OREANDA-NEWS. June 1, 2012. Uralkali (LSE:URKA) announces the Decisions of the Board of Directors following a meeting on 1 June 2012.

The Board of Directors approved the Redemption Report for the shares held by the shareholders of Uralkali who voted against or who did not participate in the Extraordinary General Shareholders Meeting of Uralkali held on 16 April 2012. The overall number of Uralkali ordinary shares submitted for the redemption totaled 1,301,452. Following the evaluation of an independent appraiser, the shares will be redeemed at a price of RUB 205.74 per share. Therefore the amount of funds to be spent by the Company on the redemption will constitute approximately RUB 268 million (approximately USD 8.1 million*).

The Board also resolved to transfer up to 1,301,452 redeemed ordinary shares of Uralkali to CJSC JV Kama.

We remind that on 16 April 2012 the Extraordinary General Meeting of Shareholders approved reorganisation of Uralkali in the form of a statutory merger of the Company with its affiliated companies CJSC Investment Company Silvinit-Resurs, CJSC JV Kama and OJSC Kamskaya Mining Company. Merger of JV Kama and IC Silvinit-Resurs with Uralkali will result in the cancellation of Uralkali’s shares that will be held on the balance sheet of JV Kama and IC Silvinit-Resurs as of the merger date, and decrease of Uralkali’s share capital. The proposed merger is expected to be completed by the beginning of August 2012

* According to the exchange rate of the RF Central Bank as of 1 June 2012

Uralkali (www.uralkali.com) is one of the world’s largest potash producers with a market share of about 20%. The Company’s assets consist of 5 mines and 7 ore-treatment mills situated in the towns of Berezniki and Solikamsk (Perm Territory, Russia). Uralkali employs ca. 12,500 people (in the main production unit). Uralkali’s shares and GDRs are traded on the RTS-MICEX and LSE, respectively.