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9. It has been determined, after more than 10 years of exploration and survey, 
at-sea equipment testing and mineral and metal processing development, that 
deposits of manganese require tailoring the design of the mining and processing 
systems for each specific deposit, that geographic location, sea floor topography, 
sea floor sediment properties, nodule size, grade and concentration variation and 
nodule chemistry are sufficiently different so as to make a mining and processing 
system, which is based on one deposit, suffer important economic penalties if uti- 
lized for another deposit. 
10. To this end dredge heads and mining systems have been designed by 
Deepsea Ventures, Inc., for the specific sediments, nodule properties, and water 
depths at, over and/or under the Deposit, and process design and pilot plant 
operations have been tailored to the nodules of grade and chemical composition 
of the manganese nodules in the Deposit. The cost to date of prospecting, explo- 
ration, design and test efforts required to identify and evaluate the potential of 
the Deposit has been approximately U.S. $20,000,000. Further exploration, eval- 
uation, and development of the Deposit and associated facilities will consume 
some three years and cost between U.S. $22,000,000 and U.S. $36,000,000. Such 
further exploration, evaluation and development of the Deposit commenced on 
1 November 1974. ; 
11. Deepsea intends to commence commercial production of the Deposit within 
15 years at an initial rate of approximately 1.35 million wet metric tons of man- 
ganese nodules per year, which rate may be expanded according to market con- 
ditions to as much as 4 million wet metric tons per year. The Company intends to 
process said nodules at a land-based processing plant which will yield as the 
products thereof copper, nickel, cobalt and manganese and other products. 
(signed by) JoHN E. F1Lrpss,* 
President, Deepsea Ventures, Inc. 
EXHIBIT D 
Sworn STATEMENT 
COMMONWEALTH OF VIRGINIA, U.S.A., 
County of Gloucester, ss: 
Raymond Kaufman, being duly sworn, deposes that: 
1. He resides at 112 Cove Road, Williamsburg, Virginia, U.S.A., and that he 
is a citizen of the United States of America, and that he is 48 years of age. 
2. From December 1968 to 15 November 1974, he served as Vice President Tech- 
nical to Deepsea Ventures, Inc., a Delaware Corporation having its principal 
place of business in Gloucester County, Virginia, U.S.A. 
8. During this period he directed the technical activities of Deepsea Ventures, 
Ine., associated with ocean mineral deposit prospecting and surveying, mining 
equipment development and mineral processing development. 
4. Commencing November 1, 1974, he has directed and will direct a technical 
program of Deepsea Ventures, Inc., to develop and evaluate a potential Pacific 
Ocean manganese nodule deposit described in the affidavit of Mr. John E. Flipse, 
dated November 15, 1974 (hereinafter ‘“‘Deposit’”’), which will take and use from 
1.35 to 4 million wet metric tons of manganese nodules per year for a 40-year 
period. This development and evaluation program will be accomplished in three 
principal phases: 
PHASE I—DEPOSIT EVALUATION 
The objective of this Phase is to confirm that the Deposit contains sufficient: 
ore reserves in a favorable oceanographic environment to support the mining 
and processing operation for a period of 40 years. Phase I is being conducted 
over an approximate three-year period and will require 15 to 30 course grid 
survey cruises by the Company’s R/V PROSPECTOR to acquire the data re- 
quired to assess the economic potential of the Deposit. The acquisition of bulk 
samples from the Deposit will be achieved as a product of a pilot-scale mining 
ship/system test to be conducted on the Deposit. The estimated expenditure on 
activities directly related to, or at the site of, the Deposit during Phase I will be 
approximately U.S. $22,000,000 to U.S. $30,000,000. Subsequent evaluations of 
the Deposit will be conducted to define technical details necessary for mining. 
1 The signature was duly notarized. 
