KAZAKHMYS PLC (United Kingdom) announced about suggestion for offering of common shares of Eurasia Gold Inc. at the price 0.85 Canadian dollars per share

/KASE, May 15, 07/ - Company KAZAKHMYS PLC (London), common shares of which are traded in Kazakhstan stock exchange's (KASE) category "A" official list had spread today the press-release in which the following is said: Quotation begin May 14 2007 Kazakhmys PLC announces offer to acquire Eurasia Gold Inc. Kazakhmys PLC ("Kazakhmys") (LSE: KAZ) today announced its take-over bid offer (the"Offer") to acquire all of the outstanding ordinary shares of Eurasia Gold Inc. ("Eurasia Gold") (TSX: EGX) at a price of C$0.85 in cash per Eurasia Gold share. The Offer values Eurasia Gold at approximately C$288 million, equivalent to approximately US$260 million based on the closing CAD/USD exchange rate as at 11 May 2007. Based on the TSX closing price of C$0.76 for a common share of Eurasia Gold as at 11 May 2007, the proposed Offer price represents a premium of 12%. Kazakhmys intends to formally commence the Offer on or about 15 May 2007. The Offer will be fully financed from Kazakhmys' existing cash balances Mr Kumar Mukashev, Chairman of Eurasia Gold, TKA Corporation and certain other shareholders controlled by Mr Kumar Mukashev which, in aggregate, hold or control approximately 79% of the common shares of Eurasia Gold, have entered into lock-up agreements with Kazakhmys pursuant to which they have agreed to tender all of their shares in Eurasia Gold to the Offer. Eurasia Gold has estimated resources of approximately 1.9 Moz of gold and gold equivalent (Measured & Indicated by JORC and C1 Former Soviet Union standard). Approximately half of these resources are located in Kazakhstan, with the remaining resources located in Kyrgyzstan. In addition, there is a high-grade silver deposit in Tajikistan. Eurasia Gold offers a well-balanced portfolio of commercial mining, new development and exploration opportunities, as well as a proven track record of bringing development assets into production. Eurasia Gold will put new development assets into construction in 2007/2008, with first production expected in 2009/2010. According to its public disclosure record, Eurasia Gold sold 44,989 oz of gold in 2006. The proposed acquisition is the latest step in Kazakhmys' strategy of building a diversified natural resources company in Kazakhstan and neighbouring countries. Kazakhmys continues to evaluate a wide range of opportunities to pursue this strategy. The transaction is expected to generate synergies by combining the companies' operations in the region. Vladimir Kim, Kazakhmys' Executive Chairman said: "This acquisition is an exciting step in delivering on our diversification strategy. As well as offering excellent growth potential in its own right, Eurasia Gold will also act as a stepping stone for Kazakhmys in neighbouring countries where there is potential for further expansion." Oleg Novachuk, Kazakhmys' Chief Executive said: "We believe the gold industry has a number of attractive characteristics and offers the potential to deliver substantial returns to our shareholders. In particular, the gold industry in Kazakhstan and the neighbouring states is in the early stages of a major expansion both in exploration and extraction. This presents an outstanding opportunity for a company with Kazakhmys' skills and expertise. The acquisition of Eurasia Gold creates a strong platform for future development and we will continue to pursue other opportunities in the sector where we believe the prospects and returns on investment are appropriate". Full details of the Offer will be included in the formal offer and take-over bid circular to be filed with the regulatory authorities and mailed to Eurasia Gold shareholders in accordance with applicable securities laws. The Offer will remain open for 35 days following the mailing date and will be subject to certain specified conditions, including among other things: (a) at least 75 per cent of the Eurasia Gold shares, on a fully-diluted basis, being validly deposited and not withdrawn; (b) receipt of all necessary regulatory approvals; and (c) no material adverse change having occurred in the business of Eurasia Gold. Subject to applicable laws, Kazakhmys reserves the right to withdraw the Offer and not to take up and pay for any Eurasia Gold shares deposited under such Offer unless each of the conditions of the Offer is satisfied or waived by Kazakhmys prior to the expiry of the Offer. For further information please contact:: Jinsoo Yang, Head of Investor Relations Sergei Stephantsov, Deputy Head of Investor Relations Kazakhmys PLC Tel:+44 20 7901 7800 Robin Walker Finsbury Tel:+44 20 7251 3801 NOTES TO EDITORS About Kazakhmys Kazakhmys is a London listed natural resources company with primary operations in Kazakhstan and Germany. Kazakhmys' operations are vertically integrated and its principal business is the mining, processing, smelting, refining and sale of copper and copper products as well as various by-products such as zinc, gold and silver. Kazakhmys operates 19 open pit and underground mines and two smelting and refining complexes in Kazakhstan and a copper products fabrication company in Germany. Quotation end [2007-05-15]