PRESS RELEASE

Kiev, Luxembourg, and Warsaw,
17th December 2010

All Sadovaya Group shares allotted to investors

Sadovaya Group S.A., one of the largest private coal mining companies in Ukraine, has allocated all offered shares. Investors have been allotted 10,771,423 shares in total which represents 25% of the share capital.

10.8 million newly issued shares have been allotted to investors by Sadovaya Group S.A.:

• 1,000,000 shares to Polish retail investors whose orders have been reduced by 34.1% proportionally,

• 9,771,423 shares to Polish and international institutional investors.

First listing of Sadovaya Group’s shares is tentatively scheduled for the Thursday, 30th December 2010.

Given the share issue price of PLN 8.60 the value of the offering exceeds PLN 92 mn and the company’s post-IPO capitalization will be around PLN 370 mn. After completion of the offering, new shareholders will hold 25% of the shares in Sadovaya Group.

Proceeds from the sale of new shares will be used primarily for modernization and development of existing mines Sadovaya and Rassvet-1, construction of two coal enrichment complexes, and acquisition and development of the Roskoshniy and Krasnoluchskaya Severnaya coal deposits. The investment program will be financed out of the net proceeds from the offering and from the group’s operating cash flow and other, alternative sources. The total value of the group’s planned investments is estimated at USD 50 million.

For more information please contact:
Łukasz Wójcik
NBS Communications
phone: +48 22 826 74 18
e-mail: [email protected]

Disclaimer:
This publication is for informational purposes only and shall not constitute the basis for a decision to invest in securities of Sadovaya Group S.A. (the “Company”). The prospectus (the “Prospectus”) prepared in connection with the offering of the Company’s shares and admission to trading on the Warsaw Stock Exchange is the sole legally binding document containing information on the Company and the offering of its shares in Poland. The Prospectus has been approved by Commission de Surveillance du Secteur Financier (the “CSSF”), the Luxembourg Financial Sector Supervision Authority which is competent capital markets authority for the Company. CSSF notified Komisja Nadzoru Finansowego, the Polish Financial Supervision Authority, of the approval of the Prospectus.
The Prospectus in electronic form in the English language, together with translation of the summary in Polish, is available on the website of the Company (www.sadovayagroup.com), the Lead Manager (www.bgcapital.ge) and the Offering Agent in Poland (www.dmbzwbk.pl).
Not to be released in the USA, Canada and Japan.