BAMA MINING COMPANY

Bama Company owns more than half a century experience on traditional underground and open – pit mining, also, experiencing mechanized underground mining at present.

Bama Company: Bama Company owns more than half a century experience on traditional underground and open – pit mining, also, experiencing mechanized underground mining at present.

Geographic Location: Bama Company as second biggest mining company in Iran has exploited the vast carbonate hosted zinc and lead deposits within Irankuh Mountain. The Mountain is located at 20 kilometers distance from southwest of Isfahan, central Iran between 51 33 to 51 40 longitude and 32 27 to 32 32 latitude. Irankuh Mountain with about 3 km width exposed along northwest to the southeast, 25 kilometers. Minimum and maximum altitude from sea level is 1670 m. and 2750 m. respectively.

Although with 50 millimeters rainfall dry climate reign in region but vicinity to the Zayandeh Rood River cause a flourishing agriculture in territory. There are several towns and villages near the mine such as Abnil, Sahlavan, Baghkoomeh, Afjeh, Kelishad, Sooderjan, Bagh Abrisham and Yazdabad. Railway - facility to transfer coal from Kerman to Isfahan Steel Mill has been located at one Kilometer far from Irankuh Mountain. The best access to Irankuh is on Kilometer 12^th of Isfahan, Shahr - e - Kord, Eastward pass to Bagh Abrisham, Abnil Mountain.

Historical Background: First systematic exploration studies was conducted by the government in Irankuh Mountain during 1934 to 1939 which two tunnels were drilled in northern flank of Mountain which now called Tappeh Sorkh open - pit. But due to outburst of World War II lead and zinc exploration ceased and was not pursued. In 1951 exploration studies renewed and led exploitation permit to be issued and transferred to Bama Company to start small scale mining in1952. Concurrent exploration together with exploitation developed new horizon for company and in 1973 the flotation plant with capacity of 1000 tons feed per day and two calcinating furnaces each with a capacity of 250 tons per day were erected and operation has been started. Concurrently under ground mining in trio areas of Kolahdarvazeh, Tappeh Sorkh and Gushfil respectively turned to open - pit and exploitation machineries were installed.

Admission to Stock Exchange Market: BAMA Company (private joint stock) was registered on December 18, 1951 under registration number 434 in the Registry of Deeds and Industrial Properties Office in Isfahan. On September 1, 2002, BAMA Company was registered as a public joint stock company and on March 16, 2004, BAMA Company was admitted to Tehran Stock Exchange Market. Based on the articles of association of the company, the scope of activity of company includes: prospecting, exploration and exploitation of mines nationwide, selling and export of minerals and offering any all the services related to the scope of activity of the company directly or indirectly.

Shareholder Information: Since early 2004, BAMA has achieved its position in Stock Exchange Market and identified as a leading and productive stock. During 2007 BAMA increased its total shares from 49536000 shares to 79536000 shares. The shareholders of BAMA include Amir Industrial and Mining Group, Arasteh Madan, Danayan - e - Pars Investment Company, Peyman Amir Commercial Services (79%) and other shareholders (21%), legal entity stockholders and individual shareholders.

BAMA Employees: Total 310 employees make live body of BAMA include experts, skilful workers and others. In order to expertise employees to new ideas and updated technology, BAMA has erranded them to several countries such as Germany, Finland, South Africa, China, Italy and Turkey. The Company enjoys the souvenir of those scientific trips in proper manner.

Mining Operation Geology and Exploration: The dolomite hosted zinc and lead deposits of Irankuh Mountain resembled to Mississipi valley type model which in Iran extended from Malayer to Esfahan. Irankuh deposit is the largest known mineralization in the belt.

Based on the exploration studies in BAMA, open-pit mining preference proven, and ore deposits in trio open pits calculated as follows:

1- Gooshfil: 2.5 million tons reserve of lead and zinc sulfur with the average grade 9 percent.

2- Tapeh Sorkh: 3.5 million tons of lead and zinc sulfur with the average grade 5%.

3- Kolahdarvazeh: one million tons of zinc carbonate with the average grade of 10%.

TAPEH SORKH OPEN PIT

GUSHFIL OPEN PIT

At the same time exploration studies follows in new prospects such as Zone 1, Zone 5, Romarmar, Gardaneh, Khaneh Gorgi and Cheshmeh Zard. Complementary geochemical soil sampling has been planned for evaluating geophysical anomalies and exploring possible deposits in underground.

Open - Pit Mining: Three main open pits such as Gooshfill, Tapeh Sorkh and Kolahdarvazeh produce ore for flotation plant. Gooshfil and Tapeh Sorkh located at southern flank of Irankuh Mountain and Kolahdarvazeh located at south. Behpouran Sofeh Company as a public stock company has derived through BAMA employee in 2002 and involve as a contractor for exploitation activities in BAMA complex.

Underground Mining: In January 2007 BAMA Company signed an agreement with TETE Mining and Engineering Company (Turkish) in order to implement all the research, studies, discovery, preparation and exploitation of mineral materials in Gooshfil mine of BAMA concerning underground mining method. The main target of this project is establishing an access to proven ore reserves (about 2.5 million tons) underneath the current pit. The job started well enough and two adits with 20 square meter cross section aerial and 12.5% slope drill in levels of 1710 and 1590. So far 1100 meters progress has been reported. The project scheduled to be fulfilled during 14 years and in the end of second year ore exploitation expected.

Mineral Processing Units: Mineral processing unit equipped with 2 flotation lines and feed capacity of 2000 tons per day which consumes the ore with average grade 5% and produce 5 different concentrations such as zinc and lead sulfur, zinc and lead carbonate and zinc oxide with 60% purity.

Environmental Commitment: Since 1996, Bama has launched new environmental standards within the company. By using all necessary means such as biological methods including planting various species resistant to local conditions has succeeded to restrain pollutions resulting from mining operations. The company has developed about 50 hectares of green space and planted 40,000 seedlings of various species. Those efforts resulted BAMA territory to be shown the most beautiful and vast green space in the country mines.

BAMA Co. Operations from 2005 to 2007: During the years 2005 to 2007, BAMA Company retains to stand on exemplary exporter of goods by state administration. The time span brought high peaks in share prices for the company. 303 per cent growth on company’s profitability was great concession to announce Bama as an outstanding company in recent years.

Cooperation of BAMA with Universities and Other Research Centers: BAMA inherited to be open for new idea in fields of exploration, mining, mineral processing and other related objectives. Many years experiencing such a kind approaches led to own a valuable legacy of reports and articles. So far more than twenty university thesis on M.S and PHD degrees has been issued on BAMA ground scale activities.

As final statement, concerning Bama’s lead and zinc mineral reservoirs at present, under conducted present management, expecting a brilliant and great prosperous on forthcoming years.