Uranium Mining Capabilities in the Russian Federation ARMZ Uranium Holding Co., Russia 11 Alexander Boytsov, Deputy Director General ARMZ in Russian Nuclear Industry

ARMZ

• Uranium mining and supply • Worldwide mining and exploration • World’s #2 in uranium resources • World’s #5 in uranium production

Rosatom Tenex Energoatom • • plant Uranium enrichment, operation, generation and export sales sales • 1st in the world in terms of nuclear power 40% of world’s uranium plants construction abroad enrichment capacity 2nd in the world in terms of electric power generation at nuclear power plants

TVEL • Nuclear fuel fabrication, export sales • 17% or world’s nuclear fuel market (every 6th reactor)

24.06.2009 15:08 2 2 ARMZ at a Glance

ARMZ Overview • The only uranium mining company in Russia • 2nd world company by uranium resources • 5th largest by uranium production • Russian Priargunsky - the world’s largest in terms of aggregated historical uranium production • Highly diversified by mining technology and geography - exploration and mining projects on 3 continents

• 3,527 3,687 14,000 employees at production sites and service companies 3,190

2008 Uranium Resources by Company (in situ) 2008 Uranium Production by Company

Navoi 4% VOSTGOK 3% Uranium Paladin Energy 2% One 3% 4% Navoi 6% Rio Tinto Kazatomprom 8% BHP Billiton 21% BHP Billiton 10% CAMECO 38% 8% ARMZ 10% CAMECO Rio Tinto 19% 10% Kazatomprom 13% AREVA ARMZ 13% AREVA 12% 2nd place 17% Source: ARMZ ARMZ Growth Results 2006-2008

Priargunsky Zarechnoe Operational and under construction facilities Dalur Khiagda Planned mines Exploration ventures and new projects Tons Management and service companies 4000

3000

2000 3190 3527 3687 1000

0 2006 2007 2008 2006 2007 2008

• 16% growth of uranium output in two Thou tons years 700 • 4-fold growth of uranium resources 600 538 • 500 16 uranium deposit licensed 400 • Number of subsidiaries and projects 300 increased from 4 to 18. New joint 200 ventures set up to mine, drill and explore 100 145 for uranium in Russia and abroad, new 0 2006 2007 2008 management and service companies in operation

44 Uranium Production in Russia

Production t U 2005 3253 2006 3190 2007 3413 2008 3521 2009 3611

Uranium production in 2008 – 3521 t Production method Processing method Deposit type

55 ARMZ Global Presence

11

10 6 2 3 7 14 8 5 1 13 4 9

12

Operational and under Planned facilities Exploration ventures and construction facilities Prospective projects 1. Priargunsky 4. Akbastau + Karatau 6. Elkon 9. Mongolia 12. Namibia 2. Khiagda 5. Zarechnoe 7. Gornoe 10. Canada 13. Armenia 3. Dalur 8. Olovskaya 11. Russia 14. Ukraine ARMZ projects pipeline

Priargunsky Khiagda ARGK (Armenia) Elkon Dalur Mongolia SWA Uranium Lunnoe Zarechnoe Africa (Namibia) Gornoe NBUL (Canada) Olovskoe Akbastau Karkhu (Russia) Karatau

Perspective Exploration Planned mines Mines existing and projects projects under construction

7 Existing uranium centers in Russia

Priargunsky Dalur Khiagda Location Zabaikalsky Location Kurgan region Location Buryat Republic region Deposits Dalmatovskoe, Deposits Vitim district Deposits Streltsovky Khohlovskoe district In-Situ U reserves 27 356 tU In-Situ U reserves 11 379tU (RAR+Inferred) In-Situ U reserves 132 823 tU (RAR+Inferred) (RAR+Inferred) Ore grade, % 0,04 Ore grade, % 0,03 Ore grade, % 0,159 Mining Method In situ leaching Mining Method In situ leaching Mining Method Underground 2008 U production 61 t 2008 U production 410 t 2008 U production 3 050 t U production plan 1 800 t/year U production plan 800 t/year U production plan 5 000 t/year (to 2018) (to 2017 ) ( to 2020) Planned new uranium centers in Russia

Gornoe Olovskaya Elkon Location Zabaikalsky Location Zabaikalsky region Location Republic Sakha region (Yakutiya) Deposit Olovskoe Deposits Gornoe - Deposits Elkon Ore Field In-Situ U reserves 12 868 tU Berezovoe (RAR+Inferred) In-Situ U reserves 319 614 t In-Situ U 8 794 tU (RAR+Inferred) reserves Ore grade, % 0,088 Au Reserves, t 140 (RAR+Inferred) Mining Method Underground + Ore grade 0,146% U Ore grade, % 0,226 Open pit, Block Leaching 0,84 g/t Au Mining Method Underground + +Heap Leaching Heap Leaching Mining Method Underground U production plan 600 t/year U production 600 t/year U production plan Up to 5 000 t/year plan ARMZ Uranium JVs in Kazakhstan

Deposits in North Upland Resources Kazakhstan Resources and В С С 13,500 Capacity, tons + 1+ 2, Resources Reserves 764,160 tons Zhalpak 0 Tsentralny Mynkuduk JV U/y tons (U) (P1), tons (U) 52,000 Vostochny Mynkuduk 22,000 0 500 Zapadny Mynkuduk Akdala 17,700 Akbastau 3 000 25 100 58 900 26,000 600 Stepnaya Mining Group 0 (Social sphere – 2,040m, current year) Inkai JV Betpakdala Karatau 2000 18 202 31600 329,860 JV Inkai Taykonur Kyzymshek 8,100 136 Uvanas 237,860 Sholakespe 9,000 370 Zarechnoe 2 000 18 904 30 100 136 0 JV Akbastau Shu River TOTAL 7000 62 206 120 600 Kyzylorda JVBudennovskoye Karatau K Tortkuduk 20,000 a r a t 282,000 JV Katko 10 Deposits in East ARMZ share 3500 31 103 60 300 a u 56,000 M 0 Tsentralny Moinkum Kazakhstan No.6 Mining Group o 35,800 0 (Social sphere – 1,536m, un Bakyrly Suzak Yuzhny Moinkum Resources and ta JV Katko 448 27,200 current year) in Reserves s NJSC Kazatoprom 8,600 48 ARMZ U Production in Kazakhstan Shieli 134,500 tons Kokshoky 16,100 Kanzhugan 22,700 400 (tons U/y) Severny Karamurun 595 400 Chu-Sarysuisk Taukent Irkol Yuzhny Karamurun Sholak-Korgan Uranium-Ore Province 29,500 17,900 0 275 Central Mining Group Zhanatas Deposits in West Kharasan (Social sphere – 998m, Kazakhstan 95,000 current year) Resources and 0 Reserves Turkestan Kyzylkol Taraz 158,500 tons 7,400 0 Syrdaryinskaya Lunnoye Uranium-Ore Province Chayan Deposits in JV Zarechnoye A N South JV Zarechnoye S T Y Z Kazakhstan R G K Y Resources Zarechnoye 40,200 Tabakbulak and 0 UZBEKISTAN Asarchik Shymkent Reserves 13,000 Tien Shan Mountains 70,600 tons 10,000 0 Zhautkan 0 UZBEKISTAN Syr Darya River  Zarechnoe (50%)  Akbastau (50%)  Karatau (50%) ARMZ uranium production outlook

Tons of U

• JVs in ARMZ plans to ramp Kazakhstan up mines’ uranium production capacity to 16000 t per annum Planned by 2026, including new 12000 t in Russia enterprises • Major part of required financing Operating will be contributed and under by strategic investors construction• enterprises Russian Known Uranium Resources (as of 01/01/2009)

Uranium

Uranium Resources by production method Uranium Resources by deposit type

Russia total known uranium recoverable resources 566.3 ths.t 12 World economic & financial crunch: how U miners are affected

Uranium prices U Miners Share Price World economic & financial crunch: how U miners are affected ARMZ Weathering the Crisis

Expanding Resource Base Uranium Production •Supported by Ministry of Natural Resources and Federal Agency of Resources & Mining, ARMZ implements a program for Russia’s uranium resources expansion

•Expanded resources at operational mines and facilities under construction in Russia and Kazakhstan: Priargunsky, Dalur, Khiagda, Akbastau, and Karatau

•Started exploration projects overseas

• Started the program of uranium assets merging and acquisition Acquisitions

In the face of the world economic and financial crisis, ARMZ has expanded and developed its plans Innovative Development of ARMZ Projects

16 ARMZ advantages and goals

To ensure the competitiveness of ARMZ through the creation of a diversified world-class mining company 17