IR-release: Q4 and FY Operational Overview 28 January 2016
Disclaimer 2 The below applies to the presentation (the Presentation ) following this important notice, and you are therefore advised to read this important notice carefully before reading, accessing or making any other use of this Presentation. This Presentation contains statements about future events and expectations that are forward-looking statements. Any statement herein (including, without limitation, a statement regarding our financial position, strategy, management plans and future objectives) that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause ALROSA s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding the future performance. The information and opinions contained in this document are provided as at the date hereof (unless indicated otherwise) and are subject to change without notice. ALROSA assumes no obligation to update, supplement or revise the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. The diamond resources and reserves estimates provided in this Presentation have been prepared and presented in accordance with the standards and classifications of the JORC Code (the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves as promulgated by the Australasian Joint Ore Reserves Committee), which differ in significant respects from the standards and classifications applicable to the disclosure of mineral resources and reserves under the laws and regulations of certain other jurisdictions, including the regulations of the U.S. Securities Exchange Commission (the SEC ) with respect to registration statements and other documents filed with the SEC. Among other things, in accordance with the JORC Code, this Presentation provides certain mineral resources estimates classified as inferred, indicated or measured, which differ in significant respects from probable and proven mineral reserves estimates and are not disclosed in certain jurisdictions, including in SEC filings. There can be significant uncertainty as to whether mineral resources can ever be feasibly and commercially mined. For further explanation of the JORC Code, see the JORC website at www.jorc.org. This Presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire any securities in any jurisdiction or an inducement to enter into any investment activity. The contents hereof should not be construed as investment, legal, tax, accounting or other advice, and investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such issuer and the nature of the securities and consult their own advisers as to legal, financial, tax and other related matters. This Presentation has not been independently verified. No representation or warranty or undertaking, express or implied, is made as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation. None of ALROSA nor any of its shareholders, directors, officers or employees, affiliates, advisors, representatives nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection therewith. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness. This Presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons in whose possession this Presentation and/or such information may come are required to inform themselves about and to observe such restrictions. Some numerical figures included in this Presentation have been subject to rounding adjustments. By reviewing and/or attending this Presentation you acknowledge and agree to be bound by the foregoing.
Operational of ALROSA 3 Diamond production +6% 36.2 mln cts 35.9 mln t 1.01 cpt 38.3 mln cts 37.1 mln t 1.03 cpt Diamonds produced (mln cts) 7.9 8.0 9.7 10.6 8.4 9.6 11.6 8.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore and gravels processed (mln t) 5.4 10.3 13.0 7.3 5.5 10.8 13.5 7.4 Grade (cpt) 1.47 0.78 0.75 1.45 1.52 0.89 0.86 1.17 results diamond production totalled 38.3 million carats, an increase of 6% y-o-y Production results were driven by the following factors: - launch of Botuobinskaya pipe, - diamond output growth at Karpinskogo-1 pipe of Lomonosov deposit (Severalmaz), - growth in diamond production at the Mir underground mine as a result of measures to stabilize its hydrogeological conditions, - the Udachny underground mine development
ALROSA s production footprint 4 Mining methods: Underground mining (25%) Arkhangelsk Region (5%) Lomonosov Division (5%) Arkhangelskaya pipe (2%) Open-pit mining (55%) Alluvial mining (21%) Russia Arkhangelsk Karpinskogo-1 pipe (3%) Russia Republic of Sakha (Yakutia) (95%) Almazy Anabara (9%) Nizhne-Lenskoye (5%) Republic of Sakha (Yakutia) Udachny Division (11%) Aikhal Division (32%) Jubilee pipe (25%) Aikhal pipe (7%) Komsomolskaya pipe (less than 1%) Mirny Division (18%) Mir pipe (6%) Udachny Aikhal Nyurba Mirny Yakutsk Udachnaya pipe (10%) Zarnitsa pipe (less than 1%) Alluvial deposits (less than 1%) Nyurba Division (20%) Nyurbinskaya pipe (13%) International pipe (11%) Alluvial deposits (2%) Botuobinskaya pipe (2%) Alluvial deposits (5%) Note: percentage in brackets indicates the share of region/division/pipe in ALROSA diamond production
AIKHAL DIVISION 5
Aikhal Division 6 Division structure Processing Plant No. 8 Aikhal pipe Komsomolskaya pipe Processing Plant No. 14 Jubilee pipe Location of operations Komsomolskaya pipe 8 km Processing Plant No. 14 Capacity: 10 mln t annually 18 km Share in ALROSA production: 32% Jubilee pipe 1 km Processing Plant No. 8 Capacity: 1.7 mln t annually Mining methods: Aikhal pipe Underground mining Open-pit mining Results vs. Diamonds produced 12,322 (2%) Almazy Anabara Ore processed 9,141 (4%) Nizhne-Lenskoye Tonnage Resources inclusive of reserves* Tonnage Reserves* Grade (cpt) Grade (cpt) Contained diamonds 117,227 1.04 121,578 Contained diamonds 215,804 1.01 218,694 * according to JORC Code (as of 01.07.2013) 0 200 400 km Udachny Division Aikhal Division Udachny Aikhal Nyurba Division Nyurba Mirny Division Mirny Yakutsk
Operational of Aikhal Division 7 Diamond production (2%) 12,565 000 cts 9,478 000 t 1.33 cpt 12,322 000 cts 9,141 000 t 1.35 cpt Diamonds produced 3,000 2,368 2,981 4,216 2,596 2,676 3,849 3,201 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 2,436 2,244 2,168 2,630 2,203 2,249 2,069 2,620 Grade (cpt) 1.23 1.06 1.38 1.60 1.18 1.19 1.86 1.22 results diamond production was 12,322 thousand carats, down by 2% y-o-y Lower diamond output was a result of lower production at the Aikhal underground mine, driven by longer than planned maintenance works at Processing Plant No. 8
Jubilee pipe 8 Mining method: Open-pit mining current mining area Commissioned: 1985 0 m surface Current open pit depth: 370 m -370 m current open pit depth eastern lobe central lobe western lobe Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Tonnage Grade (cpt) Indicated Contained diamonds 129,017 0.84 108,166 Inferred 65,977 0.62 40,594 Total 194,994 0.76 148,760 Indicated resources Inferred resources Resources not classified in accordance with JORC Code* * potential resources according to the Russian State Commission for Mineral Reserves classification -720 m target open pit depth; boundary of indicated resources -1,100 m boundary of inferred resources -1,300 m boundary of exploration
Jubilee pipe: production 9 25% Share in ALROSA production Increase in diamond production in by 3% y-o-y was driven by mining of higher grade ore from the pipe s central lobe +3% 9,122 000 cts 8,506 000 t 1.07 cpt 2,325 2,357 2,141 2,298 9,405 000 cts 8,355 000 t 1.13 cpt 2,383 2,381 2,416 2,225 Diamonds produced Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 2,225 2,215 1,783 2,283 2,174 2,190 1,721 2,270 Grade (cpt) 1.04 1.06 1.20 1.01 1.10 1.09 1.40 0.98
Aikhal pipe 10 Period of open-pit mining: 1961-1996 current mining area Open pit depth: 305 m 0 m surface Mining method: Underground mine Start of underground mining operations: 2005-305 m open pit depth south-western ore body -500 m boundary of indicated resources north-eastern ore body Resources inclusive of reserves (as of 01.07.2013) according to JORC Code -700 m boundary of inferred resources of southwestern ore body Tonnage Grade (cpt) Contained diamonds western lobe eastern lobe Indicated 7,729 4.68 36,159 Inferred 8,269 3.87 31,967 Total 15,998 4.26 68,126 Indicated resources Inferred resources Resources not classified in accordance with JORC Code* * potential resources according to the Russian State Commission for Mineral Reserves classification -900 m boundary of exploration
Aikhal pipe: production 11 7% Share in ALROSA production Decrease in diamond output in by 14% y-o-y was a result of lower production, driven by longer than planned maintenance works at Processing Plant No. 8 in (14%) 3,292 000 cts 589 000 t 5.59 cpt 1,910 2,841 000 cts 526 000 t 5.40 cpt 1,406 Diamonds produced 639 0 743 213 296 926 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 116 0 147 326 29 59 261 177 Grade (cpt) 5.51 0.00 5.05 5.86 7.34 5.01 5.39 5.23
Komsomolskaya pipe 12 Mining method: Open-pit mining Commissioned: 2000 Current open pit depth: 337 m current mining area 0 m surface -337 m current open pit depth Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Tonnage Grade (cpt) Indicated Contained diamonds 4,812 0.38 1,808 Total 4,812 0.38 1,808 Indicated resources -460 m target open pit depth; boundary of indicated resources
Komsomolskaya pipe: production 13 less than 1% Share in ALROSA production Decrease in diamond production in by 50% y-o-y was driven by planned maintenance works at Processing Plant No. 8 from mid-january to June (50%) 152 000 cts 383 000 t 0.40 cpt 97 77 000 cts 260 000 t 0.30 cpt Diamonds produced 36 11 8 0 0 27 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 95 29 238 21 0 0 87 173 Grade (cpt) 0.38 0.38 0.41 0.37 0.00 0.00 0.31 0.29
MIRNY DIVISION 14
Mirny Division 15 Division structure Processing Plant No. 3 Mir pipe International pipe Vodorazdelnye Galechniki placer Tailings of Processing Plant No. 5 Dredges No. 201, 202, 203 Irelyakhskaya placer Gornoye placer Location of operations Vodorazdelnye Galechniki placer 10 km Share in ALROSA production: 18% 16 km Processing Plant No. 3 Capacity: 2 mln t annually 4 km Dredges No. 201, 202, 203 Capacity: 4 mln t annually International pipe Mir pipe Irelyakhskaya placer Gornoye placer Mining methods: Underground mining Alluvial mining Results vs. Diamonds produced 6,908 +13% Ore and gravels processed, incl.: 5,706 +16% Processing Plant No.3 2,205 +14% Almazy Anabara Nizhne-Lenskoye Dredges No. 201, 202, 203 3,501 +18% Tonnage Tonnage Reserves* Grade (cpt) Resources inclusive of reserves* Grade (cpt) Contained diamonds 34,141 3.92 133,815 Contained diamonds 45,874 4.07 186,765 0 200 400 km Udachny Division Udachny Aikhal Division Aikhal Nyurba Division Nyurba Mirny Division Mirny Yakutsk * according to JORC Code (as of 01.07.2013)
Operational of Mirny Division 16 Diamond production +13% 6,908 000 cts 6,088 000 cts 5,706 000 t 1.21 cpt 4,903 000 t 1.24 cpt Diamonds produced 1,477 1,553 2,438 1,941 1,922 1,509 1,536 621 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore and gravels processed 469 1,325 1,479 1,630 486 1,693 1,918 1,609 Grade (cpt) 3.15 1.17 0.42 1.50 3.99 1.14 0.79 0.95 results diamond production totalled 6,908 thousand carats, an increase of 13% y-o-y Growth in diamond production was due to a 50% increase in output at the Mir underground mine, which resulted from measures to decrease water inflow in the mine detected in Q1
International pipe 17 Period of open-pit mining: 1971-1981 0 m surface Period of open pit development: 2005-2011 Open pit depth: 315 m -315 m open pit depth Mining method: Underground mining current mining area Start of underground mining operations: 1999 Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Tonnage Grade (cpt) Indicated Contained diamonds 4,208 8.73 36,739 Inferred 1,542 7.98 12,304 Total 5,750 8.53 49,043 Indicated resources Inferred resources Resources not classified in accordance with JORC Code* * potential resources according to the Russian State Commission for Mineral Reserves classification -1,085 m boundary of indicated resources -1,215 m boundary of inferred resources -1,475 m boundary of exploration
International pipe: production 18 11% Share in ALROSA production Increase in diamond production in by 4% y-o-y was driven by longer than planned maintenance works at Processing Plant No. 3 in and the replacement of a number of the underground mine s skip shaft components in May July +4% Diamonds produced 3,862 000 cts 445 000 t 8.68 cpt 1,312 777 1,534 4,024 000 cts 486 000 t 8.29 cpt 1,397 1,139 678 810 173 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 151 97 21 176 171 134 84 96 Grade (cpt) 8.69 8.01 8.24 8.71 8.17 8.53 8.04 8.41
Mir pipe 19 Period of open-pit mining: 1959-2001 current mining area Open pit depth: 525 m 0 m surface Mining method: Underground mining Start of underground mining operations: 2009-525 m open pit depth -545 m upper boundary of indicated resources dry shutdown Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Tonnage Grade (cpt) Contained diamonds -950 m boundary of indicated resources Indicated 29,211 3.55 103,782 Inferred 10,913 3.11 33,940 Total 40,124 3.43 137,722 Indicated resources Inferred resources -1,235 m boundary of exploration
Mir pipe: production 20 6% Share in ALROSA production Growth in diamond production in by 50% y-o-y resulted from measures to mitigate the increased water inflow in the underground mine detected in Q1, as well as from higher grade ore processing +50% Diamonds produced 1,463 000 cts 481 000 t 3.04 cpt 480 774 2,198 000 cts 647 000 t 3.40 cpt 488 559 633 518 52 139 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 20 141 64 256 145 182 176 144 Grade (cpt) 2.60 3.40 2.17 3.03 3.37 3.07 3.60 3.60
Alluvial and technogenic deposits 21 Deposits Vodorazdelnye Galechniki placer Irelyakhskaya placer Gornoye placer Tailings of Processing Plant No. 5 2% Share in ALROSA production Decrease in diamond production in by 10% y-o-y was driven by processing of lower grade gravels from tailings of Processing Plant No. 5 and placers (10%) 764 000 cts 3,978 000 t 0.19 cpt 296 309 686 000 cts 4,574 000 t 0.15 cpt 224 199 207 Diamonds produced 113 130 56 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gravels processed 298 1,087 1,394 1,199 169 1,378 1,658 1,369 Grade (cpt) 0.38 0.27 0.22 0.11 0.33 0.16 0.12 0.15 Gravels processed Results Grade (cpt) Diamonds produced 4,574 0.15 686 Resources and reserves of Mirny Division alluvial placers were not included into JORC Code valuation
UDACHNY DIVISION 22
Udacnhy Division 23 Division structure Processing Plant No. 12 Udachnaya pipe Zarnitsa pipe Delluvialny placer Ruchey Piropovy placer Location of operations Udachnaya pipe 2 km Zarnitsa pipe 21 km Share in ALROSA production: 11% Processing Plant No. 12 Capacity: 12 mln t annually Delluvialny placer Ruchey Piropovy placer Mining method Underground mining Open-pit mining Alluvial mining Results vs. Diamonds produced 4,297 +17% Almazy Anabara Ore processed 5,377 +12% Nizhne-Lenskoye Tonnage Tonnage Reserves* Grade (cpt) Resources inclusive of reserves* Grade (cpt) * according to JORC Code (as of 01.07.2013) Contained diamonds 150,642 0.88 132,358 Contained diamonds 223,976 1.07 239,771 Udachny Division Udachny Aikhal Division Aikhal Nyurba Division Nyurba Mirny Division Mirny 0 200 400 km Yakutsk
Operational of Udachny Division 24 Diamond production +17% 4,297 000 cts 3,679 000 cts 5,377 000 t 0.80 cpt 4,814 000 t 0.76 cpt Diamonds produced 1,117 1,039 1,229 1,349 1,454 1,132 293 362 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore and gravels processed 1,570 1,226 455 1,563 1,575 1,583 570 1,649 Grade (cpt) 0.71 0.85 0.64 0.79 0.86 0.92 0.64 0.69 results diamond production was 4,297 thousand carats, up by 17% y-o-y Growth in diamond production was due to the launch of production at the Udachny underground mine and new placers Dellyuvialnaya and Ruchei Piropovy, as well as increased planned processing of higher grade stockpiles from the western ore lobe of the Udachnaya pipe
Udachnaya pipe 25 Mining method: Open-pit and underground mining Commissioned: 1971 current mining area Ore stockpile (measured resources) Current open pit depth: 640 m Start of underground mining operations: -640 m current open pit depth -890 m boundary of indicated resources Resources inclusive of reserves (as of 01.07.2013) according to JORC Code western lobe Tonnage Grade (cpt) Contained diamonds eastern lobe Measured 4,820 1.52 7,329 Indicated 82,297 1.49 122,278 Inferred 78,305 1.25 98,157 Total 165,422 1.38 227,764 Measured resources Indicated resources Inferred resources -1,390 m boundary of inferred resources
Udachnaya pipe: production 26 9% Share in ALROSA production Growth in diamond production in by 4% y-o-y was a result of increased planned processing of higher grade stockpiles from the western ore lobe +4% 3,390 000 cts 3,710 000 t 0.91 cpt 1,055 1,012 1,065 3,515 000 cts 3,250 000 t 1.08 cpt 1,290 1,378 Diamonds produced 269 222 624 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 1 180 1 055 305 1,170 1,234 1,201 200 615 Grade (cpt) 0.89 0.96 0.88 0.91 1.05 1.15 1.11 1.02
Udachny underground mine: production 27 1% Share in ALROSA production The Udachny underground mine is developing in line with the Company s plan; for, the plan implied processing of 262 thousand tonnes of ore and production of 413 thousand carats of diamonds 3.6x 114 000 cts 89 000 t 1.28 cpt 413 000 cts 262 000 t 1.58 cpt 336 Diamonds produced 114 77 0 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 0 0 0 89 0 0 50 212 Grade (cpt) 0.00 0.00 0.00 1.28 0.00 0.00 1.54 1.58
Zarnitsa pipe 28 Mining method: Open-pit mining current mining area Commissioned: 1999 Current open pit depth: 90 m 0 m surface -90 m current open pit depth -200 m boundary of indicated resources; target open pit depth Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Tonnage Grade (cpt) Contained diamonds -700 m boundary of exploration Indicated 58,554 0.21 12,007 Total 58,554 0.21 12,007 Indicated resources Resources not classified in accordance with JORC Code* * potential resources according to the Russian State Commission for Mineral Reserves classification
Zarnitsa pipe: production 29 less than 1% Share in ALROSA production Increase in diamond production in by 28% y-o-y was due to processing of higher grade ore +28% Diamonds produced 176 000 cts 1,015 000 t 0.17 cpt 62 27 24 225 000 cts 993 000 t 0.23 cpt 50 53 42 64 66 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 390 171 150 304 253 195 320 225 Grade (cpt) 0.16 0.16 0.16 0.16 0.21 0.21 0.20 0.29
Alluvial placers 30 Deposits Dellyuvialnaya placer Ruchei Piropovy placer less than 1% Share in ALROSA production In Q1, mining at new alluvial placers in the Udachniy Division was launched In Q3, no gravels were proccessed in line with the Company's production plan 145 000 cts 872 000 t 0.17 cpt 106 Diamonds produced 34 0 0 0 0 6 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gravels processed 0 0 0 0 88 187 0 597 Grade (cpt) 0.00 0.00 0.00 0.00 0.07 0.18 0.00 0.18
м 31 NYURBA DIVISION
Nyurba Division 32 Division structure Location of operations Processing Plant No. 15 Nyurbinskaya placer Botuobinskaya placer* Processing Plant No. 16 Nyurbinskaya pipe Botuobinskaya pipe Nyurbinskaya placer * pre-construction activities and waste stripping are in progress 5 km Processing Plant No. 15 Capacity: 0.5 mln t annually Processing Plant No. 16 Capacity: 1.4 mln t annually 2 km Share in ALROSA production: 20% Botuobinskaya placer Nyurbinskaya pipe Mining methods: Botuobinskaya pipe Nyurbinskaya placer Open-pit mining Alluvial mining Results vs. 2013 Diamonds produced 7,510 +2% Almazy Anabara Ore and gravels processed 2,040 +2% Nizhne-Lenskoye Tonnage Tonnage Reserves** Grade (cpt) Resources inclusive of reserves** Grade (cpt) Contained diamonds 30,087 4.09 123,178 Contained diamonds 47,329 3.72 175,945 0 200 400 km Udachny Division Udachny Aikhal Division Aikhal Nyurba Division Nyurba Mirny Division Mirny Yakutsk ** according to JORC Code (as of 01.07.2013)
Operational of Nyurba Division 33 Diamond production +2% 7,363 000 cts 2,000 000 t 3.68 cpt 7,510 000 cts 2,040 000 t 3.68 cpt Diamonds produced 2,067 848 2,264 2,184 2,084 1,152 2,064 2,245 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 410 375 763 452 351 444 775 470 Grade (cpt) 5.04 2.26 2.97 4.83 5.84 2.59 2.66 4.78 results Diamond production in was 7,510 thousand carats, up 2% y-o-y Increase in diamond production was caused by the launch of production at the Botuobinskaya pipe and by processing of higher grade gravels
Nyurbinskaya pipe 34 Mining method: Open-pit mining Commissioned: 2001 Current open pit depth: 300 m current mining area 0 m surface -300 m current open pit depth -450 m target open pit depth Resources inclusive of reserves (as of 01.07.2013) according to JORC Code -570 m boundary of indicated resources Tonnage Grade (cpt) Indicated Contained diamonds 12,264 4.13 50,661 Inferred 1,192 5.42 6,465 Total 13,456 4.25 57,126 Indicated resources Inferred resources Resources not classified in accordance with JORC Code* * potential resources according to the Russian State Commission for Mineral Reserves classification -750 m boundary of exploration; boundary of inferred resources
Nyurbinskaya pipe: production 35 13% Share in ALROSA production Decrease in diamond production in by 26% y-o-y was in line with loading of Processing Plant No. 16 with ore from the Botuobinskaya pipe and sands from the Nyurbinskaya placer (26%) Diamonds produced 6,542 000 cts 1,255 000 t 5.21 cpt 2,067 597 1,776 2,144 4,809 000 cts 978 000 t 4.92 cpt 1,735 526 1,008 1,539 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 410 113 305 427 304 121 194 360 Grade (cpt) 5.04 5.28 5.82 5.02 5.16 4.35 5.20 4.28
Botuobinskaya pipe 36 Current open pit depth: 92 m current mining area Commencement of waste stripping: December 2012 0 m surface -92 m current open pit depth overburden -580 m target open pit depth; boundary of indicated resources Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Tonnage Grade (cpt) Indicated Contained diamonds 13,679 5.19 71,044 Inferred 2,685 5.14 13,790 Total 16,364 5.18 84,834 Indicated resources Inferred resources Resources not classified in accordance with JORC Code* * potential resources according to the Russian State Commission for Mineral Reserves classification -780 m boundary of inferred resources -980 m boundary of exploration
Botuobinskaya pipe: production 37 2% Share in ALROSA production On 10 March ALROSA started ore mining at the Botuobinskaya pipe In Q1, Processing Plant No. 16 handled the first round of ore from the Botuobinskaya pipe 942 000 cts 135 000 t 6.98 cpt 590 313 Diamonds produced 0 0 0 0 0 39 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 0 0 0 0 47 0 12 76 Grade (cpt) 0.00 0.00 0.00 0.00 10.16 0.00 3.22 7.81
Alluvial deposits 38 Deposits Nyurbinskaya placer Botuobinskaya placer 5% Share in ALROSA production Increase in diamond production in by 2.1 times y-o-y was due to the planned processing of higher grade gravels 2.1x 1,759 000 cts Diamonds produced 821 000 cts 745 000 t 1.10 cpt 0 251 488 927 000 t 1.90 cpt 39 0 626 1,017 116 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gravels processed 0 262 458 25 0 323 569 35 Grade (cpt) 0.00 0.96 1.07 1.57 0.00 1.94 1.79 3.31 Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Tonnage Grade (cpt) Contained diamonds 13,668 1.68 22,989
СЕВЕРАЛМАЗ 39 LOMONOSOV DIVISION (SEVERALMAZ)
Lomonosov Division (Severalmaz) 40 Division structure Processing Plant No. 1 Arkhangelskaya pipe Karpinskogo-1 pipe Location of operations Karpinskogo-1 pipe 2 km Processing Plant No. 1 Share in ALROSA production: 5% Module No. 2 Capacity: 3 mln t annually Arkhangelskaya pipe 3 km Module No. 1 Capacity: 1 mln t annually Mining method: Open-pit mining Results vs. Diamonds produced 1,950 +19% Ore processed 3,988 +21% Tonnage Reserves* Grade (cpt) Contained diamonds 75,525 0.85 64,107 Arkhangelsk Lomonosov Division Tonnage Resources inclusive of reserves* Grade (cpt) * according to JORC Code (as of 01.07.2013) Contained diamonds 125,790 0.92 115,501 0 200 400 km
Operational of Lomonosov Division 41 Diamond production +19% 1,639 000 cts 1,950 000 cts 3,988 000 t 0.49 cpt 3,309 000 t 0.50 cpt Diamonds produced 233 394 523 488 450 488 514 498 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 481 808 1,022 998 885 1,021 1,079 1,003 Grade (cpt) 0.48 0.49 0.51 0.49 0.51 0.48 0.48 0.50 results In, production totalled 1,950 thousand carats, up 19% y-o-y Diamond production growth was due to higher volumes of ore processed after the processing plant's second module was launched and diamond production at Karpinskogo-1 pipe commenced
Arkhangelskaya pipe 42 Mining method: Open-pit mining Commissioned: 2005 Current open pit depth: 135 m current mining area 0 m surface -135 m current open pit depth -324 m target open pit depth -460 m boundary of indicated resources Resources inclusive of reserves (as of 01.07.2013) according to JORC Code Tonnage Grade (cpt) Contained diamonds Indicated 56,226 0.77 43,406 Inferred 39,408 0.98 38,623 Total 95,634 0.86 82,029 Indicated resources Inferred resources -940 m boundary of inferred resources
Arkhangelskaya pipe: production 43 2% Share in ALROSA production Diamond production slowdown in by 37% y-o-y was caused by the planned reduction of ore processing as a result of the launch of Karpinskogo-1 pipe and processing of lower grade ore (37%) Diamonds produced 1,373 000 cts 2,793 000 t 0.49 cpt 233 394 523 222 861 000 cts 1,903 000 t 0.45 cpt 175 163 232 291 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 481 808 1,022 482 330 539 502 531 Grade (cpt) 0.48 0.49 0.51 0.46 0.53 0.30 0.46 0.55
Karpinskogo-1 pipe 44 Current open pit depth: 98 m current mining area Commencement of waste stripping: 2009 0 m surface -98 m current open pit depth overburden -262 m target open pit depth -462 m boundary of indicated resources Resources inclusive of reserves (as of 01.07.2013) according to JORC Code -662 m boundary of inferred resources Tonnage Grade (cpt) Contained diamonds Indicated 24,988 1.08 26,960 Inferred 5,168 1.26 6,512 Total 30,156 1.11 33,472 Indicated resources Inferred resources Resources not classified in accordance with JORC Code* * potential resources according to the Russian State Commission for Mineral Reserves classification -942 m boundary of exploration
Karpinskogo-1 pipe: production 45 3% Share in ALROSA production On 6 October, Severalmaz launched production at Karpinskogo-1 pipe In line with the pipe development plan, 2.1 thousand tonnes of ore was processed and 1.1 thousand carats of diamonds was produced in 4.1x 266 000 cts 516 000 t 0.51 cpt 1,089 000 cts 2,086 000 t 0.52 cpt 266 275 325 282 206 Diamonds produced 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore processed 0 0 0 516 555 482 577 472 Grade (cpt) 0.00 0.00 0.00 0.52 0.50 0.67 0.49 0.44
ALMAZY ANABARA
Almazy Anabara 47 Deposits Morgogor placer Istok placer Holomolokh placer Ebelyakh placer Gusinaya placer Ruchey 41 placer Kurung-Yuryakh placer 9% Share in ALROSA production In Q1 and Q4, no gravels were proccessed due to seasonality of gravel mining Diamond production growth in by 8% y-o-y resulted from processing of higher grade gravels from Gusinaya and Ebelyakh placers +8% Diamonds produced (mln cts) 3 059 000 cts 5 604 000 t 0,55 cpt 1,239 1,820 3 309 000 cts 5 222 000 t 0,63 cpt 1,386 1,923 Diamonds produced Gravels processed Results vs. 3,309 +8% 5,222 (7%) Gravels processed (mln t) Grade (cpt) 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 2,200 3,404 0 0 1,898 3,324 0 0.00 0.56 0.53 0.00 0.00 0.73 0.58 0.00 Tonnage Reserves* Grade (cpt) Contained diamonds 36,319 0.74 26,749 Resources inclusive of reserves* Tonnage Grade (cpt) Contained diamonds 36,816 0.80 29,597 * according to JORC Code (as of 01.07.2013)
НИЖНЕ-ЛЕНСКОЕ 48 NIZHNE-LENSKOYE
Nizhne-Lenskoye 49 Deposits Molodo placer Billyakh placer Ruchey Shlihovoy placer 5% Share in ALROSA production In Q1 and Q4, no gravels were proccessed due to seasonality of gravel mining Diamond production growth in by 8% y-o-y resulted from processing of higher grade gravels +8% 1,818 000 cts 5,814 000 t 0.31 cpt 1,234 1,964 000 cts 5,640 000 t 0.35 cpt 1,413 Diamonds produced (mln cts) 0 584 0 0 551 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gravels processed (mln t) 0 2,080 3,734 0 0 1,888 3,752 0 Grade (cpt) 0.00 0.28 0.33 0.00 0.00 0.29 0.38 0.00 Diamonds produced Gravels processed Results vs. 1,964 +8% 5,640 (3%)
Appendix 50
Diamond production 51 000 cts Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Aikhal Division 12,565 12,322 3,000 2,368 2,981 4,216 2,596 2,676 3,849 3,201 Jubilee pipe 9,122 9,405 2,325 2,357 2,141 2,298 2,383 2,381 2,416 2,225 Aikhal underground mine 3,292 2,841 639 0 743 1,910 213 296 1,406 926 Komsomolskaya pipe 152 77 36 11 97 8 0 0 27 50 Mirny Division 6,088 6,908 1,477 1,553 621 2,438 1,941 1,922 1,509 1,536 International underground mine 3,862 4,024 1,312 777 173 1,534 1,397 1,139 678 810 Mir underground mine 1,463 2,198 52 480 139 774 488 559 633 518 Alluvial and technogenic deposits 764 686 113 296 309 130 56 224 199 207 Udachny Division 3,679 4,297 1,117 1,039 293 1,229 1,349 1,454 362 1,132 Udachnaya pipe 3,390 3,515 1,055 1,012 269 1,065 1,290 1,378 222 624 Udachnaya underground mine 114 413 - - - 114 0 0 77 336 Zarnitsa pipe 176 225 62 27 24 50 53 42 64 66 Alluvial deposits - 145 - - - - 6 34 0 106 Nyurba Division 7,363 7,510 2,067 848 2,264 2,184 2,048 1,152 2,064 2,245 Nyurbinskaya pipe 6,542 4,809 2,067 597 1,766 2,144 1,735 526 1,008 1,539 Botuobinskaya pipe - 942 - - - - 313 0 39 590 Alluvial deposits 821 1,759 0 251 488 39 0 626 1,017 116 Lomonosov Division (Severalmaz) 1,639 1,950 233 394 524 488 450 488 514 498 Arkhangelskaya pipe 1,373 861 233 394 524 222 175 163 232 291 Karpinskogo-1 pipe 266 1,089 - - - 266 275 325 282 206 Almazy Anabara 3,059 3,309 0 1,239 1,820 0 0 1,386 1,923 0 Nizhne-Lenskoye 1,818 1,964 0 584 1,234 0 0 551 1,413 0 Total 36,212 38,260 7,894 8,033 9,736 10,555 8,385 9,629 11,635 8,612
Ore and sands processing 52 000 t Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Aikhal Division 9,478 9,141 2,436 2,244 2,168 2,630 2,203 2,249 2,069 2,620 Jubilee pipe 8,506 8,355 2,225 2,215 1,783 2,283 2,174 2,190 1,721 2,270 Aikhal underground mine 589 526 116 0 147 326 29 59 261 177 Komsomolskaya pipe 383 260 95 29 238 21 0 0 87 173 Mirny Division 4,903 5,706 469 1,325 1,479 1,630 486 1,693 1,918 1,609 International underground mine 445 486 151 97 21 176 171 133 84 96 Mir underground mine 481 647 20 141 64 256 145 182 176 144 Alluvial and technogenic deposits 3,978 4,574 298 1,087 1,394 1,199 169 1,378 1,658 1,369 Udachny Division 4,814 5,377 1,570 1,226 455 1,563 1,575 1,583 570 1,649 Udachnaya pipe 3,710 3,250 1,180 1,055 305 1,170 1,234 1,201 200 615 Udachnaya underground mine 89 262 - - - 89 0 0 50 212 Zarnitsa pipe 1,015 993 390 171 150 304 253 195 320 225 Alluvial deposits - 872 - - - - 88 187 0 597 Nyurba Division 2,000 2,040 410 375 763 452 351 444 775 470 Nyurbinskaya pipe 1,255 978 410 113 305 427 304 121 194 360 Botuobinskaya pipe - 135 - - - - 47 0 12 76 Alluvial deposits 745 927 0 262 458 25 0 323 569 35 Lomonosov Division (Severalmaz) 3,309 3,988 481 808 1,022 998 885 1,021 1,079 1,003 Arkhangelskaya pipe 2,793 1,903 481 808 1,022 482 330 539 502 531 Karpinskogo-1 pipe 516 2,086 - - - 516 555 482 577 472 Almazy Anabara 5,604 5,222 0 2,200 3,404 0 0 1,898 3,324 0 Nizhne-Lenskoye 5,814 5,640 0 2,080 3,734 0 0 1,888 3,752 0 Total 35,922 37,114 5,366 10,258 13,024 7,274 5,500 10,775 13,487 7,351
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