DECADES OF PARTNERSHIP: NEW PROSPECTS

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1 DECADES OF PARTNERSHIP: NEW PROSPECTS May 2016

2 GROUP OF COMPANIES GOK DENISOVSKY JSC mining and processing of coal Kolmar Group LLC Kolmar Management Company GOK INAGLINSKY JSC mining and processing of coal NERYUNGRIUGOL LLC construction of underground and surface objects KSL Moscow Zug domestic and export sales of coal, trading and freight KOLMAR OPEN-PIT MINING LLC open-pit mining of coal

3 ASSETS OVERVIEW Russia Republic Sakha (Yakutia) Neryungri Licenses of Kolmar Area Denisovsky Eastern Denisovsky Central Inaglinsky Eastern Inaglinsky Nothern Inaglinsky Western Inaglinsky Reserves 62.1 mln t mln t 71.3 mln t 19.3 mln t 50.1 mln t mln t Kolmar s total balance coal reserves exceed bln tons.

4 PROJECTS OVERVIEW 48 km Amur-Yakutsk Motorway Inaglinsky Project Inaglinsky st. Reserves: 789 mt Coal grades: hard-coking coal, steam coal Current production: 2.0 mln mtpa Target RoM production: 14.0 mtpa Denisovsky Project Amur-Yakutsk Railway Line Chulman Reserves: mt Coal grades: hard-coking coal Current production: 2.0 mln mtpa Target RoM production: 6.0 mtpa Denisovsky st. Neryungri Development strategy is divided into 3 stages Start of production Inaglinsky project: - RoM production - washed coal production - output of middlings Denisovsky project: - RoM production - washed coal production - output of middlings 6+ May 2016 mln tpa Q mln tpa Q mln tpa Neryungri to TransSib and BAM Berkakit Tynda Skovorodino Berkakit

5 DENISOVSKY PROJECT OVERVIEW DENISOVSKY WASHED COAL TARGET SPECS Total moisture, ar Ash, ad Volatile Matter, ad Fluidity Gross Calorific Value, ad HGI / FSI Y 9% max 1% max 25% typical ddpm 7900 Kcal/kg 90 / mm typical Denisovskaya CPP 6.0 mtpa of raw coal processing capacity Total Sulfur, ad Phosphorus, ad Nitrogen, daf 0.35% max Eastern Denisovskaya mine mln tons of coal reserves for underground and open-pit mining Denisovskaya Mine 62,1 mln tons of coal reserves for underground mining

6 INAGLINSKY PROJECT OVERVIEW Inaglinskaya Mine 71.3 mln tons of coal reserves for underground mining Nothern area 50.1 mln tons of coal reserves for underground and open-pit mining Inaglinskaya CPP 2.0 mtpa (from 2016), 6.0 mtpa (from 2017) and 14.0 mtpa (from 2018) of raw coal processing capacity INAGLINSKY WASHED COAL TARGET SPECS Western area mln tons of coal reserves for underground and open-pit mining Total moisture, ar Ash, ad Volatile Matter, ad Fluidity Gross Calorific Value, ad 9% max 10% max 30% typical ddpm 7700 Kcal/kg Eastern area 19.3 mln tons of coal reserves for underground mining HGI / FSI Y Total Sulfur, ad Phosphorus, ad Nitrogen, daf 90 / mm typical 0.4% max

7 DEVELOPMENT (12+) Key figures Denisovskiy Inaglinskiy Project life Average annual mining volume Average annual selling volumes (coking concentrate) Key objects (commissioning) Construction period till EBITDA Capital expenditures before commissioning FCF NPV (12%) IRR Payback Period million tons. (2 + 4) 3.7 million tons 1.Denisovskaya Eastern mine 2.Denisovskaya CPP 3.Podrucheiny Open Pit Mine 3Q mln rub mln rub mln rub mln rub % ~3 years million tons (add. to 6+) 3.4 million tons 1.Inaglinskaya Mine 2.CPP Inaglinskaya-2 3Q mln rub mln rub mln rub mln rub % ~2 years 7

8 LOGISTICS AND INFRASTRUCTURE DISTANCE Km Kolmar - Vanino Kolmar - Vostochny Kemerovo - Vanino Kemerovo - Vostochny Vanino SUEK terminal Vanino sea commercial port Kolmar terminal Sovgavan Vostochny PPK3 Nakhodka VUT Mys Astaphyeva Baikal Amur Mainline Trans-Siberian Railway Amur-Yakutsk Railway Kolmar terminal (under construction) Transshipment via partners Direct contracts with ports Perspective contracts with ports Agreement of partnership with ports

9 PORT PROJECT OVERVIEW CONSTRUCTION OF PORT TERMINAL FOR COAL HANDLING IN MUCHKA BAY, VANINO INDICATORS UNITS STAGE 1 STAGE 2 Kolmar terminal Period of operation from 2020 Coal throughput mln. tons Piers for serving vessels items / running meters 1 / / 650 Deadweight of vessels thous. tons Coal warehouse mln. tons / ha 1 / 18 2 / 35 Shiploader items 1 2 Stacker-reclamer items 2 4 Railcar dumpers items 2 2 To other SEA countries

10 ALL-ROUND SUPPORT Inaglinsky Project and Kolmar Port Project are listed as priority development projects in the Russian Far East (Russian Government Executive Order # 484-р dd ). Ministry for the Development of the Russian Far East Special purpose subsidy (electric power line to Inaglinsky Project) Ministry of Transportation of the Russian Federation Design and construction of the rail line and rail way station at Inaglinsky Project (special purpose subsidy) Reconstruction of Baikal-Amur Mainline and Trans-Siberian Railway Ministry of Energy of the Russian Federation Design and engineering of the electric power line and line termination at Inaglinsky Project Far East Development Fund Project financing JSC Russian Railways Reconstruction of Baikal-Amur Mainline and Trans-Siberian Railway; Agreement of guaranteed rail freight traffic Government of Sakha Republic Development of local infrastructure and tax preferences Public JSC RAO Energy Systems of the East Long term agreement to supply steam coal to the regional power plants

11 Building new values by learning from the past ご清聴ありがとうございました