OREANDA-NEWS. August 04, 2010. We are closely following developments in Kazakhstan as well as publications in the press concerning the acquisition by the Polyus Gold group of 50.1% of the shares of KazakhGold and the proposed combination of the companies, reported the press-centre of Polyus Gold.

Polyus Gold management remains confident that the transaction to combine KazakhGold and Polyus Gold - the result of which will be the creation of the leading gold producer in the CIS, with assets in Kazakhstan and Russia - will be completed within the time period previously announced.  We are also confident that this transaction is in the best interests of all company shareholders and is in line with the vision of Kazakhstan President Nursultan Nazarbaev to attract additional investment into the country's economy, create new jobs, and increase gold production volumes.

The 36% rise in gold production by KazakhGold under Polyus Gold management in the first half of 2010 compared to the same period last year and the estimated 50% increase in total KazakhGold gold production for 2010 underlines our firm intention to continue to invest in developing the company's assets in Kazakhstan and implement our strategy for KazakhGold.

Polyus Gold management is ready to engage and cooperate with the Kazakhstan authorities in any way in order to reach a mutually advantageous resolution as soon as possible.

Evgueni Ivanov, Polyus Gold CEO.

OJSC Polyus Gold is an international company, Russia’s leading gold producer and one of the world’s largest gold mining companies in terms of market capitalization, mineral reserves base and output. The Company’s international asset portfolio includes ore and alluvial deposits in the Krasnoyarsk Territory, the Irkutsk, Magadan and Amur Regions, the Republic of Sakha (Yakutia), as well as in the Republic of Kazakhstan and Romania. Gold production of OJSC Polyus Gold totaled 1,3 k oz in 2009.