INVESTMENT OPORTUNITIES

1. INVESTMENT OPORTUNITIES ECUADOR

2. INVESTMENT LAWS AND REGULATIONS

3. INVESTMENT LAWS AND REGULATIONS • Constitutional Principles • Promote a new trade and investment regime between States on the basis of justice, solidarity, complementarily (…) Deny the possibility that dispute resolution with foreign companies becomes a conflict between Governments. • Production, Commerce and Investments Act • Establishes a legal regime which all foreign and domestic commerce agents must abide.

4. PRINCIPLES, RIGHTS AND GUARANTEES

5. INVESTMENT PROTECTION 3. Investors rights are recognized. 4. Investment Contracts can be signed. 1. Foreign investors and investments will benefit from protection under the rule of law. 2.They shall receive the same legal treatment as Ecuadorian investors within the national territory.

6. INVESTMENT PROTECTION • To produce and commercialize all licit goods and services. • To access to all administrative procedures in order to control speculative behaviors. • To import and export goods • To transfer overseas all dividends obtained periodically. INVESTORS RIGHTS

7. INVESTMENT PROTECTION Arbitral Clauses may be enacted in order to resolve controversies between the State and the private investor. MECHANISM:

8. APPLICATION OF INCENTIVES (GENERAL, BY SECTOR & SPECIFIC) GENERAL • Gradual corporate income tax reduction (from 25 to 22%) • New enterprises receive a 5 year tax cut. • No tax applicable for foreign money transfers. • Expenditure tax cuts on all investments for productivity, innovation and eco - efficiency. • ZEDES: • Additional 5% tax reduction • Exemption of VAT for imported goods • Exemption of ISD payment of credits and for purchase of raw materials, production goods and services. • Fiscal credit for VAT paid on purchase of raw materials, production goods and services

9. Tax Incentives Application Sectors • Production of fresh, freezed or industrialized goods. • Forestindustry, Agro-forestchain & itsproducts • Metal mechanics; • d. Petrochemicals; • e. Pharmaceutical; • f. Tourism; • g. Renewable Energies; • h. Logistical Services; • i. Biotechnologies and software; • j. Defined areas for import substitution.

10. Tax Incentives Application SPECIFIC In addition to “general” and “sector” incentives: all investments undergone in under developed areas shall receive a 100% tax deduction on all new workers for a 5 year time frame.

11. SPECIAL ECONOMICAL DEVELOPMENT AREAS (ZEDES) • Shall be designated for: • 1.- Technological transfer and innovation; • 2- Diversify the industrial production frame. • 3.- Logistical services. Geographical areas within the national territory which take into consideration infrastructure conditions, the environment and electricity, water and telecommunications access.

12. SPECIAL ECONOMICAL DEVELOPMENT AREAS (ZEDES) • Source for public, private and mixed capital investments. • Amount of the investment in accordance to the projects undertaken. • Projects aligned with the national strategy for productive transformation. • Impact of technological transfer on local and regional production. Increments on add value exports in prioritized areas.

13. THE MAJOR TRANSFORMATIONS IN INVESTMENT REQUIRED FOR ECUADOR The main objective of the Government of Economist Rafael Correa is to build infrastructure works to attend the demands of 14 million Ecuadorians, to exploit strategic areas in the country to generate resources that will benefit the entire population, as well as the acquisition of resources that will allow developing these and other works. To achieve this objective we have The National Plan for Good Living which seeks the development of Ecuador, through effective planning processes, with particular emphasis on execution and integral management of strategic sectors.

14. Ecuador offers a stable regulatory framework. • The Ecuadorian Government has as priority in public and private, national and foreign sectors. The new legal framework includes: National Assembly, Constitution, Public Companies Law, Public Procurement Law, Production Code, Planning and Public Finance Code, Mining Law, New Hydrocarbon Law

15. ECUADOR STRATEGIC SECTORS • Objectives: ACHIEVE self sufficiency in electric generation, by-Products refining, access to information technology, and management of water resources. TO BE PRODUCTIVE, with quality in electric services and telecommunications; extraction of hydrocarbons and minerals, and water resource development. TO BE INCLUSIVE, in the provision of public services accessible to all people. • Goals: Develop infrastructure, Employment generation, Technology transfer, Consolidating investments in strategic sectors, improving systemic competitiveness

16. TONGLING Acquired two projects in 652 miners Cooper MM USD to the Canadian company ECSA. Estimated Investment $2, 000 million USD to 2014. PETRO ORIENTAL, operates blocks 14 and 17,has invested since 2006 until 2009 - 200MM USD. This company produces 12.812 barrel per day . Chinese Companies Investment in Ecuador • Oil & Mining

17. ANDES PETROLEUM, operates Tarapoa field , has invested since 2006 until 2009 – 392 MM USD. This company produces 36.025 barrel per day . SINOPEC (Lease Petroleum Rigs); and others. Chinese Companies Investment in Ecuador

18. Coca Codo Sinclair Hydroelectri c. China Eximbank Financing of USD 1.682 million. Sinohydro built and equipped by 2000 millio n USD. Construction and equipment of the Sopladora Hydroelectric for 700 million USD. Signed Contract Agreements With Ecuador Construction and equipment of the Sopladora Hydroelectric for 700 million USD.

19. CHINA Strategic partner of Ecuador Chinese construction companies Gezhouba and Sinohydro will build two of the largest infrastructure projects in the history of Ecuador: Sopladora and Coca Codo Sinclair. The budgets for the construction of hydroelectric plants are USD 700 million and USD1.700 million for Sopladora and Coca Codo Sinclair, respectively. The implementation of these projects will generate savings of $ 3 million per day approximately, supplying the thermal energy. They will cover 37% of the power and 35% of the energy demand in Ecuador

20. Why to Invest in Ecuadorian Projects? • Opportunity for Chinese Companiesto develop and execute projects without the requirement to participate in a long bid process, when the offerings include financing on favorable terms. • Growth and profitability for Chinese Companies. • Chinese Banks need to allocate their economical resourcesin order to increase their profits and diversify your portfolio. • (CDB, EXIMBANK, BANK OF CHINA, ICBC) support the financing for the Ecuadorian strategic projects. • SINOSURE support.

21. MANTA INVESTMENT PROJECTS IN ECUADOR • Pacific Refinery • Airport and Port of Manta • Cement Factory • Cocoa Processing Plant • Mine silicon, polysilicon • Solar panels factory, microchips, ceramics. • Glass plant • Milk Processing Plant • Manufactures of metal bridges • Auto assembly plant • Factory of TV's and decoders

22. Why to Invest in Ecuadorian Electricity Projects? • Opportunity for Chinese companies to build infrastructure projects overseas. • Priority projects that allow us to decrease the generation cost. • Significant economic saving to the State by reducing the fuel imports diesel ) and export the fuel refinery . • Change on the energetic matrix through the use of clean technology reducing CO2 emissions. • Minimum risk of electric black out. • Energetic sovereignty.

23. Why To Invest In Ecuadorian Water Projects? • Risk Reduction caused by drought and floods. • To protect the life of the population. • More hectares available for irrigation to be used in the agriculture sector (alimentary Sovereignty and exportation) • Savings to the State and population through disaster prevention. • Opportunity for Chinese companies to build infrastructure projects overseas.

24. Why Invest In Ecuadorian Mining Projects? • High potential for prospecting (Unexplored country) • Current concessions represent only 4.31% of the country surface. • 96.83% are in exploration phase and 3.17% in exploitation • High Probabilities of success • KINROSS : Most important world wide gold discovery in the last 10 years • Adequate business conditions • Negotiation contracts underway (KINROSS, ECSA, IMC and IAMGOLD) • Legal framework • New incentives • Guarantees of investment through contracts • Adequate infrastructure and geographic location

25. Why Invest In Ecuadorian oil projects (Pacific Refinery)? • Only high conversion refinery of crude oil in South America’s Pacific Coast. • Strategic location for receiving raw material and world wide distribution. • Ecuadorian Oil by-products captive market. • Highly unsatisfied demand of Oil derivatives in the region. • Placement of total excess of electrical generation in National market. • Highly profitable investment sector. • New Oilfields development (South-East)

26. Ecuadorian New Cement Projects AMAZONAS Millions of tons per year CHIMBORAZO NL Aditional Needs for 2011 1 million tons for: 1.600 Km of concrete roads 800.000 houses 1 electrical power dam ISIMANSHI 26

27. Ecuadorian New Cement Projects

28. MANTA MEGA PROJECT

29. MANTA AIRPORT MEGAPROJECT • The following is required to execute this Mega Project: • Significant Passenger and Export-Import cargo to and from Asia. • Investors under the strategic alliance figure, capable of complying with domestic and international airline requirements. • Creation of Pilot Training School for Latin America. CHARACTERISTICS OF THE STRATEGIC PARTNER • Ample experience in executing development projects for the aviation sector. • Extensively trained in operation and marketing of airports. • Know-how in transfer-airport management (HUB).