Hambro was formed in 1994 through a partnership between Pavel Maslovsky and Peter Hambro. Pavel Maslovsky is the largest shareholder with 26.82 % of the shares and Peter Hambro holds 8.84 % of the shares.

The total cost for the investment program in exploration, feasibility study and project assessment is estimated at $50 million. The proposed IFC investment is a $15 million equity investment with matching warrants.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

* These investment figures are indicative

The Pokrovskiy mine is located 10 km from Tygda, a Trans-Siberian railway station in the Magdagachi Region of the Amur Oblast. The Pioneer deposit is located 30 km from Pokrovskiy. Tokur, Malomir Surround and Voroshilovskoye are more remotely located about 400 km from Pokrovskiy.

- Regional and local economic benefit: The Project can help lead the development of the precious metal potential of Russia in the Amur region and elsewhere. Pokrovskiy is a major contributor to the GDP of Amur, is one of the largest tax payers and the largest foreign investor and employs some 1,200 people. The expansion of Pokrovskiy and the development of Pioneer will substantially increase local government tax revenue and employment, help establish mining as a leading industry in Amur and provide local workers with exposure to international best practice in mining. - Client and Project which can serve as a model for integrating Russian and international management and business practice: Hambro’s combination of Russian management with direct links to the international banking community is proving effective both on the ground and in raising finance. Hambro also blended Russian and international practice into a low cost method for getting Pokrovskiy developed. This approach may prove useful in developing a significant part of Russia’s widely spread gold resources. - Development of the gold sector in Russia: Russia wants to diversify its economic activity and revenue away from oil and gas. Gold has major potential in Russia and is mainly found in the poorer regions of the country. The gold price can move fairly independently of the oil price, thus providing some degree of revenue hedge.

This is a Category B project according to IFC''s Procedure for Environmental and Social Review of Projects because it is an equity investment to provide funding for exploration work, feasibility studies and detailed engineering and environmental and social impact assessment (ESIA) documentation. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor as well as a visit to the project site. The following potential environment, health and safety and social impacts of the projects were analyzed:

- Corporate and operations environmental and social management
- Open-pit mining (topsoil stripping, waste rock dumping, surface water diversion, pit dewatering, reclamation);
- Ore processing (heap leach, resin-in pulp processing plant, air and effluent emissions);
- Tailings management (tailings treatment, transport and storage);
- Exploration drilling activities including establishment of access roads, geological/construction camps and vegetation clearing;
- Waste generation (domestic, industrial, hazardous and sanitary);
- Occupational health and safety issues;
- Public consultation and disclosure; and
- Socio-economic issues.
Location of environmental documents in locally affected community
The ERS will be available for public viewing at the following locations: - City of Tygda - City of Blagoveschensk - Moscow 7, Staraya Basmannaya Street, bldg.2 Moscow, 103 064 Russian Federation - London Peter Hambro Mining Plc 11, Grosvenor Place SW1X 7HH London UK