OREANDA-NEWS. On 30 December 2008 was announced, that further to the announcement made on 29 September 2008 regarding the Possible Partial Offer from OJSC Polyus  Gold ("Polyus Gold"), the Company can confirm that it continues to be  in talks with Polyus Gold.

Trading

Production  levels for the year ending 31 December 2008 will be materially lower  than production in the prior year, principally because of inadequate  access to capital throughout 2008. With the inability to raise capital in the current difficult market conditions and  due to the fact that production has been significantly lower than  anticipated, there has been a deterioration in the Company's cash  balance over the second half of 2008, accordingly the Company is  working with its advisers to secure the necessary additional funding to  support its ongoing investment plans.

The  Company expects to be able to make a further announcement within the  next two weeks regarding the Possible Partial Offer and update on its  progress regarding funding.

Further information is available from:

Bekbolat Sagyndyk

Manager of International Affairs

KazakhGold Group Limited

Tel: +44 (0) 203 178 7105

Mike Jones/Rory O'Sullivan/Henry Fitzgerald O'Connor

Canaccord Adams Limited

(Financial Adviser to KazakhGold)

Tel: +44 (0)20 7050 6500