Unit Quantity

1 Potassium osmate salt Potassium osmate on the base of isotope 187Os,K2OsO4*2H2O

Not named in the documentation submitted

g 200

2.3. Identification objects expertise. 2.3.1. Object # 1 (numbering according to Table 2.1.) Potassium osmate salt.

2.3.1.1. Expertise objects technical description: as a result of visual examination the commodity is determined to be a powder of dark red colour contained in 10 glass flasks. In accordance with the Certificate # 10600.03 of February,13,2003, issued by FGUP GNIPIRMP “Giredmet”, potassium osmate on the base of isotope 187Os content is 99,98%, total impurities content is no more 0,02%, stable isotope 187Os content is 99,56%. Specific radioactivity of the commodity batch is no more than 1·10‾‾ 11 Cu/g. By its chemical composition, the expertise object is potassium osmate salt: potassium tetrahydroxodioxoosmate (VI), corresponding to the formula K2OsO4*2H2O. Potassium osmate is used for obtaining osmium 187Os. Consequently, the expertise object is an inorganic compound of definite chemical composition: potassium salt of osmic acid, a precious metal osmium with natural content of isotopes is substituted in the said compound by stable 187Os isotope. In notes 1a and 1b to section VI TN VED the following is indicated: 1a. Commodities (different from radioactive ores) corresponding to commodity item 2844 or 2845 description, have to be included into the said commodity items and not into any other commodity items of the Nomenclature. 1b. On conditions that regulations of the note 1a are kept within, corresponding to commodity items 2843 or 2846 descriptions, goods have to be included into the said commodity items and not into any other commodity items of the present section. Thus, the compound of precious metal stable isotope should be classified as commodity item 2845 TN VED, otherwise the regulations of note 1a to section VI are not followed. Reference: The content of isotope Os 187 in natural osmium is 1, 6 %. Isotope Os 187 is applied in NMR (nuclear magnetic resonance – a method of qualitative and quantitative analysis of different substances, based on selective interaction of electromagnetic field with a system of nuclear magnetic moments of a substance). 2.3.1.2. Code TN VED of Russia, used for exporting control purpose: 2845 90 9000 Isotopes, except isotopes of commodity item 2844; organic and inorganic compounds of the isotopes, definite or indefinite chemical composition; other; other. 2.3.1.3. Analysis of object belonging to commodities (technologies), included into the check-lists; 2.3.1.3.1. List of commodity items on check-lists where the code TN VED 2845 90 9000 is indicated: “List of chemicals, equipment and technologies, which can be used at making chemical weapons and in relation to which the export control is established”, Appendix 3 to Order GTK RF # 315 of May 23, 1996 (redaction of August 12, 2002) Section I. CHEMICALS, INCLUDED INTO THE LIST 1 OF THE APPENDIX ON CHEMICALS TO THE CONVENTION ON CHEMICAL WEAPONS CREATION, PRODUCTION, ACCUMULATION AND APPLICATION PROHIBITION AND DESTRUCTION OF THEM. 1.3. Toxic chemicals and precursors, indicated in commodity items 1.1-1.2.4, marked by radioactive or stable isotopes. Section 2. CHEMICALS, INCLUDED INTO THE LIST 2 OF THE APPENDIX ON CEMICALS TO THE CONVENTION ON CHEMICAL WEAPONS CREATION, PRODUCTION, ACCUMULATION AND APPLICATION PROHIBITION AND DESTRUCTION OF THEM. 2.3. Toxic chemicals and precursors, indicated in commodity items 2.1-2.2.11, marked by radioactive or stable isotopes. Section 3. CHEMICALS, INCLUDED INTO THE LIST 3 OF THE APPENDIX ON CEMICALS TO THE CONVENTION ON CHEMICAL WEAPONS CREATION, PRODUCTION, ACCUMULATION AND APPLICATION PROHIBITION AND DESTRUCTION OF THEM. 3.3. Toxic chemicals and precursors, indicated in commodity items 3.1-3.2.13, marked by radioactive or stable isotopes. Section 4. CHEMICALS FOR PEACEFUL PURPOSE BUT CAN BE USED AT CHEMICAL WEAPONS CREATION Notice: only the original certificate signed and sealed is valid signature sheet 2

Certificate by the Export Control Centre “ExCont” (translation) (Page 2 of 4).

Appendix 10 Sequel Centre of industry development projects Certificate # 001/1344-03 April, 04, 2003 4.2. Precursors, indicated in items 4.1.1-4.1.20, marked by radioactive or stable isotopes. “List of equipment and materials of dual purpose and corresponding technologies, used for nuclear purposes, export of which is controlled”. Appendix 5 to the Order GTK RF # 315 of May 23, 1996 (redaction of August 12, 2002) Section 2. Materials and corresponding technologies 2.4. Boron and its compounds, mixtures and materials saturated with it, the content of isotope boron-10 in which is more than 20% by

weight of total boron content

2.10. Lithium, concentrated with isotope 6 (6Li) more than 7, 5 atomic percent; alloys, compounds or mixtures, containing lithium, concentrated with isotope 6, as well as products or devices, containing any of the above-listed except thermoluminescent dosimeters.

Section 8. Other equipment, materials and corresponding technologies

8.3. Tritium, its compounds and mixtures, containing tritium, with its share in total atoms of hydrogen more than 1 to 1000, as well as products or devices, containing them.

8.6. Helium-3 or helium, concentrated with isotope helium-3, mixtures, containing helium-3, and products or devices, containing them.

2.3.1.3.2. List of the check-lists items, containing description of the objects, homogeneous to the expertise objects. Descriptions of the objects, homogeneous to the expertise objects, are not on the check-lists.

Analysis of the revealed descriptions of export control objects for the purpose of expertise object’s belonging to them:

Potassium osmate on the base of isotope 187 Os, potassium tetrahydroxoosmate (VI), corresponding to the formula K2OsO4*2H2O, is used for obtaining osmium187 Os and by its chemical composition is not:

Either toxic chemical or precursor, marked by radioactive or stable isotopes (clauses 1.3, 2.3, 3.3, 4.2 of “The list of chemicals, equipment and technologies, that can be used at creating chemical weapons and are under the export control”);

Boron (B), Lithium (Li), Tritium (3H), Helium (He) or the compounds of the said substances (clauses 2.4, 2.10, 8.3, 8.6 “The list of equipment and materials of dual purpose and corresponding technologies, used for nuclear purposes that are under the export control”).

2.3.1.4. Conclusion: Technical description of the expertise commodity is not on the check-lists.

2.4. Invariable identification features of expertise objects to use for checking the conformity of the submitted commodity with the expertise object:

Commodity appearance:

Picture of the flasks containing the product

Notice: only the original certificate signed and sealed is valid signature sheet 3

Certificate by the Export Control Centre “ExCont” (translation) (Page 3 of 4).

Appendix 10 Sequel

Centre of industry development projects Certificate # 001/1344-03 April, 04, 2003

Sample marking

Picture of the marked flask with the text in English on it

Batch #9

N.W. 187Os 10.40 g

The probe was tested by MS&GC Lab

Certificate # 10600.03 13 February 2003

III. CONCLUSIONS 3.1. The certificate on expertise object belonging to the commodities (technologies), included into the check-lists,

approved by the President’s of the Russian Federation decrees:

As a result of special expertise it is established that technical description of the commodity (potassium osmate on the base of isotope Os187, K2OsO4*2H2O) is NOT ON THE CONTROLLED LISTS.

Expert Signature Kozyreva E.V.

Head of experts group Signature Emelin O.N.

Notice: only the original certificate signed and sealed is valid signature sheet 4

Certificate by the Export Control Centre “ExCont” (translation) (Page 4 of 4).