Albazino

Albazino covers a total area of approximately 83 km2 in the eastern part of the Khabarovsk Territory in the Polina Osipenko district. It is about 500 km from the Territory’s capital. During shipping season ore is transported to Khabarovsk via a 110 km access road to the port of Oglongi onto the Amur and Amgun rivers. From December to March, a 300 km winter road operates from the deposit to the Solnechnayarailroad station.

As a result of the Company’s exploration campaigns from 2006–2008, Albazino is now classed as a large mineable deposit. In June 2008 Albazino mineral resources and ore reserves were confirmed in accordance with the JORC Code by Snowden Mining Industry Consultants as follows (as of February 2008): JORC Gold Resources: 2.3 Moz (15 Mt @ 4.7 g/t) JORC Gold Reserves: 2.1Moz (15 Mt @ 4.3 g/t).

Goltsovoye

The 5.7 km2 Goltsovoye area is located in the Magadan Region, 84 km south of the Dukat processing plant. The acquisition of Goltsovoye in 2008 has helped the Company consolidate its exploration area around Dukat and maximize the potential for discovery of new deposits in an ore region known for its highly promising silver prospects.

In exploratory cross-sections, the silver grade was consistently around 1000 g/t or more, reaching a maximum of 20 kg/t.

In February 2008, Goltsovoye mineral resources were confirmed in accordance with the JORC Code by Wardell Armstrong International as follows: M&I 42.7 Moz (1.5 Mt @ 993 g/t) Inferred 21.8 Moz (0.8 Mt @ 738 g/t).

Dukat Flanks

This program calls for exploration in the central and northern sections of the Balygychano-Sugoisky depression. It covers virtually all silver deposits in Russia’s Northeast in the region of Dukat and Lunnoye, including both small and large deposits. The Company holds the rights to these deposits and has effective processing infrastructure in this region that can support 450–550 tpa of silver mining. This capacity requires an active exploration program in order to reveal significant gold and silver deposits that can supplement the resource base of its existing plants. The acquisition of mining rights in these sections has resulted in the Company increasing throughput at the Omsukchan processing plant to 1.5 Mtpa of ore. In turn, this has created the need to discover additional sources of ore relatively close to Dukat. The total area of the licensed sections is approximately 2,800 km2.

The exploration program at the Nachalnoye-2 silver deposit 2 km north of Dukat was completed in 2008. This deposit

was discovered in the region of the Dukat Ore Area in 2007.  As at December 31, 2008, an audit of Nachalnoye-2 by SRK Consulting confirmed: JORC Silver Resources 4,7 Moz (430 Kt@339 g/t). Mining at Nachalnoye-2 is scheduled to begin in 2009.

The Company completed its evaluation of the Perevalnoye silver deposit in the Dukat prospective area, located 35 km northeast of the Dukat plant.  As at December 31, 2008, an audit by SRK Consulting of Perevalnoye confirmed: JORC Silver Resources: 14 Moz (1.2 Mt@364 g/t).

In 2008, the Company acquired a license to conduct geological surveying, exploration and mining at Rogovik. The licensed area (397 km2) is located in the northern fault of the Balygychano-Sugoisky depression, 220 km north of Dukat. The most significant find during recent exploration has been the Rogovik ore occurrence. The five-year exploration program was approved in March and field exploration is scheduled to begin in June.

Galka

The Galka project is located in the Karpinsk district of the Sverdlovsk Region, approximately 20km from the town of Karpinsk and 40km west of the Voro deposit. The Company acquired an exploration license for the 3.5 sq. km. area in 2006. The site's 2006-2007 exploration program proved the Company's forecasts correct. In May 2007, an audit of the deposit's mineral resources based on the current level of exploration was conducted. The audit confirmed 590 koz. of gold, 15.4 Moz. of silver and 176 kt of zinc at the deposit.