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Uralkali Announcement

Uralkali Announcement

Uralkali (LSE: URKA; the Company) announces that on 17 February 2015 at 12:30pm local time, a sinkhole with a diameter of 5 metres was discovered during the regular monitoring of the zone of transitional period panels, the hazardous area of the minefield of the flooded Berezniki-1 mine. The hazardous area of the transitional period panels has been fenced off and access has been restricted since 2013.

Continued comprehensive monitoring of the area has been in place since 2006. Based on analysis of the monitoring data, Galurgiya predicted in 2013 that soil subsidence might occur in this area in 2015.

In 2013, representatives of Galurgiya and the Mining Institute of the Urals Branch of the Russian Academy of Science determined the boundaries of this hazardous zone. In May 2014, the boundaries were confirmed by Rostechnadzor.

The soil subsidence will not impact the current activity of the industrial facilities or social infrastructure in Berezniki.

Background information

The zone of transitional period panels is an area in the town of Berezniki measuring 800 by 800 metres, surrounded by Reshetov square, Kotovsky street, and Gastello street. In 1944-46 and 1963-64, carnallite B seam was mined in the transitional period zone; in 1948-54, sylvinite AB seam was mined there.

Uralkali (www.uralkali.com) is one of the world’s largest potash producers and exporters. The Company’s assets consist of 5 mines and 7 ore-treatment mills situated in the towns of Berezniki and Solikamsk (Perm Region, Russia). Uralkali employs ca.11,300 people (in the main production unit). Uralkali’s shares and GDRs are traded on the Moscow Exchange and London Stock Exchange, respectively.

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