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Gold/Mining/Energy : Steppe Gold (SPE:V) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Johnston who wrote (614)	2/16/1998 6:18:00 PM
From: John Menzies	Respond to of 1248

QUESTION ON ROYALTIES ** RECEIVED THE FOLLOWING QUESTION VIA EMAIL Question: You are right about it being tough reading. My only question is in regards to the sentence "The Contract must include royalty and/or bonus terms, among others, which are negotiated on a project-by-project basis based upon the individual economics of the project." What are the royalties Steppe pays and what type of renumeration is paid to either the gov't or gov't officials? Answer: Royalties - 3% of gross metal production - typical of most western countries but in this case is offset against exploration expenditure on the project area - so in our operating cost estimates are explroation costs which offset resource replacement royalties totalling from $400,000 to 800,000 per annum. Other payments to governemnet include taxes of course. We will be employing a lot of locals by design particulalry from our local community at Kainar. During the last couple of years we have also had training programs where we sent various staff overseas for techncial and language courses. There are mining propoerty rental which is lower than western countries and is quite acceptable. There are also some small local taxes and charges as you would find in Canada. Hope this answers your query.

To: Steve Johnston who wrote (614)	2/16/1998 6:52:00 PM
From: John Menzies	Read Replies (1) \| Respond to of 1248

Kazakstan got to the final round for good reason they are not bad at hockey - but to be truthful germany and sweden clelary missed out in part due tho the late arrival of NHL players. You have to remember tht there would have been a number of Kazak players on the soviet team at the last olympics. Clelary there will be a couple of Kazak players on the NHL in the next couple of years - go to go where the money is!! Great game! Just amazed to see Canada beat the USA - just kidding - clearly the better team.