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Peter Hambro Mining (POG)

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Monday 13 December, 2004

Peter Hambro Mining

Equity Investment

Peter Hambro Mining PLC
13 December 2004

13th December 2004

            IFC Proposes an Equity Investment in Peter Hambro Mining

Peter Hambro Mining ("PHM") announces that it has agreed to a potential
investment from the International Finance Corporation ("IFC") for US$15m in
newly issued equity with a matching number of warrants. The investment proposal
is subject to further due diligence, approval by the IFC's Board and the
finalisation of documentation; the target date for the investment is February

Proposed Investment

PHM proposes to issue US$15m in new shares and matching warrants to the IFC in
February 2005. The proposed new shares will be ordinary shares in PHM ranking
pari passu with all existing ordinary shares. The issue price of the shares will
be the lesser of UKĀ£5.50 per share or the five day volume weighted average price
before final issue (the "Investment Price"). The warrants will have a strike
price of a 25% premium to the Investment Price. PHM will be able to require the
IFC to exercise the warrants if the shares trade at a 60% premium to this price
in the two years following the issue and at a 30% premium to this price after
two years.
The IFC is the private sector arm of The World Bank Group. The IFC is a
substantial provider of project finance to companies in Russia in all sectors,
including gold mining.

Peter Hambro, Executive Chairman, said: -

"I am delighted that the IFC is proposing to invest in the company as a sign of
their support in what we are doing. We are continuing the development of both
Pokrovskiy and Pioneer projects and intend to report on progress during the
second quarter of 2005. I believe that IFC's consideration of an investment at
this stage is a great vote of confidence in the strength of the projects."

Christopher Goss, Principal Investment Officer, the International Finance
Corporation, said: -

"I am delighted at the prospect of participation in PHM's mining developments in
Russia. We believe that the development of the gold sector is key to Russia's
development and can bring great benefits at the regional and community level".


Alya Samokhvalova                                   +44 (0) 20 7201 8900
Investor Relations, Peter Hambro Mining

Tom Randell / Maria Suleymanova                     +44 (0) 20 7653 6620

                      This information is provided by RNS
            The company news service from the London Stock Exchange