This program calls for exploration to create a high-quality reserve base for the Kubaka plant, which was acquired in 2008, including four subsoil licenses. The Kubaka plant’s existing infrastructure will help to achieve the Company’s strategic goal of increasing precious metal mining to over 70% of 2008 levels by 2011–2013. The current reserve base includes the remnants of Kubaka’s reserves and initial assessments of the underexplored reserves at Birkachan and Oroch. The total area of the licensed sections is 230 km2.

In 2008, the Company started to prepare Birkachan for mining in connection with the planned re-commissioning of the Kubaka plant.

The results of this exploration campaign, together with confirmation of historical data, were used to prepare a JORC-compliant assessment of Birkachan’s resources.

As of December 31st 2008, an audit by SRK Consulting of Birkachan confirmed: JORC Gold Resources 1.4 Moz (17.51Mt@2.4 g/t) JORC Silver Resources 6.6 Moz (17.51 Mt@11.8 g/t). Mining at Birkachan is currentlyscheduled to begin in 2010.

As at December, 31 2008, an audit by SRK Consulting of Oroch confirmed :JORC Gold Resources 201 Koz (1.93 Mt@3.3 g/t) JORC Silver Resources 10.3 Moz (1.93 Mt@167 g/t).