SAN EMILIO MINE

BU S I NE S S PRO PO SAL
SILCA SAND MIN E

CONTAC
Francisco Patiño Richarte
A d d r e s s : Jo s e m a r í a M o r e l o s # 1 5 0 6 I n t 1 0 2 .
G r a n j a s C a m p e s t r e. L e ó n , G u a n a j u a t o, M é x i c o.
C P. 3 7 1 3 8
Te l . 5 2 ( 4 7 7 ) 7 8 1 . 2 6 . 7 2
M o b i l : 5 2 ( 4 7 7 ) 3 2 6 . 4 8 . 6 2
R a d i o : 6 2 * 1 6 4 5 1 9 * 1
 BU S I NES S PROPO S AL
WE ARE LOOKING FOR PARTNER FOR PROJECT TO
PRODUCE SILICA SAND

P RO J E C T S U M M A RY

The San Emilio Mine possesses big reserves of quartz with high grade of purity to supply the national
market of silica sand:
• Reserve. – According to Computer Analytic Processes, the probable reserve of the mine lot is
51,473,580 cubic meters; this is approximately 128 million tons of quartz.

• Purity. – Proven purity of 99.50% of SiO2, certified by the West Penn Spectrochemical
Lababoratories and the National Center of Metrology (CENAM) of the Secretary of Economy.

• Location. - The mine is in the center of the country, to 28 Km. of Lagos de Moreno, Jalisco.
Seated on the skirts of the "Cerro de la Leona" near of the Axis Neovolcánico to a height 2250
meters on the level of the sea with coordinated 21º 31" of North latitude and 101º 52" of
longitude west of the Meridian of Greenwich.

• Surface. - 400 hectares (Aprox. 1000 acres)

• Production Capacity. – According to Petimex, CORP. of C.V., the average capacity of

production of silica sand will be of up to 45,000 tons per month.

• Transport. - The city of Lagos de Moreno has the facilities to embark via FFCC. Also
connected to freeways and federal highways.

• Permits and studies.- Concession of the mine. Explosives by SEDENA. Environmental

impact (SEMARNAT). Physical and chemical analysis. Work Index. Analysis of abrasion.
Power supply by CFE. and other.

C O M P E T I T I V E A DVA N TA G E

1. Quality of the product.

2. Flexibility
3. Proximity to the client:
MINE TO: DISTANCE HOURS
Jalisco (Guadalajara) 170 Km. 3
Querétaro 238 Km. 4.5
Distrito Federal 438 Km 7
Morelos (Cuautla) 518 Km. 9
Coahuila (Saltillo) 520 Km. 9
Nuevo León (Mty) 600 Km. 10.5
Coahuila (Monclova) 800 Km. 12.5

2
 P OT E N T I A L C U S T OM E R S

 Vitro (Flat glass & glass bottles). Potential of 200,000 tons per month. Letter of intention.
 Saint-Gobain (Flat glass & glass bottles). Potential 12,000 tons per month.
 Cifunsa (Casting). Potential of 4,000 tons per month.
 Guardian (Flat glass)
 Cappizzi (Ceramic)
 Lamosa (Building materials)

C OM P E T I TO R S

Company Units %
Materias Primas Monterrey 3 77.5%
FEMSA 2 20.0%
Others 2.5%

State Production
Coahuila 622,434
Guanajuato 50,872
Nuevo León 241,861
San Luis Potosí 28,795
Veracruz 1,717,808
2,661,770

BU S I N E S S P R O P O S A L

 We are looking for a partner with whom we can start the production of silica sand.
 The value of the reserve is estimated in $2.6 billion USD, and the concession for the mine in
$424 million USD.
 Our partner should invest $20 million USD and he will be a shareholder of the San Emilio
Mine project, with the 30% of the equity.
 In this moment the EBDITA will be approximately 50%.
 We need the capital to support the buy of equipment and work capital. So we will be in
position to start the production of silica sand. We are committed to fill orders by year's end.

If the company you represent would be interested please contact me.

Regards.

March 2010.