Interfax, Russia
March 10 2009

Armenia copper producer discusses additional funding with VTB

YEREVAN March 10

Armenian metals company Armenian Copper Programme (ACP) is discussing
additional funding with Russia’s VTB (RTS: VTBR) for its project to
develop the Tekhut copper-molybdenum field in northern Armenia.

ACP signed a deal with VTB on May 27, 2008 to raise a 12-year loan of
$249.5 million for the project, and is now looking to increase the
loan facility to $280 million, Gagik Arzumanian, ACP’s general
director, told a press conference.

Arzumanian said he met with representatives of the bank in Moscow last
week and "managed to find the sort of format that enables us to start
full funding for the project in a month or two."

He said the loan would be disbursed in several tranches, and that he
hoped that a first $50 million would be received in 2009. The funds
would enable the company to start preparing to put the Tekhut field
into production "at the sort of pace that we planned previously," he
said.

The credit program states that ore should be mined and processed at
the field starting in 2011.

Tekhut’s ore reserves at 450 million tonnes, containing 1.6 million
tonnes of copper with average Cu content of 0.355% and 99,000 tonnes
of molybdenum, average content 0.021%. The company plans to annually
mine 25,000-30,000 tonnes of copper and 800 tonnes of molybdenum,
which will account for 40%-50% of Armenia’s copper production and up
to 20% of its molybdenum output.

ACP received a 25-year license to develop Tekhut in 2001.

The Liechtenstein-registered Vallex F.M. Establishment owns 81% of
ACP, while Russia-based businessman Valery Mejlumian owns 19%.