Madneuli

Tbilisi – GeoProMining (“GPM” or “the Group”), a diversified international mining group, announces that as part of an ongoing corporate restructuring process at the Group level, GPM Georgia BV, a subsidiary of the Group, has transferred from another Group subsidiary, LLC GeoProMining, GPM’s 99.15 percent stake in the GPM operating company Madneuli.

This transfer of the Madneuli shares within the Group is part of GPM’s strategy to simplify its ownership structure in order to achieve greater transparency.

A mandatory tender offer (MTO) in connection with the ownership change has been made at the price of USD 2.076 per share for the remaining 0.85% of shares not owned by GPM Georgia BV. Shareholders wishing to participate in the MTO must submit their consent to sell their shares by 20 December 2011.

GeoProMining (GPM or “the Company”), a diversified international mining group, provided material support to schools in the regions of Armenia, Georgia and Russia where the Company operates as part of the Resources For Good social responsibility program. The Company traditionally helps schools at the start of the school year, providing students with school supplies.

In the Bolnisi region of Georgia, where JSC Madneuli's facility is located, the Company provided 4 schools in the city of Bolnici with school supplies such as stationary, writiing utencils, and other supplies. In the region of Yakutia where the Sarylakh-Surma facility is located, GPM provided the Ust-Nersky orphanage and regional Ust-Nersky school with school supplies and sports equipment. In Armenia, the Company financed renovations and the purchase of equipment for the Partez child development centre in Vardenis. Thanks to the support from GPM, a new computer laboratory was also opened in Vardenis where children can participate in interactive, Russian language distance learning classes. Another computer classroom is planned to start at the Kafan School in the Syunik region this October. An open dialogue with local authorities has enabled GPM to respond to the needs of the people in the regions where it operates and to direct support to those projects that are most relevant to local populations.

Support of children’s education and sports is one of the important facets of GPM’s Resources for Good CSR program. The Company has invested in the renovation of schools and kindergartens, sponsored the children’s football festival in Georgia, and provided interactive, Russian language computer classes for regional schools in Armenia. In Yakutia, GPM is a co-sponsor of the International Sports Forum ‘Russia-A Land of Sports’ and the V annual international 2012 ‘Children of Asia Games.’