"SAT & Company" Joint Stock Company hereby announces

"SAT & Company" Joint Stock Company hereby announces about restructuring of "SAT & Company" Joint Stock Company taken place in Third Quarter of 2012 due to acquisition of 75.45% of ordinary shares of "Temirtau Electrometallurgical Pant" Joint Stock Company.

The Agreement for Sale/Purchase of 24.55% of Ordinary Shares of "Temirtau Electrometallurgical Pant" Joint Stock Company (TEMP JSC) was signed between affiliate of "SAT & Company" Joint Stock Company and "Saryarka" National Company Social-Entrepreneurship Corporation" Joint Stock Company ("Saryarka NC SEC" JSC). 

Previously, Group of Companies of "SAT & Company" JSC has acquired 75.45% of ordinary shares of TEMP JSC. Abovementioned shares volume was an outcome of acquisition of 65,45% shares from "Saryarka NC SEC" JSC and acquisition of 10% shares from individuals. Acquisitions were completed in May 2012 and July 2012 respectively.

"Saryarka NC SEC" JSC has submitted correspondent application to Competent Authority to obtain a permit for assignment of 24.55% of ordinary shares of TEMP JSC.

Acquisition of shares of TEMP JSC was a consecutive step to implement a strategy aimed to improve integrity and consolidation of metallurgical industry enterprises, by means of conversion of existing capacities to metallurgy industry entities. Thus in 2009 the Company had initiated corporate governance of "Taraz Metallurgical Plant" Limited Liability Partnership (TMP LLP), a production facility which had been involved in ferroalloys manufacture starting 2006 with acquisition being completed by 2011. By the beginning of 2012, combined ferroalloys manufacturing capacity of TEMP JSC and TMP LLP was 80,000 tons of ferroalloys per annum and by Year of 2014 mentioned manufacturing capacity is going to be increased up to 100,000 tons per annum. This fact substantiates the Company as a powerful regional ferroalloys manufacturer.

Nowadays TEMP JSC is one of the biggest ferroalloys manufacturer in Kazakhstan. Ferroalloys' products of TEMP JSC are of a permanent high demand due to low phosphorous content. At the same time, TEMP JSC is a CIS largest producer of calcium carbide responsible for more than 30% market of calcium carbide in the Commonwealth.TEMP JSC incorporates the enterprises of chemical, metallurgy and mining industry with overall manpower totaling to 2 270 people.

The JSC has a complete technological line manufacturing finished products: calcium carbide and ferroalloys.
Strategic Challenges:
• Increase production output. It is planned to build second manufacturing ferroalloys furnace with production output of 45,000 tons per annum within 2013-2014.
• Introduce advanced power-efficient technologies.
• Reduce per-unit-cost  and increase net profit margin.
• Introduce technologies for deeper metal extraction and re-treatment of screening of manganese concentrate.

Consolidation of production assets and resources potential will ensure both reduction of marketing and managerial costs of the JSC and provide capability to manufacturing facilities of Group of Companies of "SAT & Company" JSC to significantly decrease net cost of feed stock. Besides, incremental industrialization of Middle Asia countries allows TEMP JSC to realize its potential as biggest CIS calcium carbide manufacturer with production output of hundreds of thousands of tons of limestone/carbide products per annum. Augmentation of production output is supported by manganese and limestone feedstock owned by the JSC.

Affiliation of new shareholder into TEMP JSC will ensure successful implementation of large-scale investment program, crucial for both regional economy and the Republic of Kazakhstan, promoting development of metallurgy industry and raw minerals base of Kazakhstan in compliance to State Program of Accelerated Industrial and Innovative Development and assure consolidation of the position of the Republic of Kazakhstan at global market of ferroalloys.

Closing of acquisition of 24.55% of ordinary shares of TEMP JSC within first six month of Year 2013 will increase Company's equity share up to 100% which will positively affect investment potential of the Company.

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