On November 29, 2013, ALROSA Supervisory Board held its meeting in Yakutsk with the participation of Ms. Olga Dergunova, the head of Rosimushchestvo (Federal Agency for the State Property Management) and Mr. Egor Borisov, the President of the Republic of Sakha (Yakutia). The Board discussed the results of ALROSA’s international IPO. The shareholders declared it successful, having noted that throughout the history of Russian security market it was the largest offering of local shares listed on the Moscow Exchange. Moreover, ALROSA’s offering has become the largest public offering of a mining company in the world since June 2011, and the first public offering of a Russian state company in the natural resource sector in the past seven years.

The Supervisory Board also voted to approve the amended Regulations on the Dividend Policy. In accordance with the approved amendments, ALROSA will pay as a dividend no less than 35% of the net profit under IFRS consolidated financial statements.

The minimum level of dividend provided for in the previous version of the Regulations on the Dividend Policy (adopted in 2011) was 10% of ALROSA’s net profit under the Russian Accounting Standards. In prior years ALROSA was working out recommendations on dividend being guided by the company’s financial indicators and the volume of dividend recommended by the RF Government for state companies. In particular, following the results of 2012 ALROSA paid a record-setting dividend of RUB 8,175 bln., which was 24.3% of the company’s net profit under IFRS, or 32.5% of the net profit under RAS net of financial investment revaluation.

The Company’s plans aimed at ramping up the cash flow and implementing the development strategy, as well as the Company’s financial security, allow increasing the dividend payment level up to 35% of the profit under IFRS starting from 2013.