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Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş.

Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. April 2015. Contents. Company & Operations 3 Ownership Structure & Participation 18 Ciner Group 21 Financial Structure 2 4 V. Evaluation of The Latest Financial Tables 3 2 VI. Corporate Governance Rating 37.

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Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş.

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  1. Park Elektrik ÜretimMadencilikSanayiveTicaret A.Ş. April 2015

  2. Contents • Company & Operations 3 • Ownership Structure & Participation 18 • Ciner Group 21 • Financial Structure 24 V. Evaluation of The Latest Financial Tables 32 VI. Corporate Governance Rating 37 Park Elektrik April 2015

  3. I. Company & Operations Park Elektrik April 2015 3

  4. Introduction Park Elektrik is the sole copper mining company on the ISE. The company operates Madenköy copper mine in Siirt, in the southeast of Turkey, since late 2006. Total resources of Madenköy copper mine was determined as 41.5 mn tons of ore with an average grade of 2,02% according to a JORC based report conducted by Micromine Consulting Services in February 2014. So far, Park Elektrik extracted approximately 8 mn tons of ore out of total resources of 41.5 mn tons in the zone. The company has a concentration facility and it produces and sells concentrated copper, which is the final product of the company. Park Elektrik sells all of its concentrated copper, that includes copper content of around 20%, to an international commodity broker, namely Traxys. As of YE2014, total number of employees is479. 387 employees of total work force are blue collar employees working in the copper mine. Park Elektrik April 2015 4

  5. Copper Mine Siirt Location of Copper Mine April 2015

  6. I) Madenköy Copper Zone • Park Elektrik acquired operation license of Madenkoy copper mine in 2004 from Eti Holding, a state-owned entity engaged in mining businesses, for TL9.4 mn. • Copper mineoperations started in late 2006 in Madenköy copper zone. So far, 8 mntons of ore have beenextracted in the copper zone, while the remaining resources is 33.5 mn tons of ore as of YE14. • According to initial reports, proven reserves in the zone was determined as 13 mn tons of ore when Park Elektrik commenced its operations in 2006. However, according to latest reservereport issued by Micromine Consulting Services in February 2014, total resources in the zone was determined as 41.5 mntons of ore, 36.3mn tons of which was measured. • Park Elektrik exports all of its concentrated copper production to an international commodity broker namely Traxys, while the end customer is China. April 2015

  7. Micromine Reserve Report Based On JORC • According to a JORC (Joint Ore Resources Code) compliant reserve report issued by Micromine Consulting Services in February 2014, total resources of the project was determined as 41.5 million tonnes of ore. • According to the same report, average grade in Madenköy copper mine is 2.02% for the whole zone and average grade of the measured resources is 1.95%. April 2015

  8. Production Volumes & Targets * Pre-stripping started in 2012. ** Production through open-pit started in mid of 2013. Park Elektrik April 2015 8

  9. Long Term Planning in Open Pit • Having being operated by underground mining since the beginning of operations in the Madenköy copper zone, Park Elektrikshiftedits copper mining operations from underground to open-pit mining by the mid of 2013. Pre-stripping in the zone started in 2012 and it continued until mid of 2013. • Based on projections, the company plans to continue open pit mining between 2013-2031. Throughout open pit mining for 18 years, the company plans to produce 26.4 mn tons of ore with 246 mn m3 stripping with an average strip ratio of 9.3 by the end of 2031. • 2014 was the first full year of open pit mining therefore Park Elektrik had to work with very low grade with a high volume of stripping. Park Elektrik April 2015 9

  10. Open Pit Site View April 2015

  11. Current View From Mine April 2015

  12. Views From The Pit April 2015

  13. Open Pit Topographic View – I Topography Main Ore Body April 2015

  14. Open Pit Topographic View - II Main Ore Body April 2015

  15. Open Pit Site Cross Section April 2015

  16. Power Plant Projects • Withdrew natural gas power plant applications for Edirne and Ceyhan regions due to the complexities of the investment stages and uncertainities. • Obtained environmental impact assessment report for Hydroelectricity power plant (HPP) of 50MW in Diyarbakır/Tarihler. Transmission aggreement with TEIAS was achieved. Tender offer for construction of the facility will be made soon. April 2015

  17. II. Ownership Structure & Participation Park Elektrik April 2015

  18. Ownership Structure Park Elektrik April 2015 18

  19. Participation, Park Termik • Park Elektrik has 10% stake in Park Termik Elektrik San. ve Tic. A.S., a Ciner Group company which is involved in thermal power generation in Çayırhan, Ankara. • Park Termikhas operating rights of ÇayırhanThermal Power Plant which has a total production capacity of 620 MW, in four units. • The plant is an integrated power generator which procures coal through its own lignite mines. • In 2014, Park Elektrik gained TL7mndividend incomefrom Park Termik. Park Elektrik April 2015 19

  20. III. Ciner Group Park Elektrik April 2015

  21. Ciner Group, Main Line of Businesses Ciner Group Park Holding Ciner Yayın Holding Commerce, Industry & Services Group Energy & Mining Group Media Group Major Companies Ciner Marine, Ciner Aviation, Lares Park Hotels, Park Insurance, Denmar Logistics, Major Companies & Brands Haberturk Newspaper Haberturk TV, Radio, Haberturk Web Site Bloomberg HT, Aks TV (Show TV) Major Companies Park Elektrik, Park Termik, Silopi Elektrik, Park Teknik, Park Toptan, Eti Soda, Rio Tur Soda, Park Cam Park Elektrik April 2015 21

  22. Park Holding, the main shareholder of Park Elektrik with 61% share, is solely owned by Mr. Turgay Ciner. Ranking among the largest Groups of Turkey, Ciner Group’s history goes back to 1978 when it was founded. The Group has a diversified business portfolio. However, the Group’s main line of businesses are mining and energy in which it has a wide expertise. Ciner Group is a pioneering actor in energy and mining sector given its new and initial steps since early 1990s. In line with accelerated privatization efforts in 1990s, the Group successfully involved in mining and energy sectors which are the underlying sectors of the Group’s fast growth in recent years. Ciner Group April 2015

  23. IV. Financial Structure April 2015

  24. Annual Concentrated Copper Production (wmt) * Annual production declined due to production halt of four-month in 2010. April 2015 24

  25. Annual Con. Copper (dmt) & Cathode(ton) Sales * In 2010, there was a production halt of four months. ** 6,613 dmt of concentrated copper were used to produce 1,210 mt copper cathode. This pushes 2011 total sales up to 61,667 dmt. *** 14,296 dmt of concentrated copper were used to produce 2,521 mt copper cathode, that is increasing 2012 total sales volume up to 87,663 dmt. April 2015

  26. Total Sales Revenues (TL) April 2015

  27. Net Earnings (TL mn) Park Elektrik April 2015 27

  28. Breakdown of Cost of Production, as of YE14, (copper only) April 2015

  29. Annual Margin Comparison April 2015

  30. Sources of Financing (TL mn) * Park Elektrik has no financial debt. April 2015

  31. V. Evaluation of 2014 Financial Results April 2015

  32. Evaluation of 2014 Financial Results • In 2014, copper concentrate production has beenrealized as 91,185 wmt indicating a 5% decline as compared to 2013 results. Copper concentrate sales also decreased to 85,038 dmt with a 9% drop, y-o-y. • Due to the low grade ore having being used in the concentration center and low copper prices, operational loss occured by the year end for the first time. The company also had net fx loss due to the fx rate fluctiations in 2014. But the transfer of asphaltite facility to Silopi Elektrik and dividend payment from affiliate Part Termik, created net positive income in the same period. April 2015

  33. Production & Sales Amount * Park Elektrik sold the entire asphaltite operations to Silopi Elektrik for TL61 mn resulting TL14 mn profit in the end of 1Q14 due to regulatory obligations. April 2015

  34. Income Statement (TL) April 2015

  35. Summary Balance Sheets (TL) April 2015

  36. VI. Corporate Governance Rating April 2015

  37. Corporate Governance Rating Park Elektrik’s corporate governance rating increased to 8.98according to a recent report conducted by SAHA Corporate Rating Agency in June 2013. Based on the report, the rating means that the company performs “very good”in terms of Capital Markets Board’s corporate governance principles. It has, to varying degrees, identified and actively managed all significant corporate governance risks through comprehensive internal controls and management systems. The company’s performance is considered to represent best practice, and it had no deficiencies in any of the areas rated. April 2015

  38. T H A N K Y O U. CONTACTS Yesim Bilginturan Selim Erdogan IR Manager IR Manager Phone: +90 216 531 25 33 +90 216 531 25 35 y.bilginturan@cinergroup.com.trs.erdogan@cinergroup.com.tr www.parkelektrik.com.trwww.cinergroup.com.tr April 2015

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