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Peter Hambro Mining (POG)

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Tuesday 05 April, 2005

Peter Hambro Mining

Statement re IFC Investment

Peter Hambro Mining PLC
05 April 2005

           US$15 million IFC Equity Investment in Peter Hambro Mining

5 April 2005

Peter Hambro Mining Plc ("PHM") is pleased to announce that the International
Finance Corporation ("IFC") is investing US$15m by subscribing for 1,448,545 new
PHM shares and has been granted an option to apply for a matching amount of
additional new shares. The proposed investment was announced in December 2004,
subject to further due diligence and approval by the IFC's Board. Due diligence,
including an environmental and social audit of PHM's operations to the
satisfaction of World Bank Group requirements, has been completed and the IFC
Board has approved the investment.


The new shares will rank pari passu with all existing ordinary shares and are
being issued at a price of £5.50 (the "Investment Price"). The Investment Price
was fixed at the time of the original agreement in December 2004 and was at a 3%
premium to the closing price of the day previous to the signing of that

The option exercise price is at a 25% premium to the Investment Price (subject
to an anti-dilution adjustment). Full exercise of the option would result in the
issue of 1,448,545 additional new PHM shares. PHM will be able to require the
IFC to exercise the option early if the PHM shares trade for 20 consecutive
trading dates at a 60% premium to the option exercise price in the two years
following the issue or at a 30% premium (on this basis) to this price after two
years. Unless exercised earlier, the option will lapse on 4th April 2013. IFC
has provided PHM with a commitment of funds and on receipt of funds will be
issued the initial 1,448,545 shares. Application will be made for these shares
to be admitted to trading on AIM shortly thereafter.

The IFC is the private sector arm of The World Bank Group. The IFC is a
substantial provider of project and private sector finance across the developing
world, with a significant involvement in Russia across all sectors, including
gold mining.

Peter Hambro, Executive Chairman, said: -

"I am delighted that the IFC is investing in PHM. It is a significant
endorsement of our corporate strategy and operational organisation. We have
always had a stated objective to operate to World Bank Group policies and
guidelines and it is satisfying to see this effort being acknowledged and

We continue the development of both the Pokrovskiy and Pioneer projects and
intend to report on their progress during the second quarter of 2005. We
continue to talk with the IFC and a number of other project finance banks with
regard to debt financing the development costs. I believe that IFC's investment
is a great vote of confidence in the strength of the projects."

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

"We see this investment as the first step in what we hope will be a long term
and broad relationship with PHM, as it now begins to develop its very
interesting range of properties. We look forward to supporting it in its growth
and development in the coming months and years into an important company in the
gold industry and a path breaker in terms of combining the best of Russian and
international operational methods to achieve their individual form of best
practice, both in production and cost efficiency and in environmental management
and social practices."


Alya Samokhvalova                                   +44 (0) 20 7201 8900
Director of External Communications
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