Aricom

completed

The project is the continued exploration, appraisal and development of Aricom’s iron ore resource properties and associated infrastructure in the Russian Federation, including feasibility studies, detailed engineering, environmental and social impact assessments and other preparatory activities. Progress in these respects could lead to substantial mine development focused on supplying strong growth of demand for steel making manufacturers in nearby China. The company is publicly listed on the London Alternate Investment Market (AIM) and has a market capitalization of approximately US$450 million. Aricom’s main properties are located in the Amur Oblast and the EAO in Far East Russia. Kuranakh: The Kuranakh is a development stage ilmenite and titanomagnetite mine in the Amur Region located close to the Baikal-Amur Railroad which runs directly to the Chinese border 600km away. The mine contains medium grade ore (33%) and is expected to start production in early 2008 with an output of 290,000tpa of ilmenite concentrate and 900,000tpa of iron ore concentrate. Kimkanskoye and Sutarskoye: The Kimkanskoye and Sutarskoye (“K&S”) iron ore fields are at the feasibility stage and located a few kilometers away from the Trans-Siberian Railway in the Evreyskaya Avtonomnaya Region (EAR). Production is anticipated to start in late 2009 with an annual production of 6mtpa of magnetite concentrate.  Garinskoe: The Garinskoe iron ore deposit is an exploration stage project located in the Amur region. Russian resources/reserves have been quoted at 388Mt at 41.7%Fe (A – C2). Aricom plans to develop Garinskoe in 2012. Bolshoi Sejm: The Bolshoi Sejm deposit is an exploration stage ilmenite and magnetite project located near Kuranakh. Potential resources are estimated at 58 million tonnes of TiO2 and 125 million tonnes of iron. As Bolshoi Sejm is close to Kuranakh with similar ore, the two will be able to share infrastructure and processing. Production of ilmenite and magnetite concentrates is anticipated to commence in 2012.