ABOUT STATE OWNED BLOCK OF SHARES OF OJSC "CORPORATION KAZAKHMYS" - THE GOVERNMENT OF KAZAKHSTAN

/IRBIS, Nov.15, 99/ - On November 3, 1999 the government of Kazakhstan issued a decree #1646 "On state owned block of shares of open joint stock company "Corporation Kazakhmys". The agency IRBIS believes it expedient to give the full text of this document: Beginning of quote The government of Kazakhstan enacts: 1. To accept the proposal of open joint stock company "Corporation Kazakhmys (hereafter - Company) to grant the government of Kazakhstan 100,000,000 (one hundred million) US dollar loan on following terms: 1) the Company ensures granting of a loan to the government of Kazakhstan for the term of three years; 2) funds will be received in following order: 70 (seventy) million US dollars till the end of 1999 and 30 (thirty) million US dollars in the first quarter of 2000; 3) to pass under a confidence management of Kim V.S. - the president of the Company state owned block of shares amounting to thirty five percent of the authorized capital, as defined by the law, beginning from June 8, 2000 till the end of the term of loan agreement without the right to buy back abovementioned state owned block of shares, with the right to put up as a collateral by an agreement with State property and privatization committee of the Ministry of Finance of Kazakhstan, without the right of the custodian manager to take any actions that may cause its actual alienation and worsening of financial situation or causing property damage to the Company or decreasing the portion of the state in the authorized capital of the Company; 4) loan interest will be equal to LIBOR + 0.5 percent APR paid semiannually. 2. The Ministry of Finance of Kazakhstan legally ensure: 1) singing a loan agreement and confidence management contract for abovementioned state owned block of shares with the terms specified in point 1 of this decree; 2) sale of state owned block of shares of the Company at an open tender after expiration of loan term (with participation of financial advisor assigned by an agreement with the lenders who granted abovementioned loan) and sending the proceeds from sale of abovementioned block of shares to the budget; 3) making a proposal to bring the decisions made by the government of Kazakhstan earlier in accord with this decree. 3. To assign the Deputy Prime-Minister of Kazakhstan Utembaev E.A. as a supervisor for this decree. 4. This decree comes into effect from the day it is signed. End of quote The decree was signed by Prime-Minister of Kazakhstan K.Tokaev. Notes: This text has been composed by the specialists of "IRBIS" (Almaty, Kazakhstan) from the copy of the decree to inform its clients. "IRBIS" employees made every effort to ensure the accuracy of composed text of the decree. Agency "IRBIS" is not responsible for consequences resulting from using the statements and regulations contained in this electronic version of the text of the decree, for using this version of the text of the decree as a basis or for any omissions in the text of the decree.