OJSC «Seligdar»

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/October 2009/

“Seligdar” OJSC
“Seligdar Gold” OJSC
“Ryabinovoye” LLC
“Lunnoye” CJSC
“Poisk placer miner guild” LLC
“Orenburg Mining Company” (OGK) LLC
“Euroart” LLC
“Sinida-1” Placer Miner Guild” LLC

“Seligdar” OJSC
/October 2009/

1. At the opencast sites Samolazovsky and Mezhskopochny, mining activities are in progress according to the approved gold production schedule for 2009. As of today, taking into account the incoming residual from 2008, 1036 thousand tons of ore has been transported from the site, which is 120% of the plan target for the year. Taking into account Verkhnee site, 249 thousand tons of ore has been delivered to the ore stockpile at Mezhsopochniy, which is 71% of the annual plan target.

2. Ore processing is in progress at the fragmentation facilities; 890 thousand tons of ore has been crushed at Samolazovskiy ore mining complex, which is 122% of the current year plan target. 168 thousand tons of ore has been crushed at Mezhsopochniy crushing and screening plant, which is 56% of the plan target

3. Gold extraction is continued at the facilities of Seligdar OJSC. 1460 kilograms of gold have been extracted starting from the beginning of the year at the heap leaching plant of Samolazovsky mining compex, and 360 kilograms of gold – at the heap leaching plant of Mezhsopochny site.

4. Within the boundary of the opencast of Mezhsopochniy deposit at the South-East flank of Tsentralnaya ore body, geological survey activities are continued within the framework of the licenses for Mezhsopochniy and Goltsoviy-1 sites in order to refine the boundaries and the parameters of industrial ore deposition at the Eastern flank of the Tsentralnaya bank (south). Increase of the registered reserves will amount to about 150 kilogram. In September, 527 line meters of core drilling have been accomplished.

5. Office studies are in progress to produce the reserve calculation report based on the results of the geological survey of deep horizons of Samolazovskoye site conducted in 2007-2009. The expected date of completion of the reserve calculation report is December 2009. Anticipated increase of the reserves is about 10 tons of gold. After production of technical specifications in 2010, the reserves of the non-oxidized part of the deposit will be included into industrial operations.

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