Russian gold space

• Russian gold production doubled since 1995.

• The gold sector transformed from a government

dominated to a combination of private large-
medium size gold miners sometimes with foreign
participation.

• Russian gold miners in 2014-2015 became one of

the world lowest cost gold miners thanks to the
dramatic depreciation of Russian currency.

2
 The idea
• The idea is to buyout some Russian gold miners from Top
10 and create a company similar to the largest Russian
gold producer Polyus Gold.

• Russia is the third global gold producer and it has second

largest gold ore resources so it is a significant player of the
global gold market. Russian gold miners benefit from weak
local currency that leads to lower than ever cash costs.

• Given that fact that Russian gold miners are linked to gold
prices nominated in american dollars, Russian companies
can easily borrow and pay US$ nominated loans.

5
 GeoProMining’s role
GeoProMining is a perfect platform to start the consolidation
process because:

• It has a team of seasoned professionals with expertise in

geology, metallurgy, production, finance.

• The team can quickly scan the Russian gold sector to pick
right companies due to GPM’s deep knowledge of the sector
and connections with all major gold miners in Russia.

• Sberbank Capital (subsidiary of Sberbank which is N1 bank

is Russia) is a shareholder of GeoProMining and it leads to
certain opportunities not available to others.