196 
PHASE II—INITIAL MINE DEVELOPMENT 
The objective of this Phase (which may commence during Phase I above) 
is to develop a detailed plan to mine the Deposit effectively. This will require 
a comprehensive fine grid survey effort to map the sea floor, to provide topo- 
graphical maps with a contour interval approaching one to ten meters, to locate 
obstructions and to determine ore distribution, concentration and assay varia- 
tions for use in developing an effective mining plan for the Deposit. The work 
will be accomplished over a three-year period during which time data will be 
acquired, reduced, analyzed and evaluated. Due to the very large areas involved, 
the detailed fine grid survey of the entire Deposit will be completed in Phase III 
(below). The survey and analysis work in Phase II will be conducted over an 
area sufficient to provide ore for about three years mining at rates of 1.35 mil- 
lion wet metric tons of manganese nodules per year. The anticipated expendi- 
ture at the site of the Deposit is U.S. $10,000,000 to U.S. $15,000,000 during the 
first three years of Phase II. 
PHASE III—INCREMENTAL MINE DEVELOPMENT/RECONNAISSANCE SURVEYS DURING 
COMMERCIAL PRODUCTION 
The principal objective of this Phase is to continue the fine grid mining plan 
development, while concurrently mining successive tracts of a size blocked out as 
described in connection with Phase II. Mapping will proceed at a rate needed to 
provide mining data for at least one year’s activity about three years in advance 
of the actual mining. In addition, a secondary objective of this Phase is to conduct 
broad area reconnaissance and prospecting surveys aimed at discovering addi- 
tional ore bodies for future growth and expansion. This work will be undertaken 
as a continuing activity over the whole period of exploitation and production. 
5. The survey and mine site development and evaluation program is one 
segment of an ocean mining technical development project which also includes 
the development of the mining, transportation and support, and ore processing 
segments. The technical and economic development of these elements is critically 
related to the properties of the specific deposit regarding sea floor engineering 
parameters, terrain, water depth, nodule character, distribution and assay, 
geographic location and chemical composition. The Phase I and Phase II expendi- 
tures previously referred to, do not include the costs of production mining equip- 
ment, ships, terminals, or processing plants. These latter costs are currently 
projected to exceed U.S. $120,000,000, and are scheduled to commence on com- 
pletion of Phase I. 
6. Deepsea intends to mine the Deposit at an initial rate of approximately 1.35 
million wet metric tons of manganese nodules per year, which rate may be 
expanded 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) RayMonD KAUFMAN, 
Vice President, Deepsea Ventures, Inc. 
ExHIsit 
Notice List 
True copies of the “Notice of Discovery and Claim of Exclusive Mining Rights 
and Request for Diplomatic Protection and Protection of Investment, by Deepsea 
Ventures, Ine.”’, dated 14 November 1974, to which this notice list is appended as 
Exhibit E, shall be mailed by certified or registered airmail, return receipt 
requested, postage and certification or registration fee prepaid, by Deepsea 
Ventures, Inc. to each addressee listed in this Exhibit BH. In addition, legal notice 
shall be published in as many of the following locations as is possible and prac- 
ticable: Washington, D.C., U.S.A.; London, United Kingdom; Bonn, Germany ; 
Paris, France; Moscow, U.S.S.R.; Tokyo, Japan; Ottawa, Canada; Brussels, 
Belgium ; Caracas, Venezuela; Monrovia, Liberia; Singapore; New Delhi, India; 
Canberra, Australia; Tai Pei, Taiwan; Gloucester Point, Virginia and Wilming- 
ton, Delaware. 
1 The signature was duly notarized. 
