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Investor Presentaiton

OPERATIONAL HIGHLIGHTS K YOY growth of coal extraction and processing In Q4 2011 coal production increased by 5.3% QOQ to 2.57 mln. tonnes (Q3 2011: 2.44 mln. tonnes). During 2011 it increased 28.4% YOY to 8.74 mln. tonnes (2010: 6.80 mln. tonnes). The coal sorting volume in Q4 remained on the level of Q3 2010 - 1.51 mln. tonnes. As for total 2011 - the volume increased by 35.4% YOY to 5.56 mln. tonnes (2010: 4.10 mln tonnes). KNS enrichment plant is working at full capacity In 2011 the Company's first KNS enrichment plant worked at close to full capacity level and produced 736 th. tonnes of export quality coal (2010: 200 th. tonnes). Boost of coal sales volume and increase of average realised price During Q4 2011 the sales volume increased by 18.9% QOQ to 3.34 mln. tonnes (Q3 2011: 2.81 mln. tonnes). The volume of coal sales in 2011 increased by 24.8% YOY and reached 10.66 mln. tonnes (2010: 8.54 mln. tonnes). In Q4 the average realized coal price (1) increased by 4.5% QOQ to RUB 1,285 per tonne (Q3 2011: RUB 1,229 per tonne). The average price for 2011 increased by 25.6% YOY to RUB 1,228 per tonne (2010: RUB 977 per tonne). Stripping ratio QOQ decrease, but slight growth YOY The stripping ratio in Q4 decreased by 0.3% QOQ to 7.35x (Q3 2011: 7.37x). The volume of blasted rock mass increased by 42.3% QOQ to 10.72 mln. cbm. (Q3 2011: 7.53 mln. cbm.). The average stripping transportation distance decreased by 4.1% QOQ to 2.95 km (Q3 2011: 3.08 km) During 2011 the stripping ratio raised by 7.3% YOY to 7.80x (2010: 7.27x). The blasted rock mass grew by 29.0% to 32.79 mln cbm. (2010: 25.43 mln cbm.). The average stripping transportation distance extended by 5.9% YOY to 2.88 km (2010: 2.72 km). Source: Company (1) - excl. VAT, Russian Railways tariff (FCA Meret, incl. KTK retail margin) 9/22
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