IRC: Ilmenite Production Increase Completed

16 October 2012

IRC: Ilmenite Production Increase Completed

Petropavlovsk holds a majority stake in IRC Limited ("IRC"), the Group's former Non-Precious Metals Division prior to its listing on the Stock Exchange of Hong Kong Limited.

Petropavlovsk PLC is pleased to confirm that IRC has announced the completion of a technology upgrade at its Kuranakh operation, resulting in a 150% increase in ilmenite capacity and the reaffirmation of the Company's targets for 2012 and beyond.

Key Highlights:

n More than 150% increase in ilmenite production capacity

n Reaffirm 2012 intermediate production target of 125,000 tonnes and 160,000 tonnes for 2013 and beyond

n Upgrade completed at a cost of just under US$3 million, within budget and on time

n Sales volumes at expanded capacity and prices for ilmenite remain strong

The full announcement may be found on IRC's website, http://www.ircgroup.com.hk.

IRC advises that it is intending to release its 2012 Third Quarter Trading Update on Thursday, 18 October 2012.

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