GROUND RUSTICO TURISTICO

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1 GROUND RUSTICO TURISTICO MUNICIPALITY OF ENSENADA, BAJA CALIFORNIA. MEXICO DESCRIPTION: Property "EJIDO HERMENEGILDO GALEANA". Located in the Municipality of Ensenada Baja California Norte. Mexico SURFACE: 127,581 Hectares in lands of common use and 100 Hours in 23 Land Certificates among ejidatarios A) It has approximately 62 kilometers of coastline in the Gulf of California or Sea of Cortes. B) Inside the Ejido are deposits of Cantera Blanca, Pink Cantera, Gypsum, Onix, Lajas de Marmol Verde and some more minerals. C) It has the necessary depth in a part of the coast, ideal to be able to build a dock for large boats type cruises. D) The subsoil has aquifers from which mineral water could be extracted. E) Inside the Ejido is the borreguera area where there is currently "El Borrego Cimarrón" and is practically a virgin area. F) The Ejido has a landing strip duly authorized. Commercial valuation of authorized expert dated: June 14, 2017 For the value of $ 1, USD

2 LOCATION: The Ejido Hermenegildo Galeana is located in the southeastern part of the huge municipality of Ensenada approximately nine kilometers to the east of the Transpeninsular Highway, starting from the place known as Laguna de Chapala, Extending from North to South from Ejido Matomi and Revolution to the Ejidos Tierra y Libertad and Juárez, and from East to West from the Gulf of California to the Ejido Revolution. It is composed of 127,681 hectares, which are divided among some ejidatarios in 45 plots. They are a total of 44 ejidatarios.

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9 SOIL USE: It is ideal for large tourist developments of first level, with all services; Such as marina, golf clubs, hotels, residential areas, hunting club, ecotourism and adventure tourism. Residential complex; Sport Club; Marina Seca and Commercial Zone; It is considered by the government, the construction of a marina in the area COMMUNICATIONS: How to get: From the Rancho Las Arrastras it leaves a road towards the southwest that after 25 kilometers it connects with the highway number 1 in the dry lake of Chapala, site that counts on tourist assistance. San Felipe is a commercial, tourist and fishing port with good infrastructure of services for the traveler. To him they arrive the lovers of the sport fishing, since in the bordering waters the horse mackerel, the cherna and the red snapper, although in the sea there are corvina, sole and canoe. South of San Felipe, following a dirt road, is a chain of amazing beaches. There are about 80 kilometers to Puertecitos, a tourist and fishing port inhabited by seasons by American families. Among its attractions is a spring of thermal water that is next to the beach. Further to the south, about 38 kilometers, there is a group of islands near the coast; These are those of Miramar, Salvatierra, Encantada and San Luis, in whose surroundings the fishing is practiced and the passage of the dolphins that accompany the sea lions is observed. Further on, we find the Bay of San Luis Gonzaga, in front of it the island of the same name. There is also a tourist camp with a large influx of foreigners; About 50 kilometers is located the place of Calamajué, after Rancho Las Arrastras, where there was one of the Jesuit missions, founded in 1766.

10 NAUTICA STAIRCASE The segment of yatismo is one of the most potential for Baja California. Its development requires the implementation of a series of marinas to integrate a nautical staircase that allows navigators to make attractive circuits within the region. The Government of the State in collaboration with FONATUR has detected the following strategic points for the development of marinas for this purpose, as well as a series of investment projects for its consolidation. This project is complemented by other projected marinas for Baja California, Baja California Sur, Sonora and Sinaloa in order to facilitate the transit and exploration of the region of the coasts of the Pacific and the Sea of Cortez LEVEL OF TYPE OF DEVELOPMENT PROJECT OPPORTUNITY PROJECT INVESTMENT TIJUANA-ENSENADA CORRIDOR Tourist and Marina Pier In operation Conversion for the expansion and Marina resort operation Conversion for the expansion and Marina resort operation (Investments Marina Pier In Operation

11 Rosarito) Design, construction and operation of Hotels, hotels, restaurants, shopping area and Puerto Salina Marina, lots Under construction Water park condominiums Ensenada Cruiseport Village / Group as Construction and operation of center Commercial as a complement to the marina and cruise port. ICTSI Terminal Under construction Under Construction SAN FELIPE-PUERTECITOS CORRIDOR

12 Hacienda San Resort Felipe residential; Club project development operation sports; Marine and Study Area Commercial First Stage in Capital Contribution San Felipe Tourist development Under construction Operation or investment of the Marina with Marina, Hotels, hydrological, Topography Environmental Specific Drought impact and feasibility hydrological, Topography San Felipe Marina Resort and spa Under construction Environmental Specific Drought impact and feasibility Condominiums, house Club with spa and Promotion or Investment in Villas, Restaurants lots, condominiums

13 SOUTHERN REGION Need Project design, operation and Detected Construction Detected Construction Santa Rosalíta Marina Detected Construction Need Project design, operation and Detected Construction San Luís Marina Gonzaga Detected Construction Need Project design, operation and Detected Construction Punta Colonet Marina

14 INVESTMENT PROJECTS STRATEGIC PROJECTS CARRETERO CORRIDOR 85% of tourists traveling to Baja California do it by land. However, the services on the roads of the State are deficient so there is a great need to establish inns to serve the tourists. Therefore, the State Government has carried out an analysis of the sites in which the development of this type of services represents the greatest opportunity for investors: PROJECT LOCATION TYPE OF PRPJECT (1998) LEVEL OF OPPORTU NITY INVESTMENT DEVELOPMENT TIJUANA-ENSENADA CORRIDOR AM/PM Road Share <7,945 In operation Any Tijuana- Ensenada vehícles Km El Mirador Road Share 8,219 In operation Sale Tijuana-Ensenada vehícles Km. 84 BORDER REGION Bancheti ROAD SHARE Tijuana- 4,766 Land of Concessión, construction Mexicali Km. 103 vehícles CAPUFE y and operation

15 concessión Any La Rumorosa Road Share Tijuana- 4,766 Proposal Mexicali km. vehícles 67; Libre Km. 72 CENTRAL REGION El Faro Federal Highwayl 1,192 Proposal Construction and operation Mexicali-San Felipe Km. 40 vehícles La Ventana Federal Highwayl 2,130 Proposal Construction and operation Mexicali-San Felipe vehícles El Chinero Federal Highwayl 2,130 Built sale Mexicali-San Felipe vehícles building Km. 147 Km. 114 is operating Ojos Negros HighwayEnsenada- 1,705 Proposal Construction and operation San Felipe Km. 40 a vehícles 45

16 SOUTH REGION San Telmo Highway Ensenada 3,182 Proposal Construction and operation Lázaro Cárdenas Km. vehícles 128; Junction Parque San Pedro Mártir San Quintín Carretera Ensenada- 2,846 Operates Turist Information office Expansion and operation of Lázaro Cárdenas Km. 178 vehícles Gas station and services Cataviña Highway Lázaro 663 vehícles Proposal Construction and operation Cárdenas-Punta Piedra Km. 176 Punta Piedra Hihgway Lázaro >663 Gas station Construction and operation Cárdenas Km. 28 vehícles Out of service and Caffe shop in operation

17 ALTERNATIVE TOURISM The growing trend of travelers seeking more authentic experiences, linked to nature and culture, as well as activities related to these issues, makes it necessary to promote the development of a new type of tourism in Baja California to attract new segments of the market And satisfy a demand that represents a great opportunity to foster development and care for State resources LEVEL OF DEVELOPM ENT INVESTMENT OF OPORTUNITY PROJECT PROJECT TYPE LOCATION REGION CENTRAL Hacienda Tourist Sierra de Juárez Development conceptual, Studies Technicians, Conceptions Artistic and Architectural Developers Interested in co-investing Ojos Negros campestre km. 52 Hihgway Ensenada-San Felipe Rancho Division Country Housing Tourist Km. 103 n process of construction of Walkers and urbanization Development of services accommodation, Excursions, cabins, Equestrian center, Restaurants, centers

18 Commercial services, Health and medicine Preventive Banchetti Road share Tijuana- Mexicali Rancho El Turistic center Country and Cinegetic Tijuana- Ensenada Land and idea Of project Developers Retiro Corridor HYDROLOGICAL REGIONS Baja California has scarce water resources, and the presence of continental aquatic systems, both lakes (lakes) and potamológicos (rivers, streams, springs, etc.) is limited; To the above is added a low rainfall, since only in a small part of the state territory rains occur that in normal conditions vary from 200 to 300 Mm. Per year, while in the rest of the state precipitation decreases significantly, until registering 50 Mm. Per year. The volume of water available to the entity is million cubic meters (Mm3) annually, distributed in the epicontinental streams (rivers and streams) and underground that drain the state territory. Of this volume, 2,950 Mm3 are concentrated in the Mexicali Valley, of which 1,850 Mm3 comes from surface water and 1,100 Mm3 of groundwater; The remaining 300 Mm3 comes from the underground water resources located in the rest of the State and from the existing reservoirs in the dams. In this way, we have that 88 percent of the total state hydrological resources are located in

19 the Mexicali Valley; Of this percentage, the Colorado River contributes 57 percent equivalent to 1,681.5 Mm3, while the remaining 12 percent is dispersed in the rest of the State. The hydrological division of the State is made up of five regions, of which 1 and 4 are totally included in State 1 and only partially 2, 5 and 7 regions: Hydrographic Region 1 "Baja California Northeast" (Ensenada) Hydrological Region 2 "Baja California Centro-Oeste" (Vizcaíno) Hydrological Region 4 "Baja California Noreste" Hydrological Region 7 "Colorado River" (Map No. 1) Hydrological Region 1, "Baja California Noroeste" (Ensenada) It is located in the Central-Northwest portion of the State. This region comprises currents of an international character and flows into the Pacific Ocean. Hydrological Region 4, "Baja California Noreste" (Laguna Salada) This region is limited to the north by the Sierra de Juárez bifurcation from the Cerro de Tres Pinos, and to the south by the hydrological regions 2 and 5. It presents superficial runoff in the Arroyo Agua Dulce-Santa Clara basin, the main stream is the Agua Dulce stream, which does not have a well-defined channel, due to the occasional rainfall does not always run along the same channel; However, its mouth is opposite Isla Miramar. The Laguna Salada-Arroyo del Diablo basin is bordered by the eastern slope of the Sierra de Juárez and the western slope of the Sierra Cucapah, which contains a wide A flat region with no altitudes above sea level, forming poor drainage areas where lagoons and dunes form, as none of its numerous ephemeral streams has a chance of reaching the Gulf of California, so it can be considered as a closed basin. In the rest of the region, surface runoff is almost zero. The use of water in this region is mainly agricultural and domestic. It presents two basins: Arroyo Agua Dulce-Santa Clara: With an area of 7, km2 it has as sub-basins to Arroyo Agua Dulce, Arroyo San Fermín, Arroyo Huatamote, San Felipe, and Santa Clara. Laguna Salada-Arroyo del Diablo: It has an area in the State of 7, km2, limited by the eastern slope of the Sierra de Juárez and by the western side of the Cucapah. It has as sub-basins the Laguna Salada and the Arroyo del Diablo. Arroyo Calamajué and others: With an area of 3, km2, it is totally in Baja California. It is bordered, to the West, by the Columbia Range, and to the East, by the Sierra Calamajué. There are numerous channels but none is recognized with a name of general acceptance. The identified sub-basins are Laguna Agua Amarga, Assembly, Arroyo Calamajué and Arroyos de la Palma and San Luis.

20 UNDERGROUND HYDROLOGY In the entity there are no permanent surface runoff, which affects the recharge aquifers receive. The Baja California hydrographic network is actually very small, high evaporation and geological conditions are adverse, since most rock units allow water to flow freely due to high slopes, and only a small part of These runoff reaches aquifers, therefore, the distribution of aquifers is heterogeneous and is located in relatively small areas, with the exception of the Mexicali Valley aquifer - one of the most important irrigation districts in the country, the district of Irrigation Colorado River - which presents in some places problems of overexploitation. In the entity, this resource is considered as non-renewable because of the low rainfall, and the slow renewal of groundwater sources for productive purposes. According to the geohydrological conditions of the State, the entire territory is considered as a closed zone for extraction. In the Overexploited aquifers it is not possible to increase water use without causing abating, or without affecting third parties, so that no exploitation is allowed in them. In watersheds in equilibrium, priority uses of water are allowed, such as supplying urban areas, and it is prohibited for activities with high volume consumption, such as agriculture, while in underexploited basins any kind of use is accepted, if allowed by capacity Of the aquifer mantles. COASTAL WATER BODIES The coast of Baja California borders the Pacific Ocean and the Gulf of California, on the Pacific slope, North-South direction, are located: La Salina Lagoon, Todos Santos Bay, Estero de Punta Banda, Bahía Soledad, Camalú Bay, Laguna Figueroa, Vicente Guerrero Lagoon, San Quintín Bay, El Rosario Bay, Santa Rosalía Bay and Laguna Manuela. Gulf of California slope. On the Gulf of California slope and also in the North-South direction are: Colorado River Estuary, Boca La Bolsa, San Felipe Bay, Percebú Lagoon, Willard Bay, San Luis Gonzaga Bay, Guadalupe Bay and Los Angeles Bay. Two main arms and several secondary that leave formed two islands, Montague and Pelican, and a great plain of flood. The high evaporation rates of 0.9 m / year and the almost no contribution of fresh water by the Colorado River, as well as the low precipitation (average annual of 68 Mm.), Have given to the Upper Gulf of California characteristics antiestuarinas, So that this antiestuario is characterized by large ranges of up to 8 m between minimum and maximum levels of tides, therefore, the area between tides occupies an area of more than 7,000 km2. According to an agreement published in the Official Gazette of the Federation, dated May 30, 1974, it is declared at the mouth of the Colorado River as a reserve area for cultivation or repopulation for all fishing species, likewise according to a decree published in the Official Gazette Of the Federation, dated

21 June 10, 1993, the Upper Gulf of California and the Colorado River Delta is declared a Biosphere Reserve. Laguna Percebú. Located on the east coast of the state, 25 km south of San Felipe, with a length of approximately 5 km by 100 or 200 m wide, with a sand bar that separates it from the sea, and a system of marshes of Great amplitude in the South end. It has two mouths, where the north is the main, and is strongly influenced by the tide, since at low tide is almost empty. The climate is arid tropical, with an average annual rainfall of less than 100 Mm., The salinity is not different from the marine, except in pools of the interior zone, the temperature of the water varies of 12ºC in winter, to 36ºC in summer, Specifically in the pool area, in the general body of the system, the maximum recorded water is 29 C. CLIMATES AND TEMPERATURE Weather Stations. There are four meteorological stations located in different points of the municipality: Ensenada, Bay of Los Angeles, El Arco and Las Escobas. There are basically two generic types of climates: the humid temperate ones that appear in the high parts of the mountain ranges and the dry ones that are located in the rest of the municipality, in both climates they are characterized by strong thermal and pluviometric oscillations. In addition, 6 types or subtypes of climate are registered, with a very dry semi-warm climate, which is pronounced in 43.54% of the municipal territory, followed by the temperate dry climate, which exists in 24.25% of the territory; Third, the very dry temperate climate that manifests in the 18.94% of the municipality including the area of the city of Ensenada. The rest of the surface is distributed in very dry very warm climate, subhumid semifry with rains in winter, with 7.08%, 3.54% and 2.65% of the surface of the municipality respectively. Temperatures. The minimum and maximum temperatures recorded depend on the region and the locality with strong oscillations, with the following Average monthly temperature (degrees Celsius) KEY STATION ALTITUDMSNM MONTHS AND YEARS HOTTER MONTH AND YEAR MORE COLD 16 Ensenada c (July-1987) 13 c (December 1985) 2 Bay of Angels c (sept-1989) 14 c (Feb-1985) 10 The Arc c (August-1989) 11.8 c (January-1985) 23 The Brooms C (Sept-1984) 11.7 C (March-1991)

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