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Key Investment Highlights

• For the first time in Russian history, private investors are welcome to get exposure to unique Russian uranium market by participation in the proposed projects. • ARMZ presents a compelling investment opportunity based on its solid fundamentals and excellent growth prospects. • The Company’s key strength is its diverse project portfolio ranging from producing to developing and exploration assets. ARMZ operates a majority of these projects which is reflective of the Company’s high technical and managerial track record.

• Amongst its key assets is the Company’s largest development project, the Elkon mine – a world class uranium deposit offering a unique investment opportunity. The project is strategically located to serve key international and domestic markets. • Existing shortage of natural uranium in international markets which is projected to grow further in the foreseeable future guarantees stable demand for ARMZ product. • Importantly, ARMZ’s key competitive advantage is its ownership structure. This results in strong government relations, opportunities for government funding and access to Rosatom’s integrated portfolio of nuclear services.

ARMZ Rosatom’s mining arm Russia’s primary uranium producer

ARMZ as Investor Experience and Expertise

• Fifty years of experience in developing uranium deposits • Operations in diverse geographical and climatic conditions

Responsible Project Developer

• Maximal attention to environmental protection and land use • Social responsibility • Support from Rosatom State Corporation and the government of Russia

Access to Financial Resources

• Access to government funding • Excellent credit history

ARMZ as Investee Solid Financials

•G  uaranteed demand for ARMZ products from Rosatom State Corporation complex • Low debt

Diversified Project Portfolio

•V  arious development stage project pipeline: exploration to full-scale production • Geographical diversification: 14 uranium and non-uranium projects across the globe

ARMZ Uranium Holding Co.

Fast Growing Market

•G  rowing demand for natural uranium from an increasing number of nuclear power plants

22 B. Drovyanoi Lane Moscow, Russia 109004 Tel: +7-495-508-8808 Fax: +7-495-508-8810 E-mail: info@armz.ru www.armz.ru

ARMZ: Breakthrough and path to new horizons ARMZ Uranium Holding Co. (ARMZ), also known as Atomredmetzoloto, today is one of the global leaders in uranium mining and the Russian national uranium producer authorized and appointed by its owner, Rosatom State Corporation, as the nodal supplier of feedstock to the country’s nuclear industry. It is currently ranked as the world’s second largest uranium mining corporation by resource base and is the fifth biggest global producer. Rosatom State Corporation owns an 80.345% interest in ARMZ Uranium Holding Co. Over the last few years, Russia’s nuclear industry has been developing at an ever faster pace. ARMZ’s primary objective therefore is to meet the national nuclear complex’s growing needs in natural uranium. In 2009, ARMZ Uranium Holding Co. boosted uranium output a staggering 25% to 4624 tons at its mines in Russia and abroad. Aggressive international expansion has become one of the key elements of ARMZ strategy: our plan is to build up the resource base and put together – through partnerships, mergers, and acquisitions in 2010-2011 – a high yield and competitive production cost asset portfolio in Africa, North America, Asia, and Australia. First steps towards this ambitious goal were taken in the breakthrough 2009: today’s ARMZ portfolio includes 14 uranium and non-uranium projects all over the world. ARMZ Uranium Holding Co. has opened representative offices in London, UK, and Windhoek, Namibia. In 2009, the corporation acquired Effective Energy N.V. and

thus consolidated the Russian interests in uranium mining joint ventures in Kazakhstan. After the exchange of assets with the Canadian Uranium One, ARMZ became owner of a 19.95% interest in this publicly traded corporation placing two directors on the Uranium One Board and securing a number of management positions in Uranium One’s Kazakhstan operations. In 2009, ARMZ Uranium Holding Co. entered the global uranium market as an independent player. With 1 short-term and 2 mid-term contracts and product deliveries scheduled for the next three years, ARMZ Uranium Holding Co. has now established materials holding accounts with two conversion facilities overseas. ARMZ’s top priority is to further develop uranium mining in Russia: its operating mines are being upgraded and investments are made into planned and prospective facilities. One of the most spectacular projects – the Elkon Uranium Mine and Mill – implies the construction of an industrial complex in South Yakutia with the planned capacity of up to 5 thousand tons of uranium per annum. Design and estimate documentation development for the mine and mill, as well as for the associated infrastructure, is financed by the federal government from the Russian Federation Investment Fund. Russia’s federal authorities, as well as the management of Rosatom State Corporation, have been fairly active in supporting and funding activities and the strategy of ARMZ Uranium Holding Co. ARMZ development budget allocated

by the Mother Company in 2009 reached RUR64.2 billion (US$2.16 billion) while the investment program totaling more than RUR184 billion (over US$6.18 billion) will be backing up Rosatom’s mining division development over the next 5 years until 2015. Fifty years of experience in development of uranium deposits of various types in diverse geographical and climate conditions, as well as innovation employed by current projects and an active international expansion will bring ARMZ to the forefront of global uranium mining industry within the next few years.

Vadim L. Zhivov Director General


ARMZ: Breakthrough and path to new horizons ARMZ Uranium Holding Co. (ARMZ), also known as Atomredmetzoloto, today is one of the global leaders in uranium mining and the Russian national uranium producer authorized and appointed by its owner, Rosatom State Corporation, as the nodal supplier of feedstock to the country’s nuclear industry. It is currently ranked as the world’s second largest uranium mining corporation by resource base and is the fifth biggest global producer. Rosatom State Corporation owns an 80.345% interest in ARMZ Uranium Holding Co. Over the last few years, Russia’s nuclear industry has been developing at an ever faster pace. ARMZ’s primary objective therefore is to meet the national nuclear complex’s growing needs in natural uranium. In 2009, ARMZ Uranium Holding Co. boosted uranium output a staggering 25% to 4624 tons at its mines in Russia and abroad. Aggressive international expansion has become one of the key elements of ARMZ strategy: our plan is to build up the resource base and put together – through partnerships, mergers, and acquisitions in 2010-2011 – a high yield and competitive production cost asset portfolio in Africa, North America, Asia, and Australia. First steps towards this ambitious goal were taken in the breakthrough 2009: today’s ARMZ portfolio includes 14 uranium and non-uranium projects all over the world. ARMZ Uranium Holding Co. has opened representative offices in London, UK, and Windhoek, Namibia. In 2009, the corporation acquired Effective Energy N.V. and



 



thus consolidated the Russian interests in uranium mining joint ventures in Kazakhstan. After the exchange of assets with the Canadian Uranium One, ARMZ became owner of a 19.95% interest in this publicly traded corporation placing two directors on the Uranium One Board and securing a number of management positions in Uranium One’s Kazakhstan operations. In 2009, ARMZ Uranium Holding Co. entered the global uranium market as an independent player. With 1 short-term and 2 mid-term contracts and product deliveries scheduled for the next three years, ARMZ Uranium Holding Co. has now established materials holding accounts with two conversion facilities overseas. ARMZ’s top priority is to further develop uranium mining in Russia: its operating mines are being upgraded and investments are made into planned and prospective facilities. One of the most spectacular projects – the Elkon Uranium Mine and Mill – implies the construction of an industrial complex in South Yakutia with the planned capacity of up to 5 thousand tons of uranium per annum. Design and estimate documentation development for the mine and mill, as well as for the associated infrastructure, is financed by the federal government from the Russian Federation Investment Fund. Russia’s federal authorities, as well as the management of Rosatom State Corporation, have been fairly active in supporting and funding activities and the strategy of ARMZ Uranium Holding Co. ARMZ development budget allocated

by the Mother Company in 2009 reached RUR64.2 billion (US$2.16 billion) while the investment program totaling more than RUR184 billion (over US$6.18 billion) will be backing up Rosatom’s mining division development over the next 5 years until 2015. Fifty years of experience in development of uranium deposits of various types in diverse geographical and climate conditions, as well as innovation employed by current projects and an active international expansion will bring ARMZ to the forefront of global uranium mining industry within the next few years.

Vadim L. Zhivov Director General


• Combined, ARMZ mining assets represent 11% of global uranium resourses.

ARMZ Assets overview

Assets Production, tU/y Status Mining 2009 2010 F Planned method capacity (tU/y) Russia

3563,9

3530

• The Company currently has three producing mines, two projects under construction and a further four in planning stages.

Resources, Prognosticated Resources, (RAR+Inferred) Resources, tU (RAR+Inferred+ tU Prognosticated) tU As of Jan. 1, 2010

12400

494 685

36 969

531 654

Priargunsky

3004

2920

3500

Operational

UG/HL

118 341

-

118 341

Dalur

462,6

460

800

Operational

ISL

10 423

11 691

22 114

Khiagda

97,3

150

1800

Construction

ISL

26 683

14 978

41 661

Elkon

5000

Planned

UG

319 186

-

319 186

Olovskaya

600

Planned

UG/HL

11 726

-

11 726

Gornoe - Berezovoe

600

Planned

UG/HL

7 918

5 300

13 218

Lunnoe

100

Planned

OP/HL

408

5 000

5 408

Kazakhstan

1059,6

608

2280

21 397

42 936

64 333

JV Zarechnoe

245,4

300

780

Operational

ISL

9 073

15 051

24 124

JV Akbastau

195,2

300

1500

Construction

ISL

12 324

27 885

40 209

JV Karatau*

619

-

-

Operational

ISL

-

-

-

1000

1247

30 249

15 932

46 181

5130

15 927

546 331

95 837

642 168





Uranium One Kazakhstan, USA, Australia, South Africa

Total

4623,5

UG = Underground, ISL = In Situ Leaching HL = Heap Leaching OP = Open Pit Resources, production volume, and planned capacities calculated based on ARMZ factual interest *As of 2010, all Karatau data included in Uranium One

ARMZ Company Structure Operational and under construction uranium mines in Russia

Planned uranium mines in Russia

Joint ventures in Kazakhstan

Joint exploration ventures

Priargunsky

Elkon

Zarechnoe

Dalur

Lunnoe

Akbastau

SWA Uranium (Namibia)

Khiagda

Gornoe

ARGK (Armenia)

Olovskaya

ARMZ Management and Service Companies



UGRK / Effective Energy N.V., ARMZ overseas asset management 

ESK, supplies of materials and machinery to ARMZ operational mines and facilities under construction Rusburmash, drilling and exploration works KRUYA, South Yakutia Integrated Development investment project management Industrial Technology & Design Research Center (VNIPIPT), design and planning of uranium mining facilities, ARMZ Engineering Center








Uranium Demand: The Nuclear Renaissance



• Demand for uranium across the globe is driven by 436 operable Nuclear Power Reactors with a combined installed capacity of 372 GWe. • World Nuclear Association reports that there are now 49 new reactors with a combined installed capacity of 44.35 GWe being built in 13 countries; a further 136 reactors with a total net capacity of almost 150 GWe are being planned and about 277 reactors (288.8 GWe) are being proposed. • The international Atomic Energy Agency and the World Nuclear Association have substantially lifted their forecasts for world nuclear generating capacity. They now anticipate 815 GWe in place in 2030, an increase of 119% on the installed capacity today.

USA





• Production capacity is also being re-evaluated and re-licensed to operate at a higher capacity beyond originally designed lifecycles.

ARMZ Mines and Projects

Uranium Producing Countries

Mines in operational and development phase

Over 3 thousand tons per year 1 to 3 thousand tons per year

Mines in planning stage

Less than 1 thousand tons per year

Prospective projects

Non producing countries

Uranium Resources by Country (Recoverable)

Uranium Resources by Company (in Situ) PALADIN ENERGY 3% NAVOI 3% URANIUM ONE 4%

OTHERS 11% UKRAINE 3%

RIO TINTO 8% AUSTRALIA 26%

NIGER 4% BRAZIL 4%

KAZATOMPROM 8%

BHP BILLITON 44%

NAMIBIA 6% CAMECO 9%



SOUTH AFRICA 7% KAZAKHSTAN15% USA 7% CANADA 8% Source: ARMZ

 AREVA 10%

RUSSIA 9% – 3rd PLACE

ARMZ 11% – 2nd PLACE








Russian Federation



Armenia

Gornoe

Olovskaya Priargunsky

Mongolia

Zarechnoe

Akbastau

Kazakhstan

Khiagda

Dalur

Elkon





Namibia

Australia

South Africa

2009 Uranium Production by Country KAZAKHSTAN 13900 tU 29%

2009 Uranium Production by Company CAMECO 7770 tU 16%

CANADA 8590 tU 18% RIO TINTO 8055 tU 16%

KAZATOMPROM 7600 tU 16%

OTHERS 5157 tU 11% OTHERS 3100 tU 6% AUSTRALIA 8160 tU 17%

USA 1470 tU 3% UZBEKISTAN 2350 tU 5% NIGER 2930 tU 6%

Source: ARMZ

NAMIBIA 4448 tU 9%

RUSSIA 3564 tU 7% – 5th PLACE

PALADIN ENERGY 1210 tU 2% URANIUM ONE 1369 tU 3% NAVOI 2340 tU 5% BHP BILLITON 2885 tU 6%





AREVA 7500 tU 15%

ARMZ 4624 tU 10% – 5th PLACE








• The government of Russia supported development of the Elkon Mining Works and Khiagda uranium mine through cash injections into the projects’ regional infrastructure.

• The number of nuclear power plants will grow together with a rampup of natural uranium production in Russia. Domestically, Russian uranium miners anticipate output to reach 9,894 tU in 2020 against 4,624 tU in 2009.

• In 2009, the government of the Russian Federation provided subsidies in the amount of 64.2 billion rubles (roughly $2.16 billion) to Rosatom State Corporation which allowed it to purchase ARMZ Uranium Holding Co. new stock subscriptions and increase its interest in ARMZ to 80.345%.

• Power generation by Russia’s NPPs is expected to grow 44.7% to 234.4 billion kWh by 2015. The Russian government fully supports development of the nation’s nuclear industry.

Russian Nuclear Sector and Uranium Mining Development



Uranium Production Growth Rate by Company in 2009

ARMZ Uranium Production • P riargunsky • Dalur

• Z arechnoe • Khiagda

• A kbastau • Karatau

5000

4000

3000

2000 3190

3527

3687

4624

2007

2008

2009

1000

Kazatomprom

ARMZ

Uranium One

Paladin Energy

AREVA

Cameco

Rio Tinto

0 2006

Source: ARMZ

ARMZ Strategic Objectives • Preserve and develop national competences in uranium mining ensuring Russia’s energy security in the long run

• Put together a profitable asset portfolio

• Ensure uranium supply to secure Rosatom’s exports program

• Secure  access to world uranium market with a portfolio of mid-term and long-term contacts beyond 2009

• Secure access to natural uranium resources with low production cost

• Secure ARMZ financial health and stability


Key Investment Highlights

• For the first time in Russian history, private investors are welcome to get exposure to unique Russian uranium market by participation in the proposed projects. • ARMZ presents a compelling investment opportunity based on its solid fundamentals and excellent growth prospects. • The Company’s key strength is its diverse project portfolio ranging from producing to developing and exploration assets. ARMZ operates a majority of these projects which is reflective of the Company’s high technical and managerial track record.

• Amongst its key assets is the Company’s largest development project, the Elkon mine – a world class uranium deposit offering a unique investment opportunity. The project is strategically located to serve key international and domestic markets. • Existing shortage of natural uranium in international markets which is projected to grow further in the foreseeable future guarantees stable demand for ARMZ product. • Importantly, ARMZ’s key competitive advantage is its ownership structure. This results in strong government relations, opportunities for government funding and access to Rosatom’s integrated portfolio of nuclear services.

ARMZ as Investor Experience and Expertise

• Fifty years of experience in developing uranium deposits • Operations in diverse geographical and climatic conditions

Responsible Project Developer

• Maximal attention to environmental protection and land use • Social responsibility • Support from Rosatom State Corporation and the government of Russia

Access to Financial Resources

• Access to government funding • Excellent credit history

ARMZ as Investee Solid Financials

•G  uaranteed demand for ARMZ products from Rosatom State Corporation complex • Low debt

Diversified Project Portfolio

•V  arious development stage project pipeline: exploration to full-scale production • Geographical diversification: 14 uranium and non-uranium projects across the globe

Fast Growing Market

•G  rowing demand for natural uranium from an increasing number of nuclear power plants


Key Investment Highlights

• For the first time in Russian history, private investors are welcome to get exposure to unique Russian uranium market by participation in the proposed projects. • ARMZ presents a compelling investment opportunity based on its solid fundamentals and excellent growth prospects. • The Company’s key strength is its diverse project portfolio ranging from producing to developing and exploration assets. ARMZ operates a majority of these projects which is reflective of the Company’s high technical and managerial track record.

• Amongst its key assets is the Company’s largest development project, the Elkon mine – a world class uranium deposit offering a unique investment opportunity. The project is strategically located to serve key international and domestic markets. • Existing shortage of natural uranium in international markets which is projected to grow further in the foreseeable future guarantees stable demand for ARMZ product. • Importantly, ARMZ’s key competitive advantage is its ownership structure. This results in strong government relations, opportunities for government funding and access to Rosatom’s integrated portfolio of nuclear services.

ARMZ Rosatom’s mining arm Russia’s primary uranium producer

ARMZ as Investor Experience and Expertise

• Fifty years of experience in developing uranium deposits • Operations in diverse geographical and climatic conditions

Responsible Project Developer

• Maximal attention to environmental protection and land use • Social responsibility • Support from Rosatom State Corporation and the government of Russia

Access to Financial Resources

• Access to government funding • Excellent credit history

ARMZ as Investee Solid Financials

•G  uaranteed demand for ARMZ products from Rosatom State Corporation complex • Low debt

Diversified Project Portfolio

•V  arious development stage project pipeline: exploration to full-scale production • Geographical diversification: 14 uranium and non-uranium projects across the globe

ARMZ Uranium Holding Co.

Fast Growing Market

•G  rowing demand for natural uranium from an increasing number of nuclear power plants

22 B. Drovyanoi Lane Moscow, Russia 109004 Tel: +7-495-508-8808 Fax: +7-495-508-8810 E-mail: info@armz.ru www.armz.ru

ARMZ: Breakthrough and path to new horizons ARMZ Uranium Holding Co. (ARMZ), also known as Atomredmetzoloto, today is one of the global leaders in uranium mining and the Russian national uranium producer authorized and appointed by its owner, Rosatom State Corporation, as the nodal supplier of feedstock to the country’s nuclear industry. It is currently ranked as the world’s second largest uranium mining corporation by resource base and is the fifth biggest global producer. Rosatom State Corporation owns an 80.345% interest in ARMZ Uranium Holding Co. Over the last few years, Russia’s nuclear industry has been developing at an ever faster pace. ARMZ’s primary objective therefore is to meet the national nuclear complex’s growing needs in natural uranium. In 2009, ARMZ Uranium Holding Co. boosted uranium output a staggering 25% to 4624 tons at its mines in Russia and abroad. Aggressive international expansion has become one of the key elements of ARMZ strategy: our plan is to build up the resource base and put together – through partnerships, mergers, and acquisitions in 2010-2011 – a high yield and competitive production cost asset portfolio in Africa, North America, Asia, and Australia. First steps towards this ambitious goal were taken in the breakthrough 2009: today’s ARMZ portfolio includes 14 uranium and non-uranium projects all over the world. ARMZ Uranium Holding Co. has opened representative offices in London, UK, and Windhoek, Namibia. In 2009, the corporation acquired Effective Energy N.V. and

thus consolidated the Russian interests in uranium mining joint ventures in Kazakhstan. After the exchange of assets with the Canadian Uranium One, ARMZ became owner of a 19.95% interest in this publicly traded corporation placing two directors on the Uranium One Board and securing a number of management positions in Uranium One’s Kazakhstan operations. In 2009, ARMZ Uranium Holding Co. entered the global uranium market as an independent player. With 1 short-term and 2 mid-term contracts and product deliveries scheduled for the next three years, ARMZ Uranium Holding Co. has now established materials holding accounts with two conversion facilities overseas. ARMZ’s top priority is to further develop uranium mining in Russia: its operating mines are being upgraded and investments are made into planned and prospective facilities. One of the most spectacular projects – the Elkon Uranium Mine and Mill – implies the construction of an industrial complex in South Yakutia with the planned capacity of up to 5 thousand tons of uranium per annum. Design and estimate documentation development for the mine and mill, as well as for the associated infrastructure, is financed by the federal government from the Russian Federation Investment Fund. Russia’s federal authorities, as well as the management of Rosatom State Corporation, have been fairly active in supporting and funding activities and the strategy of ARMZ Uranium Holding Co. ARMZ development budget allocated

by the Mother Company in 2009 reached RUR64.2 billion (US$2.16 billion) while the investment program totaling more than RUR184 billion (over US$6.18 billion) will be backing up Rosatom’s mining division development over the next 5 years until 2015. Fifty years of experience in development of uranium deposits of various types in diverse geographical and climate conditions, as well as innovation employed by current projects and an active international expansion will bring ARMZ to the forefront of global uranium mining industry within the next few years.

Vadim L. Zhivov Director General

ARMZ corporate brochure  

Rosatom’s mining arm. About Russia’s primary uranium producer.