US INVESTOR CONDEMNS ILLEGAL TAPPING OF AZERI GOLD

Assa-Irada, Azerbaijan
Posted June 19 2006

Baku, June 16, AssA-Irada
A foreign company has carried out exploration work on gold fields in
Azerbaijani territories occupied by Armenia, says president of US RV
Investment Group in charge of operating the deposits.

Rza Vaziri said the fact was ascertained through satellite footage
and work is underway to curtail the illegal activities.

He said that tapping the fields in the occupied land is against
international law and his company would take the matter to
international court.

"The documents, prepared based on the materials, have been forwarded to
lawyers, who will submit them through international court to Armenia’s
Foreign Ministry, its embassies in the USA, Canada and Great Britain
as well as the foreign company carrying out the exploration. The
documents will also be passed to relevant international institutions,"
the company official told journalists on Thursday.

Vaziri said the documents have also been submitted to the Azerbaijani
government and it is expected to issue its official response on the
matter in the coming days.

The company president said the territories rich in gold reserves
are Azerbaijan’s land and RV Investment Group reserves the right to
operate them, under the agreement it signed with the state. He said
the companies illegally working in these territories must suspend
their operation there. After the occupied areas are liberated, the
company will tackle work in these territories, Vaziri said.

He said the first gold will be produced from the Gadabay field late
in 2006-early 2007. The deposit located 350 km west of Baku possesses
an estimated 800,000 ounces of gold.

The Azerbaijani government signed a contract with RV Investment Group
on tapping gold deposits. The 25-year agreement, concluded earlier
by Azergyzyl state company, abolished in 1997, and RV Investment
Group (with Azerbaijan holding 51% stake and the US company 49%),
envisions developing 9 fields containing 400 tons of gold, 2,500
tons of silver and 1.5 million tons of copper. The fields are mainly
located in the Kalbajar, Zangilan, Gadabay, Dashkasan and Ordubad
western and southwestern regions. Three of the deposits are located
in Azerbaijani territories occupied by the Armenian armed forces.

$28m has been spent on exploration operations since April 2005.

Another $23m will be spent in the future, says Gerald Philips, general
director on operations at the Azerbaijan International Mining Operating
Company set up by RV Investment to operate the gold fields.