kom natural mineral water presentation & export price quotation 2012

Etap Adress JSCVasil Levski Boulevard, № 138 1504, Sofia / BULGARIA www.kom.bgTelephone: +359 (02) 945 39 99 [email protected] : +359 (02) 945 39 39 [email protected]

ABOUT KOM

The natural mineral water “KOM” is obtained from water field – Exploitation well № 1, village of Barzia, District of Montana, Bulgaria. The capacity of water field Exploitation well № 1, village of Barzia, Berkovitsa municipality, District of Montana is as follows: total annual exploitation resource in the volume of 21 600 cub.m mineral water with daily flow rate of 1 L/sec. and peak flow rate of 2.5 L /sec. for 250 days, but not less than 12 600 cub. m mineral water. The capacity is not influenced by the season.

The mineral water is of atmospheric infiltration origin. The charging area of the mineral water deposit is located along the ridge of the Balkan Mountain Range between the Todorini Kukli and the Com Peaks, depending on the atmospheric rainfalls. The Barzija mineral water is clear, colourless, with a temperature of 32 °C at a depth of 425 m. The total mineralization of the water is 0.260 mg/l, being characterized as hypothermal, alkaline (pH 9.1), hydrocarbonate-sulphate-sodium, fluoric (2 mg/l) and silicon (H2SiO3 – 99 mg/l).

The mineral water therapeutic and prophylactic properties are established by its hypotonic activity and by the presence of hydrocarbonate, sulphate, sodium and fluoric ions. The balneotherapy with this water has effect upon the following diseases: renal-urological (kidney-calculus disease, chronic pyelonephritis), gastrointestinal (chronic gastritis, ulcer, enterocolitis), biliary-liver (biliary-calculus disease, chronic hepatitis, post-operative conditions, etc.) and metabolitic-endocrinal (gout, diabetes, obesity). The water quality and composition is evidenced with Certificate 17 / 26.05.2006 issued by the Ministry of Health.

Composition

1. Anions Mg/l Mmol/l eq%F 2.0 0.105 3.76Cl 1.3 0.038 1.36Br - - -J - - -SO4 48.5 0.505 36.05CO3 36.0 0.600 42.83HCO3 24.4 0.400 14.28HSiO3 3.7 0.049 1.73HS - - -NO3 0.0 0.000 0.00NO2 0.00 0.000 0.00HPO4 - - -TOTAL: 116.0 1.697 100.00

Dry residue at 180ºC 0.233 g/lDry residue at 260ºC 0.224 g/lElectric conductivity: 257 μS/cmPH: 9.19


Cations

Cations Mg/l Mmol/l eq%NH4 0.0 0.000 0.00Li <0.02 0.000 0.00Na 69.4 2.662 95.00K 1.18 0.030 1.08Ca 1.8 0.045 3.21Mg 0.2 0.010 0.71Fe <0.03 0.000 0.00Mn <0.002 0.000 0.00TOTAL: 72.6 2.747 100.00

H2SiO3 71.7 MG/LMineralization 260.340 mg/lCarbon dioxide 0.0 mg/lHydrogen sulphide 0.175 mg/lFlow rate: 5.00 l/secTemperature: 31.0ºC

Appearance: the water was found to be clear, colourless, without sediments having a hydrogen sulphide odour.

Micro components (mg/l)Arsenic <0.012 Lead <0.003Antimony <0.001 Selenium <0.001Cadmium <0.0004 Mercury <0.0005Chromium <0.005 Manganese <0.002Copper <0.005 Barium <0.009Nickel <0.002 Boron <0.05

Cyanides <0.005

These data are according to Protocol No. 5 dated 2 May 2006, issued by the Chemical Laboratory for Mineral Water Analysis at the National Specialized Hospital for Physical Therapy and Rehabilitation EAD, Sofia.

Radiological parametersTotal -activity <0.02 Bq/lTotal -activity 0.04 0.01 Bq/lRadium226 < 30 mBq/lTritium < 2 Bq/lNatural uranium < 0.008 mg/lRadon 27 3 Bq/l

These data are according to Protocol No.176 dated 27 March 2006, issued by an Accredited Laboratory at LAD Directorate of the Environment Protection Executive Agency.

Microbiological parametersTotal count of mesophylic aerobes at 20±2ºC for 72 hours 10 CFU/cm2Total count of mesophylic aerobes at 37±1ºC for 24 hours 10 CFU/cm2Coliforms at 37ºC 0/250 cm3Esherihia coli at 44±0.5ºC 0/250 cm3Enterococci (faecal Streptococci) 0/250 cm3Sulphite-reducing clostrides 0/250 cm3Pseudomonas aeruginosis 0/250 cm3


The finished products are offered in the packaging below :

120 ml.200 ml.330 ml.500 ml.1.5 lt.2 lt.3 lt.5 lt.8 lt.10 lt.19 lt.


Dear Sir/Madam,

We have the pleasure to inform you as follows:

1.Our natural mineral water product range is composed of;

0,12 lt. and 0.20 lt. PET Cups0,33 lt. / 0,5 lt. / 1,5 lt. / 2 lt. / 3 lt. / 5 lt. / 8 lt. and 10 lt. PET Bottle

2.The water that we are bottling is natural mineral water (see the Certificate) without any flavoring agents.

3.Concerning the change of the name from "KOM" to another one which is suitable for your country or company, please only indicate the language, brand name, text and details you wish to be on the label.

4.We can also send you some samples so that you could compare standards.

Looking forward for a fruitful collaboration,

Yours Faithfully,

Mr. Töre BAYRAMBusiness Development Manager


11.01.2012

PRICE QUOTATION1101012/1

Dear Sir/Madam,

We hereby have the pleasure to submit to you our price quotation for the supply of natural mineral water produced from 425 m depth. To this date, the capacity of the factory is 30 000 cubic meters annually. Shipment will be carried out by 20 or 40 feet dry/high cube containers, on FOB Varna (20” or 40” Container) and FOB Sofia (Truck) terms.

QUOTATION FOR MINERAL WATER

120 ml. PET CUP

20" Container

Quantity Price/Cup (120 ml PET cup) Cups/Box Boxes/Pallet Pallets/20"Container Cups/20"Container

1-10 x 20" Containers/Month 0,050 € 80 64 11 56 320



40" Container





Truck (13.6 m.)

Quantity Price/Cup (120 ml PET cup) Cups/Box Boxes/Pallet Pallets/Truck Cups/Truck

1-10 x Truck/Month 0,050 € 80 64 32 163 840

11-20 x Truck/Month 0,045 € 80 64 32 163 840

21-50 x Truck/Month 0,040 € 80 64 32 163 840

200 ml. PET CUP

20" Container





40" Container





Truck (13.6 m.)

Quantity Price/Cup (200 ml PET cup) Cups/Box Boxes/Pallet Pallets/Truck Cups/Truck

1-10 x Truck/Month 0,060 € 60 56 32 107 520

11-20 x Truck/Month 0,055 € 60 56 32 107 520

21-50 x Truck/Month 0,050 € 60 56 32 107 520


330 ml. PET Bottle

20" Container

Quantity Price/Bottle (330 ml. PET Bottle) Bottles/Shrink Shrinks/Pallet Pallets/20"Container Bottles/20"Container




40" Container 12

Quantity Price/Bottle (330 ml. PET Bottle) Bottles/Shrink Shrinks/pallet Pallets/40" Container Bottles/40"Container




Truck (13.6 m.)

Quantity Price/Bottle (330 ml. PET Bottle) Bottles/Shrink Shrinks/pallet Pallets/Truck Bottles/Truck

1-10 x Truck/Month 0,100 € 12 171 32 65 664

11-20 x Truck/Month 0,095 € 12 171 32 65 664

21-50 x Truck/Month 0,090 € 12 171 32 65 664

500 ml. PET Bottle

20" Container





40" Container





Truck (13.6 m.)

Quantity Price/Bottle (500 ml. PET Bottle) Bottles/Shrink Shrinks/pallet Pallets/Truck Bottles/Truck

1-10 x Truck/Month 0,110 € 12 114 32 43 776

11-20 x Truck/Month 0,105 € 12 114 32 43 776

21-50 x Truck/Month 0,100 € 12 114 32 43 776


1,5 lt. PET Bottle

20" Container

Quantity Price/Bottle (1,5 lt. PET Bottle) Bottles/Shrink Shrinks/pallet Pallets/20" Container Bottles/20"Container




40" Container

Quantity Price/Bottle (1,5 lt. PET Bottle) Bottles/Shrink Shrinks/pallet Pallets/40" Container Bottles/40"Container




Truck (13.6 m.)

Quantity Price/Bottle (1,5 lt. PET Bottle) Bottles/Shrink Shrinks/pallet Pallets/Truck Bottles/Truck

1-10 x Truck/Month 0,160 € 6 76 32 14 592

11-20 x Truck/Month 0,155 € 6 76 32 14 592

21-50 x Truck/Month 0,150 € 6 76 32 14 592

2 lt. PET Bottle

20" Container

Quantity Price/Bottle (2 lt. PET Bottle) Bottles/Shrink Shrinks/pallet Pallets/20" Container Bottles/20"Container




40" Container

Quantity Price/Bottle (2 lt. PET Bottle) Bottles/Shrink Shrinks/pallet Pallets/40" Container Bottles/40"Container




Truck (13.6 m.)

Quantity Price/Bottle (2 lt. PET Bottle) Bottles/Shrink Shrinks/pallet Pallets/Truck Bottles/Truck

1-10 x Truck/Month 0,210 € 6 64 30 11 520

11-20 x Truck/Month 0,205 € 6 64 30 11 520

21-50 x Truck/Month 0,200 € 6 64 30 11 520


3 lt. PET Bottle

20" Container

Quantity Price/Bottle (3 lt. PET Bottle) Bottles/Shrink Bottles/pallet Pallets/20" Container Bottles/20"Container

1-10 x 20" Containers/Month 0,360 € N/A 270 11 2 970



40" Container





Truck (13.6 m.)

Quantity Price/Bottle (3 lt. PET Bottle) Bottles/Shrink Bottles/pallet Pallets/Truck Bottles/Truck

1-10 x Truck/Month 0,360 € N/A 216 32 6 912

11-20 x Truck/Month 0,355 € N/A 216 32 6 912

21-50 x Truck/Month 0,350 € N/A 216 32 6 912

5 lt. PET Bottle

20" Container





40" Container





Truck (13.6 m.)


1-10 x Truck/Month 0,460 € N/A 120 32 3 840

11-20 x Truck/Month 0,455 € N/A 120 32 3 840

21-50 x Truck/Month 0,450 € N/A 120 32 3 840


8 lt. PET Bottle

20" Container





40" Container





Truck (13.6 m.)


1-10 x Truck/Month 0,710 € N/A 72 32 2 304

11-20 x Truck/Month 0,705 € N/A 72 32 2 304

21-50 x Truck/Month 0,700 € N/A 72 32 2 304

10 lt. PET Bottle

20" Container





40" Container





Truck (13.6 m.)


1-10 x Truck/Month 0,810 € N/A 72 32 2 304

11-20 x Truck/Month 0,805 € N/A 72 32 2 304

21-50 x Truck/Month 0,800 € N/A 72 32 2 304

Payment : T/T or Irrevocable Letter of Credit opened in our favor to Municipal Bank PLC (Bulgaria), Sofia

Term of delivery : FOB VARNA (20” Dry or 40” Dry Container) FOB SOFIA (Full Truck)

Validity : 3 (three) months as of date of offer

We would like to draw your attention to the fact that the bottling factory is completely new. Bottling will be carried out inthe village of Barzia, municipality of Berkovitza, district of Montana, ecologically clean region within a radius of 100 km, without industrial or any other pollutants. The facility is equipped with brand new machines and installations commissioned on April 1, 2007.

It will be an honor and a pleasure for us to reach an Agreement with your honorable company and continue a successful and beneficial business in the future.


Your prompt reply to our price quotation will be highly appreciated and will give us opportunity to accept your order and proceed to do the shipments.

Awaiting your reply,

Yours Faithfully,

Mr. Töre BAYRAMBusiness Development Manager

PS. : For further information please contact us through;

Vasil Levski Boulevard, № 138, 1504 Grad Sofia - BULGARIATelephone :+359 (02) 945 39 99Fax :+359 (02) 945 39 39Mobile :+359 (87) 910 25 83


Translation from Bulgarian

THE MINISTRY OF HEALTH

CERTIFICATE

No. 17

Dated December 21, 2010

This is to certify that the natural mineral water yielded from water intake facility“Borehole Nr. 1”

Mineral water field “Barzia”, Barzia village, Berkovitsa Municipality, Montana District has the following:

A. Geological and hydrologic characteristics

Forming environment of the mineral waterThe forming environment of Barzia mineral water field are the cracked and tectonic modified granodiorites of

Petrohan pluton (PeγδPz2) that belongs to Stara Planina granodiorite-granite formation.The pluton consists of several rock varieties: coarse-grained gabbro and gabbrodiorites (PeγδPz2) – (Addition

I), medium-grained diorites (PeγδPz2) – (Addition II), and medium-grained granodiorites (PeγδPz2) – (Addition III). The intrusive body contains dykes of acid and moderately acid composition, consisting of porphyritic granite (γPz2), aplites and pegmatites (ixPz2), and diorite porphyry (δPz2).

Field supplyThe mineral water is of infiltration origin. The feeding area of the mineral water field is the ridge parts of Stara

Planina Mountain between Todorini Kukli peak and Kom peak, as the feeding is at the account of the atmospheric rain/snow-falls.

Mineral water collector

The mineral water collector at Barzia mineral water field are the rocks of Petrohan pluton - coarse-grained gabbro and gabbrodiorites (PeγδPz2), medium-grained diorites (PeγδPz2), medium-grained granodiorites (PeγδPz2), porphyritic granite (γPz2), aplites and pegmatites (ixPz2), and diorite porphyry (δPz2), that are distributed over a wide area in the region.

The mineral water of the field is drained in the region of Barzia village by means of Borehole Nr. 1.

Water sources of mineral water in the fieldBefore the hydrologic surveys and drilling were conducted, there were several cold water mineral springs with

temperature of the water about 13oC and of insignificant flow – from 0.01l/sec to 0.02l/s. The mineral water used to spring from cracks in the Paleozoic granite. The mineral water has had high pH>9, hydrogen sulphide odor and contents of microcomponents typical for the nitrogen therms – F, Ge, Ga, etc.

After drilling Borehole No. 1, the natural mineral springs run dry.

In 1966, The Vodoproekt Water Engineering Consultancy Institute conducts hydrologic survey in the draining area of the field by drilling Borehole Nr. 1 of 425m in depth and at terrain elevation +504.46. Borehole Nr. 1 and its intake protection zone are located in lot Nr. 1, Square 48 according to the Master Plan of Barzia village. The real estate is a public property of Berkovitsa Municipality.

The Borehole has cut through the following geological section:- From 0.00m to 138.00m – granites;- From 138.00m to 236.00m – granites with diorite streaks;- From 236.00m to 376.00m – hydrothermally modified granites, amphibolites, and diorites – alternately;- From 376.00m to 378.00m – biotite gneiss;- From 378.00m to 400.00m – granite;- From 400.00m to 410.00m – diorites – highly gneissic and hydrothermally modified;- From 410.00m to 425.00m – granite – dense, fine-crystalline.


The Borehole has got to mineral water of more than 40l/s. initial flow, of temperature over 31oC, and of 3m head above the terrain level.

Borehole Nr. 1 has been equipped as a tube well with the following construction:Section

(m)Casing/boring diameter

(m)00.00 – 108.00 Steel pipe � 146 – cemented outside108.00 – 425.00 Open stem � 127

Exploitation resourcesThe mineral water from Barzia field – Borehole Nr. 1 has a temperature of 32oC, general mineralization of

305mg/l TDS, and is characterized as hypothermal (32oC), alkaline (pH 9.1), with hydrocarbonate, sulphate, sodium, fluorine (2mg/l), and silicon (H2SiO3 – 99mg/l) content.

With Ordinance Nr. РД-534/October 24, 2000 of the Minister of Environment and Water, regional and exploitation resources are endorsed for a term of 10 years concerning Barzia mineral water field, Barzia village, Berkovitsa Municipality, Montana District – water pressure system in the cracks of the Paleozoic potassium-alkaline intrusions and the rocks of diabase phyllite formation in the core of Berkovitsa anticlinal – Water intake facility –Borehole Nr. 1.

Regional exploitation resources

Mineral water field

Regional mineral water exploitation resources

Tempe-rature

Regional resources of hydrothermal energyGpeks

Qp EP1l/sec

Qp EP2l/sec

Exploitation levelm

oCQ

l/secΔToC

kJ/s kJ/a

Barzia 7.2 10.8 13-32 57.3 - - -18.0

Local exploitation resourcesWater intake facility

Local mineral water exploitation resources

Tempe-rature

Local resources of hydrothermal energyGлeks

Qл EP1l/sec

Qл EP2l/sec

Exploitation levelm

oCQ

l/secΔToC

kJ/s kJ/a

Borehole Nr.1

5,6 8,4 504,0 32 - - - -

14,0

Water-catchment worksBorehole Nr. 1 is impounded in 1966 by means of a buried reinforced concrete single shaft with metal door.

Intake protection zoneRegarding Barzia field, zones for hydro-geological and sanitary protection along with the respective security

schedule were approved with Ordinance Nr. 569 dated September 18, 1973 of the Council of Ministers. Zone “B” and Zone “C” are common for Barzia field, Varshets field, and Spanchevtsi field.

The first belt (the most inner one) of the intake protection zone of Borehole No. 1 of Barzia field is established (updated) with Ordinance Nr. РД-896 of December 14, 2007 and Ordinance Nr. РД-09-343 of September 13, 2007 of the Minister of Environment and Water and the Minister of Health respectively.


B. Composition

1. Anions mg/l mmol/l eq% 2. Cations mg/l mmol/l eq%F- 2.13 0.112 3.858 NH4

+ 0.02 0.001 0.050Cl- 6.74 0.190 6.543 Li+ <0.10 0.000 0.000Br- - 0.000 0.000 Na+ 48.00 2.088 94.248J- - 0.000 0.000 K+ 0.89 0.023 1.028SO4

2- 36.62 0.381 26.235 Ca2+ 2.02 0.050 4.663CO3

2- 30.01 0.500 34.421 Mg2+ <0.100 0.000 0.000HCO3

- 39.66 0.650 22.375 Fe-total 0.01 0.000 0.011HSiO3

- 6.25 0.081 2.791 Mn2+ <0.010 0.000 0.000HS- 3.62 0.110 3.775

Total amount 50.99 2.164 100.000NO3

- <0.100 0.000 0.000NO2

- <0.100 0.000 0.000HPO4

2- - 0.000 0.000

Total amount 125.03 2.025 100.000

Dry residue at 180oC 245.0mg/l H2SiO3 85.95mg/lDry residue at 260oC 214.5mg/l Mineralization 261.97mg/lElectrical conductivity 260 μS/cm Carbon Dioxide 0.0mg/l

pH 9.30 Hydrogen sulphide 1.47mg/lFlow 14.0l/sTemperature 32oC

Appearance: the water is clear, colorless, free of sediments and with hydrogen sulphide odor

3. Microcomponents (mg/l)Arsenium <0.01 Lead <0.010Antimony <0.005 Selenium <0.010Cadmium <0.003 Mercury <0.001Chromium <0.010 Zink 0.123Copper <0.010 Barium <0.010Nickel <0.010 Boron 0.145

Cyanides <0.010

The data presented are according to Test Report Nr. 41 of June 27, 2010, made by the Specialized Laboratory for Analysis of Mineral Water at “NSBFTR” EAD, Sofia, and Test Report Nr. 1360-П/May 21, 2010 made by the Testing Laboratory at the Regional Inspectorate for Public Health Protection and Control – Montana.

4. Radiological indicesGeneral α-radioactivity 0.029 ± 0.006 Bq/lGeneral β-radioactivity 0.09 ± 0.02 Bq/lRadium226 0.056 ± 0.026 Bq/lTritium < 1.22 Bq/lNatural Uranium 0.000020 ± 0.000005 mg/lGeneral indicative dose 0.0115 ± 0.0059 mSv/year

The data presented are according to Report for control of radiological indices of water Nr. W 046/August 02, 2010 of the Authority for Control of the A type at the National Center of Radiobiology and Radiation Protection, and Report Nr. 5 of June 02, 2010 made by the Laboratory of Liquid-scintillation Spectrometry at the Center for Nuclear-physical Measurements to the Nuclear Research and Nuclear Energetics Institute at the Bulgarian Academy of Sciences.


5. Microbiological indices

Total number of colonies of viable microorganisms at 20oC to 22oC for 72 hours 15 KOE/cm3

Total number of colonies of viable microorganisms at 37oC for 24 hours 0 KOE/cm3

Coliforms at 37oC and 44.5oC 0/250 cm3

Escherichia coli at 37oC and 44.5oC 0/250 cm3

Streptococcus faecalis (enterococcus) 0/250 cm3

Sulphide-reducing clostridiums 0/50 cm3

Pseudomonas aeruginosis 0/250 cm3

The data presented are according to Test Report Nr. 1360-П dated May 21, 2010 made by the Testing Laboratory at the Regional Inspectorate for Public Health Protection and Control – Montana.

Conclusion:The general mineralization of the water is 0.262 g/l. The water is characterized as isothermal, low-mineralized,

containing hydrocarbonate, sulphate, sodium, magnesium, silicon, and fluoride, without sanitary-chemical and microbiological signs of contamination. The content of the examined micro-components and the values of radiological indices are within the norms applicable to mineral waters. The water has a stable physicochemical composition and properties, thus meeting the requirements of the Regulation on the requirements to bottled natural, spring and table waters, designated for drinking purposes (The State Gazette, Issue 68/2004, as amended and supplemented - Issue 22/2005, Issue 54/2006, and Issue 66/2008).

B. Properties:The healing and prophylactic properties of the mineral water are determined by its low mineralization, the

presence of hydro-carbonates, sulphate, sodium and fluoric ions, as well as of colloidal meta-silicon acid. The balneotreatment by consumption of this mineral water influences predominantly the gastrointestinal tract, the hepato-biliary and renal excretion system. The water helps the mild reduction of hyperacidicity of the gastric juice and stimulates biliary pathways kinestetics. The colloidal meta-silicon acid has a marked anti-inflammatory and detoxical effect on the gastro-intestinal tract. The presence of fluorine makes possible the application of the mineral water for caries prophylaxis. If the water is used continuously for such a purpose (months, years) the quantity of accepted fluorine shall not exceed 1.5 mg/daily.

When using this water for balneological treatment and balneological prophylaxis, it has a favorable effect on the following diseases: renal-urologic diseases (chronic gastritis, gastroduodentitis, ulcers, enterocolitis, etc.); hepato-biliary disorders (cholelithiasis disease, chronic cholecystitis, cholangitis, cholangiohepatitis, chronic hepatitis, biliary tract dyskinesia, etc.); renal-urologic diseases (chronic pyelonephritis, chronic cystitis, nephrolithiasis, urolitiaza, post lithotripsy states, etc.); metabolic diseases (gout, obesity, diabetes mellitus) etc.

The consumption of mineral water for the purposes of balneological treatment and balneological prophylaxis should be by physician’s prescription only, and upon observance of strictly determined methods and dosages (quantity of consumed water, temperature and method of administration, duration of the medical and prophylactic course).

When using this water for external balneological treatment and balneological prophylaxis, (following the relevant tempering) it has a favorable influence over the following diseases: diseases of the musculoskeletal system (degenerative and inflammatory articular diseases (in remission) – arthroso-arthritis, coxarthrosis, rheumatoid arthritis, ankylosing spondylitis, etc.); diseases of the peripheral nervous system (discopathy, radiculitis, plexitis , polyradiculoneuritis, etc.); orthopedic diseases (for moving of posttraumatic and post-operative states, etc.); dermatological diseases (non-specific dermatitis, eczemas, etc.).

The natural mineral water from water intake facility “Borehole No. 1”, Barzia mineral water field, Barzia village, Berkovitsa Municipality, Montana District, may be used for bottling of water for drinking purposes.


The validity term of this Certificate is 5 years as from the date of issue hereof.

(Round seal of the Ministry of Health affixed)For the MINISTER: (signed illegibly)DESISLAVA DIMITROVADEPUTY-MINISTEROrdinance Nr. РД 15-1215 of May 12, 2010

________________________________________________________________________________Undersigned, Marinela Peteva Grigorova, do hereby attest that the translation into English language is as near as possible close to the content of the original document issued in Bulgarian language – Certificate Nr. 17/December 21, 2010, attached hereto. The translation is made on 5 pages.

Translator:Marinela Peteva Grigorova