The Message of the Chairman

Dear Stakeholders and Employees;

As Karben Bentonite, we have experienced many firsts in our past 29 years. We are proud of our first day's excitement at the point where we come today. It is a great responsibility for me as much as it is an honor. There is no doubt that the momentum we have in the world markets besides the quality of our reserves will lead us to new horizons and success. The trust of our stakeholders comes from the power of our institutionalization when we unite our employees' self-sacrificing efforts and our market leadership with our financial power. We have been supplying products to many projects in the World so far. Now, Reshadiye-Hitit Bentonite has become a brand both in Turkey and abroad.

Karben Bentonite, which has managed to decrease Turkey's need for bentonite to minimum level in foreign trade, has already got its name among the industry leaders in national and international markets. Karben has always been a leader in the sector and has become an indispensable company for all its business partners. Our company which is also able to meet the needs of non-treated sodium bentonite in the bentonite sector, can also realize Bentonite modification process, which has been activated with special prescription. Today, "non-treated Sodium Bentonite" which is used in more than 1000 sectors is produced only by Samas Industrial Mining Inc. which are connected to our group.

Karben Bentonite, which continues to be the leading supplier of Turkish bentonite market in addition to the existing foreign sales. It successfully satisfies 80% of Bentonite used in oil and natural gas drilling projects, 70% of Bentonite used in geothermal drilling projects, 100% of Bentonite used in iron ore palletizing projects and material requirements of risky strategic construction projects. To illustrate, all the bentonite used for the most important projects in Turkey in last 10 years which are "Marmaray" and "Eurasia Tunnel Project"  that will connect Asia and Europe, is also produced and supplied by Karben. As known, 78% of annual sales volume and endorsement of Karben Bentonite consists of its sales abroad. We have had to revise our annual sales targets in our portfolio sales with the long-term connections and sales agreements we have recently realized with our foreign customers.

In the light of the scientific data, it can be claimed that there is no bentonite in the world as qualified as Wyoming and Reşadiye / Hittite reserves in Turkey. Therefore, our strength comes from the added value of these reserves. While shaping the future of our group companies, we are analyzing our reserves, our factories, current performance, future potentials and competitive advantages of our current business areas in every stage. Thus, we would like to express that we are now determining our focus points as taking the attractiveness of business areas that are often pre-empted, our competence and experience into account. While we focus on these points, it is undeniable that the experience we have gained in the past has contributed to us.

As a marketing firm of Samas Industial Mining Inc., which owns one of the largest Sodium Unadulterated Bentonite reserves in the world, our relations with multinational companies that have been carrying out modified researches are deepening within last 2 years. Our goal is to set higher standards in the Bentonite sector, where we are a leader, without distracting our attention and energy. Rising without leaving our focus is our basic strategy. We want you to know that your returns are very valuable to us in order to achieve operational excellence.

We pursue all our managerial processes meticulously with our perfectionist business perspective and we work with our domestic and foreign business partners and our target to progress side by side with them as focusing on the satisfaction of our customers.

As Karben Bentonite family, we continue to proceed with sure steps towards the our targets we have determined with all our employees. We would like to thank you for your trust in us, and we would like to express our great pleasure and honor to do business with you.

Yours Sincerely,

Ümit Karaca, MBA

Chairman

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