At the meeting held on April 22, 2013 ALROSA’s Executive Committee considered a number of matters as part of the run-up to the annual general meeting of shareholders, namely, the Company’s annual report and accounting balance sheet, as well as distribution of the profit for the year 2012.

The Executive Committee gave its preliminary approval to ALROSA’s annual report for 2012. According to the report data, rough diamond production by ALROSA Group in 2012 added up to 34.4 million carats. The Group accounts for 27% of the global rough diamond production in volume terms.

The aggregate diamond sales by ALROSA Group reached USD 4.61 billion to go 3.5% above the 2011 sales volume. In particular, rough diamond sales amounted to USD 4.45 billion, with the increase of 4.1% as against the year 2011.

Following the results of 2012, ALROSA’s net profit under the Russian Accounting Standards exceeded the level of 2011 by 34.4% and amounted to RUB 39 billion 657.3 million.

The amount of dividends recommended by the Executive Committee according to the results of 2012 is RUB 8 billion 175.111 million. The proposed dividend is RUB 1.11 per one ordinary share of OJSC ALROSA of 50 kopecks par value. As against 2011 it is proposed to increase the amount of dividends paid per one share by 10%. It is also proposed for the Company to retain the remaining the net profit of some RUB 31.482 billion.

Pursuant to the Order of the Government of the Russian Federation, the companies whose shares are in federal ownership are to allocate for dividends at least 25% of the net profit under the RAS less the income received from revaluation of financial investments. ALROSA’s profit (without revaluation of financial investments) in 2012 amounted to RUB 25.182 billion. Thus, summarizing the results of 2012 it is planned to allocate some 32.5% of ALROSA’s profit for dividends.

Approval of the Company’s annual report and distribution of ALROSA’s profit for the year 2012, agreed by the Executive Committee, will be submitted for consideration to the Company’s Supervisory Board.