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Peter Hambro Mining (POG)

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Thursday 14 December, 2006

Peter Hambro Mining

re MeetingwithRosprirodnadzor

Peter Hambro Mining PLC
14 December 2006

14th December 2006 

Peter Hambro Mining welcomes the clarification achieved at the meeting between
company executives and Rosprirodnasor officials, including Mr Oleg Mitvol, in

The agency's position is clearly set out in its press release and the company
welcomes this. A translation is attached but the company takes no responsibility
for the accuracy of the translation.

In the meeting Mr Mitvol clearly refuted media speculation that his inspection
formed part of an attack on western investment.

Translation of Rosprirodnasor statement:

"On 14 December 2006 Rosprirodnadzor senior officials had a meeting with Peter
Hambro Mining managers

Negotiations were attended by Deputy head of Rosprirodnadzor Oleg Mitvol, head
of department of control over use of mineral resources Yaroslav Vassilyev, Peter
Hambro Mining Chairman Peter Hambro, his deputy Pavel Maslovsky.

In response to Peter Hambro's statement concerning publications in Western media
on an alleged political pressure on foreign companies in Russia and an intention
to withdraw their assets, Mitvol replied that this couldn't be further from the
truth. According to him, these were political speculations. "Rosprirodnadzor's
inspections are in no way related to politics, inspectors do their work,
exercise government control over use of mineral resources", he stressed. "Once
again, I am urging foreign investors to comply with regulations of environmental
protection and rational use of mineral resources, then there won't be any
problems with controlling bodies."

Maslovsky in his turn noted that in the near future the company would take all
remedial efforts to take care of the violations found in fields developed by
Yamalzoloto. Representatives of Peter Hambro Mining expressed willingness to
voluntarily hand over the license to another entity if the company fails to
timely meet all the terms of the license to develop Novogodnee-Monto field.

Rosprirodnadzor is currently doing a comprehensive inspection of compliance with
terms of licenses issued to Peter Hambro Mining for exploration and development
of gold, titanium and magnesium ore, chrome and other metals. Peter Hambro
Mining will complete inspection of compliance with license terms before end of
December 2006.

According to preliminary data, no material violations of laws or license terms
have been discovered, according to Ministry of Natural Resources press service.
In particular, in the course of inspections of Peter Hambro Mining subsidiaries
in Amur region, geological prospecting company Victoria and Porkovsky Rundik,
Rosprirodnadzor inspectors have not recorded any facts of laws violation.

Source: Press Service of the RF Ministry of Natural Resources"


Alya Samokhvalova                            Peter Hambro Mining Plc
Director of External Communications          +44 (0) 207 201 8900

Tom Randell / Maria Suleymanova              Merlin
                                             +44 (0) 207 653 6620

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

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