Joint Ventures - Odolgo

Rudnoye was established in 2003 as a 50/50 joint venture company with OAO Priisk Solovyevskiy in order to develop hard rock gold assets belonging to OAO Priisk Solovyevskiy using the Group's expertise. One of these assets, the Odolgo ore occurrence, was explored by the joint venture's team and prepared for production and, on 30 May 2007, a modular gravity processing plant was commissioned. Concentrate from the Odolgo plant is currently being processed at the Pokrovskiy resin in pulp (RIP) plant. Rudnoye is in the process of being liquidated and the operations currently conducted through the Rudnoye Joint Venture are to be carried on through OOO GDK Odolgo (the owner of the relevant licences) in which OAO Priisk Solovyevskiy and Peter Hambro Mining Cyprus have a 50/50 interest (though no joint venture agreement has been entered into).

In 2008 attributable gold production from the Rudnoye Joint Venture was 2,660 oz which is 66 per cent. higher than the 1,600 oz produced in 2007.