SEMBILAN BANGUN LAKSANA

Zentric is acquiring a 90% equity interest in CV. SEMBILAN BANGUN LAKSANA, a mine management company in Indonesia with an export license for Lead Ore. A term sheet has been signed and we are in the process of completing our due diligence for this deal.

The above acquisition is important for a number of reasons. Lead Ore sells for $2000 and more per ton and contributes 60% of the cost to manufacturing a lead acid battery. Securing our raw material supply as well as an export license from Indonesia provides Zentric with a competitive advantage for the next 10-15 years. We need only 10% of the annual production of 1000 tons so the balance can be sold off to other battery manufactures within China generating as much as $1.8 million in annual revenues.

The cost of this acquisition will be determined after the due diligence has been completed and a valuation of the lead ore mine can be determined.