May 2007

1. INVESTMENT OPPORTUNITIES INPERU INVESTMENT OPPORTUNITIES IN May 2007

2. PERU OFFERS:

3. Investment plays an important role in the country’s Economic Growth and signals a promising future Source: Central Reserve Bank of Peru, National Institute of Statistic and Information and SUNAT:

4. Peru 8,03 6,4 5,2 5,2 3,9 Sustainable economic growth with annual forecasted rate greater than 8% 8 6 GDP Growth (Annual variation %) 4 Developed 2 World 0 80 82 84 86 88 90 92 94 96 98 00 02 04 06 Source: International Monetary Fund and the Central Reserve Bank of Peru. *Forecasted by Central Reserve Bank of Peru (9th February 2007), Ministry of Economy and Finance and the National Institute of Statistic and Information.

5. 23 750 0,7 22 000 0,6 17 336 0,5 17 000 12 809 0,4 12 000 41% 37% 0,3 35% 9 090 7 714 6 955 7 026 0,2 7 000 18% 0,1 10% 1% 2 000 0 2000 2001 2002 2003 2004 2005 2006 Exports in millons US$" % Exports Growth (base 2000)" Annual Exports growth greater than 30% Accompanied by private investment growth (average annual % variation) 25.0 25.0 Private Investment grew Private Investment grew 20,1% in 2006* 20.0 20.0 Private Private Investment Investment 15.0 15.0 10.0 10.0 5.0 5.0 0.0 0.0 - - 5.0 5.0 - - 10.0 10.0 05 05 06 06 01 01 02 02 04 04 03 03 Source: Central Reserve Bank of Peru. * Forecasted

6. Rise in the commercial exchange (Millions of US$) Increase in the imports of capital Goods ( Millions of US$) Capital goods for the Industry Transport Equipment Others Source: Central Reserve Bank of Peru.

7. Peru is progressively reducing its fiscal deficit (% of GDP) By increasing its central government tax revenues 2,5 2,5 2,0 1,5 1,0 0,5 0.0 0,0 -0,5 -0,4 -1,0 -1,5 -1,1 -2,0 -1,7 -2,3 -2,5 -2,5 -3,0 -3,3 -3,5 2006 2007* 2004 2005 2000 2001 2002 2003 Source Central Reserve Bank of Peru. * Forecasted by the Ministry of Economics and Finance Source: SUNAT

9. Net International Reserves (Milions of dollars With increasing Net International The careful and responsible management of our Reserves that represent more than 12 economic program has allowed us to keep our months of imports country risk index among the lowest in the region. JP Morgan Index EMBI+** Updated 17 April, 2007 Source: Central Reserve Bank of Peru. Source : Bloomberg

10. Just one step away from the Investment Grade Characterstic S&P / Moody's Latin American Ranking Fitch AAA AAA Aaa Aaa Risk Risk free free AA+ AA+ Aa1 Aa1 Superior Superior AA AA Aa2 Aa2 AA AA - - Aa3 Aa3 Investment A+ A+ A1 A1 High capacity of High capacity of Grade A A A2 A2 repayment repayment A A - - A3 A3 BBB+ BBB+ Baa1 Baa1 Moderate capacity of Moderate capacity of BBB BBB Baa2 Baa2 repayment repayment BBB BBB - - Baa3 Baa3 BB+ BB+ Ba1 Ba1 Peru close Some capacity of Some capacity of BB BB Ba2 Ba2 to the repayment repayment investment BB BB - - Ba3 Ba3 grade B+ B+ B1 B1 High uncertainty in the High uncertainty in the B B B2 B2 capacity of repayment capacity of repayment B B - - B3 B3 CCC+ CCC+ Caa1 Caa1 Highly vulnerable Highly vulnerable CCC CCC Caa2 Caa2 to default to default CCC CCC - - Caa3 Caa3 D D Ca Ca Default Default Source : Bloomberg

11. Peru offers a favorable legal framework for foreign investment ... • Non discriminatory treatment. • Irrestrictive access to most economic sectors. • No performance requirements. • Free transfer of capital. • Free competition. • Guarantee for Private Property • Freedom to purchase stocks from locals. • Freedom to access internal and external credit. • Freedom to pay royalties. • Network of investments agreements and member of ICSID and MIGA Legal Framework: Constitutional provisions, “Law for the Promotion of Foreign Investment”, Legislative Decree N° 662, “Framework Law for Private Investment Growth”, Legislative Decree N° 757, “Law for the Promotion of Private Investment in Infrastructure and Public Service Works”, Approved by Supreme Decree N° 059-96-PCM

12. With a legal system that guarantees basic rules and statutes that will not change For national and foreign investments and his receiving company • National treatment • Free availability and remittance of foreign currency* • Income tax rules applicable to dividends. • Recruitment regimes • Regimes for the promotion of exports • Income Tax Regime. During ten years. In case of concession, the term is subject to the term of contract (60 years maximum) The only requirement: minimum investment of US$ 5 Million (US$ 10 Million in mining and hydrocarbon sectors) *With capitals coming from abroad

13. With a stable tax regime, which main taxes are: Note: * Burden goods: fuels, luxury goods, liquors and cigarettes Legislative Decree No. 973 (12.03.07) standardizes the treatment for all economic activities regarding the advance recovery of the value added tax (VAT).  It will come into force and effect the first business day of the month following the 90 calendar days that may take for this Decree’s regulations to be prepared and published. It is established that tax payers who purchase capital assets but do not start operations, within the framework of investment contracts subscribed with the State, will be able to recover the VAT paid in said purchases.

14. and a reduced tariff structure and low tariff dispersion… Source: SUNAT

15. Peru has concluded the negotiations for the Trade Promotion Agreement (TPA) with the United States Free market access to: • Andean Community of Nations • Chile • MERCOSUR • Mexico • United States • European Union • Thailand Trade Promotion Agreement with Singapore under negotiations

16. Peru has the largest Chinese population in South America • The Chinese came to Peru in the second half of the 19th century. Nowadays 15% of the country's total population has some Chinese ancestry. • The Chinese influence in Peru is still very noticeable, especially in the culinary field.

17. Need of inputs to keep growth rates. It requires supply sources with added value because of the lack of water and energy. Availability of funds. Its high volumes of production justify the development of added value proudcts. Great source of inputs. Source of water and energy, besides the ability to transform raw material. Need of investments to develop infrastructure. Demand of value added products. Factors promoting trade and investment China Peru

18. Bilateral trade (US$ million) Source: SUNAT

19. Bilateral trade (US$ million) Source: SUNAT

20. Flour, powder and "pellets" of fish. Copper, zinc, molybdenum, lead and concentrates. Preparations and conserves of mollusks Raw Oils of oil Domestic appliances Machines for the processing of information Motorcycles Parts and accessories of machinery Devices of telecommunication Units of Memory Textiles Tires for cars and trucks Video cameras Bilateral trade – principal products Principal exports from Peru to China Principal imports from China

21. COMPANIA MINERA ANTAMINA S.A CONSORCIO MINERO S A CORMIN TEAM EXPORT S.A.C. SOUTHERN PERU COPPER CORPORATION BHP BILLITON TINTAYA S.A. AYS S.A. SHOUGANG HIERRO PERU S.A.A. VOLCAN COMPANIA MINERA S.A.A. CIA MINERA RAURA S A CORPORACION PESQUERA INCA S A SAGA FALABELLA S A LG ELECTRONICS PERU S.A. DELTRON INTERNATIONAL S A SONY SUCURSAL DEL PERU IMPORTACIONES HIRAOKA S.A.C. NEXTEL DEL PERU S.A. TECH DATA PERU S.A.C. PROCTER & GAMBLE PERU S.R.L. TIENDAS POR DEPARTAMENTO RIPLEY S.A. TIM PERU SAC Bilateral trade – exporters & importers Main exporting firms Main importing firms

22. Commerce Finance Fishing Hydrocarbon Mining Services Tourism Shougang Corporation Chen Kuo Ksiung China National Import and Export Commodities Inspection Corp HSBC Latin America Holdings Limited Hsiang Sheng Huo Qixin Su Lin Zhang Investment up to 2006: US$250.000.000 Sectors Principal Investors

23. Peru Strong figures Strategic location Excellent opportunities