MOSCOW, RUSSIA - Media OutReach - 3 August 2022 - Udokan Copper, the developer of Russia's largest new deposit, outlined scenarios to cut the carbon intensity of copper production up to 75% by 2035, bringing the Company closer to its ultimate goal of climate neutrality in the long run. The Company publishes its Sustainability Report for 2021, which outlines the results in terms of the environment as well as social and corporate governance (ESG).

Udokan ?opper develops and implements programs aimed at reducing energy consumption and reducing environmental impact as it prepares for the production launch. The Company's plan to decrease carbon emissions involves the possibility of purchasing low-emissions electricity from power sources such as hydro, wind and solar, as well as its own power generation from renewable sources. It will also study opportunities to switch from coal to less carbon-intensive fuels for heat generation as well as electrification of the mining fleet.

The Company's ongoing mission is to produce copper as the key metal for building a secure and tech-based future, while taking care of its employees and minimizing its impact on the environment. Udokan Copper's key priorities are to complete its mining and metallurgical plant on time, within budget and build a reputation as a responsible producer.

In 2021, Udokan Copper invested RUB 764 million (USD 11.5 million) in environmental measures and social programs as the Company prepared to start production at the deposit. Udokan Copper had zero fatalities from 2019 to 2021, while the number of total recordable incidents fell to 14 in 2021 from 23 in 2020, helped by measures such as employee incentives for safe working conditions and staff safety training.

Akylbek Yerkozha, Board Chairman at Udokan Copper, said:

"The Company voluntarily started disclosing data on its contribution to the achievement of the UN Sustainable Development Goals even before the start of operations, at the stage of the construction of its production facilities. The report we are now publishing is our third annual sustainability report.

"In 2021, Udokan Copper implemented a number of important sustainable development initiatives. The Company joined the UN Global Compact, confirming its commitment to the principles of responsible business conduct. We completed the development of our Climate Programme, which included an assessment of planned greenhouse gas emissions for all three scopes (Scopes 1, 2 and 3) and analyzed opportunities to reduce them, with Udokan Copper being the first company in Russia to gain experience in assessing forecast emissions for compliance with the ISO 14064-1:2018 international standard.

"Our climate programme provides for a number of scenarios where the carbon intensity of copper production could be reduced up to 75% by 2035, which would bring the Company closer to climate neutrality in the long run."

Hashtag: #UdokanCopper

About the Company:

Udokan Copper was established in 2008 to develop the Udokan copper deposit. It is part of the diversified USM holding Company. The Udokan deposit, with copper resources exceeding 26 million tons, is Russia's largest new deposit. The copper grade in accordance with the JORC Code is 1.05%.

The deposit is located in the Kalar District of the Zabaikalye Territory in Russia's Far East, 30 km from the Novaya Chara station of the Baikal�Amur railway line. The project will commission a mining and metallurgical plant, with the final products being cathode copper and sulfide concentrate. The production volume will amount to 135,000 tons of copper per year.

Udokan Copper aims to ensure that its products meet top quality and sustainability standards throughout their life cycle.