OREANDA-NEWS. July 19, 2011. The Board of Directors of KazakhGold Group Limited ("KazahkGold" or the "Company") is pleased to announce that at the Extraordinary General Meeting of KazakhGold held earlier today in London, both of the special resolutions proposed as set out in the circular and notice of the meeting to shareholders dated 20 June 2011 (the "Resolutions") were passed unanimously.

The Resolutions are a part of the proposed combination of KazakhGold with OJSC Polyus Gold ("Polyus Gold") which was announced on 17 June 2011 (the "Proposed Combination").  Accordingly, shareholders have unanimously approved an increase in the authorised share capital of KazakhGold for the purposes of the Proposed Combination and that the name of KazakhGold be changed to "Polyus Gold International Limited", conditional upon successful completion of the Proposed Combination.

The Proposed Combination is being effected through a series of transactions, including a conditional private exchange offer by KazakhGold to acquire 16% of the issued and outstanding share capital of Polyus Gold from existing holders of Polyus Gold common shares or ADSs (the "Private Exchange Offer").

Commenting on the outcome of the KazakhGold EGM, Evgeny I. Ivanov, Chief Executive Officer and Chairman of the Board of KazakhGold said:

"We are very pleased that our shareholders, including the minority shareholders of the Company have voted unanimously in support of the Proposed Combination of Polyus Gold and KazakhGold. We are also encouraged by the response from the Polyus Gold shareholders so far on the Proposed Combination and continue to encourage more Polyus Gold shareholders to accept into the Private Exchange Offer."