NOTE 11 - FINANCIAL INSTRUMENTS

As of March 31, 2012 and March 31, 2011 cash and cash equivalents included deposits in Kazakhstan banks in the amount $15,755 and $224,163, respectively, and deposits in U.S. banks in the amount of $3,354,422 and $201,882, respectively. Kazakhstan banks are not covered by FDIC insurance, nor does the Republic of Kazakhstan have an insurance program similar to FDIC. Therefore, the full amount of the Company’s deposits in Kazakhstan banks was uninsured as of March 31, 2012 and March 31, 2011. The Company’s deposits in U.S. banks are also in non-FDIC insured accounts which means they too 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.