SERBIA

Reservoir Minerals

INVESTMENT CLIMATE Foreign Investment Laws Corporate Tax Regime State Grants for Foreign Investors

No restrictions on Foreign Ownership

No government participation No restrictions on flow of

capital

Corporate Tax Rate: 15% Withholding tax on dividends

of 15% Five year loss carry-forward Corporate Profit Tax Holiday

For incurred costs less than EUR 50 Million the government can award up to 50% of eligible costs in grants

Costs > EUR 100M, 17% of costs

SERBIAN RESOURCE SECTOR Sector Overview

Fastest growing industry sector Government committed to increasing GDP contribution from mining from 3% to 5% by 2020. GDP value for 2013: USD 80 Billion

Competitive royalty rates between 1% and 5% Exploration investment in exploration over past 5 years: USD 250 Million 10 minerals and metals mines operating in Serbia: Largest project is located in Bor in the Timok Basin Free trade agreements in place with the EU, Russia, Turkey and CEFTA Countries

GENERAL INFORMATION Literacy Rate: 98% Currency: Republic of Serbia Dinar (RSD) = USD 0.009 USD exchange as of January 21, 2015 GDP: USD 45 Billion (2013) Taxation: Tiered personal income tax:

Base 10% rate, for persons earning 3 times the average salary: 20%, for persons earning 6 times the average salary: 35% 20% standard Value-Added Tax (VAT)

Unemployment Rate: 20.8% (2014) Inflation Rate: 1.7% (2014) Net Average Wage: RSD 62 992 = USD 566.93 (2013) USD exchange as of January 21, 2015 Exports: USD 14.6 Billion (2013) Imports: USD 20.5 Billion (2013) Trade Balance Deficit: USD 5.9 Billion (2013)