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Dear Friends,

We are pleased to update you on Sadovaya Group operational results in July 2011:

  •        Sales volume in July decreased by 26.5% as a reflection of seasonal demand slowdown
  •        Production of coal at mines increased 45.6% year to year and 9.7% month to month
in tonnes          
  July 2011 July 2010 % change,
y-o-y
June 2011 % change, m-o-m
Coal traded 67 341 93 640 -28,1% 91 629 -26,5%
Coal mined 42 810 29 401 45,6% 39 025 9,7%
Sadovaya mine 23 950 11 001 117,7% 20 075 19,3%
Rassvet-1 mine 18 860 18 400 2,5% 18 950 -0,5%
Coal recovered from waste dumps 5 580 0 n/m 5 335 4,6%


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