Market update for quarter to 31 March 2016

Steppe Cement Ltd

14 April 2016

Market update for the quarter ended 31 March 2016

In the first quarter of 2016, Steppe Cement Ltd ("Steppe Cement" or the "Company") sold 190,935 tonnes of cement for 2,004 million Tenge, compared to 192,884 tonnes of cement for 2,277 million Tenge in the first quarter of 2015, representing a decrease of 1% and 12% respectively as the Company aims to regain market share through the year and increase sales in the South.

The cement market in Kazakhstan during 1Q 2016 decreased by 16 % over the corresponding quarter last year. The market reduction has been smaller in March than the previous four months. The market share of Steppe Cement increased from 14% in the first quarter of 2015 to 16% in the first quarter of 2016.

Average price for the current quarter for delivered cement was 10,494 Tenge per tonne (ex VAT) compared with 11,804 Tenge per tonne in the corresponding quarter of 2015, a decrease of 11%.

Ex-factory price for the current quarter stood at 8,689 Tenge per tonne, compared to 9,956 Tenge per tonne in 1Q 2015, a decrease of 13%.

The Company estimates Kazakhstan's cement market will reduce to 8.5 million tonnes in 2016 from 9.6 million tonnes in 2015.

Steppe Cement's AIM nominated adviser is RFC Ambrian Limited.

Contact Stephen Allen or Oliver Morse on +61 8 9480 2500.