NOTE 10 – FINANCIAL INSTRUMENTS

As of March 31, 2012 cash and cash equivalents included deposits in Kazakhstan banks in the amount $15,755. As of December 31, 2012 the Company did not have cash and cash equivalents deposited in any Kazakhstan banks. As of December 31, 2012 and March 31, 2012 cash and cash equivalents included deposits in U.S. banks in the amount of $10,789,458 and $3,370,177, respectively. The Company’s deposits in U.S. banks are in non-FDIC insured accounts which means they are not insured to the $250,000 FDIC insurance limit. To mitigate this risk, the Company has placed all of its U.S. deposits in a money market account that invests in U.S. Government backed securities.