History

The Peter Hambro Mining Group was founded in 1994 when Pokrovskiy Rudnik was formed and a combined licence for the exploration and exploitation of the Pokrovskiy mine was obtained.

Key events in the Group's history include:

1999-2001

In 1999, the first gold was recovered from the Pokrovskiy mine through heap-leach operations. On 15 January 2001 a licence for the Pioneer deposit and satellite areas was issued.

2002

On 29 April 2002, the Company's ordinary shares were admitted to trading on AIM. On 20 July 2002, a resin in pulp (RIP) plant at Pokrovskiy was commissioned and the first gold from this plant was produced in September 2002.

2003

In February 2003, the Company signed heads of agreement with OAO SGOC Susumanzoloto and OAO Shkolnoye to establish Omchak, a joint venture gold mining company in the Magadan Region of Russia. Omchak was subsequently established in July 2003. In April 2003, the Company completed a placing and open offer, raising approximately £16.8 million which was in part applied to fund the cash consideration for the acquisition of OOO Tokurskiy Rudnik and the Group's interest in Omchak. In December 2003, the Group divested its titanium interests to Aricom plc.

2004

In April 2004, Pokrovskiy Rudnik acquired 90 per cent. of the issued share capital of OAO Yamalzoloto, which holds the licences for the Group's assets in the Yamal Region and, in (Yamalzoloto) October 2004, the capacity of the RIP plant at Pokrovskiy was upgraded, allowing it to process 1.5 million tonnes of ore on an annualised basis.

2005

In February 2005, the Group was successful in the tender for the licence for the Malomir deposit. In 2005, International Finance Group (IFC) invested US$15.0 million in the Company by subscribing for 1,448,545 new Ordinary Shares and was granted an option to apply for a matching amount of additional new Ordinary Shares. IFC invested a further US$17.4 million in the Company in 2006 when it exercised this option.

In the same year, US$140.0 million was raised through the issue of the Convertible Bonds by the Company's wholly-owned subsidiary, Peter Hambro Mining Group Finance Limited (PHMGFL), which are guaranteed by the Company and due in August 2010. In September 2005, the Company acquired 74.9 per cent. of the shares of OAO Yamalskaya Gornaya Company (YGK) which owned a number of assets in the Yamal Region as well as the 10 per cent. of Yamalzoloto not already owned by the Group.

2006

In 2006, the Group received the Queen's Award for Enterprise.

In the same year, the Group acquired OAO Irgiredmet, one of the best-known laboratory, research and scientific consulting companies in Russia, for a consideration of US$40.2 million.

2007

In 2007, Pioneer's first stage production facility was completed and the Group delivered positive results from its exploration of the prospective Andreevskaya ore zone at this deposit. The Group obtained US$180.0 million of financing (before expenses) through the issue of the Exchangeable Bonds by PHMGFL which are guaranteed by the Company and due in October 2012.

2008

In April 2008, production started at the Pioneer mine and 72,900 oz of gold was produced from that mine during the three quarters ended 31 December 2008. The Group invested US$20.0 million in Rusoro, a TSX Venture Exchange listed gold production and exploration business based in Venezuela, through a secured exchangeable loan as a participant in a syndicate investing US$80.0 million in total. The Company has an option agreement with the other lenders which gives the Company the right to acquire from them the number of shares in Rusoro which they receive upon exchange of their loan.

2009

On 5 February 2009, the Company completed a placing of Ordinary Shares to raise US$105.0 million (before expenses). On 6 February, the Group agreed to purchase a total of US$87.0 million nominal value of the Exchangable Bonds. On 6 February 2009, the Company announced its firm intention to pursue a recommended merger with Aricom plc to create a mining industry leader in the Far East of Russia. On 25 March and 31 March 2009, respectively, the shareholders of the Company and Aricom passed the resolutions necessary to implement the Scheme and this was sanctioned by the Court on 21 April 2009. On 22 April 2009, the Group announced that the merger had been completed and the Company began trading on the Main Market of the London Stock Exchange.