ACSAC ALTO CERCAPUQUIO S. A. C. SMALL AND MEDIUM HYDROELECTRIC POWER DEVELOPMENTS, JUNIN STATE, PERU 5/25/2010

ACSAC ALTO CERCAPUQUIO S. A. C.

SMALL AND MEDIUM HYDROELECTRIC POWER DEVELOPMENTS, JUNIN STATE, PERU

5/25/2010


Cautionary Statement

This document is for information purposes only and does not constitute an offer to sell or a solicitation to

buy securities that may be referred to herein. This document is confidential and for internal use only.

The contents are not to be reproduced or distributed to the public or the press. Securities legislation in all

provinces prohibits such distribution. The statements contained herein are based upon information believed

to be reliable but no representation regarding completeness or accuracy is made.

Some of the statements in this presentation may be forward-looking statements and as such are based on an

assumed set of economic conditions and courses of action. These include estimates of future production

levels, expectations regarding development and production costs, expected trends in prices and other

statements that describe future plans, objectives or goals.

There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such

factors as changes in general economic conditions and financial markets, changes in prices for energy

technological and operational hazards in development activities, uncertainties inherent in the timing and

availability of financing, governmental and other approvals, political unrest or instability in countries where

ACSAC may be or may become active, labor relations and other risk factors.

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The Power Policy of Peru

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• To promote investment in Electric power generation

• To guarantee energy supply: Energy Security

• To extend the energy coverage: Rural Electrification

• Diversify the energy supply matrix

• To promote the use of renewable energy sources.

• To contribute to a sustainable economic growth while diminishing the environmental impact.

• To encourage the efficient use of the energy .

• To promote national and regional energy integration.


Electric Power Market in Peru

•Peru is the strongest growth economy in Latin America, and all sectors are expanding their demand for electricity

•Installed capacity in Peru was 6,658 MW, (2006)

•48% was hydro-based, provides 68% of output (was over 85% in1990`s)

•May 2008: Renewable Energy Decree for promotion of generation of renewable energy, including hydropower up to 20 MW

•Demand growth over the past five years has been 5-10 percent, projected at 6-8% for this year

•400 MW of new generation capacity is necessary each year

•Peru has also been in the process of integrating its power grid with those of Ecuador, Chile and Bolivia (and Brazil)

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Power Market in Peru

•Almost all of the recent increase in demand is being supplied by new open cycle gas generation using natural gas from the Camisea field, (which may be smaller that predicted).

•However, Peru is becoming an LNG exporter, and is developing a petrochemical Industry

•Ministry of Energy and Mines MEM) approved the National Rural Electrification Plan (PNER) 2009 – 2018, which includes projects aimed to provide electricity to more Peruvians

•Officials are encouraging miners to consider their own including power generation assets in new mines

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Executive Summary

ALTO CERCAPUQUIO S. A. C. (ACSAC) is a registered closed corporation in Peru, with a business mandate focused initially on the development of hydroelectric projects in Junín State and later throughout Peru.

The Company shareholders comprise four Canadians:

Dennis Netherton - P. Eng. Civil Engineer

Bradley Bowman - P. Geo., Environmental Scientist

Janice Linquist - Environmental Scientist and Senior Fish Biologist

Stephen G. Mlot – P. Eng., Mining Engineer

and three Peruvian professionals:

Wilson Vargas Miranda - Mining Executive

Ms. Fanny Fuentes Carolla Marinos – Chartered Accountant

Dr. Jorge Rullier – Registered Peruvian Lawyer

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ACSAC Project

•Located at department of Junín 200 km to the east of Lima Rio de la Virgin, Atlantic Watershed

•Accessible by train and road

•Huancayo is the nearest main city (50 km) pop. 325,000

•Watershed area of basin is 720 square kilometres

•Head gross = 900 m

•Developable head = 755m

•ACSAC -1 6.15 MW At the lower end of the watershed

•ACSAC -2 – 24 MW Development farther upstream

•ACSAC - 3, and - 4, sites have been identified

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Current Status• 760 square kilometre watershed area,

•Joint water management contract with Electroperu ,with 5 controlled alpine lake reservoirs,

•The former 1.8 MW hydroelectric facility that supplied power to the former Cercapuquio Mine,

•40 ha site for power station, which deals with Community issues

•Power Purchase Agreement with Distriluz (10 year)

•Investment to date $ 1.7 Million

•Physical Assets Valued at $ 3.2 Million

•Construction Ready, to start this summer.

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ACSAC -1:The usable components of the old hydroelectric facility include;

•40 hectares (98 acres) of property,

•a control dam,

•gated intake system,

•diversion tunnel in hard rock formation,

•3.2 kilometres of reinforced concrete power canal which includes an additional 4 tunnel sections,

•a good quality aqueduct,

•usable access roads.

•The head works, penstock, powerhouse, and transformer station no longer exist.

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Construction Costs: $ 9,429,961

Annual Costs: $ 1,398,881

Revenue from Power sales: $ 2,145,746

GHG Credits: $ 325,118

Net Annual Income: $ 1,071,983

IRR: 41.2%

NPV: $ 9,690,840

Payback 5.0 yrs

ACSAC – 1 Summary

Design Flow: 6.5 m3/sec

Gross Head: 110 m

Turbine Type: Francis

Number of Turbines: 2

Plant Capacity: 5,750 kW

Energy Delivered: 48,265 MWh

Project life: 30 yr (min)

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Construction Costs: $ 42.5 Million

Annual Costs : $ 5,300,000

Revenue from Power sales: $ 8,916,716

GHG Credits: $ 1,351,040

Annual Net Income: $ 4,967,756

IRR: 43.2%

NPV: $ 24,764,599

Payback 4.8 yrs

ACSAC – 2 Summary

Design Flow: 4.9 m3/sec

Gross Head: 640 m

Turbine Type: Pelton

Number of Turbines: 2

Plant Capacity: 24,192 kW

Energy Delivered: 198,150 MWh

Project life: 30 yr (min)

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Total Requirement: $ 9.5 Million

Debt on offer: $ 6.5 Million

Equity Required: $ 3.0 Million

Financing

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Finance ACSAC – 1 on a private basis, get into production, advance ACSAC – 2, acquire additional development sites.

Go-Public on ACSAC – 2 construction, to fund larger Capital requirements, and to grow and expand the business.


We may be young but we are starting to run, come along with us.

Contact :

Alto Cercapuquio S.A.C.

Stephen G. Mlot, P.Eng

416 573 0583

905 787-9086 fax

[email protected].

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ACSAC ALTO CERCAPUQUIO S. A. C. SMALL AND MEDIUM HYDROELECTRIC POWER DEVELOPMENTS, JUNIN STATE, PERU 5/25/2010