Why invest in San Juan?

1. BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina GOVERNMENT OF THE PROVINCE OF SAN JUAN MINISTRY OF PRODUCTION AND ECONOMIC DEVELOPMENT SAN JUAN ARGENTINA Edificio Centro Cívico - 4º Piso- Núcleo 7 - San Juan 5400 - Argentina Tel. 54 264 4306430 http://produccion.sanjuan.gov.ar/

2. BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina PROVINCIAL AUTHORITIES GOVERNOR: Mr. José Luis Gioja VICE GOVERNOR: Mr. José Rubén Uñac MINISTER OF PRODUCTION AND ECONOMIC DEVELOPMENT Mr. Raúl Osvaldo Benítez SAN JUAN ARGENTINA Edificio Centro Cívico - 4º Piso- Núcleo 7 - San Juan 5400 - Argentina Tel. 54 264 4306430 http://produccion.sanjuan.gov.ar/

3. BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Investing in San Juan A Prospectus SAN JUAN ARGENTINA

4. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina San Juan Province, Argentina On the Pacific coast in the Andean region of northwestern Argentina, San Juan is primarily known for its fertile vineyards and rich mineral deposits. However, much of San Juan’s potential has yet to be discovered by investors.

5. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Why invest in San Juan? A strong commitment to social welfare and quality of life Political stability, integrity, and respect for the rule of law Evidence of sustained economic growth Growing infrastructure An abundance of untapped investment opportunities Excellent and plentiful natural resources ....all contribute to making San Juan an ideal setting for new commercial ventures

6. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Human Capital

9. Unemployment has recently decreased from 13.3% to 6.6%

13. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Post-primary professional training Number of People in 2009 Matriculation % of Matriculation Management Total

14. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Education financing Bilateral Funding Agreement National predicted National executed Provincial predicted Provincial executed

16. In terms of management:Recent construction in San Juan includes: 14 primary schools 6 special-education schools 11 secondary schools

17. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Political Stability San Juan province is marked by a political atmosphere of security and respect for the rule of law, government transparency, and social peace.

20. South : Mendoza

21. Southeast: San Luis

22. West: Chile The Province

23. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Economy

25. Government policies and actions are aimed at - Improving worker participation in the employment market - Stimulating wage recovery - Reducing informal employment

28. Promote competitiveness

31. 351,30 275,58 National exports 274,90 San Juan exports excluding gold 233,9 233,97 193,72 186,2 187,0 155,5 143,93 134,9 115,5 100 100 2003 2004 2005 2006 2007 2008 2009 Year 2003 = 100 SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Growth of San Juan exports excluding gold in relation to growth in national exports (2003-2009)

32. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Aid-based indicators In 2008, the World Bank gave the province a PBG of US $3.095m. This demonstrates confidence in the country.

33. Social Inclusion Project with the World Bank SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina On March 16th, 2010 the World Bank approved US $50 million to support San Juan’s efforts to improve the equity, quality, and efficiency of education and health services, including the Rawson and Quiroga hospitals; make public sector management more efficient A clear demonstration of international recognition and approval of San Juan’s “important achievements in the last few years” and growth of 11% annually since 2003 (World Bank VP for LAC, Pamela Cox)

34. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina World Bank Index: Doing Business in Argentina 2010 (Economies are ranked from 1-183, 1having the best score)

35. Fiscal solvency SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina

36. GGP Structure: Economic sectors, 2007 SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Source: San Juan Institute of Economic and Statistical Research

37. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Exports / Production growth .38 .34 .33 .31 .16 .15 .18 2003 2004 2005 2006 2007 2008 2009

38. 1149 783% San Juan Exports 17% 1004 All Customs Exports 982 814 748 675 658 656 284 211 146,6 147 68,8 91,3 2003 2004 2005 2006 2007 2008 2009 (in millions of USD) SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Exports 2003 - 2009

39. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Sectorial breakdown of San Juan exports

40. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Notable Sectors & Areas of Economic Growth

41. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Manufacturing Source: San Juan Institute of Economic and Statistic Investigations, 2007

42. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Agriculture The fertile mountain valleys of San Juan, fed by Andean rivers and irrigated by hydroelectric dams, Make agriculture a flourishing enterprise in this somewhat improbable spot. Agriculture forms over 20% of San Juan’s GDP.

43. Viniculture

44. Grapes & grape products SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina The climate conditions in San Juan - dry, with low relative humidity levels, and sandy loam soil and the added benefit of new production technologies - make the province a national and international standard for grapes and grape-based products.

45. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina San Juan is the second-largest producer of Argentine wine after Mendoza; Argentina itself is the second largest wine exporter in Latin America after Chile Ideal agro-ecological conditions: dry climate with low relative humidity levels and rainfall around 100 mm annually, lots of sunshine, warm summers, cold winters and sandy loam soil all result in high production yield and sugar content Argentina is unique for the absence of the phylloxera louse that threatens vineyards across the world

46. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Conditions for investment The current milling and storage capacity of wineries absorbs only 30% of the existing production Only 20% of the total produced volume is glass-bottled (around 25 million liters) There are ideal conditions for investment in wineries with top-notch technological equipment to absorb the existing producti<on surplus

47. Musts

52. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Fresh onions 26% of the total area used for vegetable crops is used for onion cultivation Onions and garlic represent the two main Argentine fresh vegetable exports Exports during 2007 amounted to US $9.4m

53. Onion cultivation investment opportunities SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Construction of new processing plants, expansion of existing processing capacity and introduction of new technologies Investment of working capital to finance the crop’s productive cycle Strengthening of the commercial link between cultivators and processors and exporters

54. Fresh garlic SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina San Juan produces around 23,500 tons of fresh garlic per year The second largest garlic producer in the country, and the primary producer of high-quality white garlic Main vegetable exported by San Juan Fresh garlic exports amounted to US $25.6m in 2007

55. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Garlic production investment opportunities Need for expanded processing capacity Investment of working capital to finance the crop’s productive cycle Creation of productive groups aimed at commercial development

56. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Infrastructure & Alternative Energy

58. The new route 150 connects the province to Chile

59. Daily flight services to Buenos Aires from the Domingo Faustino Sarmiento Airport (~90 minutes)

60. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Notable Infrastructure Development Route 150 Renovation and extension of the canal network Planning for construction of Latin America’s largest solar park Caracoles and Cuesta del Viento hydro-electric systems Door to the Pacific: the Agua Negra Tunnel

61. San Juan’s new Route150

62. The Norte and 25 de Mayo canals

63. Eco-conscious development SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina San Juan has backed the construction of the largest solar energy park in Latin America The highest wind turbine in the world, which provides electricity to the Veladero gold mine at 4300 meters

64. Caracoles Dam hydroelectric system

65. Cuesta del Viento

66. Door to the Pacific SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina The construction of the Agua Negra tunnel will join San Juan with Chile’s Region IV. The completion of this project will create a permanent door from the province to the Pacific ocean and to the Central Bi-oceanic Corridor between Porto Alegre, Brazil and Coquimbo, Chile, going through Entre Rios, Santa Fe, Cordoba and La Rioja.

67. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Agua Negra Tunnel plans

68. Mining

70. Principal minerals to extract: gold, silver, and copper

73. Mines and mine prospects Projects with technical feasibility Projects underexploration Mine under operation Mine under construction SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina

74. Veladero Gold Mine: total reserves estimated in 12.8 million oz of gold with a 17-year useful life

75. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Pascua Lama Project Gold, silver, and copper deposit Reserves estimated to amount to 18 million oz

76. Gualcamayo Project: Gold deposit with reserves estimated at 3.5 million oz gold

77. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Casposo Project: Gold and silver deposit Indicated resources 313,278 oz gold, 8.155 billion oz silver Investment amounts to US$ 45 million

78. Pachon Project: bi-national development of a copper and molybdenum deposit Estimated annual production of 300,000 tons

79. SAN JUAN ARGENTINA BICENTENARIOS Forjando Ciudadanía y Federalismo San Juan – Argentina Tourism

81. Pampa del Leoncito

82. Adventure tourism: Mount Mercedario

83. Agro-tourism: wine routes

84. The city of San Juan

86. The end.