NEWS RELEASE

February 24, 2014

Kazakhstan to become the first ex-Soviet Union State to accept New Mining Code modelled on Australian and Canadian principles of allocation of Mineral Exploration Rights

As the bullish time may lie ahead for the mining industry, Kazakhstan gets ready to become one of the world’s mineral exploration “hot zones” offering confidence and high returns to investors and mining companies. According to the statement issued by the Kazakhstan’s Mazhilis (Parliament) on Thursday 20 February, Kazakhstan will become the first ex-Soviet Union State to accept this year the New Mining Code modelled on Australian, Canadian, Finish and Chilean principles of allocation of Mineral Exploration Rights and contractual regulation of extraction of minerals, oil, gas and underground water.

Current legislation regulating subsoil use cannot meet challenges of further development of country’s mineral recourses as it does not take into account differences between oil & gas and mining. Over 180 regulatory amendments will be made in the “Code of the Republic of Kazakhstan on Subsoil Use” according to the Vice-Minister of Industry and New Technologies Mr Nurlan Sauranbayev who presented the Concept of the Code to the Parliament’s Committee of Ecology and Subsoil Use. According to the Ministry, changes in the existing legislation are aimed at simplifying procedures for granting mineral and metals exploration rights and generally designed to attract investment in the mining sector.

To facilitate exploration, Geological Exploration Centre will be built in Astana by 2015 at Nazarbayev University under the partnership agreement signed on 20 February by the Ministry of Industry and New Technologies, “Kazgeology” National Exploration Company and «Nazarbayev University Research and Innovation System». The Centre will provide infrastructure and state of the art technical facilities for conducting in Kazakhstan and its neighbour counties complex geological and geochemical research and experimental studies of minerals, metals, hydrocarbons and groundwater. The creation of the Centre is expected to significantly reduce the costs of exploration as sample analyses will be carried out locally instead of shipping overseas.

Investors and mining companies will be offered an opportunity to learn about forthcoming changes and contribute their views on the “Code of the Republic of Kazakhstan on Subsoil Use” at the meeting with the Ministry officials, National Chamber of Entrepreneurs, Association of Mining and Metallurgical Enterprises and Kazakhstan Association «Kazenergy» at the MINEX Central Asia – the 5th Mining and Exploration Forum that will be held in Astana on 1 – 2 April 2014.

The Kazakhstan’s official delegation at the Forum will include Aset Issekeshev, Deputy-Prime Minister, Minister of Industry and New Technologies, Nurlan Sauranbayev, Vice-Minister of Industry and New Technologies, Timur Toktabaev, Director of subsoil use department of MINT RK, Bazarbay Nurabaev, Chairman of the Committee of Geology and Subsoil Use, Akbatyr Nadyrbaev, Deputy Chairman of the Committee of Geology and Subsoil Use, Galim Nurzhanov, Chairman of JSC NGK ” Kazgeologiya ” and Askar Munara – Director, Centre for Earth sciences, ” Nazarbayev University”.

More information about the Forum is available on: www.minexasia.com/2014

To confirm participation in the Forum, please register before 15 March via http://www.minexasia.com/2014/registration

Limited presentation, exhibiting and sponsorship opportunities are presently available. Please contact MINEX Forum representative offices for further details.

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