OREANDA-NEWS. On 23 June 2009 was announced, that KazakhGold Group Limited announced 2008 audited results (Year to 31 December).

Highlights

Gold production of 103,760 ounces (2007: 232,060 ounces), including 4,593 ounces of gold from the reprocessing of finished product, reflects disruption to short-term production from investment in mine refurbishment and production capacity upgrades, and lower than anticipated mining of high grade ore

110,929 ounces of gold sold (2007: 253,056 ounces)

Average gold price received increased 17.1 per cent to USD 820 per ounce (2007: USD 700/ounce)

FSU classified (audited by Wardell Armstrong International) gold reserves and resources of 59.6 million ounces, as at 1 January 2008

Essential investment in upgrading and expanding capacity at Aksu, Bestobe and Zholymbet

Further progress made to re-classify the Group’s resource base to the JORC Code

Initial exploration results indicate significant potential for a large open pit mine at Southern Karaultube, near the Zholymbet mine

Successful institutional placement of 2.3 million new ordinary shares (via GDRs) at USD  23.0/GDR

Recommended partial offer for 50.1 per cent of the Group received from an indirect wholly-owned subsidiary of Polyus Gold.