OREANDA-NEWS. November 24, 2009. KazakhGold Group Limited ("KazakhGold" or the "Company") is pleased to provide an update of the operations of KazakhGold and its subsidiaries (the “Group”). since the completion of the partial offer by Jenington International Inc. (“Jenington”), an indirect wholly-owned subsidiary of OJSC Polyus Gold (“Polyus Gold”), in August 2009.

Operational highlights:

9 months 2009 gold production of 54.9 k oz (of gold in flotation concentrate)

9 months 2009 average gold price received of USD 762.5 per ounce , on sales of 52.2 k oz

The poor condition of much of the Soviet-era sub-surface mine infrastructure has made it increasingly difficult to gain safe access to the high grade ore deposits. During the first 6 months of 2009, the Group achieved the following results:

Stable growth of production volumes – from 169.7 kg of gold in January to 215.3 kg in June, despite funding constraints of current operating activity.

Resumed production at heap leaching facilities at Aksu and Bestobe, which had ceased in the end of 2008 due to the crisis and lack of financing.

Ventilation shaft overhaul completed at Bestobe from the zero depth mark to 160 m horizon; shaft furniture overhaul and rewiring of the West shaft from the zero mark to 340 m horizon performed. Water treatment facilities and drinking water pipeline constructed and launched.

After several years of downtime, shaft 39-41 at Aksu was reconstructed and brought into production. Overhaul and maintenance works were performed at a number of operating and administrative facilities.

Oxygen plant construction was completed at Zholymbet in preparation for commissioning. Overhaul and maintenance works were performed at production workshops and the mill and mine site fence.

Partial Offer

Following the partial offer in August 2009, KazakhGold became a 50.1%-owned subsidiary of Polyus Gold, the largest gold producer in Russia and the tenth largest gold producer globally. Representatives of Polyus Gold were subsequently elected to the Board of KazakhGold and have assumed management control. Polyus Gold continues to make progress on enhancing KazakhGold’s internal controls and procedures and the development of its strategy. The Board believes that the operational and financial expertise of the Polyus team will help KazakhGold to ramp up production and continue further development of existing and prospective assets. The Company is currently evaluating the applicability of the tax regulation of the Republic of Kazakhstan to the partial offer.