GOLD HOLDING

RUSSIA UAE
GOLD AND SILVER CONNECTION
RUSSIA A GOOD PLACE TO BE
Business Invest Road Show Russian UAE
October 29th 2014

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RUSSIAS SHARE OF WORLD COMMODITY

OUTPUT* %

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RUSSIA GOLD MINING PRODUCTION

2013 RUSSIA RANKED AS THIRD WORLD GOLD PRODUCER

Russia increased its total gold production in 2013 by 13%

to 254,9 t gold (2012 224,9 t), including:
Mine production - 221,1 t of gold, comprising about 6.5 t
of gold in concentrates
By-product gold production from complex polymetallic
deposits increased by 3.5% up to 16 t of gold
Production from the scrap increased by 108% to 17.8 t

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RUSSIAN MAJOR MINERAL MAP

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RUSSIA MINERAL DISTRIBUTION

Map of mineral deposits

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MINERAL RESOURCE AND RESERVE BASE IN

RUSSIA
Russia with its in-situ gold reservesof12745 t* stands
together with China at 2 -3 place in the world
depending on the difference in reserves classification
between our two countries
5944 gold deposits are located on territory of Russia,
including:
Hard-rock gold deposits (58,2% reserves)
Complex polymetallic gold deposits (18,1% reserves)
Alluvial gold deposits (23,7% reserves)

Resource potential in Russia is high -about 6000 tons of

P1 category resources
P2 and P3 category resources are estimated at more
than 35000t of gold

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HIGH POTENTIAL OF GOLD MINING IN RUSSIA

Average cash costs in 2013 were 650-$975 $/ounce for the six leading companies in
Russia and were between 700 and 1200 $/ounce for the rest of gold-mining
companies
All-in-sustainable cost (AISC) in 1Q-2014 ranged from 1100to1360$/once for six
leading companies
Tax regime is similar to other mining jurisdictions ( RoyaltyMineral ExtractionTax6% )
Low gold price created favorable conditions for M&A deals for new investors
Russia is creating new incentives to attract financing for early stages of exploration
projects
Presence of reputable foreign consulting companies, globally recognized certified
laboratories and large engineering companies with modern technologies and best
practices for exploration and mining
Number of Russian gold-mining companies announced successful results of PILOTS
PLANT FOR REFRACTORY ORE. Some of them are started to construct and put these
technologies in to commercial operation.
State gold reserves are being steadily accumulated by Russia Central Bank, with
current level of 1094 tons of gold (WGC data)
Russian and foreign banks are actively providing financing to Russian gold-mining
companies
There are no restrictions to sell out the produced bullion. In 1998 Russian
commercial banks were permitted to export refined gold. In 2002 gold-mining
companies were granted the right to export bullion gold as well.

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RESERVES & RESOURCES

(RUSSIAN CLASSIFICATION)

Based on the state of geological exploration, four categories of reserves(A, B, C1, C2) and three
categories of resources (P1, P2, P3) are identified in Russian official classification:

A Category reserves - Represent proved reserves with well defined boundaries, shape and
Structure of ore bodies.

B Category reserves - Represent probable reserves with pre-defined outlines of ore bodies,
without detailed mapping of natural minerals types.

1 Category reserves - include reserves of the explored deposits of complex geology and
unexplored reserves on new areas, with extrapolation.

C2 Category reserves - are inferred reserves.

Prognostic resources of category P1 - Include resources on the flanks and deeper levels of
known deposits. This category indicates the possibility of extending the boundary of a
mineralized zone beyond the C2 reserves, or the discovery of new mineral bodies with the help
of exploration works.

Prognostic resources of category P2 - comprise resources within mineralized districts,

concentrations, or provinces which have been estimated based on the early stage geological
exploration/prospecting data.

Prognostic resources of category P3 - indicates the possibility of discovery of deposits of one or

another type of mineral on the basis of favourable geological pre-conditions identified in the
region being assessed, from geological, geophysical and surveying work at medium to small
map scales.

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GOLD RESERVES DISTRIBUTION IN RUSSIA

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GOLD-MINING COMPANIES IN RUSSIA

(2011-2013)

There are about 425 gold mining companies in Russia.

All private.

29 leading companies (with over 1t of gold p.a.)

Contribute about 80% of total mine production in Russia
Remaining 20% of mine production is done by ~400 small and
medium gold-mining companies.

Russian government rigorously controls all operational stages:

From exploration till mining,
From mine design till mine closure,
Including environment issues.

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RUSSIA - FINANCIAL SITUATION MINING

COMPANIES

Exploration
Russia needs fresh exploration, as grade has fallen dawn.

Annual financing for gold-producing companies

Russia is cut from western capital markets and we need loans or
other financing mechanism.

Equity financing
low gold price has made gold assets in Russia to become cheap
and it is time to make investments.

Gold trading
Russian bank need to have new counter-parties (as western
banks are lowering trading limits) to preserve 100% liquidity of
gold in Russia.

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Business Invest Road Show

RUSSIA UAE
GOLD AND SILVER CONNECTION
Business Invest Road Show Russian UAE
October 29th 2014

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NEW BRICS DEVELOPMENT BANK

BRICS states (Brazil, Russia, India, China and So

uth Africa) as an alternative to the existing USdominated World Bank and International
Monetary Fund.
Four original BRIC countries comprise in 2014
more than 3 billion people or 41.4 percent of
the worlds population, cover more than a
quarter of the worlds land area over three
continents, and account for more than 25
percent of global GDP.

To foster greater financial and development

cooperation among the five emerging
markets.
Will be headquartered in Shanghai, China.
Unlike the World Bank, which assigns votes
based on capital share, in the New
Development Bank each participant country
will be assigned one vote, and no countries will
have veto power.

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NEW BRICS DEVELOPMENT BANK

Create the $100 billion BRICS

Development Bank and a reserve
currency pool worth over another
$100 billion.
Both will counter the influence of
Western-based lending institutions
and the dollar.
Documents
on
cooperation
between BRICS export credit
agencies and an agreement of
cooperation on innovation were
also signed.
First president will be from India.
Inaugural Chairman of the Board
of directors will come from Brazil
Inaugural chairman of the Board
of Governors will be Russian.

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YUAN DENOMINATION TRANSACTION

Central banks of China and Russia

have signed a 3-year ruble-yuan
currency swap deal up to $25 billion,
in order to boost trade using national
currencies and lessen dependence
on the dollar and euro.
Chinas Central Bank announced
the 150 billion yuan (815 billion ruble)
currency swap between the Russian
ruble and Chinese yuan. In terms of
the Chinese currency that is $24.5
billion, and in Russian rubles, $20.1
billion
Shanghai GOLD EXCHANGE, all
transaction are in YUAN
Venezuela transaction, Yuan or gold
Brazil transaction, Yuan or gold
Argentina transaction, yuan or gold
Africa, Yuan transactions