ALROSA RUMORED TO BE INTERESTED IN BUYING ARMENIAN GOLD PRODUCER

Tacy, Israel
March 22 2007

Russian diamond producer Alrosa, or its investment arm IG Alrosa, are
interested in buying Ararat Gold Recovery Company (AGRC) in Armenia,
says a gold spokesman. A Russian specialist has visited Armenia to
examine the state of affairs at AGRC.

The Armenian Environmental Protection Ministry, following a recent
inspection, has accused AGRC of violating environmental standards and
of concealing 1.6 tons of gold. Officials from the Tax Inspectorate
and Prosecutor’s Office are also reportedly inspecting the company’s
paperwork.

AGRC is owned by Sterlite Gold Ltd, which in turn is 55 percent
owned by India’s Vedanta Resources. The Zod gold deposit, where AGRC
operates, contains an estimated 80 tons of 2.6 million ounces of gold.