GEOPROMINING GOLD INCREASES ORE PROCESSING 12.8% FOR Q1 2010

PanARMENIAN.Net
April 21, 2010 – 15:26 AMT 10:26 GMT

GeoProMining Gold Company (owed by GeoProMining Group) increased ore
processing by 12.8% for Q1 2010 to 120,348 tons against 106,657 tons
for the same period of 2009, GeoProMining press office in Armenia
reported.

Ore recovery reduced to 100,980 tons for the period under review
against 106.062 tons for Q1 2009. Ore extraction decreased by 44.03%
for Q1 2010 against 72.93% for Q1 2009. Overburden operations grew
to 801,024 cu m against 539,829 cu m for Q1 2009. Export of gold
decreased by 42.4% to 138,525 kg against 240,167 kg for Q1 2009.

Overburden operations were increased in 2010, but extraction
percentage fell. The company explained that the Sotk deposit is rich
but overburden ratio is very high and ore is difficult to process.

There are antimony sulfide ores and non-oxide ores in the deposit
that need multi-stage processing, which requires serious investments,
technological and structural changes. Recovery of the given type of
ores has reduced gold extraction ratio at Ararat Gold Recovery Plant.

At present specialized institutes are exploring the Sotk deposit to
find the necessary technologies to increase gold extraction ratio.

Variety of ore types at the Sotk deposit requires a complex extraction
technology. GeoProMining is working on an investment project of
technical modernization of the Sotk deposit and underground extraction,
as well as reconstruction of the concentrating plant in the town of
Ararat. The project will be implemented within the coming 3-4 years.

GeoProMining Company acquired 100% shares of Sterlite Gold Ltd. from
International Vedanta Resources in September 2007. Sterlite Gold was
the sole owner of AGRC. Afterwards, AGRC was renamed into GPM Gold.

GeoProMining Group is an international private company of diversified
metal resources, founded in 2001.