November 3, 2016 HESC Group held a meeting with the Governor of the province of Santa Cruz, Ms. Alicia Kirchner, and the Institute for Energy of the province of Santa Cruz in the capital city of Rio Gallegos. Following the meeting we had clarified the technical, strategic, organizational and economic aspects in our project. According to Ms. A.Kirshner, today the province is sharply the question of power the city of Rio Gallegos and San Julian. Currently, all electricity is provided by a thermal power plant of 30-40 year-old power of 30 mW. Listed capacity is insufficient for the needs of towns and development areas, and equipment at these stations needs to be replaced.

Ms. Kirchner noted the great interest in the project HESC Group and the development of alternative energy in the whole province, of which it is a supporter of, and agreed the following steps to develop cooperation:

• Writing a letter of intent (letter of intent) of the Government of Santa Cruz province (November 2016);
• Preparation of concept projects for the city of Rio Gallegos and San Julián our company in cooperation with the Institute of Energy of the province of Santa Cruz (December 2016 - February 2017);
• Invitation to the Argentine side to carry out our complex prototype test in Gelendzhik (February - March 2017);
• Discussion of the financial and organizational issues (March - April 2017);
• Home design research (April 2017 - March 2018);
• Construction and operation of systems (2018 - 2020).

They noted that the preliminary cost of each complex will be around US $ 40 million with an installed capacity of 10 mW.