The principles and procedures with regard to exploring, operating, ownership and the renunciation in mining industry are regulated under the Law No 3213, Turkish Mining Law ( “Law”). However, petroleum, natural gas, geothermal and water sources are exempted from implementation of the Law.

Minerals required to be licensed under the Law are as follows:

1st Group minerals: Sand and gravel used in constructions and road constructions and that are found naturally in nature, brick-roofing tile clay, cement clay, marl, ruzzolantic rocks and rocks that are used in cement and ceramic industries and not included in the other groups.

2nd Group minerals: Calcite, dolomite, limestone, granite, andesite, rocks from basalt aggregates, rocks used for making ready-mixed concrete and asphalt, Stones produced in blocks such as marble, travertine, granite, basalt andesite and natural stones used for decorative purposes. Rocks such as Calcite, dolomite, limestone, granite, andesite, basalt used for producing integrated cement, lime and calcite to be used in the grinding mill.

3rd Group minerals: Slats in the form of solution and obtained from sea, lake and spring water, Carbon Dioxide (CO2) gas (except for geothermal, natural gas and areas that have petroleum), hydrogen sulphur.

4th Group minerals: Kaolin, Dickite, Nacrite, Halloysite, Endellit, Anauxite, Bentonite, Montmorillonite, Baydilite, Nontronite, Saponite, Hectorite, Illite, Vermiculite, Allofanoid, Imalogite, Chlorite, Sepiolite, Palygorskite (Attapulgite), Loglinite and clays that are a mixture of those, Refractory clays, Gypsum, Anhydrite, Alaunite (Alum), Halite, Sodium, Potassium, Lithium, Calcium, Magnesium, Chlorine, Nitrate, Iodine, Fluor, Bromine and other salts, Boron salts (Colemanite, Ulexite, Boracite, Tincal, Pandermite or other boron minerals containing minimum 10% B 2O 3), Stroncium salts (Celestite, Stronthianite), Barite, Vollastonite, Talc, Steatite, Pyrophyllit, Diatomite, Olivine, Dunite, Sillimanite, Andalusite, Dumortierite, Disthene (Cyanide), Phosphate, Apatite, Asbestos (Amiantus), Magnesite, Huntite, Natural Sodium carbonate minerals (Trona, Nacolite, Dawsonite), Zeolite, Pumice, Pecheisenstein, Perlite, Obsidian, Grafito, Sulfur, Fluorite, Kryolith, Grindstone, Corundum, Diasporite, Quartz, Quartzite and, Quartzite and Quartz sand that contain minimum 80% SiO2 in its composition, Feldspar (Feldspar and Feldspathoid group of minerals), Mica (Biotite, Muskovit, Sericite, Lepidolite, Flogopite), Nephelined Syenite, Chalcedony. Peat, Lignite, Bituminous Coal, Coal Gas Anthracite, Asphaltite, Bituminous Schist, Bituminous Shale, coccolith and Sapropel (reserving the provisions of Petroleum Law). Gold, Silver, Platinum, Copper, Lead, Zinc, Iron, Pyrite, Manganese, Chromium, Mercury, Seaborgium, Tinsel, Vanadium, Arsenic, Molybdenum, Tungsten (Wolframite, Scheelite), Cobalt, Nickel, Cadmium, Bismuth, Titanium (Ilmenite, Rutile), Aluminum (Bauxite, Gypsite, Böhmite), rare earth elements (Cerium Group, Yttrium Group) and rare earth minerals (Bastnaesite, Monazite, Xenotime, Serit, Oxsenite, Samarskite, Fergusonite),Cesium, Rubidium, Beryllium, Indium, Gallium, Thallium, Zirconium, Hafnium, Germanium, Niobium, Tantalum, Selenium, Tellurium, Rhenium, radioactive minerals containing elements such as uranium, thorium, radium and other radioactive substances.

5th Group minerals: Diamond, Sapphire, Ruby, Beryllium, Emerald, Morganite, Aquamarine, Heliodor, Alexandrite, Agate, Onyx, Sardonix, Jasp-agate, Carnotite, Heliotrope, Bloodstone, Krisopras, Opal (Irize Opal, Fire Opal, Black Opal, Wood Opal), Quartz crystals (Amethyst, Citrine, Rock Crystal (Mountain Crystal), Misty Quartz, Tiger’s Eye, Avanturine, Venus Stone, Rose Quartz), Tourmaline (Rubellite, Vardelite, Indigolite), Topaz, Moonstone, Turquoise, Spodumene, Amber, Lazurite (Lapis Lazuli), Jet, Diopside, Amozonite, Meerschaum, Labradorite, Epidote (Zoisite, Tanzanite), Spinel, Jadeite, Jade or Jad, Rhodonite, Rodochrosite, Granat Minerals (Spessartite, Grosullar Hessonite, Dermontoite, Uvarovite, Pyrope, Almandine), Diaspore Crystals, Kemerrerite.

Minerals are under the sovereignty and disposition of the State; they are not under the proprietorship of the land owners of the land where they exist. None of the rights related to first application (precedence), exploration license, and discovery and operation license established over the minerals can be divided into shares.

Mining licenses and discovery rights are transferrable providing the approval of the Ministry of Energy and Natural Resources. Rights and obligations over mines can be passed on by way of inheritance. These rights and obligations shall be transferred to one of the inheritors or to a third party that meet the qualifications under the Law, by a power of attorney that contains the power of attorneys of all the inheritors. In the event inheritors cannot reach an agreement, upon the application of one of the inheritors, the court will adjudge to allocate this right to the most competent of the inheritors or if this is not also possible, to sell the license. The court shall settle this matter by the application of simple trial procedure. In the event a court case is not filed, licenses whose assignment transactions are not completed within 6 months shall be abolished.

Mining rights shall be granted to the Turkish citizens that are qualified to dispose civil rights, companies that are established in accordance with the laws of Turkish Republic and whose statute prescribes that mining is included in their field of activity, public economic enterprises that are authorized on this matter and their entities, affiliates and associates and other public institutes, establishments and administrations. Mining licenses shall be issued specifically to the name of the individuals or the legal entity.

The principles with regard to the performance of mining and licensing activities, including the issues on methods of mining for zones to be licensed, mining areas, type of mine, environmental impact of the proposed investment, and urbanization may be restricted by Ministry of Energy and Natural Resources.