On August 9, 2013, OJSC ALROSA won the auctions for the right to use subsurface mineral resources of two diamondiferous license areas in Western Yakutia – Piropovy Ruchey and Zakonturnaya deluvial placer of Udachnaya pipe.

Both license areas are located close to ALROSA’s functioning deposits. These licenses will enable the Company to extend its resource base.

For the right to use subsurface mineral resources of Zakonturnaya deluvial placer of Udachnaya pipe for exploration and mining of placer diamonds ALROSA offered RUB 24.878 million at the starting price of some RUB 22.617 million. Zakonturnaya deluvial placer of Udachnaya pipe with the area of 0.12 km2 is located at the nearby flank of Udachnaya pipe.

As of January 1, 2011, within the subsoil area the Russian State Register of Mineral Reserves recorded the placer diamond reserves for open-pit mining at +0.5 mm, totaling 211 thousand cubic meters of sands and 109.5 thousand carats in Ñ1 category.

For the right to use subsurface mineral resources of the Piropovy Ruchey deposit for exploration and mining of placer diamonds ALROSA offered RUB 104.679 million at the starting price of some RUB 95.163 million.

Piropovy Ruchey deposit with the area of 1.26 km2 is located at the flank of Udachnaya pipe. As of January 1, 2011, within the subsoil area the Russian State Register of Mineral Reserves recorded the placer diamond reserves for open-pit mining at +0.5 mm.

a) on-balance C1 reserves–1,147 thousand cubic meters of sands and 595.5 thousand carats of rough diamonds, Ñ2 reserves–430 thousand cubic meters of sands and 279.5 thousand carats of rough diamonds;

b) off-balance Ñ1 reserves–339 thousand cubic meters of sands and 113.5 thousand carats of rough diamonds.

In accordance with the auction rules, the results of the auction are subject to approval by the Government of the Russian Federation.