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Tonwei Group of Companies

Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

Reg No. 459-907

FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)
(GENERAL COMMENTS ON THE COUNTRY & PROJECT BACKGROUND)

CONSTRUCTION OF

TONWEI OIL REFINERY


BAYELSA STATE, NIGERIA

PREPARED BY:

FOR

TONWEI GROUP OF COMPANIES


August 2006

Tonwei Group Chief Executive Chairmans Editorial & Commentaries 1

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Tonwei Group of Companies

Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

Table of Content EXECUTIVE SUMMARY / BUSINESS PLAN SUMMARY


I. STATEMENT OF WORK 5 II. BACKGROUND 6 REGIONAL ECONOMIC DATA 7 INDUSTRIAL CONSIDERATIONS . 8

III. MARKET FEASIBILITY/SUPPLY & DEMAND (See INCOME STATEMENT p.1 & 2).... 9 IV. FINANACIAL FEASIBILITY (See 5 Yrs. BUSINESS PLAN - FINANCIALS DOCUMENTATION.10 V. SITE FEASIBILITY................................................................................................. 12 EXISTING FEATURES 12 Value of Landed Property 12 Infrastructural support 12

SITE SELECTED .. 14 VI. TECHNICAL FEASIBILITY 15 Key Technical Parameters Defined 15 General Installation Map 16 Preliminary Project Schedule 1 .. 17 Preliminary Project Schedule 2 .. 17 Blockflow Diagram 18

VII. MANAGEMENT FEASIBILITY ..19 THE BUSINESS PLAN - THE MANAGEMENT PLAN .. 19

VIII. RISK ANALYSIS . 21 Value of Water in Oil Industry . 21

IX. HEALTH & SAFETY . 22 Oil Refinery Health & Safety Considerations . 22 IT Safety Policy Guidelines and Measures ...23

X. PROJECT BACKGROUND ...24 XI. PROCESS CONFIGURATION STRUCTURES AND STANDARD OF PRODUCTS ..24 XII. INCENTIVES ..24 Guarantee of Crude Oil Supply ..24

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Sale of Crude Oil/Refine Products .. 24 XIII. THE PETROLEUM INDUSTRY IN NIGERIA . 25 XIV. THE COMPANY: TONWEI REFINERY LIMITED . 25 XV. OUR CONCEPTION/PLANNING a. 26

Land 26

b. Tonwei Refinery Annex Projects 26 XVI. TONWEI REFINERY CITY ... 26 a. b. c. Housing and other facilities 26 Ecology & Environment 27 Achievements 27

XVII. CONCLUSIONS 27 XVIII. AVAILABLE APPROVALS AND DOCUMENTATIONS . 28 XIX. REFERENCES 28 XX. INVESTMENTS POSSIBILITIES List of Tonwei Group of Companies projects ...29 TONWEI USA CONTACT .... 30 Executive and Upper Management Team

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

EXECUTIVE SUMMARY
(PHASE 1 / EXPORT ORIENTED OIL REFINERY)
This study was made possible as a result of grants (License: Ref:: PI/ES/6239/S.126) to Establish LTE, a Petroleum Refinery, issued by NNPC and (License: Ref: MLH/323/06) Approval of 50 sq-km. Virgin Land for the Construction of a Petroleum Refinery in Bayelsa State, Nigeria, issued by Government of Bayelsa State. Project Status: All necessary project requirements, except funding, are available upon request. Population: Number of States: 130 / 140 millions maximum 36

Location / Size: The Federal Republic of Nigeria is located at the eastern extremity of the west coast of Africa, bordering the Atlantic Ocean to the south and west, Cameroon to the south, Chad to the east, Benin Republic to the west, and Niger to the north. Nigeria is 923,770 km2 (356,700 square miles) in size, slightly more than twice the size of the state of California and twice the size of France. Major Cities: Abuja (Federal capital), Lagos (Commercial capital), Port Harcourt, Yenagoa, Warri, Calabar (Oil cities). Official Language: English, Major Dialects: Hausa, Yoruba, Ibo, Ijaw or Izon, Fulani, Edo, Igede, and over 250 others. Climate: Two distinct seasons, the rainy season (April to October) and the dry season (November to march), predominate the climate. The vegetation pattern ranges from the tropical rain forest in the south through mangroves to the Sahel savannah climate in the north.

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Tonwei Group of Companies

Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

I. STATEMENT OF WORK
In an attempt to improve on the development of the Private Sector, the Nigerian Government, in the year 2000, finally decided to privatize the Dawn Stream Sector of the Oil Industry amongst other sectors. The Governments new Oil Industry Policy offered more incentives to the local oil companies and private sector in other to attract additional foreign and domestic investors and to ensure full development of Nigerias resources as mentioned in this section. The private sector is now allowed to establish Export Oriented Petroleum Petrochemical Refineries. The following processing licences were granted: Licence for the establishment and construction of the refineries. Licence for refining and operating such refineries after construction works are completed. Licence for exploration, for a given period in which such refineries should provide enough crude oil for their refinery capacities to be self-sufficient. All ultimate products by these private refineries are export oriented with some possibility to satisfy local market demands. Tonwei Refinery is expected to base her presentation on Technical, Economical & Management, having obtained a Licence to construct/exploit such refineries, must prove its capability with one or more foreign partners in fulfilling the chapters below:Definition of the Refinery Processes following the Crude(s) available in Nigeria or elsewhere. Definition of Capacity to be Built, Operates, Export and Maintenance with all related issues. Realization of the Engineering and Construction Studies (base on specifications). Contract agreements with International Firms for the Control on Cost / Quality of both on Manpower, Materials & Equipment / Technologies. Long-term arrangements for the Sale of Products outside Nigeria. Making effective the programme of Crude Oil Exploration / Production. Total Financing of Studies, Construction, Operation of the Refinery and Total Financing of the Crude Oil Research Programmes. Acquisition of Landed Property for the proposed site of the refinery project to be constructed.

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Tonwei Group of Companies

Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

II. BACKGROUND
This is best described by the following article published online by the United States Department of Energy (DOE) on their web site at http://www.eia.doe.gov/cabs/nigeria.html as part of progress being made in Nigerias oil "Refining and Downstream," (With highlighted sections shown for emphasis). March, 2003, and modified: April 7, 2003:

Refining and Downstream


Published by: Elias Johnson (USA) Elias.Johnson@eia.doe.gov Phone: (202)586-7277 Fax: (202)586-9753 Posted to the web March, 2003 File last modified: April 7, 2003 http://www.eia.doe.gov/cabs/nigeria.html

Refining and Downstream Nigeria's four refineries (Port Harcourt I and II, Warri, and Kaduna) have a combined nameplate capacity of 438,750 bbl/d, but problems including sabotage, fire, poor management and lack of turnaround maintenance have sharply decrease actual output. In March 2003, NNPC officials stated that maintenance work at its Port Harcourt refinery has been completed and that the plant is now operating at an improved production capacity of approximately 90,000 bbl/d. However, repairs are ongoing at the Kaduna and Warri refineries. The NNPC signed a Memorandum of Understanding (MOU) with Venezuela's state oil firm PDVSA in December 2000 to help maintain Nigeria's refineries. In March 2003, ChevronTexaco signed an agreement with NNPC to take over the management of the Warri and Kaduna refineries and its crude oil tanks in Delta State. The NNPC will retain ownership of the refineries; only the management of the facilities has been signed over to ChevronTexaco. While Nigeria's state-held refineries are slated for privatization, plans for several small, independently-owned refineries are being developed. Nigeria has awarded 18 private refinery licences after opening up the country's downstream sector to private investment. President Obasanjo laid the foundation stone of the $1.5 billion Tonwei Refinery (in achron.html" \l "OCT02" October 2002) in a ceremony marking the start of construction of Nigeria's first private refinery. The Tonwei Refinery will have an initial capacity of 100,000 bbl/d and it can be expanded to 200,000 bbl/d. The government of Lagos State has announced that it is studying the possibility of establishing a refinery. Lagos is estimated to consume more than 50% of Nigeria's petroleum products. The refinery, if built, will serve not only Lagos but also Nigeria's other southwestern states. The Akwa Ibom state government announced that it had concluded plans to build a 12,000-bbl/d refinery. U.S.-based Ventech announced that design and construction of the refinery, to be built in prefabricated modules in the United States and then shipped to Nigeria for assembly, had begun. The facility will be located in Eket, adjacent to the Qua Iboe crude terminal. The Edo State government has obtained approval from the federal government to build an oil refinery. Capacity is expected to be 50,000 bbl/d, and a consortium of Nigeria's independent, local petroleum marketers stated that the government had approved their plan for the construction of a refinery in Nigeria's Federal Capital Territory. The lack of refinery capacity in the country has been a key factor in Nigeria's latest fuel crisis, which began in February 2003 and coincided with a strike by oil workers. Panic-buying from the strike increased demand at a time when the Port Harcourt refineries were offline, and the country was unable to import fuel in order to cover the shortfall.

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Tonwei Group of Companies

Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

II. BACKGROUND REGIONAL ECONOMIC DATA


The Federal Republic of Nigeria has always maintained peaceful relationships with its neighbors and did play an important role in bringing political and regional stability to Liberia. Commercial energy consumption is growing throughout Africa. Energy demand growth in Africa averaged 2.7% annually from 1980 through 1997, and a slightly faster 3.1% annual average from 1990 through 2007.

Nigerian oil fields Collective Reserves that have not yet been fully developed: 2,000,000,000 barrels Natural Gas of High Quality (positioned 2nd. in the world reserves). Nigerias daily crude oil export (OPEC Quota): Total daily production capacity: 1,800,000 barrels per day 2,400,000 2,500,000 barrels daily

The calculation and test reservoirs given reveal a reserve of over 24 billion barrels with anticipated increase of about 60% by 2011 to 4,000,000 barrels daily. The new refinery represents a unique opportunity for Nigeria to take a strategic position in supplying demand in the surrounding area, as well as in the U.S. and Europe with positive impact on its economy, balance of trade and currency Nigeria has a labor force of 55.67 million (2004 est.) with Oil - production: Oil - consumption: Oil - proved reserves: Natural gas - exports: Natural gas - imports: Natural gas - proved reserves: GDP (purchasing power parity): GDP - real growth rate: GDP - per capita: composition by sector: GDP 2.356 million bbl/day (2004 est.) 275,000 bbl/day (2001 est.) 34 billion bbl (2004 est.) 7.83 billion cu m (2001 est.) 0 cu m (2001 est.) 4.007 trillion cu m (2004) $125.7 billion (2004 est.) 6.2% (2004 est.) purchasing power parity - $1,000 (2004 est.)

agriculture: industry: services:

36.3% 30.5% 33.3% (2004 est.)

Nigeria should benefit strongly from the development of a new refinery in several respects: Direct and indirect effect on local employment Training of a group of new managers Substantial technology transfer

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

Reduction in cost of oil products Improvement in structure of trade balance ( purchase of crude oil, export opportunities) The project has strong support from the Federal, State, and Local Governments, Regional Chiefs, who have granted the refinery a landed property of 50 km-sq. and closer to major oil pipelines and companies.

INDUSTRIAL CONSIDERATIONS
Regional economics as well as political and trading considerations confirm the opportunity to develop a new oil refinery in the area. Environmental and logistical issues have allowed defining the ideal site for the refinerys location: Agge, near the old Burutu Harbor has been selected as the site of the project: The environmental impact study has been completed and is satisfactory. The following preliminary environmental impact statements are considered: Deforestation, Bio-Diversity Loss, Toxic and hazardous substances, Sewages, Vehicular Emissions, Oil Pollution and social Impacts. Climate conditions are favorable, notably with the lowest monsoon in the region Major industrial consumers are located in Europe, United States, and Asia The existing creeks and sea have deep water suitable for aqua-farms, imports and exports A special Tax Holiday will exempt some activities from taxes and duties The selected site (An Island) comprises in excess of 50 sq. km, with additional adjacent availability to further expand activities and developing appropriate housing for the workforce.

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Tonwei Group of Companies

Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

III.

MARKET FEASIBILITY/SUPPLY & DEMAND (See INCOME STATEMENT p.1 & 2)


This recent article published by Energy Bulletin through their web page at http://www.energybulletin.net/27200.html reiterates, "Normally if stocks went down for a non-energy reason such as panic, the price of energy would follow. The idea is that weaker companies will breed weaker performance, resulting in lower consumption. This is no longer the case.

Published on 14 Mar 2007 by Energy Bulletin. Archived on 14 Mar 2007.

Peak Oil - Mar 14, 2007


by Staff Many more articles are available through the Energy Bulletin homepage Peak Oil Passnotes: Markets Don't Work Anymore Edward Tapamor, Resource Investor If ever there was a moment when the disconnect between stocks and oil was evident, it was during the downturn in the Dow Jones in the last fortnight. While the equity markets took a serious hit, albeit most likely to be a correction - not a crash, oil carried on firming up and hit $62. Even those people with a casual acquaintance of the markets should be interested in the way we have seen a multiple change in the way equities and energy inter-react. Normally if stocks went down for a non-energy reason such as panic, the price of energy would follow. The idea is that weaker companies will breed weaker performance, resulting in lower consumption. This is no longer the case. We also used to see a steep, sharp rise in the price of oil adversely affecting equities. Any oil shock, say, over a war, would mean higher costs passing through to companies, and therefore the market would sell off shares in anticipation of a downturn. Again, this is no longer the case. There are several reasons. Firstly, the market is not logical and those in the know realize this. It no longer sounds convincing to come out with grand resolute theories about the relationship between energy and equity. (9 Mar 2007)

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Tonwei Group of Companies

Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

IV.

FINANACIAL FEASIBILITY

(See 5 Yrs. BUSINESS PLAN - FINANCIALS DOCUMENTATION and INCOME STATEMENT DOCUMENTATION)

THE BUSINESS PLAN - THE FINANCIAL MANAGEMENT PLAN Our financial management plan will remain sound, profitable, and solvent. To manage the finances of our business, which is the cornerstone of every successful business venture, we have engaged the expertise of highly accredited European Bankers and an accounting company in Bordeaux, France to write the financial study. As business owners, we have identified and implemented policies that will lead to and ensure that we meet our financial obligations. To manage our finances effectively, we have planned a realistic budget by determining the actual amount of money needed to open our business (See Business Plan Financials documentation on start-up costs) and the amount needed to keep it open (See Income Statement documentation on operating costs). Our start-up budget includes such one-time-only costs as major equipment, utility deposits, down payments, etc. The start-up budget allow for these expenses. Start-up Budget o o o o o o o o o o o o o personnel (costs prior to opening) legal/professional fees occupancy licenses/permits equipment insurance supplies advertising/promotions salaries/wages accounting income utilities payroll expenses

An operating budget will be implemented when we open for business. The operating budget reflects our priorities in terms of how we spend, the expenses we will incur, and how we plan to meet those expenses (see Income Statement). Our operating budget also includes money to cover the first year to five years of operation. It allow for the following expenses. Operating Budget o o o o o o o o o personnel insurance rent depreciation loan payments advertising/promotions legal/accounting miscellaneous expenses supplies

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

o o o o o o

payroll expenses salaries/wages utilities dues/subscriptions/fees taxes repairs/maintenance

The financial section of our business plan include any loan applications we've filed, a capital equipment and supply list, balance sheet, breakeven analysis, pro-forma income projections (profit and loss statement) and pro-forma cash flow. The income statement and cash flow projections include a three-year summary, detail by month for the first year, and detail by quarter for the second and third years. The accounting system we use is Oracle PeopleSoft and the inventory control system (Golden Inventory System v2.1.2 November 14, 2005 POS Software that functions as a complete control over stock levels and an inventory tracking system). Both software address the business plan. We plan to implement a dual entry accounting system, because all our finances will be categorized as assets, liabilities, equity, revenue and expenses. Our financial statement outlines what our sales goals and profit goals for the coming years are. This statement includes an explanation of all projections.
The 5 Yrs. BUSINESS PLAN - FINANCIALS DOCUMENTATION is available in a booklet and electronic form, and is obtainable by email: iv@tonweirefinery.com

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

V.

SITE FEASIBILITY
The Tonwei Refinery Site is situated on an Island of about 40 km. long and 10 km. wide. The planned construction works will fully utilize the entire 10km. x 5km. (50 sq. km) of the landed property the project has acquired. The site is accessible to the Atlantic Ocean via inlet creeks. The longer side of the Island is facing the Atlantic Ocean. The Tonwei Refinery site is only 500 metres away from one of the main crude oil supplying pipelines and underground layouts, both belonging to the Federal Government. The farthest distance to any of the pipelines from the refinery site is 2 km. There exists also an old seaport at Burutu Village, about 30 kilometres away from the Refinery Site, which Tonwei plans to acquire, renovate and use for crude oil and refined products transportation. EXISTING FEATURES. The "Area to be developed" occupies a rectangle of 50 sq.-km. (5 x 10km) within a Virgin Island of (40 x 10km.) with the longer side parallel to the Atlantic Coast, between the mouths of Ramos and Dodo Rivers (direction: N/NW S/SE) at the western-most point of Ekeremor Local Government Area of Bayelsa State Nigeria. Temperature: Mean Annual Values: between 23C and 31C Rainfall: Over 2,000mm most of the year Soil: Sandy beach on the ocean shore and swamps in the hinterland; poor bearing characteristics, piling required. Vegetation: Palm tree ornate shoreline with shrubs; further back Mangrove Swamps. Winds: Prevailing winds blow from Southwest to Northeast; harmattan effect is weaker in winter mouths. Coast: Shallow bottom (1 metre deep approx. 1 km. from the coastline); no harbour facilities, dredging expected. a. Value of Landed Property. The Island is surrounded by oil wells, some under development and others yet to be developed. This has enriched and increased the value of the underground in the Zone. Sea fishing is possible, while the backside of the Island has creeks and a peninsular. Fresh water fishes are obtainable through various fishing methods. The refinery site is four kilometres away from one of Nigerias Oil Loading Terminals (The Forcados Terminal). Tonweis Landed Property is valued at $1Billion U.S Dollars (See Valuation Report on Tonwei assets). b. Infrastructural support. The plot reserved for the TONWEI REFINERY COMPLEX / TONWEI REFINERY CITY development is in the midst of a crude oil producing zone and closer to major oil fields and pipelines. There will be an access road leading to the refinery from the village of Bomadi via Ekeremor. The distance from Bomadi to the site (Tonwei Refinery & City) through Ekeremor Village is about 100km. Four small bridges of about (20-50m) and a fifth bridge of over 100m long will be constructed.

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

The site is quite close to the existing oil pipelines; that will facilitate the supply of crude oil to the refinery. Connection to the Natural Gas and/or Oil Pipeline is also possible within a distance of 2km. Prevailing wind in the region comes from the south-west which is already taken into consideration regarding the process units layouts. The Virgin Island is situated far away from the main towns and cities. For now, the project site is accessible only by River Transportation. Alongside this huge and challenging industrial project, which is 100% privately owned, are Humanitarian & Rural Developmental Ventures ("Projects for Funding"). They are as follows:Accommodation/Lodging (Tonwei Staff Residential Quarters / Community-Improved Homes), Integrated Foods / Fruit Processing Units, Fishery / Aqua-Farms, Water Purification Units, Clinic / Hospital for Tonwei Staff & for the Host Communities around the Island where the Project is located (Project Site),Waste Recycling Plant, Transportations (River, Land and Air), Building new and renovating old Schools, Electricity Installations, Road Works & General Constructions, Workshops for Maintenance Purposes, etc. The Proposed Project Site is far from the major towns and cities, therefore the area is not connected to the National Grid (Electricity), which simply means no Gas distributions, treated drinking water, or telecommunication networks. The project must provide such facilities to facilitate the smooth running and Management of its activities. Refinery Area View in Bayelsa State

Delta Map Showing Bayelsa State

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

SITE FEASIBILITY: SITE SELECTED

Below: Landed Property marked X / Location

Site Selected Agge, Bayelsa State

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

VI.

TECHNICAL FEASIBILITY

There are numerous firms that offer oil-refining technology. In order to reduce technical risk, it is recommended that the process technology vendor selected have the following qualifications: established vendors with existing oil refinery plants to confirm the technology is proven, financially sound to provide a credible process performance guarantee (i.e. significant dollar penalty if plant performance is not met), technical personnel to assist with plan startup and quality problems to ensure ASTM (American Society of Testing & Material) D6751 specifications for oil refining is consistently met, R&D compatibility to develop improved technology for future incorporation into the plant as well as provide know-how to process difficult to process, low cost alternate raw materials and machinery (such as cane sugar, pipelines, storage tanks, etc.) in the event petroleum prices were to drop and crude oil is no longer profitable.

Two large vendors that met the above requirement are: 1. Energoprojekt, Belgrade 2. MGI Construction Co., Serbia-Montenegro Other process technology vendors might also meet the criteria above and should be evaluated on a case-by-case basis. Construction risk can be mitigated by selecting a construction company that is able to provide a Performance and Construction Bond to ensure that the plant is mechanically built to specification. Based on review of the NNPC regulations and an established history of oil companies ignoring environmental standards, it is expected that the necessary environmental permits can be obtained if (a) and established technology vendor is selected and (b) a well-qualified engineering consultant with firsthand knowledge of NNPC permit regulation is retained to ensure the permit process is strictly followed.

Key Technical Parameters Defined


Description

Parameter Capacity Type Oil Products

100,000 X 2 BPSD (Phase 1 & Phase 2) Grass root export oriented oil & gas refinery Low sulphur content, medium specific gravity, low residual content LPG, gasoline, gasoil, jet fuel, fuel, bitumes, diesel and kerosene: atmospheric distillation, gasoline HDS, CCR, diesel/kerosene HDS, alkylation's, MTBEE, isomeration, sulpholane and common units including sulphuric Acid Regeneration plant and hydrogen units . Phase 1= 5,000,000; Phase 2 = 5,000,000. Refer to Block Flow Diagram (Presentation no. 11) All products will be compliant with 2005 European and United States standards to permit unrestricted exports Topping, vaccum, reforming, kero hydrodesulphurisation, gasoil hydrodesulphurisation, LPG recovery, sulphur recovery, fuel desulphurisation Steam generation, power plant, cooling water, demin. water, compressed air Raw material and products storage and relevant pumping stations Fire fighting, effluents treatment, harbour receiving facilities and Pipelines US$ 2.550Billion

Quantities (5,000,000 t/y) x 2 Specifications Process units Utilities Offsites Facilities Estimated Construction Cost

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

General Installation Map

The Block Flow Diagrams of process units and conceptual solutions were elaborated by Engineers from I.F.P. (Institut Francais du Petrole, France) and ENERGOPROJEKT and I.M.G Group of Serbia-Montenegro, both groups have long experience in refinery designing and construction. ENERGOPROJEKT and I.M.G. of Serbia-Montenegro completed the feasibility studies for the entire project, including construction and design. All credentials and references given by ENERGOPROJEKT were transmitted to the Federal Government in Nigeria and placed as prequalified. We are equally retaining ENERGOPROJEKT and I.M.G. Engineering Co. for the construction, start-up, production, operations, training, and maintenance activities..

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

Preliminary Project Schedule 1 (Photocopy)

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Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

Blockflow Diagram

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Tonwei Group of Companies

Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

VII.

MANAGEMENT FEASIBILITY
THE BUSINESS PLAN - THE MANAGEMENT PLAN A project such as a start-up oil refinery has three (3) stages, each of which requires a different set of management skills: 1. 2. 3. product development phase Construction phase plant startup and ongoing operational phase

The initial project development phase (a) commercial skills to negotiate site agreement, technology license, construction contract, market contracts, etc. and to secure the necessary debt, equity, and grant financing, and (b) technical skills to ensure appropriate technology selection and front end engineering. The construction phase (a) project management experience to ensure construction cost are controlled and change orders are minimized (b) technical construction skills to ensure the plant is being built to meet all necessary codes and specifications. If this phase is not managed effectively, the company could potentially run out of contingency funds before commencement of operations. Finally, the ongoing operating phase will require skills in leadership and management, community experience, industry contacts, crude oil supply, product marketing, process plant operation, environmental & safety management, maintenance, products quality control to meet OSHA Environmental and Workplace Safety Standards and other Oil Industry quality standards. To control cost, certain task such as legal and audit should be outsourced. Total staff for operating the refinery and marketing business is estimated at 4,500 with an annual salary budget (Excluding benefits) of $29.5 million U.S Dollars. This staffing plan includes three (3) key management positions (a) General Manager, (b) Commercial Manager, and (c) Plant Manager. The management team should be selected to ensure the necessary management skills outlined above are somehow covered by the three team members. The Tonwei Group Strategic Management Team, already created and operating, is a selection of experienced petrochemical professionals and executives from various European countries, Nigeria and the United States. The Team has more than just the desire to own one of the oil companies in the world. So far, Tonwei has contracted a fraction of the planned management team, and their qualifications met industry standards and demands, such as dedication, persistence, the ability to make decisions, the ability to manage both employees and finances is our major task. Our management plan, along with our marketing and financial management plan will set the foundation for and facilitates the success of our business. Like plants and equipment, people are our resources -- they are the most valuable asset of our business. Our working policies are dedicated to employees and staff for the important role they will play in the total operation of our business. We know what skills we possess and those we lack and we will hire personnel to supply the skills that we lack. We will ensure that applicants for supervisory positions, including management, possess the skills to manage and treat our employees fairly, make them a part of the team, keep them informed of, and get their feedback regarding changes. We at Tonwei believe employees oftentimes have excellent ideas that can lead to new market areas, innovations to existing products or services or new product lines or services, which can improve our overall competitiveness. Additionally, we have a roaster of officers to fill in key positions in the company and we are accepting more resumes. Those qualified will be contracted as soon as funding is available. We also plan to hire the best professionally trained managers and technicians who are specialized in crude oil technology. We are also looking forward to employing a labor force of about 4,000 professionals and skilled workers.

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Tonwei Group of Companies

Confidential Document FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN EXECUTIVE SUMMARY (Phase 1 & 2)

Our management team will keep researching and answer questions such as:

o o o o o o o o o o

How does our background/business experience help us in this business? What are our weaknesses and how can we compensate for them? Who will be on the management team? What are their strengths/weaknesses? What are their duties? Are these duties clearly defined? What are our current personnel needs? What are our plans for hiring and training personnel? What salaries, benefits, vacations, and holidays will we offer? What benefits, if any, can we afford at this point?

Investments - Installations - Constructions - Operations


- Project Capacity: 2 x one hundred thousand barrel per stream day (2 x 100,000 BPSD). - Estimated period of construction: 30 months from preliminary actions to start-up period. - Direct Construction Activities: 450 workers with 3 periods' x 8 hours of work shifts. - Indirect Employments: During the construction period, a total of 1800 workers will be needed, daily. Indirect employment after start-up will require 300 permanent workers. - General Activities: The refinery project needs 330 workers programmed for 3 shifts of 8 hours and a total of 110 workers at each shift. The refinery projects activities will generate growth in the socio-domestic incomes locally and increase purchasing power to a very large scale. - The auxiliary projects to the refinery: The annex projects which include clinics, electricity, transportation, waste recycling, etc., will help improve social and human resources development, and decrease unemployment rate. - Training Institute: The refinery will provide training opportunities for its staff. At least 25 % of the candidates will be non-staff seeking to improve their various skills. - Workers Wage Subscription Plan: Employees with "Permanent Worker" status will benefit from the company's Workers Savings Plan, which enables those eligible, to save a portion of their wages each month to a blocked account with the company's Bank. The company will offer up to 20-25% interest to the amount each year and such savings will be capitalized for a minimum of five years, after which the worker may withdraw or continue with the savings program. To be eligible, the employee must work for Tonwei for at least 1 year. This offer is given as goodwill from the company and will not be considered mandatory or obligatory under any legal implication whatsoever.

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VIII. RISK ANALYSIS


Value Chain Perspective of Water Risks in Oil/Gas Industry
Presentation to Petroleum Environmental Research Forum. November 3, 2005 The risk analysis outlined in this section and below will be conducted periodically throughout the refinerys construction and operational periods. Unlike some disadvantaged oil deposit locations around the globe where water scarcity has become a major problem, Tonwei is located at Nigerias tropical rain forest and delta region. Water scarcity is impossible around this region considering the massive rainfall during the rainy season and regular downpour throughout the year. However, water pollution is eminent when necessary step of prevention is neglected as the report below shows. Tonwei Refinery is currently studying reports from various Petroleum Environmental Research groups: Value of Water in Oil Industry Water plays multiple roles in Petroleum Operations: Process aid for oil production By-product or waste from oil or gas production Process aid for gas processing and oil refining By-product or waste from gas processing and oil refining Valuable resource to fenceline communities, local agriculture and industries.

As scarcity increases, so do the risks and opportunities associated with water

World Water Scarcity in 2025


New External Pressure from Affected Stakeholders: Environmental Non-governmental Organizations (NGOs) Biodiversity Advocates Communities Agriculture Ranchers Fishing Industry (Commercial and Recreational) Local Industry Social Investment Funds Governments (Local and Federal)

Water scarcity concerns for the oil industry: Significant Risks


Insufficient or unreliable water supplies for existing and future operations Friction with competing industries and users Insufficient capacity to treat and dispose of produced water, cooling water, and wastewater Inability to dispose of wastewater to existing destinations Lack of community acceptance Difficulty in securing new permits and legal license to operate Increased raw and wastewater treatment and disposal costs Future liability due to historic disposal practices

Actions taken by Industry Traditional, Technology-Based Solutions

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Reduce, reuse and recycle within factory fenceline Significant progress has been made in improving efficiency and reducing fresh water intensity

Innovative Approaches Value Chain Approach: Work with suppliers and consumers to prioritize efforts to minimize water use and impacts Beyond the Fenceline Approach: Work with communities and local industries to optimize local water resources and minimize impacts. 1. Access long-term water availability and competing users - evaluate scenarios 2. Engage in dialogue with stakeholders with stakeholders and consider strategic partners for mutual beneficial outcomes.
including social and political factors

IX. HEALTH & SAFETY


OIL REFINERY HEALTH & SAFETY CONSIDERATIONS
The Director of Workplace Safety & Health is responsible for the effective implementation of the act through educating the entire workforce on the subject in accordance with its necessity. Research for information on this topic can be found online and on health and safety bulletins. Company will hire an independent inspection team to monitor compliance. Workplace fires and explosions kill 200 and injure more than 5,000 workers each year. In 1995, more than 75,000 workplace fires cost businesses more than $2.3 billion in the United States alone. "Fires wreak havoc among workers and their families and destroy thousands of businesses each year, putting people out of work and severely impacting their livelihoods," said then US Secretary of Labor Robert B. Reich (1996, October 8). "The human and financial toll underscores the serious nature of workplace fires." At tonweirefinery.com you may find links to resources that provide safety and health information relevant to fire safety in the workplace. The information below is researched from accredited world health and safety standard boards including the Organizational Safety & Health Association OSHA, USA. Workplace Safety & Health division heads and personnel are requested to enforce its implementation. Here is some extracted information on workplace health and safety considerations taken from the Tonwei Refinerys Workplace Health & Safety web page. More on this information is obtainable electronically by email request mailto HS@tonweirefinery.com or by visiting Knowledge Base at http://www.tonweirefinery.com/knowledge_base.htm. Here are some of the topics covered at tonweirefinery.com web site:

CRUDE OIL PRETREATMENT (DESALTING) a. Fire Prevention and Protection. Even though these are closed processes, heaters and exchangers in the atmospheric and vacuum distillation units could provide a source of ignition, and the potential for a fire exists should a leak or release occur.
c. Safety. An excursion in pressure, temperature, or liquid levels may occur if automatic control devices fail. Control of temperature, pressure, and reflux within operating parameters is needed to prevent thermal cracking within the distillation towers. Relief systems should be provided for overpressure and operations monitored to prevent crude

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from entering the reformer charge. d. Health. Atmospheric and vacuum distillation is closed processes and exposures are expected to be minimal. When sour (high-sulphur) crude is processed, there is potential for exposure to hydrogen sulphide in the preheat exchanger and furnace, tower flash zone and overhead system, vacuum furnace and tower, and bottoms exchanger.

TONWEI INFORMATION TECHNOLOGY (IT) SAFETY POLICY 1. A workplace safety policy for IT
Other areas of safety that is of serious concern and being studied by Tonwei Health & Safety Board is the use of tools and equipments as well as providing adequate educational information on physical conditions. Every departmental head will be responsible for the welfare of the department they are in charge. Tonwei Group Internet Technology (IT) Department is implementing a safety policy that specifically addresses the dangers associated with IT. The policy covers a wide range of safety issues:

2. Preventing repetitive-motion injuries Making sure workstations are ergonomically correct for individual workers is the first step to controlling these injuries. A workstation checklist can help evaluate our staffs workspace and make recommendations for improvement. 3. Key responsibilities for the IT manager According to experts, the IT manager plays a key role in keeping employees safe and, as a result, limiting the expense of workers comp claims. It is highly recommended to focus on finding a solution for each individual. Heres a list of key responsibilities for managers tackling IT safety: Empower employees to take breaks. Tonwei Group generally requires a minimum of a 15-minute rest break at least every two hours. Encourage employees to report any discomfort or injuries. Make sure employees know that they are a greater resource to the company if they are healthy than if theyre hurting or missing days of work. Also, make it known the pain could turn into something permanent if a change is not made in the environment or the injury is not treated. Know when to report an injury. Our company will have a policy on reporting injuries guided by OSHA recordables. Find individual solutions. We will not look for a quick fix. Each solution will be tailored to each individual based on physical attributes and job function. Get involved in the investigative process. Find out why an employee is hurting or injured and use the knowledge to build a personal database for solving similar problems in the future. Focus on buying electrical tools that limit a lot of repetitive wrist action. Furnish our staff with roller carts and tool belts. Encourage telecommuters to report discomfort and make sure their home workstations are ergonomically correct.

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X.

PROJECT BACKGROUND. TONWEI REFINERY will construct a Phase 1 capacity of 100,000 BPSD. (Barrels per stream day), with the possibility of extension in three years maximum time to a full refining capacity of 200,000 BPSD. The refined products will be export-oriented, with some possibilities of satisfying the local market, etc. The working capacity of the various units will be based on a period of 330 working days per year. The remaining days are reserved for Turn Around Maintenance programs (TAM).

XI.

PROCESS CONFIGURATION STRUCTURES AND STANDARD OF PRODUCTS. EUROPE / USA Standards, with adjustment to 2010/15. TONWEI REFINERY will be a modern and updated plant, which will withstand the test of time. The goal products are : Motor gasoline, Diesel and Kerosene: Atmospheric Distillation, Gasoline HDS, CCR, Diesel/Kerosene HDS, Alkylations, MTBEE, Isomeration, Sulpholane and common units including Sulphuric Acid Regeneration plant and Hydrogen units if necessary. The refinery will be supplied with the necessary support facilities such as Power and Steam Generator, Power Distribution, Fresh water circulation, Tank farm, Storage Facilities, Marine facilities, with an off-shore Single Buoy for crude oil receiving and product shipping, Pollution Abatement and Emergency Systems. The general facilities will also include Fire Protection, Automatic and Track Loading, etc.

XII.

INCENTIVES The Federal Government of Nigeria, in its effort to stimulate the oil industry in Nigeria, has offered various incentives among them the list of incentives below. However, the government has attached certain vital conditions to the incentives that will be provided, such as: *Project activities must commence at Proposed Site to indicate commitment*. Others are as follows:Guarantee of Crude Oil Supply Export oriented refineries will be guaranteed crude oil supply at prevailing international prices, provided they obtain permission before construction. The available volume is finite. Therefore, investors are advised not to delay in making their proposals as approvals will other things being equal be given on first come first serve basis. Sale of Crude Oil/Refine Products Investors embarking on projects in the listed priority areas will receive preferential consideration for crude oil lifting contracts. In this regard, investors are expected to enter into agreement with the appropriate Government agency on project milestones to be achieved on quarterly basis. Tax Holiday, Guaranteed Export Earnings, Duty Free Reduction on Construction Materials, Importation of Intermediate Feed Stocks, etc.

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XIII.

THE PETROLEUM INDUSTRY IN NIGERIA. The Nigerian Crude Oil is well known for its lightness with very low sulphur, quite good for maximum production of High Quality Fuel, and it is highly priced by refiners in the world oil industries. The country is politically stable now and is positioned 5th Crude Oil producer in the world (1st. in Africa), 5th. Supplier of crude oil / refined products to the United State of America (USA). Nigeria oil fields have Collective Reserves totalling well over two billion barrels (2,000,000,000. barrels) that have not yet been fully developed. Nigeria has also large deposit of Natural Gas of High Quality (positioned 2nd. in the world reserves). We are just beginning to exploit some quantities. Under the renowned OPEC regulations and being a member, Nigerias daily export on crude oil is adjusted to about 1,800,000 barrels per day, whereas her capacity on a daily production and that of loading is regularized to about 2,400,000 2,500,000 barrels daily. The calculation and test reservoirs given reveal the reserve of over 24 billion barrels with anticipated increase of about 60% by 2011 (4,000,000 barrels daily).

XIV.

THE COMPANY: TONWEI REFINERY LIMITED. The company was created in September 2002, in response to the demands; an obvious reason alongside the needs that influenced and affected the Privatization Policies of the Countrys Oil Industrial Sector and other sectors. The company is a subsidiary to the investment company among other Tonwei Group of Companies already created. The associates are Africans and Europeans, and we are looking forward to potential American partners. The Tonwei Group wholly owned will have its Holding Firm in Switzerland (under creation). Tonwei Investments Limited and Tonwei Oil Refinery Company Limited jointly applied for the License. The Group Chairman (Prince Timi George Tongubor) is an indigene of Bayelsa State in Nigeria and has lived in France for twenty years under a Permanent Resident Statutes. Tonwei Refinery Limited, the first privately owned oil refinery in Nigeria, was officially and publicly embraced. The company had its Foundation Stone Laying Ceremony at Agge Village of Bayelsa State on the 19th. October 2002. Among the invitees were Chief Olusegun Obasanjo, President, Federal Republic of Nigeria and Engineer Funsho Kpopolokun, his then Special Adviser on Petroleum Matters (now Group Managing Director Nigeria National Petroleum Corporation NNPC). The Chairman of the occasion was Senator (Alhaji) Ibrahim N. Mantu, Deputy Senate President, Federal Government Ministers, State Governors, regional and community leaders, and other very important national dignitaries. The license was issued 14th June 2002. Ref: To read online publications about Tonwei Refinery being one of the 18 companies that qualified for a refinery license, visit google.com and key in "Tonwei Refinery." Bayelsa, the state where the refinery will be located, is one of the richest States in Crude Oil and Natural Gas deposits along the Niger Delta Area of Nigeria.

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XV. a.

OUR CONCEPTION/PLANNING. Land The promoters conception is to put into immediate use only part of the piece of land meant for the development of the proposed Tonwei Refinery Complex / Tonwei Refinery City facilities. Thus, the plot is divided into eight (8) sight square sub-divisions of 2, 5 x 2, 5 km. each. In the initial stage, only two of the square fields shall be occupied. The refinery complex (stage 1) covers an area of approx. 450 Ha., which is separated from the shore by a protected Green Zone. More stages of expansion on the refinery complex would cover approximately 900Ha. The layout of the Refinery Plant and other facilities are shown on the drawing and explained, enclosed in the feasibility study. An infrastructure consisting of Grass-Root Refineries of similar size has been included in the study. The refinery buildings include: Process Control Centre, Laboratory, Local Control Rooms, Workshops (Mechanical, Electrical, Instrumental), Storage Facilities for Bulky Materials, Ware Houses, Chemical Stores; Administration, Fire Department Stations, Restaurant, Dispensary, etc. b. Attached to the Tonwei refinery complex includes:

Hotel for contractors/subcontractors and could be used for tourist purposes, Guest House, Club House, Staff Housing for management and supervisory personnel, plus recreational facilities for same group, as well as Hospital, Schools, Supermarkets and various shop Malls banks etc. Total surface for refinery building / storage = 14 480 sq-m. XVI. d. TONWEI REFINERY CITY. Housing and other facilities. In other to accommodate the projected number of the refinery employees (management, senior, technical, and auxiliary staff with their families), there is a need to organise a housing estate in the immediate neighbourhood of the plant complex. Such self-contained residential lay-out shall ultimately become a town in its own right with expected population of 6,000 to 15,000 inhabitants during the initial period of development (total surface = 650 Ha).The space reserved for further expansion allows for virtually unlimited physical growth. The new town, tentatively called TONWEI REFINERY CITY will be an urban settlement consisting of: Residential: Low Density, Medium Density, and High Density. Commercial: Business Space, Offices, Shopping Mall, Retail Trades, Bank; etc... Institutional: Education, Nursery, Primary and Junior Secondary Schools. Public: Security, Police, Fire Brigade, Nipost, Nitel (telecom), Refuse Disposal, Electricity. Tourists & Recreational: Hotel, Golf course (18 holes), sport Fields and Children Playgrounds. Roads & Car parks: Pedestrian zones, Parking, Road Constructions. Apart from the planned built-up areas (including future extensions), occupying 3 industrial and 2 residential square blocks, the remaining zones are reserved for

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Environmental Protection and Green Buffer Zones. These zones consist of natural vegetations mingled with purposely-planted species. Besides, there is over 600 Ha of land kept aside only for Agro-Industrial Projects in a different area. e. Ecology & Environment. For the purpose of elaboration, a brief study is already made. The following preliminary environmental impact statements are considered: Deforestation, Bio-Diversity Loss, Toxic and hazardous substances, Sewages, Vehicular Emissions, Oil Pollution and social Impacts. Summary study is hereby inclusive. f. Achievements. Tonwei has offices in United States, France and the United Kingdom for the coordination of all activities in United States, Europe, and the rest of the world. These offices will oversee sales of products, engineering, constructions, and purchases of materials, equipment, and control of expenditures, invoice payments, payment of expatriate salaries, and other related services that would be determined in the future. The France and England offices will also draw up programs for the following sections: The general planning of the various studies. Processes, Basic and Detailed Engineering, Purchasing, Construction, Start up. The chronology of construction and Data on the Financial Engagements. Preliminary site building, realisation of soil test and analyses at the chosen site, Topographical studies, site preparations, etc. XVII. CONCLUSIONS. TONWEI REFINERY, a subsidy of the Tonwei Group and its affiliates, after several years of hard work has achieved the following results: Process Flow Diagrams of process units and Conceptual solution with other facilities were elaborated by some Engineers from I.F.P. (Institut Francais du Petrole) and from ENERGOPROJEKT / I.M.G Group from Serbia / Montenegro of qualified engineers possessing long experience in refinery designs and construction. We have chosen ENERGOPROJEKT / I.M.G. of Serbia-Montenegro for the studies of the complete project, construction and design; all their CV's provided and references given by ENERGOPROJEKT were transmitted to the Federal Government in Nigeria and placed as pre-qualified. We are equally retaining ENERGOPROJEKT / I.M.G. for the construction, start-up, production/operations plus maintenance activities / training. We have obtained from Government (Ministry of Petroleum and Mineral Resources) an official licence qualifying us to go ahead to start construction works at site. The council of Traditional Chiefs from Ekeremor local government area (ELGA) and Bayelsa State Government jointly accorded us over 10 km of land at the coast "Bight of Benin, about four 4 kilometres away from the on-shore of "Forcadus Terminal" in Nigeria. Duration signed: 99 years of ownership. We are yet to obtain any solid agreements with eventual partners for exploration activities, which are reserved for later phases. We are looking for buyers for our crude oil and refined products. Buyer Agreement for our crude oil and/or refined products has the provision that the Buyer of the Crude Oil also signs for the Buyer of the Refined Products.

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We expect our potential buyers to provide or arrange for the shipment of their products by themselves to avoid diversion of loaded vessels in the future. All sales shall be base on F.O.B. XVIII. AVAILABLE APPROVALS AND DOCUMENTATIONS:

The following information/Presentation is available in PowerPoint, PDF, Video, or Word doc.: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Certificate of Incorporation License to Establish a 100,000 BSPD Oil Refinery from NNPC (Both original and renewed) Approval to Establish a Refinery Land allocation license (Both original and renewed). The title of this document is "RE: APPROVAL OF 50 SQUARE KILOMETRE VIRGIN LAND Land allocation from royal highness of the community Certificate of State of Origin Letter of Comfort (This document states that the State of Bayelsa fully supports this project) Letter of attorney Preliminary Business Plan - Executive Summary - Feasibility Study - Project Commentary Tonwei Main Presentation CD in PowerPoint Business Plan Financial Statement Booklet Income Statement Booklet Engineering & Technical Data / Scope of Work Valuation Report on Landed Property Corporate Governance, Code of Ethics, By-Laws Charter of the Board (Audit Committee, Nominating Committee, Power of the Board, etc. Corporate Overview (Officers / Resumes - CVs) Organizational Chart / Corporate ladder Management Team - Management Training Programs - Executives Training Programs Area & Survey Maps Newspaper & Online Publications Refinery Site View Resources Tonwei Site Video & Foundation Stone Laying Ceremony Video Delegation from Federal, State, and Local Government

XIX. REFERENCES The Nigerian President Director of the NNPC and the current Chairman of OPEC The Bayelsa State Governor Signatories on "Legalities" Documents

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XX. INVESTMENTS POSSIBILITIES


List of Tonwei Group of Companies projects 1) REFINERY: Investments, Installations, Constructions & Operations etc 2) WORKSHOP UNITS: Mechanical, Piping, Preventive Maintenance Tools & spare parts 3) CLINIC / HOSPITAL: For Refinery staff & Families / Host Communities 4) REFINERY CITY: Lodging / Management of Refinery staff & families 5) REFINERY TRAINING INSTITUTE: To be Fully Equipped for all Technologies 6) LOCAL TELEVISION / RADIO STATION: Education pseudo interactive General information 7) TELECOMMUNICATION: installation with Satellite Systems 8) PURIFIED WATER PRODUCTION AND DISTRIBUTION: Pure & Clean Water 9) OIL EXPLORATION: To become Productive/Self Reliant 10) RECYCLING OF USED VEHICLE OIL: Tractors, Motorcars, etc. 11) WASTE RECYLING PLANT: 200 Mt / 400 Mt daily; Bio-Fertilizers 12) AGRO FARMS: Production of Rice, Fruits, Vegetables, and Poultry & Breeding 13) INTERGRATED FOOD / FRUITS: Processing Units 14) FISHERY / AQUA FARMS: Deep Sea Fishing / Shrimps, Cool Storage 15) DRUG MANUFACTURING: Generic Medicines, Strings Medical Equipments 16) SECURITY ORGANIZATION: Training, Equipment & Methods 17) HOVERCRAFTS: Interstates Transportation, 300 Seats - 2 Units Tourism 18) SPEED / FERRY BOATS: 10 Units for Water Transportation, Interstates 19) ELECTRICITY PROJECTS: Installation of six Units of 45 000 Kw/h 20) ELECTRICITY PROJECTS: Installation of ten Windmill units 21) SOLAR ENERGY PLANT: Exploration of an International License 22) ROAD CONTRUCTIONS: To the site & around the Island (300 km) 23) BRIDGE CONSTRUCTION: Two Major Bridges to the site 24) RENOVATION OF SEA PORT: Burutu old seaport 25) AIRPORT CONSTRUCTION: Air Service liaising between the island and the cities 26) WOOD WORKS/OTHER SKILLS: For Local use & for Export 27) IRON CARBIDE INDUSTRY: Production of high quality steel

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28) STEEL UNIT PRODUCTION WITH IRON CARBIDE 29) HOTELS: Five Star Hotels for Tourism & Business purposes 30) RESIDENTIAL AREA: 300 Villas or more for Commercial purposes 31) INSURANCE / MORGAGE ACTIVITIES 32) BANK (S): Creation of one or Buy over existing one for funds management.

To read summaries on the above listed projects, visit our web site at http://www.tonweirefinery.com/project_overview.htm

USA CONTACT: Tom Thaddaeus Thompson Vice Chairman / Partner / Investor Relations Tel. (510) 793-9790 Fax: (510) 894-0224 Email: thaddaeus@comcast.net

Yours Truly, For: Tonwei Refinery Limited - Bayelsa State, Nigeria Prince Timi George TONGUBOR (Group Chairman/Chief Executive, Founder & Promoter) Aug. 2006

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