FREEZING ORDER OVER KAZAKHALT

RNS Number : 6306Q

KazakhGold Group Ltd

05 August 2010

 



For immediate release

5 August 2010

Update on freezing order OVER kazakhALTYN's bank accounts

Further to the announcement of 3 August 2010 by KazakhGold Group Limited ("KazakhGold" or "the Company") in relation to a freezing order that had been placed by the Agency on Economic and Corruption-Related Crimes ("AECC") in Kazakhstan over certain bank accounts held in Kazakhstan by the Company's main operating subsidiary, JSC Kazakhaltyn MMC ("Kazakhaltyn"), Kazakhaltyn has today received permission from [the AECC] to access funds in those accounts in order to make wage payments to its employees.  As a result of the freezing order, Kazakhaltyn remains unable to use the funds in the frozen accounts for any other purpose, including for payment of its suppliers and other operating expenses, which may lead to further disruption to its operations. 

In addition, Kazakhaltyn has lodged appeals against the freezing order in the Kazakh courts and through the state prosecutor's office, and has been advised that it may expect a decision on the appeal from the court in approximately 10 days.

Commenting on these developments, Evgeny I. Ivanov, Chairman of the Board of KazakhGold, said:

"We are pleased that the Kazakh authorities have partially rescinded the freezing order. We remain in dialogue and are hopeful that these restrictions are lifted at the earliest opportunity."

A further announcement will be made as appropriate.

Enquiries:

KazakhGold Alexey V. Chernushkin, Director, Capital Markets and IR

[phone]

 

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