OREANDA-NEWS. July 22, 2011. The Board of Directors of KazakhGold Group Limited (“KazakhGold” or the “Company”) is pleased to announce that the Private Exchange Offer, which was announced by the Company on 17June 2011, is now closed for further acceptances.

As at 5.00 p.m. (New York City time) on 18 July 2011, valid acceptances had been received in respect of Polyus Securities representing in total approximately 10 per cent of Polyus Gold’s existing issued share capital. The Company has waived the condition as to the level of acceptances of the Private Exchange Offer set forth in the Private Exchange Offer Document dated 24 June 2011. Accordingly, the Private Exchange Offer is now unconditional as to acceptances.

The Company expects that settlement for those Polyus Securityholders who have validly accepted the Private Exchange Offer will be effected by 26 July 2011. The Company has applied for up to 3,170,097,971 depositary receipts, including the Level I GDRs of the Company that will be distributed in the Private Exchange Offer, to be admitted to the Standard Listing segment of the Official List and to trading on the London Stock Exchange on or about 26 July 2011.

Terms used in this announcement and not otherwise defined herein shall have the meanings given to them in the Private Exchange Offer Document.

Commenting on the closing of the Private Exchange Offer, Evgeny I. Ivanov, Chairman of the Board of Directors and Chief Executive Officer of KazakhGold, said, “We are grateful for the substantial support we have received from Polyus Gold's shareholders and ADR holders in the Private Exchange Offer. The Board believes that the Proposed Combination provides significant benefits to shareholders of both KazakhGold and Polyus Gold, creating the largest pure gold producer listed on the London Stock Exchange with high growth potential and exciting prospects, which we expect will provide substantial value for the shareholders of both companies moving forward.”