Conflict minerals disclosure

The Securities and Exchange Commission (the "SEC") has proposed rules under new Section 13(p) of the Securities Exchange Act of 1934 (the "Exchange Act") that will require certain annual report disclosures and reports by an Exchange Act reporting company for which specified conflict minerals are necessary to the functionality or production of a product it manufactures or has contracted to have manufactured.

The specified conflict minerals are columbite-tantalite, also known as coltan (the metal ore from which tantalum is extracted); cassiterite (the metal ore from which tin is extracted); gold; wolframite (the metal ore from which tungsten is extracted); or their derivatives; or any other mineral or its derivatives determined by the Secretary of State to be financing conflict in the Democratic Republic of the Congo or an adjoining country ("DRC countries"). These materials are used in alloys, tin plating, solder, electronic components, carbide tools, jet engine components, jewelry, and electronics, communications, and aerospace equipment, among other products. Exchange Act reporting companies that mine conflict materials would also be subject to the proposed rules.

A company subject to the proposed rules would be required undertake a reasonable inquiry to determine whether its conflict materials originated in the DRC countries.

If a reporting company determines that its conflict materials did not originate in the DRC countries after making such an inquiry, it would be required to disclose such determination and the inquiry it made to reach such determination in its annual report. It would also be required to disclose its determination on its Internet website and maintain records supporting its determination.

If, however, the reporting company determines that its conflict minerals did originate in the DRC countries, or after a reasonable inquiry the reporting company is unable to conclude that its conflict minerals did not originate in the DRC countries, it would be required to disclose this determination in its annual report and to furnish a Conflict Minerals Report ("Report") to the SEC as an exhibit to its annual report. The Report would also be required to be posted on the reporting company's Internet website. The reporting company's annual report would need to disclose that the Report has been furnished as an exhibit, is available on the company's Internet website, and provide the Internet address to access the Report.

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