ARMZ: Expanding Global Presence

Asia Mining CongressSingapore, March 2010

ARMZ in Russian Nuclear Industry

2

What is ROSATOM?

Entire Nuclear Fuel Cycle: from uranium mining to power generation and spent fuel

reprocessing

ARMZ

3

ROSATOM Global Presence

4

ROSATOM Partners

40 countries

worldwide

USA,

Canada,

Mexico

Finland, Sweden, Netherlands, Belgium, Germany,

France, Spain, Switzerland, Hungary, Slovenia,

Lithuania, Bulgaria, Czech Republic, United

Kingdom, Slovakia

Russia,

Kazakhstan,

Ukraine,

Armenia

Argentina,

Brazil,

Venezuela,

Chile

Namibia,

South Africa,

Libya,

Morocco,

Algeria, EgyptWorld share:

uranium mining – 9%, uranium enrichment services – 40%

nuclear fuel supplies – 17%, NPP construction – 16%

Japan, China,

Republic of

Korea,

Vietnam, India,

Mongolia

Australia

.

.

.

Russia’s only uranium producer

World’s 2nd by uranium resources - 546 thousand tU in 2009

World’s 5th by uranium output volume - 4624 tU in 2009

Priargunsky - world’s largest by aggregated historical uranium production

Highly diversified by mining technology and geography - exploration and mining on 3

continents

14,000 employees at production sites and in service companies

2009 Uranium Production

3,527

2009 Uranium Resources

Source: ARMZ Source: ARMZ

by Company (in situ)

by Country

Source: WNA

by Country

by Company

Thou tU

tU

Thou tUtU

ARMZ at a Glance

566,3

0

200

400

600

800

1000

1200

1400

3562

0

2000

4000

6000

8000

10000

12000

14000

546

0

500

1000

1500

2000

2500

4624

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

5

• 45% growth of uranium output over three

years

• 25% growth in 2009 – second place

worldwide

• 4-fold growth of uranium resources

ARMZ Growth Rates 2006-2009

Production Growth Rate In 2009

25%

-20

-10

0

10

20

30

40

50

6

March: ARMZ acquired Effective Energy N.V.: 50% in JV Karatau and 25% in JV Akbastau

December: ARMZ completed transaction with Uranium One acquiring19,95% interest in the company

June – December: The Government of the Russian Federation provided a subsidy of RUR62.4 billion

from the federal budget to Rosatom to purchase ARMZ Uranium Holding Co. stock

November: ARMZ made a public offer to acquire 100% of Khan Resources Inc. to consolidate

interest in the Dornod uranium project (Mongolia)

August: Rosatom and the Government of Mongolia signed an agreement establishing JV «Dornod

Uranium» with ARMZ as operator for the Russian part

ARMZ: 2009 Highlights

7

ARMZ Benefits From Deal With Uranium One

8

JV ARGK

(Armenia)

Namibia JV

SWA

Uranium

Canada JV

NBUL

Acquiring interest and establishing partnership with strong public uranium producing company

Current uranium resource increase by 5%

Uranium business geographical diversification and new uranium market opportunities (USA, Australia, Canada)

Offtake option for greater of 50% of Karatau or 20% of aggregated Uranium One annual production secures additional amount of U beyond 2013

Technical, infrastructural and logistical synergies in Kazakhstan

ARMZ – 2010 Plans

Uranium production

• Construction of new mines in Russia

• Ramping up of uranium production in Kazakhstan

• Total volume of ARMZ uranium output in 2010 – over 5100 tU

Exploration and development of projects

• Feasibility study of the Elkon mine

• Bringing investors into ARMZ U projects in Russia

• Exploration for new U deposits

Uranium market and M&A

• New mid-term and long-term contacts for natural uranium supply

• Participation in new promising assets overseas

9

11

12

Planned facilities

6. Elkon

7. Gornoe

8. Olovskaya

Operational and under construction facilities

1. Priargunsky

2. Khiagda

3. Dalur

4. Akbastau

5. Zarechnoe

Exploration ventures and Prospective projects

9. Mongolia

10. Russia

11. Namibia

12. Armenia

ARMZ 2010 Global Presence

10

Uranium required in 2008:

15 thou tU

Uranium required in 2030 (F):

40 thou tU

Huge misbalance – to reach 95% in

the foreseeable future - between

demand for U by nuclear reactors

and supply of locally produced

uranium

Locally sourced 900 tU Locally sourced 2000 tU

Asia and the Pacific: U Demand & Supply

11

12

ARMZ

Unique Resource

Base

Long-Term Development

Plans

Government Support

DiversifiedProjects

Sustainable Uranium Demand

High Level of

Experience and

Expertise

To ensure ARMZ

competitiveness through

building a diversified

world-class mining company

ARMZ Advantages

Nuclear Power in Asia and the Pacific

13

0

50

100

150

200

250

2006 2007 2010 2015 2020 2025 2030

Taiwan

Vietnam

Indonesia

Pakistan

India

Korea

China

Japan

tU/y

274%

NPP Uranium Demand Until 2030

Asia and the Pacific Today:

109 NPPs (25% of world’s nuclear reactors) with the aggregate capacity of 82 GWe.

Most of operating capacities located in Japan (53) and the Republic of Korea (20)

31 NPPs under construction (16in China, 6 in India, 5 in the Republic of Korea).

IAEA,2007 (high scenario)

Asia and the Pacific in 20 Years:

274% growth in nuclear power capacities

Aggregate capacity of operating NPPs in the region to reach 219 GWe.

China and India projected to grow their nuclear power generation at greatest rates

Fast growing nuclear power in Asia and

the Pacific is an attractive market for

uranium miners and utilities

14

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2006 2007 2010 2015 2020 2025 2030

Taiwan

Vietnam

Indonesia

Pakistan

India

Korea

China

Japan

204%

tU/y

Change

In Demand Structure

Producers and

ConsumersToday:

Asia and the Pacific NPP demand for uranium at 15 thou tU/year

Japan and South Korea are the largest consumers of uranium for NPPs

Within 20 years in Asia & the Pacific:

Threefold growth of NPP uraniumneeds to 41.6 thou tU/year

Major growth rates expected inChina (16-fold) and India (10-fold)

Producing countries in Asia (Kazakhstan, Russia, and Uzbekistan) capable of meeting growing demand

Demand for Uranium in Asia and the Pacific

IAEA, 2007 (high scenario)

NPP Uranium Demand Until 2030

-10000 -5000 0 5000 10000

Japan

Korea

China

India

Taiwan

Kazakhstan

Russia

Uzbekistan

China

India

500010000

7940

16000

1200

10800

32005300

445

5200

830 1930

2006 2030

Taiwan

Vietnam

Indonesia

Pakistan

India

Korea

China

Japan

Asia’s Uranium Resource Base

15

546

349

165

358

192

501

Asia’s U Resource Base by Country,

as of 01.01.07 (IAEA, 2007)

U Resources in Asia by Major Producers,

as of 01.01.2008

Recoverable U resources in Asian

countries total 1816.2 thou tU

(33% of the world’s total)

Cumulative U resources (in situ) of the

largest uranium producers operating in Asia

total 1224 thou tU of which

33% is in Russia

53.5% is in Kazakhstan

13.5% is in Uzbekistan

Almost 50% of producer-attributable U resources in Asia fall within ≤$80/kg

category, almost 33% fall within ≤ $40/kg category amenable to progressive and

environmentally friendly

In Situ Leach (ISL) recovery method

817,3; 45%

545,6; 30%

111,8; 6%

111; 6%

72,9; 4%

67,9; 4% 62; 3% 27,7; 2%

Kazakhstan

Russia

Jordan

Uzbekistan

India

China

Mongolia

Other

0

100

200

300

400

500

600

8521; 56%3521; 23%

2338; 15%

749; 5% 200; 1% 45; 0%

Kazakhstan

Russia

Uzbekistan

China

India

Pakistan

Uranium Production in Asia

16

tU/y

Uranium production in Asia

by country, 2008

Uranium production forecast (2009 - 2030)

and share of production in Asia

Share of Asian production in the global U output averages 40-45% in

2009-2030, peaking in 2015. Kazakhstan remains the largest producer

with its share averaging from 60 to 75%

WNA,2009 (reference case scenario)

0

10000

20000

30000

40000

50000

60000

70000

2009 2010 2015 2020 2025 2030

Other

Uzbekistan

Russia

Kazakhstan

Uranium Production-Consumption Balance in Asia

17

WNA,2009 (reference case scenario)

Russia’s NPP requirements are not accounted for due to most of NPPs’ location in the European part of the

country. Russia uses secondary sources to meet uranium requirements of domestic NPPs

Asia and the Pacific NPP requirements in 2009-2022 can be fully met by uranium

produced in Asian countries (Kazakhstan, Russia, and Uzbekistan).

Another two major uranium markets (North America and Europe), as well as historical

relationships between sellers and buyers (long-term contracts, miner-utility alliances,

etc.), make sure most of uranium produced in Asia has so far been channeled to Europe

and the US.

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2009 2010 2015 2020 2025 2030

Asian Production NPP Requirements

Providing for Asia’s Future Needs For Uranium

18

Russia

Kazakhstan

Japan Korea

ChinaIndia

Tenex –

Chubu Electric JV Irukol, JV Semisbai – CGNPC

JV Jalpak - CGNPC

Large quantities of natural uranium needed to meet the requirements of Asia’s

fast growing nuclear sector make sure Russia’s share in the region’s uranium

market will be expanding

JV Appak - Sumitomo,

Kansai Electric Power

JV Baiken-U, JV

Kyzylkum - Japanese

holdings

Kazatomprom –

Korea Hydro & Nuclear Power

TENEX -

CNEIC

TVEL – Department

of Atomic Energy,

government of India

Thank you!