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Kazatomprom Provides Update on Situation in Kazakhstan

13 January
Kazatomprom Provides Update on Situation in Kazakhstan

JSC National Atomic Company “Kazatomprom” (“Kazatomprom” or “the Company”) provides the following update on the status of its business and operations following the recent period of unrest in Kazakhstan.

“Today, after these tragic events, our country is going through a difficult time,” said Mazhit Sharipov, chief executive officer of Kazatomprom. “I am sure that with the joint efforts of our state, businesses and citizens all infrastructure facilities affected by the violence will be restored soon. The Company plans to actively support the restoration efforts in the regions where Kazatomprom operates. We sincerely appreciate the support we have seen from our stakeholders during this very worrisome period. We are particularly grateful to our committed workforce, whose efforts to monitor and mitigate the related risks prevented any significant impact on the Company and its operations.

“President Kassym-Jomart Tokayev has assured citizens and businesses that the government will meet its obligations and take all necessary measures to restore the trust of domestic and foreign investors. This assurance is important for the global nuclear industry, as the majority of Kazatomprom’s uranium assets are operated in partnership with major international nuclear industry participants. Kazatomprom has always managed to meet customer expectations, and we have again proven ourselves to be a secure and reliable supplier despite operating in a jurisdiction of higher perceived geopolitical risk.”

The overall impact of the recent events on the Company’s business was minor. All assets operated without interruption thanks to the Company’s implementation of lessons-learned throughout the COVID-19 pandemic. Kazatomprom’s risk management and business continuity plans proved to be robust, with no delays or disruptions to the Company’s uranium production, deliveries or sales plans. As of 13 January 2022:

  • Internet, telecommunications and the financial services sector have returned to normal. The President’s declaration of a countrywide state of emergency, which included curfews and a ban on gatherings, has now been lifted in the West, North and Pavlodar regions. The state of critical terrorist threat has been lifted countrywide, except for the city of Almaty, Zhambyl and Almaty regions, where it is expected to remain in effect until 19 January 2022.
  • The large-scale anti-terrorism operations, which included both Kazakh police, security and military forces, as well as support from the regional Collective Security Treaty Organization (CSTO), has largely concluded. A withdrawal of CSTO forces has begun and is expected to be completed in the coming week. At no point were CSTO forces deployed to the vicinity of Kazatomprom’s infrastructure or operations.
  • The Kazakh Government resigned on 05 January 2022 and a new government was appointed and functional as of 11 January 2022, with Alikhan Smailov becoming Kazakhstan’s new Prime Minister. Within the new composition of the Government, Bolat Akchulakov, a current Kazatomprom Board member representing the interests of majority shareholder Samruk-Kazyna, has been appointed Minister of Energy and will resign from the Company’s Board of Directors.
  • Although the more serious near-term supply chain risks specifically related to recent events did not materialize, the pandemic-related supply chain challenges remain a concern, and may impact both production and cost expectations in 2022. Further updates will be provided when 2021 full-year financial results are released in March, 2022.
  • Cases of the Omicron variant of COVID-19 continue to rise throughout the country. The Company has reinforced existing protocols to minimize the spread by introducing PCR testing for anyone accessing the mine sites. Site administrative personnel are also now working remotely.

Kazatomprom’s focus remains on business continuity, including the safety and security of its employees and operations. With an ongoing assessment of the situation and various investigations by government authorities now underway to determine the factors that drove the tragic civil unrest, the Company will not be speculating on the potential impact of the underlying social circumstances or related geopolitical implications at this time.

For further information, please contact:

Investor Relations inquiries

Cory Kos, Director of Investor Relations

Tel: +7 7172 45 81 80

Email: ir@kazatomprom.kz

Public Relations and Media Relations inquiries

Torgyn Mukayeva, Chief Expert of GR & PR Department

Tel: +7 7172 45 80 63

Email: pr@kazatomprom.kz

A copy of this announcement will be made available at www.kazatomprom.kz.

About Kazatomprom

Kazatomprom is the world's largest producer of uranium, with the Company's attributable production representing approximately 23% of global primary uranium production in 2020. Kazatomprom benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs, and Associates, 26 deposits grouped into 14 mining assets. All the Company's mining operations are located in Kazakhstan and extract uranium using ISR technology with a focus on maintaining industry-leading health, safety, and environmental standards (ISO 45001 and ISO 14001 certified).

Kazatomprom securities are listed on the London Stock Exchange and Astana International Exchange. As the national atomic company in the Republic of Kazakhstan, its primary customers are operators of nuclear generation facilities and the principal export markets for the Company's products are China, South and Eastern Asia, Europe, and North America. Kazatomprom sells uranium and uranium products under short- and long-term contracts directly from its headquarters in Nur-Sultan, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).

For more information, please visit our website at http://www.kazatomprom.kz

Forward-looking statements

All statements other than statements of historical fact included in this communication or document are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance, and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future. THE INFORMATION WITH RESPECT TO ANY PROJECTIONS PRESENTED HEREIN IS BASED ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE REALISED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. NONE OF THE COMPANY NOR ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, ADVISORS OR AFFILIATES, OR ANY REPRESENTATIVES OR AFFILIATES OF THE FOREGOING, ASSUMES RESPONSIBILITY FOR THE ACCURACY OF THE PROJECTIONS PRESENTED HEREIN. The information contained in this communication or document, including but not limited to forward-looking statements, applies only as of the date hereof and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to such information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date hereof.

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