Baikal mining company updated the Certificate on Udokan Mineral Resource estimation in accordance with the JORC Code

In July 2011, Baikal mining company has received the updated Certificate on Udokan Mineral Resource estimation in accordance with the JORC Code. The certificate is issued by SRK Consulting — an independent international consulting company, specializing in the mining field.

The initial reporting on Udokan copper deposit in accordance with the JORC Code was released in 2010 and was based on the data for previous years. The updated certificate includes the results of drilling in 2010.
In the course of the drilling programme in 2010, over 13,000 meters of verification, geological and geotechnical boreholes have been drilled, over 1,200 meters of trenches and over 2,500 meters of underground workings have been sampled, more than 5,000 channel and core samples have been taken for further assays.

Mineral Resources in the Measured, Indicated, Inferred categories are valued at 2.7 billion tons with an average copper content of 0.95%. Amount of copper is 25.7 million tons.

In the updated Mineral Resource Certificate part of the resources is classified in the Measured category, the amount of resources in the Indicated category has increased. The amendments are associated with the increased confidence level of data on the results of drilling in 2010, specialists of Baikal mining company explained.

The reporting of Ore Reserves is under preparation. Udokan copper deposit Ore Reserves will be declared for the first time.

Baikal mining company focused its efforts on the estimation of resources and reserves to international standards as it is an important requirement for raising project financing from international financial institutions. The Australasian Code for Reporting of Exploration Results, Mineral Resources And Ore Reserves (The JORC Code) is widely accepted by the world's leading financial institutions. Crédit Agricole Corporate and Investment Bank - one of the leading international project finance banks - pointed out that «the update of the JORC certificate for Udokan deposit demonstrates a substantial increase in Measured and Indicated resources and represents notable progress towards raising financing for the project. A key milestone of the project, the updated information on Mineral Resources will certainly gain the attention of the financial markets».