1. General construction works

From the beginning of construction to the present day, building and installation works on the Jeruy deposit have been carried out at 19 sites, 5 of which have already been put into operation. Furthermore, in the first half of 2018, Alliance Altyn LLC engaged 50 legal entities and individuals as contractors, who were contracted to perform building and exploration work, deliver machinery, equipment and furniture, sew materials, provide designer supervision, support new environmental contracts, conduct environmental monitoring of soil and water quality, provide consulting, insurance, postal, medical, security, catering and cleaning services, repair equipment.

Among 50 contractors involved in the work on the Jeruy deposit in the first half of the year, there are 15 major construction organizations and 35 legal entities and individuals of various profiles.

In total, in the first half of 2018, 480 people were employed by Alliance Altyn LLC and its contractors, including:

• 84 employees of the Alliance Altyn LLC, of which 5 citizens of the Russian Federation, 1 citizen of the Republic of Kazakhstan and 78 citizens of the Kyrgyz Republic (of which 35 employees are from the Talas region), i.e. 92.86 % of employees are citizens of the Kyrgyz Republic;
• more than 300 employees of building contractors, of which 3 are foreign nationals (2 – from Belarus, 1 – from the PRC) and 297 – citizens of the KR, i.e. 99 % of employees of contractors are citizens of the KR. Of these, 155 employees are local residents;
• 96 additional local residents (mostly from Bekmoldo rural district) were engaged in providing various kinds of services: guarding facilities, making furniture, sewing materials (bedding), medical services, catering and cleaning (housekeeping, laundry), water supply, removal of domestic and other waste, repair of vehicles and other equipment. Furthermore, 100% of the additional hired local workers are citizens of the Kyrgyz Republic.

In the first half of 2018, contractors under agreements with Alliance Altyn LLC carried out works and utilized $4,720,370.

During the first half of the year Altyn Alliance LLC paid taxes and fees to the state budget of the Kyrgyz Republic for a total of 25,364,091 KGS (or 371,308 USD).

Investment expenses by company groups	First half of 2018.
Companies of Talas Oblast	610 620
State-owned companies	113 670
Foreign companies	737 746
Other companies of the Kyrgyz Republic	3 258 333
Total in U.S. dollars	4 720 370

2. Holding festive and socially significant events

In the first half of this year, Alliance Altyn LLC, together with local authorities, held a number of social and festive events in Talas oblast, including:

1. Over 230 mothers with many children and disadvantaged women of Talas district and Bekmoldo rural area of Talas district were congratulated on International Women's Day, March 8, through festive events and the distribution of gifts in the form of food packages;

2. In honor of Nooruz holiday:

• competitions for the Cup of the Alliance Altyn LLC in various sports, including national sports (kok-boru, horse races, volleyball among women and men, mini-football, national wrestling, chess) were held in Bekmoldo rural area;
• competitions in the national game of ordo and mini-football were held in the Omuraliev rural area of Talas district;
• 60 low-income families and families with many children in Bekmoldo rural area received one sack of flour each.

3. The veterans of the geological service of the Kyrgyz Republic who contributed to the discovery and pre-development of the Jeruy deposit in Soviet times were sent a congratulation on the Geologist's Day;

4. A volleyball tournament was held in Ak-Sai village of Omuraliev rural area, dedicated to the memory of the hero of the April Revolution, Zh. Ogombaev;

5. The organization took part in the arrangement and holding of festive events in honor of Victory Day on May 9:

• for veterans of Talas district in Chat Bazar village on May 8;
• for veterans of Talas oblast in Talas on May 9.

All veterans of the Great Patriotic War and home front workers living in Talas oblast were given monetary rewards.

6. In honor of Mother's Day, a festive event was held, and over 60 heroic mothers of Bekmoldo rural area were handed out gift packages;

7. A competition was held between the teams of young geologists from the secondary school named after A. Borubayev in Kara-Oy village and the secondary school of Sasyk Bulak village in the Bekmoldo rural area;

8. Within the framework of the campaign for landscaping and cleanup announced by the Government of the Kyrgyz Republic this April, a volunteer cleanup day was held in Bekmoldo rural district with the participation of employees of the Alliance Altyn LLC, Bekmoldo village administration, local deputies, and students of Kara-Oy village school. The area from Alim Cafe to Gate 1 was cleared of trash, and 1,000 saplings of silver poplar and birch were planted.

9. Necessary construction materials were purchased and support was provided in the construction of a pedestrian bridge across the Chon-Chychkan River for the residents of Bekmoldo rural area.

10. Aid was provided for the departure and participation of athletes and teams from Talas oblast in various sports competitions at the national and international levels, as well as for cultural figures and artists to participate in various contests and festivals.

3. Provision of the Social Package through the Bakubat Talas Fund

3.1. Lending to residents of Talas oblast at 8 % per annum as of July 1, 2018:

3.1.1. Through JSCB Kyrgyzstan, 143 borrowers in Talas oblast were granted soft loans from the first tranche of the repayable money for a total of 34,965,000 KGS, including:

• credits for the development of small and medium-sized businesses for a total of 17,680,000 KGS were issued to 27 borrowers.
• credits for the development of agriculture for a total of 17,285,000 KGS were issued to 116 borrowers.

3.1.2. Under the second tranche through the Kyrgyz Investment and Credit Bank, 198 borrowers in Talas oblast were granted soft loans for a total of 63,644,000 KGS, including:

• credits for the development of small and medium-sized businesses for a total of 35,000,000 KGS were issued to 21 borrowers.
• credits for the development of agriculture for a total of 28,644,000 KGS were issued to 177 borrowers.

3.2. Implementation of social projects

• Since the launch of the Bakubat Talas Welfare Fund and until July 1, 2018, a total of 476 applications and requests were received from organizations, institutions and residents of Talas oblast, 189 of which – in the first half of 2018.
• As part of assisting in the implementation of social programs in Talas oblast, the Supervisory Board of the Bakubat Talas Fund held 4 meetings in the first half of 2018 and approved 67 projects for a total amount of 21,128,445 KGS. Of these, during this period, 32 projects were implemented for a total of 7,655,550 KGS, the remaining 35 projects for a total of 13,472,895 KGS are under implementation.
• At the same time, under the second tranche of funding (from September 2017 to July 2018) 92 projects were approved and accepted for implementation for a total of 28,642,424 KGS. Of these, as of July 1, 2018, 56 projects worth 14,920,459 KGS have been implemented, 36 projects worth 13,721,956 KGS are under implementation, of which 17 projects have been funded to the amount of 3,767,692 KGS.

3.2.1. The data on social projects of the Bakubat Talas Fund by field:

Education

In total, 17 projects worth 4,342,015 KGS were implemented. The facilities of educational institutions were repaired, school equipment was purchased, the material and technical base of educational facilities were improved, the participation of schoolchildren in various national events was ensured, etc.

7 projects for a total amount of 2,689,705 KGS were implemented in this area of preschool education. The buildings of preschool institutions were repaired, equipment was purchased, an extension to the kindergarten building was constructed, a playground was built, etc.

Healthcare

A total of 8 projects were implemented for a total cost of 2,610,600 KGS. Buildings of first-aid posts and FDG were repaired, the material and technical base of medical institutions was improved, medical equipment was purchased.

Centers for persons with disabilities

4 projects were implemented for a total cost of 747,450 KGS. The heating system was overhauled, the building of the Tan Nuru Day Care Center for children with disabilities in Taldy-Bulak village of Talas district was renovated and its windows were replaced, building materials were purchased to complete the construction of the Tenir Koldo Children's Rehabilitation Center.

Culture

12 projects worth a total of 2,352,000 KGS were approved, which were aimed at improving the material and technical base of cultural institutions, renovating facilities, sewing artistic costumes, and ensuring the participation of cultural figures in various creative events.

Physical education and sports

21 projects worth a total of 4,738,300 KGS were approved to renovate sports facilities, purchase sports equipment and sportswear, arrange and conduct sports events, and ensure the participation of regional athletes in various national and international competitions.

Infrastructure support and development

10 projects worth a total of 7,895,000 KGS were approved to install street lighting in the central park of the regional center, as well as on the central streets of Suluu-Maimak, Bakay-Ata, and Amanbaevo villages. To date, 7 projects have been implemented, with 3 projects in progress.

Agriculture and irrigation

5 projects were approved for a total of 2,395,373 KGS, aimed at supporting agricultural holdings in the region, mechanized cleaning of the daily regulation basin (DCB) and canals, repairing hydraulic structures.

Providing the population with clean drinking water

4 projects were approved for a total of 824,786 KGS, of which 3 projects were completed. One project – the repair of the water supply network in order to provide drinking water to the residents of the Nyldy village of Manas district – is at the stage of completion.

Law enforcement

4 projects were approved for a total of 1,439,800 KGS, aimed at improving the material and technical base of law enforcement agencies, renovation of administrative buildings, the purchase of technical means.

Public Associations and Religious Institutions

3 projects were approved for a total cost of 493,550 KGS, aimed at improving the material and technical base of the Public Association of Afghanistan War Veterans, construction of ablution rooms for mosques in Bakay-Ata village and Talas.