1.0 Summary

Golden Gate Golf Club will be the first golf club in Ukraine, a country of 49 million people. The location of the club will be 27 kilometers from Kyiv (35 minutes by car from the center of Kyiv).

The golf club will be situated on approximately 77 hectares of beautiful prime land surrounded by 3 rivers which is perfectly suitable for the sport. The land is on a 49 year lease to GGGC. An additional 9 hectares with existing buildings and facilities for a club will need to be purchased and renovated.

It is estimated that there are presently 25,000 potential golf players in the Kyiv area . GGGC plans to offer memberships with introductory prices starting at US$ 5,000.00 (including discounts). This should generate between 400 - 600 members within the first 2 years. Total memberships will be limited to 1800 to 2000 players. This is estimated to be achieved well within 5 years.

2.0 Description of the Project

The facilities to be constructed will include an 18 hole golf course, and a driving range on the non-leased land. The adjacent facilities to be purchased and renovated will include, a golf clubhouse with all facilities such as: restaurant, locker rooms, billiard room, health club, pro-shop, bar, snack bar, and a 50 room hotel or a townhouse complex. Additional facilities will include tennis courts, a beach area, water sports facilities, shops, and swimming pool.

3.0 Present stage of development

This project consists of a corporate structure called Golden Gate Golf Club (GGGC) which is a Limited Liability company and which holds a lease on the land needed for the golf course development as well as an option to purchase the resort area which will be reconstructed and used as the clubhouse facilities.

4.0 Background of the Company

GGGC is a privately held Ukrainian corporation with a start up capital of over $1 million. Principals of GGGC have been involved in golf course construction, and maintenance over the past 30 years.

5.0 Financial Structure

Financing required for the entire project ranges from $3.5 to $10.0 million depending on the quality of the facilities to be constructed and the time period allowed for the construction. Higher funding will allow for construction of not only higher quality facilities, but will also permit the project to be completed quickly which will enhance the number and desirability of the initial membership.

An initial capitalization of as little as $1.5 to $2.0 million will enable the project to get started and will attract enough memberships revenue to continue the project construction and renovation.

6.0 General Information on the Investment Climate

Ukraine is both an agricultural and an industrialized nation. It has a wealth of natural resources and can sustain substantial growth over the next few decades. The prognosis is that Ukraine can easily sustain at least a dozen golf courses and because its population is very sports oriented there will be no lack of members. However, initially, a good proportion of the membership is expected from the diplomatic and foreign community in Kyiv. This will change radically once the sport and leisure pastime of golf catches on.

7.0 Climate and Playing Season

Due to a moderate climate, a 7 to 8 month season for the golf course is not only expected but almost guaranteed. The hotel, restaurant, banquet, and health club facilities are expected to operate year round.

8.0 Market Analysis.

The estimate number of potential members for golf clubs in Ukraine is in the range of 8,000 to 9,000. The actual number of potential "players" is estimated to be in the neighborhood of 25,000 people.

9.0 Competition.

There are presently no golf clubs or golf courses in Ukraine. There are several in the planning and project stages; however, GGGC is expected to be the first operational golf club in Ukraine. This is primarily due to its location, layout, natural landscaping, and completed project work.

10.0 Project Highlights.

The project features a complete leisure environment for individual players as well as family members. For business members, the proximity to Kyiv will allow for many planned meetings in pleasant surroundings.

11.0 Finances.

Investment in GGGC can be considered in any form suitable for the investor. This can include equity participation, outright ownership, majority ownership, loan, or a combination of any of the above.

12.0 Risk Factors.

As with any new country (Ukraine is independent for only 11 years), there are some risks associated with changing laws, changing political environment, and low population income; however, Ukraine has shown a surprisingly large amount of stability and a very impressive economic growth rate. Its currency has been very stable and its GNP is growing faster than that of any other country in Europe.

13.0 Investment Advantages.

Considering the potential returns on investment, the GGGC project offers one of the most (if not the most) lucrative investment opportunities in Ukraine. The primary factors are: a) this will be the first golf resort in Ukraine, and b) the low cost of developing this project reduces the risk substantially.

14.0 Conclusion.

Although there is an inherent amount of risk in the project, the profit and equity return on the investment for this project makes it one of the most lucrative in all of the former CIS countries or even all of Europe at the present time. Risk factors can further be reduced through a speedy construction and project start-up process.