NON-FERROUS METALLURGY: LEAD FACTS AND FIGURES

2014

ABOUT THE RUSSIAN DIRECT INVESTMENT FUND

The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.

RDIF was created in 2011 under the leadership of the President and Prime Minister of to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.

RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.

I RUSSIA IN THE GLOBAL LEAD INDUSTRY RUSSIA IN THE GLOBAL LEAD INDUSTRY

1.1 RUSSIA IS RANKED THIRD GLOBALLY BY LEAD RESERVES. RUSSIA IS THE SEVENTH LARGEST LEAD MINING COUNTRY IN THE WORLD

Ranking of countries by lead reserves* 2013, mln tonnes 36 14 9.2 7.5 5.6 5

1. Australia 2. 3. Russia 4. Peru 5. Mexico 6. USA

Global lead mining Key players, 2013, thousand tonnes

3,000, 690 340 260 220 120 90

1. China 2. Australia 3. USA 4. India 5. Mexico 6. Peru 7. Russia

* Source: USGS data

6 WWW.INVESTINRUSSIA.COM 1.2 MAJOR GLOBAL PLAYERS 2013, % OF WORLD PRODUCTION

5.8 5.7 3.9 3.4 0.02

1. Glencore-Xtrata 2. Hindustan Zinc 3. BHP Billiton Ltd 4. Teck Cominco Ltd 8. UMMC Switzerland India Australia Canada Russia

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II RUSSIAN LEAD INDUSTRY: CURRENT ISSUES AND TRENDS RUSSIAN LEAD INDUSTRY: CURRENT ISSUES AND TRENDS

2.1 RUSSIA ACCOUNTS FOR APPROX 2% OF THE GLOBAL LEAD MINING INDUSTRY

Lead mining in Russia and globally 2009-2013, thousand tonnes

12800 4,140 4,700 5,170 5,400 3,860

70 97 105 95 90

2009 2010 2011 2012 2013

1.8 2.3 2.2 1.83 1.6.

In Russia Globally Russia’s share of global mining volumes, %

Refined lead production in Russia 106.7 2009-2013, thousand tonnes 100.8 100.0 97.6 88.7

119 127 124 110 110.9 2009 2010 2011 2012 2013 Production in Russia, % change from previous period * Source: USGS data

10 WWW.INVESTINRUSSIA.COM 2.2 OVER 70% OF LEAD PRODUCED IN RUSSIA IS EXPORTED

Exports of lead 2013, thousand tonnes, by main importing countries

Germany Belarus

0.6 Switzerland 6 Korea USA 9.8 5.3 0.8 57 2.7 11 18.6 264 China

Singapore 7.1 Italy

Turkey Kazakhstan Uzbekistan

Production in Russia, % change from previous period refined lead lead ore and concentrate

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III GEOGRAPHY AND CORPORATE STRUCTURE GEOGRAPHY AND CORPORATE STRUCTURE

3.1 KEY LEAD DEPOSITS IN RUSSIA

Krasnoyarsk Krai 1 Republic of (Yakutia)

Arkhangelsk Region 8

Orenburg Region Chelyabinsk Republic of region 4 6

Republic of 2 3 5 7 Zabaykalsky Krai Primorsk Krai Reserves, tonnes:

14 WWW.INVESTINRUSSIA.COM 3 .2 RUSSIAN LEAD INDUSTRY: CORPORATE STRUCTURE

1 Gorevsky GOK OJSC 5 Techprominvest LLC

Mines of the company Mines of the company

Gorevskoye () Ozernoye (Republic of Buryatia)

2 Dalpolimetall MMC 6 OJSC Novo-Shirokinsky Rudnik

Mines of the company Mines of the company

Nikolayevskoye (Primorsk Krai) Novo-Shirokinskoe (Zabaykalsky Krai)

3 InvestEvroKompani LLC 7 Baikalrud LLC

Mines of the company Mines of the company

Kholodninskoye (Republic of Buryatia) Noyon-Tolgoi (Zabaykalsky Krai)

4 OJSC Sibir-Polimetali 8 Sibirskie Tsvetniye Metali LLC

Mines of the company Mines of the company

Korbalihinskoe (Altai Krai) Sardana (Republic of Sakha (Yakutia) Robtsovskoe (Altai Krai)

WWW.INVESTINRUSSIA.COM WWW.RDIF.RU 15 GEOGRAPHY AND CORPORATE STRUCTURE

3.3 RUSSIAN LEAD INDUSTRY: CORPORATE STRUCTURE

Merkurii group Russian Copper Company

Mining companies Mining companies

Gorevsky GOK OJSC Ormet CJSC

UMMC OJSC

Mining companies Metallurgical enterprises

Sibir-Polimetali OJSC Electrozink OJSC Uralelectromed OJSC Uralelectromed OJSC Bashkirskaya Med LLC

Russkaya GRK OJSC

Mining companies Metallurgical enterprises

Dalpolimetall MMC Dalpolimetall Metallurgical Plant LLC

16 WWW.INVESTINRUSSIA.COM Metropol LLC Summa Capital LLC

Mining companies Metallurgical enterprises

Ozerny GOK OJSC Sibirskie Tsvetniye Metali LLC Kholodninsku GOK OJSC

ZIJING MINING GROUP CO. LTD. Baotzin GL

Mining companies Metallurgical enterprises

Lunsin LLC Baikalrud LLC

HIGHLAND GOLD MINING LTD.

Mining companies

Novo-Shirokinsky Rudnik OJSC

WWW.INVESTINRUSSIA.COM WWW.RDIF.RU 17 GEOGRAPHY AND CORPORATE STRUCTURE 3.4 ELECTROZINK IS A MAJOR REFINED LEAD PRODUCER IN RUSSIA 2011-2013

Electrozink: refined lead production 2011-2013, thousand tonnes

19.5 13.3 14.8

2011 2012 2013

Electrozink: Revenue 2011-2013, Rub mln ELEKTROZINK JSC ELEKTROZINK 5,031 4,459 3,388

2011 2012 2013

18 WWW.INVESTINRUSSIA.COM ELECTROZINK: MARKET CAPITALIZATION

Electrozink capitalization growth Electrozink capitalization Nov 2013- Nov 2014, % Rub mln

+6% JSC Electrozink +6% 516 Nov. 14 Kenmare Resources Plc -46% 488 Nov. 13 Hanchang Industry Co. Ltd. +11,4%

Silvermet Inc. +45%

Sources: Bloomberg, Reuters

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ELECTROZINK: PEER COMPARSION 2013, by Sales volume and Market capitalization

Country Company Sales, Market USD mln capitalization, USD mln

5 Ireland Kenmare Resources Plc 146.04 263.62

6 Russian Federation Electrozink 106.29 9.4 7 Morocco Compagnie Minière de Touissit SA 66.84 238.68 8 Peru Cia Minera Santa Luisa SA 65.97 10.73 9 Korea, Republic Of Hanchang Industry Co. Ltd. 49.64 20.93 10 Australia Terramin Australia Ltd. 41.50 123.76 ELEKTROZINK JSC ELEKTROZINK 11 Sweden Lovisagruvan AB 5.59 16.66 12 Canada Silvermet, Inc. 0.38 12.21 33 Australia Avalon Minerals Ltd. 0.00 3.71 37 Australia Brumby Resources Ltd. 0.00 1.93

20 WWW.INVESTINRUSSIA.COM GEOGRAPHY AND KEY COMPANIES

3.5 GOREVSKY GOK IS A MAJOR LEAD MINING COMPANY IN RUSSIA

Gorevsky GOK: lead mining Gorevsky GOK: lead concentrate production 2010-2013, thousand tonnes 2010-2013, thousand tonnes

2011 2,400 CAGR 15.98% 230 2012 2,382 216.9 2013 2,660 171 2011 2012 2013

Revenues JSC GOK GOREVSKY Rub mln 1,637 1,858 2,324

2011 2012 2013

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