Press Release: Another Milestone in the CIS Nuclear Energy Integration

Kazakh, Russian and Kyrgyz participants of Zarechnoye uranium mining joint venture held a press-conference in Shymkent, regional center of Southern Kazakhstan.

A renewed structure of the Joint Venture was announced as follows: Kazatomprom (Kazakhstan) - 45%; TVEL-20% (Russia), Techsnabexport (Russia) - 15%, Atomredmetzoloto (Russia)-10%; and Kara-Balta (Kyrgyzstan) -10%.

Zarechnoe deposit with its 19,000 tons of uranium is located in Otrar region. The joint venture obtained operation license from the state authorities on 19 May 2003, and will begin construction of the acidic in situ leaching mining site in 2004.

Russians will invest some US$14.5 million before the mine achieves targeted commercial production of 500 tons uranium as yellow cake starting from late 2005. The project creates about 200 new jobs on site, and will employ Kyrgyz Kara-Balta capacity for production of U3O8 for eventual use by Russian MinAtom.