Executive Summary

Niotan Inc. is a privately held corporation with headquarters and principal operating location in Carson City, Nevada. Niotan is the largest western hemisphere production location for tantalum capacitor powder, the major product consumed in the production of the highest value electronic capacitors. Today, tantalum is experiencing very high demand due to an increase in 'cloud computing' investment as well as the necessity to use tantalum capacitors in 'smart' phones. Over the last five years since Niotan's first production, Niotan has demonstrated world leading powder quality which has resulted in an exceptionally high level of qualification with the world's capacitor manufacturers. The combination of Niotan's growth as a high quality new market entrant in an environment of industry-wide increase in consumption has led to increased demand for Niotan's tantalum powder.

Tantalum, which is relatively rare in the earth's crust and, therefore, inherently expensive, is consumed in applications where the costs are justified by its unusual and outstanding electrical, physical and mechanical properties. The major applications that consume tantalum are solid state capacitors (70%), super-alloys for jet engine and industrial gas turbines (12%), corrosion resistant parts for the chemical process industry (5%), large high value silicon chip wafers (5%), and as an additive in glass manufacture, cutting tools and piezo-electric devices (balance). Primary tantalum production each year totals from 4 - 5 million lbs (US$460 - $580 million tantalum value at current market prices). Significant downstream value is created through upgraded products such as the high grade tantalum powder produced by Niotan.