Well-developed infrastructure of district Transport accessibility The Uskunay mine is located in Altai Krai in the area with the well-developed infrastructure. It lies 40 km away from Prokopyevsk, a Kuzbass industrial cluster, and 50 km away from Togul, a district centre. Geographical coordinates of end points of the area: 53 о 36’21” nl, 86 o 07’09” el 53 o 40’ 43”nl, 86 o 15’ 54” el 53 o 38’ 05” nl, 86 o 20’ 09” el 53 o 34’ 08” nl, 86 o 10’ 59” el The geologic allotment is 81 km 2.

The mine lies in Salair, which historically has been an area of gold mining. This is the place where the first mint for making golden and silver coins was built in the middle of 18 century. Almost all Salair rivers are rich with native gold which has been mined until present. The source of native gold is primary lode deposit gold and gold from weathering crusts, possessing reserves of hundred thousand tons.

The results of chemical analyzes and assay of the Uksunay mine ore Compounds and elements Content, % Compounds and elements Content, % SiO 2 55,48S gen 0,07 Al 2 O 3 16,94S sulph 0,03 Fe10,13Сgen0,14 P2O5P2O5 0,24C org <0,01 CaO0,98Zn0,016 TiO 2 0,94Pb<0,01 MnO0,34Cu0,014 MgO1,97Au, g/t2,48 As<0,01Ag, g/t5,0 Size classes, mm Yield, % Content Au, g/t Distribution Au, % -1+0,520,93,2830,6 -0,5+0,2519,02,8624,3 -0,25+0,111,94,8225,6 -0,1+0,0714,43,677,2 -0,071+0,049,01,726,9 -0,0434,80,355,4 Total100,002,24100 Gold distribution for classes

Forms of gold in the ore and the nature of their connection with its main components Content Au, g/t Distribution Au, % Free gold (amalgamated)2,8489,88 Gold open splices (cyanidationed) 0,103,16 Enclosed in the acid-soluble minerals and under the film 0,092,85 Enclosed in sulfides0,00- Enclosed in rock-forming minerals 0,134,11 Total: initial ore (according the balance) 3,16100 Phase analysis of gold Different sizes of the Uksunay mine gold Cloddy, plate-type gold Baculiform gold General form of fine gold

Results of gravity concentration Product of gravitation Product yield, % Gold content, g/t Gold recovery, % Au-head0, ,629,9 Gravity concentrate 10,9666,1228,9 Gravity concentrate 20,16282,7420,6 Combined gravity concentrate 1,1297,0449,4 Total1, ,3 Gravity tailings98,878130,4620,7 Initital ore100,002,20100,00 Products of cyanidation Gold content, g/t Gold recovery, % Conditions of cyanidation of operation of ore Combined gravity concentrate Resin AM-2B-95,547,2Sample – 50 g; ratio Ж:Т=2:1 NaCN – 0,1%; СаО – 0,02- 0,03%; loading Resin AM-2B – 5%; time – 24 hour. Cyanidation tailings 4,364,52,2 Total (combined gravity concentrate) 97, ,4 Tailings of 2 stage gravity Resin AM-2B-56,511,7Sample – 200 g; ratio Ж:Т=2:1 NaCN – 0,1%; СаО – 0,02- 0,03%; loading Resin AM-2B – 3%; time – 24 hour. Cyanidation tailings 0,2043,59 Total (tailings of 2 stage gravity) 0, ,7 Results of gravity-cyanidationed concentration

For the Uskunay orefield (ore shoot 1) gold resources of P2 category are estimated to be 40.7 t, while average content is 0.52 g/t. For the whole Uskunay plot the gold prognostic resources of category Р2 are estimated to be 45.9 t, which are contained in 63.6 million tons of ore, where average content is 0.72 g/t. The Uksunay gold field is classified as a large capacity deposit with favourable mining and geological conditions allowing mining gold by means of excavation and avoiding drilling and blasting. The depth of ore body stoping is down to 30 m, capping thickness is 5-7 m. Thus, having such a stoping efficiency of gold mining from the Uksunay goldfield weathering crusts is highly efficient. The average cost to produce a gold ounce will not exceed 650 US dollars, which is way below average cost of ounce mining in the world. Reserves and resources of this field allow for a construction of a gold mine producing million tons of ore annually with adequate level of supply for at least 20 years.