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INVESTMENT PRODUCT IN THE FORM OF A CRYPTOGRAPHIC TOKEN TITAN COIN, WHICH IS PROVIDED WITH THE GOODS OF INDUSTRIAL PRODUCTION. A STABLE DERIVATIVE, BASED ON ALREADY EXISTING ASSETS
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Page 1: INVESTMENT PRODUCT IN THE FORM OF A CRYPTOGRAPHIC …

INVESTMENT PRODUCT IN THE FORM OF A CRYPTOGRAPHIC TOKEN TITAN COIN, WHICH IS PROVIDED WITH THE GOODS OF INDUSTRIAL PRODUCTION.

A STABLE DERIVATIVE, BASED ON ALREADY EXISTING ASSETS

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CONTENTWHY TITAN COIN ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1PROJECT HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2TITANIUM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3OVERVIEW OF TITANIUM MARKET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Titanium Dioxide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Titanium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Ferrotitanium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Titanium Sponge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

OVERVIEW OF ILMENITE CONCENTRATE MARKET. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7RUSSIAN SEGMENT OF THE MARKETPROJECT DESCRIPTION

Place of implementationKarabash-TitanUfaleysky Mining and Processing Plant

LEGAL AND ORGANISATIONAL STRUCTURE

OFFER TO REPURCHASE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MONETARY FLOW OF JC "RUSSIAN TITANIUM"PROJECT STATUS

TEAM

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12ium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

TECHNOLOGICAL CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17PROJECT INFLUENCE IN THE REGION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Ecology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Social sphere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Organisational structure.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Current tax privileges for PSEDA "Verkhny Ufaley" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

THE COST OF TITAN COIN PROJECT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Backing of the token. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Brief overview of other stable tokens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Tether. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Other tokens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

23

25

2626

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TITAN COIN TOKEN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PROJECT DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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WHY T I TAN COIN?The phenomenal гаllу of the crypto-currency led bу Bitcoin, which occurred during 2017 ended in January 2018 and for the past half of the уеаг could not resume. Crypto - foreign exchange market remains its high volatility, and doesn't give any more chance to earn 400 - 1000% а уеаг only on growth of the main currencies and the market in general, but market capitalization decreased from maximum 835,5 billion dollars on the 7th of January 2018 to 135 billion dollars on the 2nd of December 2018 (decrease 84%).In such market situation we offer "safety" asset. Titan Coin is the first token which is provided with the goods of industrial production.

lf you don't want not to lose your funds and savings, but also to increase it, then it is necessary to redistribute investments from Fiat currencies and cryptocurrency portfolio in favor of Titan Coin. lt will save and keep your property. The majority of investors are waiting for huge appearance of these tokens.

Currencies which are provided with real assets are some kind of stablecoins. While most cryptocurrency are extremely volatile they have hive profitability and also high risks, but you cannot use them for other functions - means of exchange, means of measurement, means of saving. Stablecoins which are provided with particular goods, with an internal value can perform these functions whithout any withdrawal of funds from cryptocurrency account or stock market.

Thus Tether, pegged to the US dollar, fits the bill as a medium of exchange and measurement just like the US dollar itself. However, it is also subject to inflation just like the dollar. The Digix gold token is pegged to gold and represents a store of value and an investment asset, serving as a substitute for a traditional asset –gold on an unallocated bullion account.

These assets allow traders to follow a more conservative trading strategy, hedge risks and preserve capital in a bear market akin to similar investment vehicles used in stock markets.

The more stable coins appear, the more capable market players become of forming different investment strategies, diversifying portfolio and preserving capital in both declining and advancing markets.It is stable coins that allow the general audience to regain the confidence in cryptographic assets that was lost as a result of the prolonged decline of the crypto market and bankruptcies of multiple ICO projects. There is little doubt that investments into assets backed by commodities will remain relevant in the future.

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-negotiations with owners of mining licenses;-negotiations with owners of industrial compounds and land for establishing a production facility;-scientific-and-technological partnership with ORPE Alkin, ANK-Service (scientific research and production enterprise, part of the ROSATOM state corporation) and Research Institute of Comprehensive Exploitation of Mineral Resources of the Russian Academy of Sciences to develop a manufacturing process;

Despite the fact that the US economy is showing impressive growth since 2018 and the Federal Reserve has managed to pull away from near-zero discount rate, the risk of creating a stock market bubble remains due to tremendous amounts of quantitative easing over the recent years.

The Fed has increased the amount of M1 money supply (physical currency and checkable deposits) by a factor of four over 8 years. Switching from the US dollar to the euro does nothing to resolve the issue since the European Central Bank has also grown the M1 supply four times while continuing its near-zero interest rate policy.The Swiss franc finds itself in an even worse state as the Swiss National Bank has been trying to keep their currency within the exchange rate band of 1.20-1.25 to the euro by issuing so much money the M1 supply has grown by 8 times.

It is fairly obvious that sooner or later this will result in inflation, and thus there is an urgent need to hedge into more stable assets such as precious and industrial metals. However, precious metals are not that simple either –naked short positions in silver paper on COMEX exceed real world physical supply by a factor of 233. The situation with industrial metals is better –they’re not oversold and we are ready to provide procurement services.

Therefore stable coins represent a modern and relevant investment vehicle demonstrating lower risk and volatility in contrast to cryptocurrencies that are unbacked by commodities, while retaining the advantages that cryptocurrencies have over fiat-driven investment vehicles –namely, highly transparent and secure transactions thanks to blockchain technology. Investments into tokens backed by metals allow making profit from the rising value of metals as well as preserving capital during a downturn in the cryptocurrency market, a stock market bubble or accelerating inflation in the real sector of economy.

PROJECT HISTORYTitan Coin PRE-ICO ran through 03.11.2017 to 04.12.2017. As aresult the project managed to raise over 780 000 US dollars. 5 696 192 tokens were sold (5.70% of total supply). As of early January 2018 the value of PRE-ICO investments exceeded 3 million US dollars. The beneficial market conditions, popularity of ICO projects as well as the novelty of the token backed by real assets have all contributed to the successful fundraising campaign.

The project’s team has been pushing development into several directions:

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-prepare a business plan for the project;-prepare a solution to legally convert the money raised into fiat for further investing into production assets;-improve the IT infrastructure for token holders (create personal accounts, create a dual chain model for the ERC 2.0 token).

At the same time during the entire 2018 the cryptocurrency market was going through two crucial processes:The continued decrease in capitalization, loss of confidence and interest towards ICO projects from investor audience, as well as tightening regulations from governments. Over half of ICOs either turned out to be fraudulent or went bankrupt. With the aforementioned market conditions in mind, it was decided to postpone the main stage of the ICO, until eventually this fundraising model was scrapped despite the relevance and high demand for a safe haven asset in the bear market, since the ICO procedure had been discredited by opportunistic market actors.

The project team decided to raise funds through private investing as well as turn to IEO (Initial Exchange Offering). IEO allows to offer the token to the community of an exchange and sell digital assets through its infrastructure to anyone willing to buy. The exchange also locks up the tokens which means the token is automatically listed on the exchange when the IEO is over.

TITANIUMTitanium -is a unique chemical element, light and strong metal of silver-white color. It has high anticorrosive resistance. It doesn't occur in nature in its pure Form. Industrial methods of derivation of the titanium and its main compounds are based on use of the titanic concentrates as the initial raw materials containing 42-47% TiO2 in ilmenite concentrates (FeTiO3) from primary deposit.

World reserves of ilmenite ores are concentrated mainly in China, Australia, India, Republic of South Africa. Total reserves of titan-containing raw materials in ilmenite ores in these countries are about 60% of the world.

Moreover, 90% of the production of ilmenite concentrate happens in 10 countries, 3 of which accounted for 48% of world production: Republic of South Africa (22.2%), China (13.7%), and Australia (12.3%).

Titanium is produced in the form of titanium dioxide, titanium sponge and ingots, these products are successive stages of various depths of technological processing of raw materials.

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OVERVIEW OF TITANIUM MARKETTitanium Dioxide

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In its pure form, as well as in the form of alloys, titanium is used not only in the aircraft building industry, but also in the chemical industry (reactors, pipelines, pumps, pipeline Fittings), various industrial processes (desalination plants, cellulose and paper processes), paint, automotive, agricultural, Food and medical industries (prostheses, osteo-protezes, dental instruments, dental implants), as well as in sports goods, mobile phones and consumer electronics.

Titanium dioxide is the main product of the titanium group: 95% of the produced titanium raw material is used for the production of pigmentary titanium dioxide.This product is the most important white pigment in the world which occupies about 70% of the market.

lt is produced Ьу processing а variety of titanium-containing minerals such as ilmenite, in which there is about 50-60% of titanium dioxide, and rutile with а titanium dioxide content of about 94-96%, making it the most suitaЫe raw material for the production, while ilmenite is usuallyenriched to а higher titanium dioxide content.

World production capacity of titanium dioxide in 2016 amounted to almost 7.5 million tons. The largest number of capacities is concentrated in the Asia-Pacific region, proportion of 53% of the global volume. lt is followed Ьу Europe and North America with 21 % and 18% respectively. The content of other regions did not exceed 10%. China, USA, Germany, Mexico and Japan аге leading in terms of the amount of titanium dioxide production capacity.

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Over the past few years, the titanium dioxide production sector has been characterized Ьу excessive capacity, so manufacturers have taken steps to reduce production. ln 2016, the global titanium dioxide market made up 6.4 million tons, which is 4.14% higher than in 2015. Leading producing countries аге China, the USA and Germany. The main companies аге Chemours, Cristal, Venator Materials PLC, Lomon Billions Group Со., Ltd. and KRONOS Worldwide, lnc. Their total production capacity accounts for more than 50% of the world titanium dioxide market.

Demand for titanium dioxide is subject to periodic peaks and valleys, which is due to the global economic situation, however, in the long term, the trend towards the growth of the world market of the product is traced. The market share of titanium dioxide consumption in the Asia-Pacific region was about 45%, 20% and 16% in Europe and North America, respectively.

China, as well as lndonesia, Thailand, the Philippines, lndia, Turkey, Russia and Brazil аге the main countries that have been increasing consumption of titanium dioxide in recent years. Consumption of titanium dioxide in China is 1.1 kg (рег capita) а уеаг, compared with 2.7 kg for Europe and the United States.

Titanium dioxide is widely used in both food and heavy industries. Моге than half of the product is consumed in the paint and varnish industry (56%), it is also used in plastics {27%), рарег {9%), ink 3% and other areas {8%), such as cosmetics, toothpastes, sunscreens etc. Recently, there was а growing demand for titanium dioxide nanoparticles for use in high-performance photovoltaic plants.

56% - Varnish Paint; 27% - Plastics (lncluding PVC profile);9% - Рарег and Laminate;

8% - Other Products.

TitaniumTitanium is made from titanium dioxide. ln the enrichment of titanium ores, it is obtained the rutile concentrate. However, reserves of rutile limited in nature, therefore, synthetic rutile titanium slag is increasingly used for the production of titanium. Titanium-containing slag is produced processing ilmenite concentrates. The use of slag has increased dramatically since 2011, and at the moment its consumption for production of titanium is more than 25% of total volume of raw materials.

56%27%

9%8%

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The titanium market has been actively developing over the past decade. The global production capacity of the product is approximately 450,000 tons / уеаг, while the production volume is only 200,000 tons / уеаг, which indicates the excessive supply of titanium at the market. At present, China and the United States аге leading titanium producers with capacities of about 140,000 tons / уеаг, followed Ьу Russia with 60,000 tons / уеаг and Japan with 50,000 tons / уеаг. VSMPO-AVISMA is the world's vertically integrated producer of titanium and all kinds of semi-finished products from titanium alloys. The company produces about 30,000 tons of titanium product annually, and most of it is exported.

About 63% of the produced titanium is used in the aerospace industry, 75% of which is used for passenger and cargo aircraft. About 15% of the weight of the Boeing 787 is titanium, Airbus АЗ20 / 350 contains 12-14% of titanium, which can Ье compared to 4-8% in most older mo

Titanium is also used for industrial and commercial purposes. lt is used in medicine, jewelry, food and agricultural industries. The ability of titanium to fuse with the bones of the human body makes it possible to make various implants, prostheses, as well as medical and dental instruments. lnorganic titanium compounds аге used in electronics, chemical and fiberglass industries, as well as in coatings and additives. Titanium is one of а few metals that has become widespread in the manufacture of paints.

FerrotitaniumFerrotitanium is an аllоу of iron with metals (aluminum, chromium, manganese, silicon, etc.), which contains up to 35% ог more than 60% of titanium. Ferrotitanium can bе obtained in two ways. The first is the aluminothermic method, in which melting of titanium waste and ilmenite concentrate is carried out. lt is obtained, low-quality ferrotitanium at application of such method. The second method is а method of melting iron and titanium waste in an electric furnace, resulting in а high-grade ferrotitanium.

Ferrotitanium is an intermediate аllоу, which is further used in the manufacture of stainless steels. When ferrotitanium is added to steel, it acquires anticorrosive properties. Also, ferrotitanium binds carbon in the аllоу to titanium carbide, as а result of which the fireproof properties of the final compound аге manifested, and adhesion improves.

As additives it is used for degassing and deoxidizing steel and for making stamp, tool and high-speed steels. Also, ferrotitanium is used for production of welding electrodes.

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Titanium spongeTitanium sponge is а semi-finished product intended for production of titanium ingots, rolled products, alloys and other titanium products. Thus, the volume of world production of titanium sponge depends entirely on the volume of its consumption by the producers of titanium products.

ln 2009, as а result of the global financial crisis, аll producing countries reduced the supply of titanium sponge to the market. The main reductions took рlасе in Russia, Kazakhstan and Ukraine, which together accounted for about 39% of the world titanium market and more than half of titanium is supplied for the aerospace industry.

Nevertheless, in 2010 the world market of titanium sponge began to stabilize. After significant investment in Chinese capacity and an increase in demand for titanium for the industry, the world's titanium sponge production capacity in 2012 reached its maximum and was equal to 335,000 tons / уеаг.

Currently, the world production capacity of titanium sponge is approximately 275,000 tons рег уеаг, with 160,000 - 170,000 tons of the product used for the production of titanium. The main countries-suppliers of titanium sponge аге China, Japan and Russia. The Russian company VSMPO-AVISMA is the leading producer of the substance in the world.

lt is expected that the titanium sponge market will increase and by 2025 the consumption growth will bе about 40%. This will bе possible due to the growth of the world titanium market, which will bе most in demand in the aerospace industry, which in turn will increase the consumption of this metal bу about 60% in about ten years.

OVERVIEW OF ILMENITE CONCENTRATE MARKET

According to the US Geological Survey, the world's reserves of ilmenite оге аге concentrated mainly in China, Australia, lndia and Repubic of South Africa. The total reserves of titanium-containing raw materials in ilmenite ores in these countries make up more than 60% of the world reserves.

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Country Reserves, tons

China 220 000 000

Australia 150 000 000

India 85 000 000

South Africa 63 000 000

Kenya 54 000 000

Brazil 43 000 000

Madagaskar 40 000 000

Norway 37 000 000

Canada 31 000 000

Mosambique 14 000 000

Ukraine 5 900 000

USA 2 000 000

Vietnam 1 600 000

Senegal 257 000

Other counties 23 500 000

RESERVES

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PRODUCTION

ln the last decade one of the major factors influencing the level of production of ilmenite was а quick growth of dioxide titanium production in China. ln 2016, it was produced 5,86 million tons of ilmenite concentrate (equivalent to titanium dioxide. 90% of the production of ilmenite concentrate in 2016 was concentrated in 10 countries, three of which accounted for about 48% of world production: RepuЫic of South Africa (22.2%), China (13. 7%) and Australia (12.3%)

29% - China; 19% - Australia; 11% - lndia; 8% - South Africa; 7%- Kenya; 6% - Brazil; 5% - Madagascar; 5%- Norway; 10% - Other countries.

21%- South Africa; 14%- China; 12% - Australia; 7% - Mozambique; 10%- Canada; 4%- Norway; 6% - Ukraine; 6% - Vietnam; 6%- Kenya; 4% - Senegal; 4% - Other counties;

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Country 2015 2016

South Africa 1 280 000 1 300 000

China 850 000 800 000

Australia 720 000 720 000

Mosambique 460 000 490 000

Canada 595 000 475 000

Ukraine 375 000 350 000

Vietnam 360 000 300 000

Kenya 267 000 280 000

Senegal 257 000 260 000

Norway 258 000 260 000

India 180 000 200 000

Madagaskar 140 000 140 000

USA 200 000 100 000

Brazil 48 000 50 000

Russia 116 000 40 000

Other counties 84 000 95 000

Total 6 190 000 5 860 000

Prices for ilmenite concentrate vary in accordance with the movement in prices for pigmented titanium dioxide, the production of which in the world uses about 95% of the produced titanium raw materials.

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World prices for ilmenite significantly decreased against the background of а general fall in commodity markets in 2014. So, if in 2012 the price of ilmenite concentrate in different markets and terms of supply fluctuated within 400-500 dollars / ton, then in 2016 it did not exceed $ 150 рег ton. ln 2017 - 2018, the price for ilmenite continued its recovery and exceeded $ 200 / ton against а background of steadily growing demand.

The growing demand from the key consuming sectors will contribute to the growth of the world ilmenite market. Starting from 2013, the demand for ilmenite concentrate grows bу about 1.6% annually and in 2016 it comprised 6.3 million tons. The growth of the ilmenite concentrate market is predicted to continue and will bе supported bу increased consumption of titanium dioxide, which is а key titanium product in the field of application.

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THE RUSSIAN SEGMENT OF THE MARKETRussia has unique technologies for processing of titanium and significant production capacity. ln spite of the presence of large reserves of titanium ores, the Russian production of titanium dioxide is almost entirely based on imported raw materials. Domestic production of ilmenite concentrate in the Russian Federation has significantly decreased from its maximum values in 2015, but the negative trade balance has been maintained earlier. .

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At the same time, Ukraine accounts for the bu[k of imports {90%). The main share of exports {99%) corresponds to China.

So in 2016 the average import of ilmenite concentrate from Ukraine was 237 689 tons at average price of $ 179 рег ton. However, 16,189 tons were also imported at prices more than $ 246 рег ton (weighted average price of $ 298 рег ton).

llmenite in Russia is used for the production of the following types of products: - titanium dioxide TiO2 (used for the production of paints and coatings, plastics, рарег, cosmetics,etc.)- metal titanium (used for alloys, aircraft building, chemical production, golf clubs and medicalimplants)- welding electrodes.

PROJECT DESCRIPTIONThe main object is а hi-tech mining and processing enterprise on the basis of the industrial platform with all the necessary infrastructure for production of titanium group products and other valuabe products.

The main object is the production site in the city of Kyshtym, which has all the necessary infrastructure, including gas, water and energy supply, as well as crane farming. At the first stage, an enterprise is created to enrich the fossil resources to ilmenite concentrate and valuable by-products.

At the next stage, the company plans to develop а multi-profile mining and processing plant refining various types of tailings and raw materials, as well as production of outputs with more complex technological components and greater added value, such as titanium dioxide. ln addition to Kyshtym production site, the project will also include two resource bases in the Chelyabinsk region: one of which is near the city of Karabash, and the other - near the city of Nizhny Ufaley.

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То supply the Titan Coin project with raw materials, it was chosen the city of Karabash {40 km from the city of Kyshtym) as а tailing dump. The value of this tailing dump for the project is as follows: - An opportunity to buy out the entire tailing dump (10 million tons) оп favoraЫe terms- The possibility of redemption of the operating production of abrasive sand with thefinished infrastructure- The composition of sand in the tailings allows to get abrasive sand, and not constructionsand and gravel, it significantly increases the efficiency of the project.

Also in the northern part of the region it was chosen the second site near the city of VerkhnyUfaley. The bottom sands of this deposit contain various valuable impurities, including rutile, gold,zirconium, etc. After geological prospecting, the site is planned to bе put into operation in springof 2019 for the extraction of rutile and by-products. The site near Upper Ufaley is а developmentproject and а base for further expansion of the project. So there аге tailing dumps with dumps ofnickel-containing sands near the site.

At the next stage, the company plans to develop а multi-profile mining and processing plant refining various types of tailings and raw materials, as well as production of outputs with more complex technological components and greater added value, such as titanium dioxide.

For this moment there is an agreement of buying production capacity with raw materials. Thus the project can recieve products from production and realization of by-products. also it will have a complete infrastructure which is ready for exploitation with all necessary communication including electricity,gas and water.

Place of implementation

The Chelyabinsk region is а monopolist in Russia for the extraction and processing of graphite (95%), magnesite (93%), metallurgical dolomite (71 %), talc (70%), and in the Ural region - kaolin (93%), molding sands (80% %), refractory clay (64%) and other raw materials. The subsoil of the Chelyabinsk region contains significant gold reserves. The total gold production in the Chelyabinsk region is about 4.9 tons of gold annually (including, associated gold extraction - more than 1 ton).

According to the volume of industrial production in Ural, the Chelyabinsk region is second only to Sverdlovsk. ln structure of industry of the Chelyabinsk region, it can bе distinguished blасk metallurgy, machine building and metalworking. These industries together with non-ferrous metallurgy previously accounted for up to 80% of the region's economy, and now account for almost 50% of all the industrial output. Thus, in the Chelyabinsk region, the reserves of raw materials that have not been extracted, the reserves of valuable raw materials in the tailing dumps of the industry of the USSR, as well as а large number of small, medium and large industrial enterprises аге concentrated for the sale of passing products.

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Karabash-Titan

According to the dispersed composition this is mainly sands of fine fraction:

• More than 3mm: 15%• 2mm - 3mm: 6,5%• 1,5mm - 2mm: 3,5%• 0,5mm - 1mm: 18%• Less than 0,5mm: 40%

This raw material will bе delivered to the enterprise in the city of Kyshtym, where а process for

the enrichment of sands to ilmenite concentrate will bе organized technologically.

То save оп transportation expenses during the summer period, the primary separation of the

flows into abrasive sand and titanium-containing sand will bе carried out at the tailing site using

а mobile screen.

lt is planned to organize two production lines with an input capacity of 100 tons / hour each.

The scheme and description of the technological process is given below.

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А fine fraction (less than 0.5 mm) contains most of the titanium compounds and iron. After extraction of sand from а dump bу means of quarry technics this fraction is selected at а vibrating screen. ln summer, it is planned the use of а mobile vibrating screen Metso Lokotrack SТЗ. ln winter period it's planned the use of а stationary vibrating screen with preliminary drying of sand in а drum-type screen.

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The sand remaining after the screening of the fine fraction is used as an abrasive material and is ready for sale as production.

А fraction of less than 0.5 mm selected in the vibrating screen enters the magnetic separator to divide the iron and then into the screw separators (wet cleaning stage) to further remove the impurities and obtain an ilmenite concentrate with а titanium dioxide content of 42-46%.

At the final stage of the technological chain, the ilmenite concentrate is dried after wet cleaning. The obtained ilmenite concentrate is not а natural ilmenite ог ferrotitanium. This is а standard raw material with а certain content of titanium and iron, suitable for production of titanium dioxide, ferrotitanium and other products of the titanium group. Today, in the territory of the tailing dump there is а manufacturing enterprise for the production of abrasive sand with а processing capacity of about 100 thousand tons of slag рег уеаг.

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UfaLeysky Mining and Processing PLant

The exact reserves of raw materials in the bottom sands of the field аге unknown today. However, а preliminary analysis of the samples showed the presence of valuaЫe resources in the sands. То determine the areas with the highest concentration of useful resources, it is proposed to study the bottom of the river with the help of а magnetic anomaly scanner and an Х-гау spectral scanner. Based on the results of the study of the day, the specialized subcontractor involved was drilled to accurately estimate the amount of raw materials in the field. Based on the data obtained in the areas of the greatest concentration of useful resources, there will begin the extraction of sand. .

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The extraction of sands is carried out with the help of an excavator and dragline with а drum bucket. Further, the extracted raw materials enter the industrial rinsing machine, where rutile and by-products аге separated into different streams. After the rinsing machine, rutile enters the concentrator, which makes it possible to obtain а product of high concentration bу capturing both large and small particles. ln the event that after rinsing rutile comes with а large amount of rock, the product passes through а rotary crusher to separate the rutile from the rock. Rutile is further packed in big bags and sent to the warehouse. The by-product after the washing is sent to the refining for а further purification bу the licensed organization. The project of the Ufaleysky Mining and Processing Plant has а noticeable seasonality, due to the fact that in winter, the extraction of bottom sands is impossible because of frozen river. ln summer period, the work is organized bу the shift method with the duration of the shift of 12 hours.

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TECHNOLOGICAL CONTROLElaboration of technology of concentration of raw materials is conducted with the Russian Academy of Sciences whichspecializes on complex development of suboil –IPCDS, and also with global industry leaders in the field of enrichment of mining materials –the division of company Mineral Technologies Downer.For analysis of raw materials and intermediary products TitanCoin has a cooperation with one of the biggestRussian independent center of analysis and quality control of substances and materials established on the basis of the enterprise of state corporation “Rosatom” –“ANK Service” and with one of the world leaders of quality control and certification company –SGS.

INFLUENCE OF ТНЕ PROJECT IN ТНЕ REGION

EcologyThe Chelyabinsk region has many ecological prob[ems due to high concentration of industrial production, which started in the 20th century. Plants and industrial facilities produce long-term discharge to the atmosphere and а huge amount of production waste. The city of Karabash is а good example of the consequences of industrial development in the Chelyabinsk region. Due to long processes (several dozen years) in the extraction and smelting of соррег, there was а serious environmental disaster. lt turned out that before the environment was treated quite differently, по one thought about it. For а long time the plants did not have any wastewater treatment facilities, аll wastes were piled together, and the harmful substances that remained from the production poisoned the environment. Аll ended with the fact that in the 90's the city was recognized as а zone of ecological disaster. The territory of Karabash was covered with slag, the vegetation died out, the soil was simply scorched. Many hundreds of tons of toxic gases were regularly discharged into the atmosphere, transformed into acid rains and irrigated the whole region. The loss of vegetation entailed the death of animals. Some land and mountain areas were completely devoid of fauna and flога. For example, the mountain, which was once covered with vegetation, became absolutely bаге and was called the Bald Mountain. Almost аll livestock also died in the reservoirs. The Karabash-Titan project will гесусlе part of the waste generated in the region, stop the dispersion of sand in the air and the entry of metals into reservoirs through groundwater.

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Social sphere

The post-Soviet period adversely affected the way of lives of single-industry cities (cities built around one giant enterprise): in the various sustainable development ratings of 2015, there were 22 single-industry cities, but most of them occupy the bottom lines of the list.

Only 5 large single-industry cities in the beginning of the 21 st century were аЬlе to improve their positions from уеаг to уеаг: Nizhnekamsk (Tatarstan), Neftekamsk (Bashkiria), Norilsk (Krasnoyarsk Territory), Cherepovets (Vologda region) and Magnitogorsk (Chelyabinsk region).

Both Karabash and Verkhny Ufaley аге mono-cities. ln the nineties of the 20th century, the Karabash соррег smelter almost "stopped" and was оп the verge of closure, it did not even work for several years. For реорlе living here, this meant а disaster. One more thing: а financial environment was added to the difficult ecological situation. Karabash became practically а ghost town, а рlасе unsuitable for life. At present the plant is functioning, but the city's residents аге experiencing serious problems with employment, and any problems with functioning of the enterprise аге inevitably reflect in the loss of income for almost the entire population of the city.

The situation in the city of Verkhny Ufaley turned out to Ье even worse: Ьу the end of 2017 the city-forming enterprise "Ufaleynickel" was closed, and the burners were extinguished. Маге than 2.5 thousand employees were discharged. The city unemployment twice exceeds the average for the Chelyabinsk region. Due to the difficult economic situation, the city received the status of the territory of advanced development.

The Titan Coin project will help to create jobs in а region, experiencing unemployment problems and being at the brink of disaster.

LEGAL AND ORGANISATIONAL STRUCTURE

JURISDICTION

Legislation in the field of crypto currency is dynamically changing аll over the world. ln some countries, the government periodically take measures to restrict the turnover of the Crypto-currency and саггу out IEO. For the Titan-Coin project, which provides а Buy-back procedure , an important factor of success is the for investors of pre-ICO stage choice of the issuer's registration рlасе for the crypto currency.

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This will lead to IEO and execute the Buy-back legally, without risks for investors and the issuer of the crypto currency.

Organisational structure

RUSSIAN TITANIUM

Raw materials based on Karabash-Titan

Industrial Site Kyshtym town

SPE "Kyshtymsky concentrating factory

Ufaleysky mining and processing plant

raw material

rent

100% 50% 50%

For ensuring legality of transactions of sale of a token the IEO company organizer (JSC Russky Titan) signed the contract with investment platform 123x (123x.io).

Platform of the 123rd. io renders services to individuals, business and the state companies, providing the advanced payment tools.

Thanks to presence of the corresponding license at the partner this agreement allows to carry out by IEO legally within the legislation of the EU and to receive the raised funds both in the form of cryptocurrency assets, and in the form of fiat money. Thus fiat money will be received in the transparent legal way.

Advance of IEO Titan Coin among investors of the platform will become additional benefit of cooperation with the investment platform. The investors of Titan Coin registered on the platform will also have an opportunity of trade in a token at the exchange of the platform, including a possibility of legal withdrawal of funds on the bank account or the credit card. *

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* THE OPPORTUNITIES GIVEN TO INVESTORS BY INVESTMENT PLATFORM123.io ARE NOT INTENDED FOR THE PERSONS WHO ARE IN THE UNITEDSTATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN

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THE COST OF THE TITAN COIN PROJECTThe main project cost is the purchase and installation of equipment (40%), as well as the purchase of raw materials (34%). Part of the equipment costs are planned to be covered through the involvement of leasing funds.

The purchase of basic assets (real estate, raw materials, equipment) will be carried out by the company JSC "Russian Titan". Management of the mining and processing plant will be carried out in partnership with the Research and Development enterprise "Alkin" - an enterprise that has an experience and the necessary skills to organize and conduct operating activities for the enrichment of mining ore.

The raw materials base in the city of Verkhny Ufaley is allocated to а separate SPV, as it is located near а single-industry city, which received the status of the Priority Social and Economic Development Агеа (PSEDA). This status is formalized bу the Federal Legislation and implies that the Territory has tax remissions for resident companies investing money in the region. This will allow the Titan-Coin project to make maximum use of the tax privileges.

Current tax privileges for PSEDA ''Verkhny Ufaley'':

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- lncome tax benefit: 5% rate instead of 20% within 5 years- The lowering coefficient of tax оп natural resources production, which is "О" for the firsttwo years and rising bу 0.2 every two years for 10 years, 9 coefficient is applied startingfrom 11 th уеаг)- Privileges at the rates of contributions to off-budget funds: 7.6% instead of 30%over 10 years- Preferential rate 0% for property and land taxes for three years- Zero VAT rate for imported goods

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Investments by types of expenses

Equipment $ 6 960 188

Infrastructure $ 1 689 667

Raw material base $ 5 833 333

Geological prospecting $ 400 000

Working capital $ 1 115 000

ТОКЕN T I T A N C O I N

Introduction

Our project represents an opportunity for financial investment in Titan Coin, which is ensured with а геаl product - ilmenite concentrate (titanium-containing raw materials). The Titan-Coin Token is а utility token, which gives its owner the right to receive 1 kg of ilmenite concentrate from the Titan-Coin Fund.

The settlement formula of the price offered to investors is based on the average cost of ilmenite concentrate in 2018 ($ 200 рег ton): 1 Titan Coin = 0,2 USD = 1 kg of ilmenite concentrate

Thus, the price of a token first of all depends on the cost of the metal and not from market capitalization, news background and attention attracted to the project. These assets allow traders to follow a more conservative trading strategy using Titan Coin, hedge risks of investment loss in the fall of cryptocurrency market and also diversify investment portfolio.

Backing of a token

The total amount of raw materials for processing in the main project Karabash-Titan is 10 million tons, which will allow to receive 730,000,000 kg. of ilmenite concentrate. Thus, the raw material base of the project is 7 times higher than the required volume of ilmenite concentrate to provide each token with а coating of 1 kg. of ilmenite concentrate.

Taxes and fees for withdrawal to Fiat $ 1 410 000

Total $ 17 408 188

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OFFER ТО REPURCHASE

For investors who took part in Pre-ICO and Private sale there is a buyback procedure of Titan coin. The buyback will start 1 month later after token listing on the exchange. The buyback of tokens will last for 10 quarters during which about 10% of issue of Titan Coin will bе quarterly reacquired and tokens which apportioned during Pre-ICO and Private sale (preliminary estimate: up to 600 000 tokens quarterly).

Brief overview of other stable tokens

TetherThe main safe-haven asset on the cryptocurrency market has historically been Tether (USDT). Every USDT token is backed by a US dollar stored in reserve at Tether Limited and can be redeemed through the Tether platform.

Initially released in 2015, Tether has become the first opportunity for cryptoinvestors to take profits on trades without converting their coins into fiat. However, since Tether is pegged to theUS dollar and as such, it is subject to inflation, it is discredited as an investment asset that could yield profit.

From January 2017 to August 2018 the total Tether token emission has increased from roughly $10 million to $2.4 billion. Both the investorcommunity and regulators quite rightfully doubt the claim that Tether issues tokens 1:1 to its US dollar holdings.

Bloomberg has reported that the U.S. Commodity Futures Trading Commission (CFTC) has subpoenaed Bitfinex and Tether Limited for this very reason, while the Wall Street Journal has published an article pointing there is no solid proof that the coin is backed by dollars.

Nonetheless, Tether reigns as the main safe haven asset in the falling cryptocurrency market: while in early 2018 it accountedfor roughly 10% of bitcoin trade volume, by mid-2018 this figure reached 80%.

Other tokensDuring 2018 plans of release of a number of other tokens tied to real assets were declared: Gold, Ekon, Aux and others, tied to gold; a set of the tokens tied to real estate cost; the token of Petro of the government of Venezuela tied to the cost of oil and others.However any of these tokens did not become really popular, and the most noticeable event there was Petro token exit owing to announcement at the state level.

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Process of share repurchase of tokens will be realized through private offices on the http://titan-coin.com project website. Following the results of the end of Private sale the possibility of creation of private offices will be closed. Thus, only investors of the stages Pre-ICO and Private sale will have a possibility of participation in share repurchase of tokens.

The repurchase price of tokens within Buy-back will contain а premium to the investor with regard to nominal value of a token. The premium will increase quarterly and will be from 20% to 200% of nominal value of the token.

According to the Swiss legislation for implementation of the Buy-back program it is necessary to introduce the Know Your Client (KYC) procedure. Passing of KYC procedure will bе а necessary condition for the investor in the Buy-back program and will ensure safety to both investors, and the project in general, having prevented the risk of claims from tax authorities and authorities of opponency of money laundering. Also, investors will have the right to exchange tokens for the corresponding amount of ilmenite concentrate at any time after the start of the Buy-back program.

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MONETARY FLOW OFJC «RUSSIAN

T ITANIUM» (thousands)

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Buy-back payments (maximum) $0 $0 $144 $280 $320 $360 $400 $440 $480 $520 $560 $600

Money flow accumulated total including Buy-back

$2780 $1578 $2744 $4983 $7170 $8941 $9913 $11 580 $13 560 $15 488 $16 392 $16 876

Quarter 0 1 2 3 4 5 6 7 8 9 10 11

Money flow from the sale of tokens

$14 033

Expenses for withdrawal to Fiat -$1403

-Delivery/return of the credits for financing$9600 of projects

-$1350 $850 $850 $850 $850 $850 $850 $850 $850 $986 $617

$0 $384 $438 $404 $370 $336 $302 $268 $234 $200 $166 $132Interest on loans receivable (Russian Titan)

$0 $162 $162 $162 $162 $162 $162 $162 $162 $162 $162 $162Operating expenses (Russian Titan)

lncome from investments (distribution of Net Profit from projects)

$0 -$159 $178 $1722 $1741 $1306 $390 $1344 $1818 $1838 $471 $491

Ufaley $0 $0 -$144 $1252 $1256 $805 -$127 $811 $1270 $1273 -$110 -$105

Karabash $0 -$51 $340 $351 $361 $371 $381 $391 $401 $412 $422 $432

Mining and Processing Plant $0 -$108 -$19 $119 $124 $130 $136 $142 $147 $153 $159 $165

Profit before taxation $0 $185 $576 $2086 $2071 $1602 $652 $1572 $2012 $1998 $597 $583

Net profit $0 $148 $461 $1668 $1657 $1281 $522 $1281 $1610 $1598 $478 $467

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STATUS OF THE PROJECT

Ву the time of publishing of White Рарег, there were carried out the following steps:

PROJECT DEVELOPMENT

- There were chosen the sites and raw materials base for the Project- lt was carried out an analysis of raw materials from the tailing dump in the city of Karabash- lt was prepared for selection of 1 mЗ of bottom sands for further analysis in the Project ofUfaleysky Mining and Processing Plant- There were carried out negotiations and reached agreements on purchase of а production sitein the city of Kyshtym- There were carried out negotiations and reached agreements on purchase of а tailing dump inthe city of Karabash- lt was chosen а technology partner for the exploration of Ufaleysky Mining and ProcessingPlant.- lt was carried out the market analysis. Also it was prepared and calculated the business planof the Project.- There were made up the technological schemes of the Projects of Kyshtymsky Mining andprocessing plant and the Ufaleysky Mining and Processing Plant, it was chosen the necessaryequipment.- lt was prepared 70% of the Project documentation for the Karabash-Titan Project.Completionof the development of аll volumes of Project documentation is planned in July 2018.- lt was released а Token at the Byteball platform.- lt was created а bot for exchanging the Byteball token of Titan Coin into the ERC20 token.- lt was developed а legal scheme of the Project and registered the corresponding companies.- lt was developed а media plan to promote ICO.- There were carried out negotiations with major potential consumers.

Some countries already allow sending and receiving payments in cryptocurrency legally which presents an opportunity to usher in a new financial business model: companies will be able to get a bargain purchase of commodities for cryptocurrency, while transaction data recorded on the blockchain will serve as a performance guarantee.

Eventually cryptocurrencies will rise in popularity as a means for international settlements, while tokens backed by real commodities can serve as futures contracts.

The development of Titan Coin will include the Mineral Coin Market (MCM) platform. Titan Coin will become the first token on the MCM platform and allow market players to try trading tokens backed by ilmenite concentrate.

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Alexander LemyakinFounder

27

Isai PeisakhovFounder

In time, the list of supported tokens will expand to include coins backed by metals, raw materials and other commodities. Real economy companies can utilize the sales model of Titan Coin and the experience our team has in order to effectively bring their tokens to a then fully-fledged community of investors ready to buy coins backed by real commodities.

The platform will become a way of attracting investments for real economy companies by issuing a proprietary token using proven turnkey solutions. In the future such companies will also be able to settle distribution and supply deals using cryptocurrency and tokens.

Investors will gain an opportunity to invest cryptocurrencies in commodities while bypassing fiat entirely, choosing assets they deem the most suitable for investing.

Thus we create a market of tokens that are backed by commodities, allowing interested parties to attract funds and invest as well as sell their products within the cryptocurrency ecosystem.

It is also important that the Titan Coin team together with its partners will evaluate projects coming to the MCM platform with their tokens and provide this information to investors.

TEAM

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Denis PekarskyCEOМoге than 10 years of successful management of manufacturing companies. Supervised projects: Managing Company AGROTIP, Managing Company ORTIGA, Managing Company PETROPAVLOVSK, CJSC GP AMRM

Alexander VasilyevCMO Titan CoinCouncil оп Foreign Relations of Titan Coin Мoге than 11 years of experience in advertising and marketing. One of the founders of the largest developer community Apps4AII in Russia. Co-founder of the advertising agency Adsforall, which is one of the largest advertising holdings of Russia - ADV (Turnover of more than 33 billion rubles in 2016)

Vyacheslav Safronovlnvestment adviser Titan Coin for Europe Маге than 20 years of experience in business development and management of technology companies. ln the past, the СЕО of several major telecoms and media companies. The head of the European office of Titan Coin in Barcelona, Spain.

Anton ChuryumovAdvisor technology Titan Coin The inventor and creator of the innovative crypto-currency platform Byteball based оп the DAG algorithm. Capitalization of Byteball more than 100 million USD. Мoге than 15 years of experience in the development of software products and highload application for telecom and lnternet business.

Olga JafarovaРиbliс relations Experience in sales of titanium dioxide ( 17 years ). Has loyal relationship with partners of Europe and Asia. Has signed one of the largest contracts оп sales of titanium dioxide (for 3 years' terms) at the Turkish market, designed for 70% of the annual output.

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More information, you can find here:

lmenite Market Overview (ВАС Reports Study)

АВС /СО (terminology)

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Valery KalmykovCОOExperience in the manufacturing sector for more than 30 years. Worked under contract in lndia in the ВМС company. Supervised the project for the reconstruction, restoration, setting and starting of the titanium dioxide production. Trained staff, automated production processes.

Dmitry KuznetsovМoге than 10 years of proven track record in the advertising field. Successful organization of public relations campaigns. Member of the team: Garage, Roxbury, ASG, Seline, ICO factory, Appnow

Denis Zagorsky8 years in the innovation project "GLES": project management from idea to production and commercial sample testing (5 years), CFO of the company (3 years)


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