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ALROSA holds first Supervisory Board meeting

29
Aug '05
Russian diamond maker ALROSA Co Ltd announced on August 25, 2005 in Moscow the newly elected (at the Shareholders' Annual Meeting on June 25, 2005) Supervisory Board of ALROSA Co. Ltd. held its first meeting. The Board unanimously elected its Chairman – RF Finance Minister Alexei Kudrin and Vice Chairman – Chairman of the Sakha (Yakutia) Republican Government Yegor Borisov, both of them will also continue to execute their current duties in the RF and Sakha governments.

The members of the Board considered amendments to the Company's 2005 production plan and budget.

It was decided to amend the above plan and budget – in connection with the revaluation of the fixed assets, increased export sales, adjustments in the mining plan, structural changes within ALROSA exploration divisions, adjustments in design estimates and adoption of organization and technical decisions concerning the objects under construction. Also one of the grounds for amending the plan were surplus revenues due to the changes in the RUR/USD exchange rate and growing efficiency of diamond sales. The surplus revenues will be used, in particular, to finance the establishment of a new exploration division in Africa, and more active exploration in the Russian North West.

ALROSA Co Ltd is a closed-type joint-stock company, successor to the enterprises, organizations and divisions of the former YakutAlmaz Association, Committee for Precious Metals and Precious Gemstones (Gokhran of the Ministry of Finance of the Russian Federation) and the Almazjuvelirexport Foreign Trade Association specialized in sorting, initial processing and supply of rough diamonds which were incorporated into the Company's structure.

ALROSA Co Ltd


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