SOUTH CAUCASUS RAILWAYS AND GEOPROMINING SIGN AGREEMENT ON STRATEGIC COOPERATION

Noyan Tapan
Dec 1, 2009

YEREVAN, DECEMBER 1, NOYAN TAPAN. South Caucasus Railways CJSC and
GeoProMining Ltd. signed an agreement on strategic cooperation and
partnership on December 1. The agreement regulates the relations
of the sides with respect to transport services for transporting
gold ore from the Sotk mine to the Ararat gold processing plant on
mutually beneficial conditions. The transport services are provided
to GeoProMining.

According to the press service of South Caucasus Railways,
GeoProMining Ltd. and South Caucasus Railways CJSC are conducting
negotiations regarding an increase in transportation voulmes of gold
ore from the Sotk mine to the Ararat plant. It is expected that South
Caucasus Railways will make additional investments to increase the
Sotk-Vardenis-Hrazdan-Ararat section’s capacity to 1.5-2 million tons
of ore a year.

South Caucasus Railways CJSC is a wholly-owned subsidiary of Russian
Railways OJSC. South Caucasus Railways CJSC manages Armenian Railways
CJSC under a concession agreement signed on 13 February 2008. The
concession agreement was signed for 30 years, with a right of extension
for 10 years.

GeoProMining is an international privately-owned diversified metals
resource holding company, with a portfolio of exploration and mining
projects. The company was founded in 2001 and is focusing on gold,
silver, copper, molybdenum, antimony, and other metals. The company
is engaged in metal mining in Russia, Armenia, and Georgia. Among
its major assets in Armenia are the Sotk gold mine, the Ararat gold
processing plant and the Agarak copper and molybdenum enterprise.