WORKSTATION “LEASA- ARAD COUNTY”

SC PETROCONSTRUCT GROUP SRL owns in Arad county a stone quarry in Leasa, Halmagiu village. The
quarry has a surface of 0.203 square miles and a stone volume of 23 million tones.

The quarry stone is the andesite and falls in class A, for the standards of highways construction, roads
and railways. The products obtained from the stone quarry can be used for both obtaining asphalt
mixtures, as well as for obtaining concrete (concrete mixing plants), rockfills, etc.

The types of crushed stone produced in the quarry are:

- Loose gravel 0-4 mm; 4-8 mm; 8-16 mm; 16-31,5 mm (these types are obtained by breaking and
washing);
- Stone for railway constructions 31,5- 50 mm; 31,50- 63 mm;
- Crushed stone 0-63 mm; 40-63 mm; 0-31.5 mm;
- Other scales requested by the customer.

The stone can be transported from the quarry both on the current CFR line, as well as by means of car
transport.
The company holds the operating license as well as all the permits and authorizations necessary for its
activity. The stone quarry has also a test laboratory gr III in order to check the products obtained by
crushing the stone. Our customers from 2010 up until now have been the road construction companies
which worked on DN 76 Varfurile-Oradea, A1 Highway Deva-Sibiu, Highway Deva-Lugoj, A10 Highway
Sebes-Turda, county roads in Arad and Hunedoara counties, logging roads/ forest roads (Arad forest
ground).

The andesite is being exploited in descending stages. The preparatory works consist of the soil
excavation and the removal of the altered rock layer from the top of the massif.

The de-rocking process is being executed by specialized and authorized companies using the drilling-
shooting process, in accordance to the laws in force for the execution of these types of activities.

For the material extraction from the working front we use an excavator equipped with a front loader
and a hack installation in order to buck the oversie resulting from the de-rocking process.

Depending on the needs, the rough stone can be loaded for delivery or it can be used to feed the mobile
rock breaker for primary crushing. The primary crushing aims to reduce the material grain size in order
to obtain an intermediate product, respectively, the 0-200 mm crushed stone which is being transported
for the manufacturing and the slags that will be evacuated to the stockpile.

The technological flow for secondary crushing - sorting consists of the following equipment:

- Silage bunker - is loaded with pre-crushed stone 0-200 mm;

- Jaw crusher machine- operates crushed stone;
- Sieve overflow- the finished sort 0-63 mm is obtained and the material larger than 63 mm is
transported to the granulator;
- Conveyor belts;
 - Granulator- shrinks the stone size and ensures the polyhedral shape of the particles;
- Vibrating sieve with 4 screens capable of processing 4 granule dimensions through grounding
and washing;
- Tertiary granulator.

The finished products out of the crushing-sorting station are stored in concrete pads, so that the sorts
couldn’t mix each other.
The finished products can be transported to the customer by vehicles with the documents
accompanying the consignment and the weighing slip. The stone quarry has a 60-ton weighing scale.

During 2015-2017, the contract volume brought us about 10 million euros, therefore an investment
program has been started in order to equip the stone quarry with specific equipment and production
tools for the work executions of construction / road repairs, as well as means of transport.

Projects of medium complexity will be done by own forces and the ones of high complexity in
association with companies with a similar profile.

The company is currently developing for JOINT VENTURE PIZZAROTTI & Pomponio Constructions "GEIE"
a contract for the supply of non-cohesive material for the filling of earthworks for the Sebes-Turda
highway, Lot 1, and for the Pan-European Corridor IV- Tronson Coslariu-Simeria, a contract to deliver the
CF sieve from Leasa stone quarry, Arad county.

End of contract with the company AKTOR S.T.A (AKTOR SA) - Greece - Bucharest - Branch - Romania for
the supply of stone quarry aggregates used for the ballast of railway lines, valid for 3 years.

Further prospecting of the market for signing new contracts for the supply of stone quarry aggregates
and to set off the andesite deposit from the Leasa and Bobeasa stone quarries, Halmagiu village, Arad
county (about 800,000 tons annually).