Untitled Document

NNRF Inc. has commenced an acquisition program to acquire Russian companies that are highly specialized manufacturers of materials for Russian and foreign nuclear markets. These include companies who desire to continue and improve their sales to Russian Federation and foreign nuclear facilities or to be able to enter this market.

The strategic plan of NNRF Inc. is to establish strategic alliances with the Russian Federation agencies responsible for both domestic (ROSENERGOATOM) and foreign (ATOMSTROYEXPORT) markets and to acquire manufacturing facilities with engineering and research capabilities together with application specific technologies which establish an integrated platform of products and services for the entire nuclear cycle.

NNRF Inc. believes it has established this platform with the ZAO EMBP ATOLL acquisition and may complete additional acquisitions in 2007.

ZAO "EMBP" ATOLL

NNRF Inc. and ZAO ELECTRO MACHINERY BUILDING PLANT ATOLL (ZAO "EMBP" Atoll) have agreed on December 3, 2005 that NNRF Inc. will acquire 50% of the stock of ZAO ATOLL. ATOLL is a private Joint Stock Company under Russian law. The company manufactures and supplies spare parts for existing nuclear power plants, products for the modernization of nuclear power plants and equipment for facilities currently under construction.

NNRF Inc. will pay $4,290,000 and approximately 2,000,000 shares of NNRF Inc. common restricted stock for the acquisition of ATOLL. This agreement has been modified into two closings: The first closing commenced the week of July 31, 2006, in which NNRF Inc. will acquire 13.25% of ZAO “EMBP” ATOLL; the second will occur during the first quarter of 2007 in which NNRF Inc. will acquire the additional shares. The original agreement was modified to conform to Russian tax and currency laws.

ATOLL is located in the city of St. Petersburg. The administrative, design bureau, manufacturing, testing, packing and shipping facilities are situated on a former closed military entity. The buildings are located on approximately 1.5 hectares of property. The shareholders of ATOLL purchased the building, renovated it and converted the facilities to a modern, CNC-based, production facility dedicated to the production of specialized equipment.

ATOLL is a manufacturing and research concern established to develop, manufacture and sell products designated for nuclear facilities such as nuclear power plants and the Russian Federal dry storage facility for nuclear wastes and spent fuel, presently under construction, at the Mining Chemical Combine ("MCC") located in Zhelesnogorsk, Krasnoyarsk region. The manufacturing processes utilize state of art computer controlled, CNC, machinery.

The products from this facility include spare parts for the entire nuclear cycle, including spare parts for nuclear power plants, mechanisms for nuclear power plants, and handling equipment for nuclear waste containers for long term storage of nuclear wastes and spent fuel. These capabilities also present significant opportunities for increased sales in foreign markets; for example, China and India.

ATOLL employs approximately 220 persons. They include engineers, nuclear industry specialists, technical experts in nuclear equipment design and construction and skilled manufacturing operators of CNC based machinery. The level of capabilities of this group have established ATOLL as a designated supplier to facilities operated by ROSENERGOATOM, the operator and owner of all of the 31 nuclear reactors in the Russian Federation.

ATOLL has their own construction bureau and develops all of their own drawings and technical specifications for the manufacturing cycle. This has established their production as the technical standard for spare parts and mechanisms for the WWER-440 and WWER-1000 nuclear reactors presently in operation and under construction in both the Russian Federation and foreign markets. This production is the intellectual property of ATOLL. This establishes their production as a sole source to ROSENERGOATOM and foreign reactors either in operation or under construction.

ATOLL has foreign trade contracts with operators of nuclear power plants outside of Russia, for example, in Ukraine and Bulgaria, and exports spare parts for WWER-440 and WWER-1000 reactors to these countries. ATOLL is capable of providing technical support and production capacity to support sales to other export markets. NNRF Inc. believes that it has substantial marketing opportunities which may result in increases in sales to these foreign markets. The WWER-440 and WWER-1000 reactors are the latest designs from Russia. They are considered to be state of art and are the nuclear reactors currently being constructed in China and India by ATOMSTROYEXPORT, a strategic partner of NNRF Inc. (SEE: ALLIANCES).

These reactors, like all reactors worldwide, require continuous replacement of their operating parts due to strict safety standards established for the nuclear industry. These government mandated requirements establish consistent and long term contracts for the production output of ATOLL in both Russian Federation as well as existing foreign markets and future markets such as China and India. ATOLL currently has booked advance sales through the year 2011.

NNRF Inc. believes this consistent turnover establishes a reliable revenue stream and also opens up future market opportunities for the technical innovations currently under development by NNRF Inc..

Completion of the ATOLL acquisition is intended to provide the company with the basis to qualify for listing on a principal US and other stock exchanges; for example, AIM London, Frankfurt and RTS Moscow.

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