WMC IMS U H C T W T y T WMC H f l E E O r P R f l

1. GENERAL DATA

1.1 Subject of testing: Railway sleepers (beech and oak wood) production and impregnation by creosote oil WEI Type C.

1.2 Manufacturer: IMPREGNACIJA AD BEOGRAD - BRANCH ClCEVAC Karadordeva Street 58, 37 210 Cicevac.

1.3 Date of sampling : December 8, 2010. Protocol on taking samples LZ DSM 259 No. 028 /10 of December 8, 2010.

1.4 Quantity of samples: Representatives of the Institute, Mr. Grujica Novakovic and Mr. Stevan Zotovic, surveyed the railway sleeper production and impregnation process using creosote oil WEI Type C and performed the neccessary measurements-tests on December 8, 2010 in the company IMPREGNACIJA AD BEOGRAD - BRANCH ClCEVAC.

1.5 Starting date of the testing period: December 8, 2010.

1.6 Tests performed by: Novakovic Grujica, B.Sc. Zotovic Stevan, B.Sc.

1.7 Issuing date of the Report: December 22, 2010.

1.8 Testing methods and testing scope: In order to test production and impregnation quality of railway sleepers (beech and oak wood) by creosote oil WEI Type C, following tests were performed pursuant to the Client's request:

1.8.1 Tests performed before impregnation (accepting, storing and control at the Company)

1.8.2 Air seasoning. 1.8.3 Planing. 1.8.4 Checking quality and moisture content of railway sleepers. 1.8.5 Testing impregnation agent. 1.8.6 Checking impregnation procedure of railway sleepers (overall tracking one

batch). * 1.8.7 Checking quality of impregnation. 1.8.8 Mounting gauge accessories. 1.8.9 Marking. 1.8.10 Takeover of mounted railway sleepers. 1.8.11 Shipment.

TESTING REPORT No. DSM 276/10

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Photo No. 4: Emptying autoclave

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The tests are regulated by a number of corresponding valid SRPS, DIN and EN norms and internal J2S standards, as for example:

SRPS D.D1.020 SRPS D.D1.021 SRPS D.D1.022 SRPS D.T4.061 SRPS D.T4.062 SRPS D.T4.063

Wooden railway sleepers. Technical conditions. Railway sleepers for turnouts. Railway sleepers for bridges. Impregnation of railway sleepers due to simple Ripping method. Impregnation of railway sleepers due to double Ripping method. Impregnation of railway sleepers due to improved double Ripping method.

- SRPS D.T4.020 : 1982 Impregnation of railway sleepers for railroads and industrial tracks. European norm for railway sleepers. Impregnation of unseasoned beech wood railway sleepers.

EN 13145 :2001 JZS G3.015 : 1976

In addition to the above mentioned norms, application ways of creosote oil WEI Type C for wood impregnation purposes in order to prolong its durability is regulated by DIN 68 811:2007-01 norm - Impregnation by creosote oil WEI Type C.

Moisture content of railway sleepers is determined according to: - SRPS EN 13 183-2:2005 Electrical resistance method. - SRPS EN 13 183-1:2005 Wood drying method in kilns.

1.9 Measuring and regulation equipment 1.9.1 Thermo-hygrometer for measuring surface and fluid temperature, as well as

material and air humidity (with thermoresistant, capacitive and conductometric sensors "GANN" Germany, type RTU 600).

1.9.2 Cased measuring tape, range 0 to 5m, serial number M24.

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WMC IMS U H C T W T y T WMC R d S E O r P R f l

The tests are regulated by a number of corresponding valid SRPS, DIN and EN norms and internal JZS standards, as for example:

SRPS D.D1.020 SRPS D.D1.021 SRPS D.D1.022 SRPS D.T4.061 SRPS D.T4.062 SRPS D.T4.063

Wooden railway sleepers. Technical conditions. Railway sleepers for turnouts. Railway sleepers for bridges. Impregnation of railway sleepers due to simple Ripping method. Impregnation of railway sleepers due to double Ripping method. Impregnation of railway sleepers due to improved double Ripping method.

- SRPS D.T4.020 : 1982 Impregnation of railway sleepers for railroads and industrial tracks. European norm for railway sleepers. Impregnation of unseasoned beech wood railway sleepers.

EN 13145 :2001 JZS G3.015 : 1976

In addition to the above mentioned norms, application ways of creosote oil WEI Type C for wood impregnation purposes in order to prolong its durability is regulated by DIN 68 811:2007-01 norm - Impregnation by creosote oil WEI Type C.

Moisture content of railway sleepers is determined according to: - SRPS EN 13 183-2:2005 Electrical resistance method. - SRPS EN 13 183-1:2005 Wood drying method in kilns.

1.9 Measuring and regulation equipment 1.9.1 Thermo-hygrometer for measuring surface and fluid temperature, as well as

material and air humidity (with thermoresistant, capacitive and conductometric sensors "GANN" Germany, type RTU 600).

1.9.2 Cased measuring tape, range 0 to 5m, serial number M24.

TESTING REPORT No. DSM 276/10

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2. TESTING RESULTS

2.1 Acceptance, storing and control at the Company: Railway sleepers (beech and oak wood) are made of winter-felled timber and have to be straight and properly shaped. They are produced in accoradnce with sizes quoted in DRPS D.D1.020, SRPS D.D1.021 and EN 13 145 norms. Dimensions are given with an oversize which after drying and processing are reduced to standard size. Quantitive acceptance of railway sleepers is performed in the Company by the storekeeper, as well as by works manager in charge of preparing production and by a Railway control authority when railway sleepers are their property. Qualitative acceptance is performed by means of a clam grader and sorter machine, where a railway sleeper is processed to an equal length according to the SRPS D.D1.020 norm and classified. The same machine imprints metal profiles (clams) shaped as an 'S' or a perforated toothed plate into railway sleepers fronts.

2.2 Air seasoning After being accepted, the railway sleepers are stacked horizontally in squares, with crossers dividing the layers (stacks). Position of the timber yard, i.e. area for air seasoning of railway sleepers, enables continuous air circulation. Major part of the base is asphalted and the rest is gravelled and is level, clean and drainable. There is an industrial track in the Company's area which together with other equipment enables easy delivery, manipulation and despatch of railway sleepers. Railway sleepers are stacked separately by length, cross section, class, wood art. In order to be seasoned correctly, the way of stacking is defined by the SRPS D.T4.020 norm. Records are kept and time of stacking is marked. Railway sleepers are exposed to atmospheric air until moisture content reaches 22 to 25 %.

2.3 Planing Before impregnation process, railway sleeper surface is smoothed on the planing machine and sleeper screw holes for subsequent mounting of gauge accessories are drilled by means of a drilling machine. Beech wood railway sleepers always undergo the planing phase - surface levelling in the rail bearing area. On client's request sleeper screw holes can also be drilled before mounting. At the same time, 6 to 8 holes (the so-called diffuse holes) are drilled in the central part of the lower railway sleeper bearing for better penetration of oil into the railway sleeper.

2.4 Checking quality and moisture content of railway sleepers before impregnation Quality control of railway sleepers is performed during processing on the planing machine. Railway sleepers which do not meet criteria of the standard are rejected. Railway sleepers which meet quality demands are automatically stacked on wagons and transported to the "white" scale for volumetric mass measuring, which also determins dryness of the railway sleepers. Moisture content of railway sleepers is also determined by an electric hygrometer. Average moisture content of 25% has been obtained by means of hygrometer "GANN RTU 600". The same moisture content percentage was measured with hygrometer owned by "IMPREGNACIJA AD BEOGRAD - BRANCH ClCEVAC". If the moisture content is not satisfactory or if the railway sleepers cannot be impregnated instantly out of some other reason, they have to be stacked anew for additional seasoning.

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2.5 Testing of impregnation agent The impregnation agent, creosote oil WEI Type C is supplied directly by the manufacturer "RUTGERS", Germany. The agent has been tested by authorized German instititions and "IMPREGNACIJA AD BEOGRAD - BRANCH ClCEVAC" is in possesion of their relevant certificates and technical instructions.

2.6 Checking impregnation procedure Railway sleepers (in course of testing beech wood railway sleepers, batch No. 69, were impregnated) are piled on wagons which are weighed and the moisture content percentage of the railway sleepers is calculated through the volumetric mass. Impregnation procedure of beech wood railway sleepers with creosote oil WEI Type C is performed in accordance with SRPS D.T4.062 and DIN 68 811:2007-01 norms. Impregnation records are kept, where all the significant data defined by the norm are entered. Impregnation procedure is controlled and registered by a registering device which registers pressure, vacuum and temperature. In addition to that, following data are entered into graph: batch No., date, quantity and signature of the authorized controlling person.

The process consists of several phases: - Filling and closing autoclave. - Forming air pressure of 0.5 to 4 bar - Maintaining air pressure. - Filling autoclave with heated oil under air pressure. - Increasing pressure to 8 bar. - Maintaining pressure. - Releasing oil from the autoclave. - Forming vacuum of at least 0.8 bar. - Maintaining of the attained vacuum. - Forming air pressure of 2.5 to 4.0 bar. - Maintaining air pressure. - Filling impregnating autoclave with heated oil under air pressure. - Increasing oil pressure level to 9 -10 bar. - Maintaining oil pressure. - Releasing oil from the autoclave. - Forming vacuum of at least 0.8 bar. - Maintaining vacuum. - Opening impregnating autoclave and taking railway sleepeers out.

The pressure is maintained as long as it is necessary for the railway sleepers to absorb the set quantity of oil. After the completed impregnation process (which in the relevant case lasted for 12 hours) the railway sleepers are drawn out from the autoclave in wagons and transported to the calibrated scale. The average oil absorption amounts to 130kg/m3 according to the DIN 68 811:2007-01 norm.

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2.7 Checking quality of impregnation In addition to weight checks, after the completed impregnation process test specimen were drilled out from the railway sleepers using Pressler drill to observe the penetration depth of the impregnating agent.

2.8 Mounting gauge accessories Mounting is performed on client's demand either in the Company or in the buyer's arrangement. In this case the railway sleepers were carried away and piled in solid stacks, where they are going to be stored until shipment..

2.9 Marking. Railway sleepers are marked with numerator nails. "IMPREGNACIJA AD BEOGRAD - BRANCH CICEVAC" has hexagonally shaped numerators with imprinted year of impregnation.

2.10 Takeover of mounted railway sleepers Upon completion of all the production procedures, the impregnation process and mounting of gauge accessories, railway sleepers are checked in obligatory presence of the works manager - Company's person in charge or the Railway's controlling authority. Railway sleepers which do not meet quality standards are either reclassed or rejected.

2.11 Shipment By order of the Commercial department, railway sleepers are dispatched to the wanted destination within the stipulated term. Transport is performed either by rail or by trucks.

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Institute for Test ing Materials Belgrade, Joint Stock Company Central Materials Testing Laboratory Belgrade, Bulevar vojvode MiSi<Sa43 Phone: +381 (0)11 26 50 322; fax: +381 (0)11 3692 772. 3692 782 www institutims.rs

3. EXPERT OPINION

Pursuant to the testing results of railway sleeper (beech and oak wood) production and impregnation by creosote oil WEI Type C it has been concluded as follows:

Production of impregnated railway sleepers (beech and oak wood) in the company IMPREGNACIJA AD BEOGRAD - BRANCH ClCEVAC

is performed in accordance with regulations of norms valid for this area and this kind of protection (SRPS D.D1.020, SRPS D.D1.021, SRPS D.D1.022, SRPS D.T4.061,

SRPS D.T4.062, SRPS D.T4.063, EN 13145, DIN 68 811:2007-01, SRPS EN 13 183-2, JZS G3.015....), which means that the produced railway sleepers can be used for

railway and industrial tracks.

Expert opinion is an integral part of the Testing report DSM 276 /10 of December 2010.

The shown results refer exclusively to the tested samples. No liability is assumed for authenticity of sampling, unless it was performed in presence of the Laboratory representative. The Testing report must not be copied, except as a whole, without consent of the Materials Testing Laboratory.

Belgrade, December 22, 2010 Attachments : Photos, 2 pages

Test Manager

Stevan Zotovic, B.Sc..

TESTING REPORT No. DSM 276/10

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(Attachment to Testing report DSM 276/10)

Photo No. 2: Air seasoning of railway sleepers stacked horizontally in squares, with crossers between the layers