Движение к совершенству Russia Gold Mining Market Overview

Движение к совершенству Russia Gold Mining Market Overview 07/11/12

Extraction & Reserves PROVED RESERVES* 5700 T (8835 IN EUO) Urals 32, 4 reserves Mainly in complex ore and alluvial deposits File reference Author/Dpt: Creation date: East Syberia & Far East 67, 6% reserves Mainly indigenous deposits Classification: D? Keeping: Движение к совершенству

Extraction & Reserves TOTAL EXTRACTION (from ore) 212 T (330 IN EUO) - 7, 5% of world extraction (11, 6 % in EUO) – 4 th place Extraction mainly in Asian part in severe conditions File reference Author/Dpt: Creation date: Classification: D? Keeping: Движение к совершенству

Quality of reserves (primary gold) 1. Gold from ore (65% of primary gold) Highs quality of reserves Движение к совершенству Best quality (as in RSA and better) > 4 g/t: (18% res. ) - Yakutia – Nezhdaninskoye, Kuchusskoe (>5 g/t) - Chukotka – Kupol (21 g/t) - Khabarovsk – Mnogoverchinnoe (13, 8 g/t) Worst quality – less than 4 g/t: (39, 6% reserves*) - Urals and Amurskaya: old and depleted mines (1, 5 -4 g/t) 2. Gold from placers (29% of primary gold) Very high quality of reserves About 20% of reserves 3. By-product gold (6% of primary gold) About 22 % of reserves Very big reserves *About 24% of reserves are located in areas without infrastructure development level (Unique in size deposit Suchoy Log, Irkutsk region) File reference Author/Dpt: Creation date: Classification: D? Keeping:

Best case scenario Assumptions Expected 2018 extraction level 261 t +23% to 2011 level (212 t) Движение к совершенству The growth of gold prices Local consumption : moderate growth (+3% per year) • • Price for oil and purchase the official sector will increase World economic recession will last not less than for 2018 Gold production will increase from the current long-term rate (CAGR World cons. = 1% ) New greenfield projects do not limit the target level One grand project Natalkinskoe (+15 t to 2015, +60 t target level of extraction in 2020) Many little projects (up to 7 -8 t) Nezdaninskoe (+7 t to 2016) Verninskoe (+5 t to 2013) …. . Total (> 40 t in projects under construction) 2012 * forecast; CAGR Russian primary production = 4, 1% (1999 -2011), CAGR World consumption = 1% (2003 -2011)$ CAGR World purchase the official sector = 8% (2003 -2011), 2011/2004 = 7 File reference Author/Dpt: Creation date: Classification: D? Keeping:

World markets: different trends Движение к совершенству Jewelry: 71% – – Stable decline in long-time Setbacks in 2009 and 2011 Electronics: 12% Stable grow Dentisty: 2% Stable Coins & medals: 12% - Stable volumes before crisis Growth in 2008 -2011 (investment demand) Others: 6%: Stable In crisis the world price for gold will continue to grow (state reserves and investment demand) File reference Author/Dpt: Creation date: Classification: D? Keeping:

Base case scenario Assumptions Expected 2018 extraction level 227 t +7, 2% to 2011 level (212 t) Движение к совершенству Stabilization the price Local consumption : slight growth • Price for oil and purchase the official sector will be stable World market demands: slight growth (1% per year) – – – Stable consumption by jewelry, investment purchase the official sector will grow Investments and coins demands will be stable 2012 * forecast; CAGR Russian primary production = 4, 1% (1999 -2011), CAGR World consumption = 1% (2003 -2011)$ CAGR World purchase the official sector = 8% (2003 -2011), 2011/2004 = 7 File reference Author/Dpt: Creation date: Classification: D? Keeping:

Worst case scenario Движение к совершенству Expected worst extraction level 127 t -41% to 2011 level (212 t) Assumptions Slump of prices on gold and oil Local consumption: strong decline – purchase the Russian official sector stops (budget deficit and sale of state gold reserves) – stable demand from Jewellery and Industry World market demands: slight decline (not crisis but stagnation) – Reduction of export to the minimum values (-70%, to level 2007) File reference Author/Dpt: Creation date: Classification: D? Keeping:

Forecast scenarios Движение к совершенству File reference Author/Dpt: Creation date: Classification: D? Keeping: