OREANDA-NEWS. March 1, 2010. KazakhGold Group Limited ("KazakhGold" or the "Company") today announces that it has agreed with Jenington International Inc. ("Jenington"), the Company's direct controlling shareholder and a wholly owned subsidiary of OJSC Polyus Gold, to extend Jenington's obligation to underwrite the planned USD 100 million placing of new ordinary shares of KazakhGold and global depositary receipts ("GDRs") representing those shares (the "Placing") until 1 May 2010.  Such extension is required in order to allow time for the Company to obtain necessary Kazakh regulatory approvals in connection with the Placing.

The Company further announces that it has entered into a USD 50 million loan agreement with Jenington (the "Loan Agreement") in order to provide the Company with funds for working capital purposes until the completion of Placing.  The loan is expected to be repaid by the Company from the proceeds of the Placing. The Loan Agreement, which is not contractually subordinated to the Company's obligations under its USD 200 million 9.375% Senior Notes due 2013 (the "Senior Notes"),  provides for a right of the Company to convert all or any part of the loan amount into Company's shares or GDRs at a price per share or GDR equal to the average of the closing prices of the Company's GDRs on the London Stock Exchange for the period of 20 trading days immediately preceding the date of the conversion notice.