/CORRECTED/ Management Board of KOSTANAY MINERALS JSC ascertains investors it follows going-concern

/KASE, February 22, 05, resent because of editorial corrections/ - TuranAlem Securities JSC (Almaty), the underwriter and financial consultant of KOSTANAY MINERALS JSC (Kostanay, Zhetikara, the Plant), with bonds traded under official "A" listing category list of Kazakhstan stock exchange (KASE), forwarded an official letter to the Management Board and Board of directors of the Plant asking to comment on Kostanay oblast prosecutor's claims as well as winds that the Plant is near bankruptcy. According to TuranAlem Securities JSC in January of the current year, National information agency Kazinfrom informed that prosecutor's office of Kostanay oblast announced it would initiate a complex check up of subsurface users and government bodies authorized on the question of using legislation of about treasurers of the coil. According to the release of the prosecutor's office, it was planned to pay special attention on rational and safe usage of resources by enterprises, as well as environmental factors. Outward seeming this became a reason for a panic spread among investors. In his reply, Mr Zhussupouv, KOSTANAY MINERALS JSC Chairman, informs that within a period from February 7 till March 8 2005 in compliance with the task of Kostanay oblast prosecutors office, as well as with the Resolution of the prosecutor of Zhetikara region of Kostanay oblast the unplanned check for compliance with the legislation about treasurers of the soil in the activity of state authorized bodies and the Plant is being held. Specialists from Kostanay department for geology and subsurface using inspection under the Northern Kazakhstan territorial geology department, Zhitikara regional committee on managing land resources of Kostanay oblast territorial department for environment securing, bodies of sanitary -epidemic supervision and other regulating bodies are attracted. The letter says that the Plant within he period set by the legislation provided a report in compliance with all license-related issue in 2004 without any delay to Northern Kazakhstan territorial geology and subsurface using department which also approved the plan for introducing mining work for 2005 without any notices. Besides, the same regulating bodies annually inspect the activities of KOSTANAY MINERALS JSC. Within last 2 years no single violation was recorded nor fines were imposed for violation of legislation on subsurface using and environment safety", the latter says. According to the letter the Plant successfully finished its production program for 2004. Over 203 th. tonnes of profiled asbestos have been produced that is the highest figure for the last 10 years. All units are functioning properly and in 2005 the Plant obliged to manufacture and market 210 th of profiled asbestos. In January of 2005 the Plant produced 16,172 tonnes of asbestos. Mr Zhussupouv also noted during the prescheduled general meeting of the Plant on January 31, 2005 shareholders decided to boost liabilities by KZT40 m and issue 400 th common shares. "Existing shareholders expressed their intentions to buy shares", the latter says. The enterprise is initiating a number of programs aimed to promote technical upgrade, R&D ideas and enhancing the overall effectiveness and efficiency. Mr Zhusupouv does not see any reasons for any investors discomfort with respect to the business of the Plant. [2005-02-23]