PROSPECTING ACTIVITY REPORT

The first year after the issuance of the exploration license is a pre-exploration period. Until the end of the pre-search period, it is obligatory to submit a pre-exploration activity report showing the completion of the minimum activities and the investment expenditures related to these activities. If the report is not submitted within this period, an administrative fine is charged. In the event that the reports submitted to the General Directorate or the documents pertaining to the investment expenditure items are not appropriate, the license holder is notified in writing to correct the detected deficiencies within one month. An administrative fine is also charged if the imperfections are not completed within this period as of the date of the notification or the reports submitted or the documents pertaining to the investment expenditure items are not appropriate. Exploration license gives right for the general exploration period as two years for Group IV mines, and one year for the others.

Until the end of the general exploration period, it is obligatory to submit the general exploration activity report showing the information regarding the mineral resource specified in the mineral exploration project and the investment expenditures regarding the exploration activities carried out in this period. If the report is not submitted within this period, an administrative fine is charged. In case the reports submitted to the General Directorate or the documents pertaining to the investment expenditure items are not appropriate, the license holder is informed in writing to correct the detected deficiencies within one month. An administrative fine is charged if the deficiencies are not corrected within the given time as of the date of the notification or the reports submitted or the documents pertaining to the investment expenditure items are found appropriate.

Exploration license gives right for detail exploration period in Group IV mines for four years. As for Group II (b) article, III and Group V licenses, the license is canceled if an operating license is not requested until the end of the general exploration period.

In case the exploration periods are completed before its duration, the next stages can be passed without waiting for the end of the period. Projects, exploration activity reports and other documents related to exploration periods are prepared by authorized legal entities. Until the end of the detailed exploration period, it is obligatory to submit the detailed exploration activity report showing the information regarding the visible mineral resource and the investment expenditures regarding the exploration activities carried out in this period. As being until the end of the detail exploration period for Group IV (a) article mine licenses, and until the end of the general exploration period for the other licenses, in case the reports submitted to the General Directorate and the documents pertaining to the investment expenditure items are not found appropriate, the license holder is informed in writing to correct the deficiencies within one month. The license is canceled if the deficiencies are not completed within the given time as of the date of the notification or if the reports and investment expenditure items are not found appropriate, or if the operating license is not requested until the end of the exploration license period.

It gives right for two-years feasibility period after the detail exploration period, in case that feasibility studies are needed and application to the General Directorate with the justification is made upon the detail exploration period on 4th Group (b), (c) and (ç) articles mine exploration licenses. It is mandatory to submit a feasibility report until the end of the two-year period. If the feasibility report submitted to the General Directorate until the end of the feasibility period is not found appropriate, the license holder is notified in writing for its deficiencies to be corrected within one month. If the deficiencies are not completed within the given time after the notification date, or if there is no request for an operating license until the end of the exploration license period, the license is canceled. In this period, a license fee equal to twice the license fee of the detail exploration period is charged.

The license holder, who applied with the exploration activity report in order to carry out technological research, development, pilot studies and market survey during the exploration period, may be allowed to take samples and dispatch the mine that is necessarily extracted during exploration activities during the exploration license period.