1. In 1998, exclusive rights for mining activities at the Gemerska Poloma deposit in the Slovak Republic, one of the world's largest talc deposits, were awarded to Rozmin sro ("Rozmin"), a Slovak Republic-incorporated company in which EuroGas Inc. ("EuroGas"), a United States-incorporated company, and Belmont Resources Inc. ("Belmont"), a Canada-incorporated company, hold a 90% shareholding interest. In addition to their contribution in geological know-how, expertise, management, and business contacts with potential talc purchasers, EuroGas and Belmont invested approximately USD 10 million in the Gemerska Poloma deposit to prepare it for its commercial development.
2. Nevertheless, in early 2005, once the quality and reserves of talc at the deposit had been confirmed by Rozmin in accordance with the highest Westem industry standards, works at the site for its preparation towards excavation and commercial development were well underway, talc prices had reached record heights, and negotiations of agreements for the sale of talc to be extracted from the mine had even been initiated by Rozmin, the Slovak Republic unexpectedly and discriminatorily stripped Rozmin of its rights. The Slovak Republic did so abruptly, by revoking Rozmin's mining rights without warning or justification, let alone a valid one, thus depriving EuroGas and Belmont of the benefits of their investment, including but not limited to future revenues from the operation of the mine. The Slovak Republic moreover deprived Rozmin of its rights without paying any compensation, let alone the prompt, adequate, and effective compensation due under intemationallaw.