The overall area under licence for this programme is 2,700 sq.km.

The programme is aimed at developing the mineral resources base in the area of the existing Khakanja processing plant. The geographic scope of the programme includes promising areas adjacent to the ore fields of the Khakanja and Yuryevskoye deposits, which are already in production.

Exploration efforts in 2009 focused on two areas: Arkinsko-Selemdjinskaya and Yuzhno- Urakskaya.

Exploration work (1,726 metres of drilling and 26,700 cu.m of ditches) was conducted at two Yuzhno-Urakskaya sites, Skarnoviy and Goreliy, located within a 15 km radius from Yuryevskoye. It was established that the previously discovered sub-surface ore bodies here have a very limited potential and their gold resource is below 32 Koz. Exploration at other areas yielded negative results. In late 2009, exploratory drilling began at the Yuryevskoye deposit to establish the commercial viability of the sub-pit gold reserves if they were to be produced by underground mining. In the event of positive geological findings, ore mining at the existing Yuryevskoye operation willbe extended by another two or three years.

Exploration at the Arkino-Selemdjinskaya area focused on the south-eastern part of it, which abuts the Khakanja ore field. In order to confirm areas with promising geological structures (similar to the Khakanja deposit), the Company conducted geochemical exploration at the secondary mineral dispersion halo and manual digging of exploratory trenches (2,000 cu.m). The results obtained are ambiguous. The samples already tested have a grade of less than 1 g/t. Some of the samples are still being processed. Aerial surveying of the northern parts of the territory hasidentified several areas (Ozerniy, Mankandja) which have geological and geochemical features similar to the Khakanja deposit. The Company will continue exploration in these areas in 2010.