First quarter 2011 operational results for GPM Gold and Agarak Copper-Molybdenum Combine

Today GeoProMining (GPM) announced Q1 2011 operating results for its GPM Gold and Agarak Copper-Molybdenum Combine subsidiaries in Armenia. During the first three months of 2011, such GPM subsidiaries produced 7,831 ounces of gold, 6,565 tonnes of copper concentrate and 135 tonnes of molybdenum concentrate.

• GPM currently plans to launch construction at the GPM Gold Ararat gold extraction plant of an innovative new gold ore processing line based on Xstrata’s Albion technology in the second half of 2011;

• GPM Gold will continue to transport crushed ore by rail from its Zod mine to the Ararat gold processing facility – the planned investments into the Ararat plant will enable GPM Gold to increase processing of ore from the Zod mine without constructing any processing facilities at or near the mine itself;

• GPM’s investments at the Agarak Copper-Molybdenum Combine continued throughout the first quarter, with installation of new flotation machines and upgrades to existing equipment underway; these investments are expected to increase the plant’s ore processing capacity from 3.0 mt to 3.5 mt of ore per annum.

Production results for GPM Gold and the Agarak Copper-Molybdenum Combine are provided in the tables below:

GPM Gold

 

	Units	Q1 2011
Extracted	tonnes	190 146
Processed	tonnes	191 591
Gold produced	oz	7 831

 

Agarak Copper-Molybdenum Combine

 

	Units	Q1 2011
Ore extracted	tonnes	623 035
Ore processed	tonnes	676 500
Copper concentrate	tonnes	6 565
Molybdenum concentrate	tonnes	135

 

GeoProMining CEO Roman Khudoliy said: “We are pleased at the strong production results we achieved in the first quarter of 2011, with gold ore extraction up 56%, gold ore processing increasing 59% and gold production 62% higher compared to Q1 2010. We have a long-term commitment to building sustainable, thriving businesses in Armenia. Investments and upgrades are already underway at our Agarak facility, and we plan over USD 100 million of investments into GPM Gold and its Ararat gold extraction plant. Construction at Ararat is due to start in the second half of this year. In total, we plan to invest approximately USD 120 million into our Armenian businesses over the next 3 years. In addition to increasing efficiency and production capacity, we have paid careful attention to minimizing the environmental impact of our operations. The planned investments do not foresee construction of any processing facilities at the Zod mine.”

Notes to editors

GeoProMining, founded in 2001, is an international, privately held company with a diversified base of metals assets. Its production capacities include Dore gold bars, as well as copper, molybdenum and antimony concentrates. GeoProMining engages in mining activities in Armenia, Georgia and the Russian Federation.

The company’s primary Armenian assets include the Agarak Copper-Molybdenum Combine and GPM Gold, which includes the Zod gold mine and the Ararat gold mill.

GeoProMining (GPM) Press Office