OREANDA-NEWS. May 19, 2011. OJSC Uralkali (“Uralkali”) notes that the Russian tax authorities (i) approved the application of OJSC Silvinit (“Silvinit”) for registration in the Unified State Register of Legal Entities (“USRLE”) of its termination in connection with the merger of Silvinit into Uralkali and (ii) made an entry in the USRLE to reflect the registration of termination of Silvinit.

The registrar of Uralkali will proceed to record the conversion of Silvinit ordinary and preferred shares into newly issued Uralkali shares and distribute newly issued Uralkali ordinary shares to shareholders of Silvinit based on share conversion ratios approved by the overwhelming majority of Uralkali and Silvinit shareholders on 4 February 2011. As a result of the share conversion Silvinit shareholders will receive 133.4 Uralkali ordinary shares for each ordinary share in Silvinit and 51.8 Uralkali ordinary shares for each preferred share in Silvinit. 1,565,151 Silvinit ordinary shares acquired by Uralkali on 28 February 2011 will be cancelled as required by Russian law.

Combination between Uralkali and Silvinit (“Combination”) will be completed upon (i) approval of reports on results of Uralkali share issuances by the Board of Directors of Uralkali which is expected on 25 May 2011 and (ii) subsequent filing and registration of the reports on results of Uralkali share issuances by the Russian Federal Service for Financial Markets (“FSFM”). The newly issued Uralkali shares that will be distributed to shareholders of Silvinit in connection with the Combination will not be transferable until the registration of the share issuance reports with the FSFM, which may take up to 2 weeks after filing of the reports with the FSFM.

As the Combination is classified as a reverse takeover of Uralkali under the Listing Rules of the UK Listing Authority (“UKLA”), upon the registration of the share issuance reports with the FSFM, Uralkali will apply for a new admission of Uralkali global depositary receipts (“GDRs”) to the Official List of the UKLA and to trading on the regulated market of the International Order Book of the London Stock Exchange and newly issued shares of Uralkali will then become eligible for deposit into the GDR program of Uralkali.