Gunvor and Volga Resources to Finance Purchase of 51% of OOO Kolmar Coal Mine

MOSCOW, July 6, 2011 /PRNewswire/ --

Lonestate Assets Ltd ("Lonestate"), a company controlled by Anatoly Mitroshin, announces that it has agreed to purchase 51% in OOO Kolmar ("Kolmar"), the Siberian coal mining company from existing shareholders, represented by InterGeo.

Lonestate will fund the acquisition through a loan convertible into equity provided by Montlink Ltd ("Montlink"), a 50/50 joint venture between Gunvor, one of the world's leading independent commodity trading groups and Volga Resources, the Luxembourg-based investment fund.  The remaining 49% of Kolmar is owned by Bixcut Holdings Ltd ("Bixcut"), a company also controlled by Mr Mitroshin.

Bixcut and Montlink are entering into a comprehensive partnership agreement regarding the future joint development of the Kolmar Group which will cover joint investments to bring high quality coking coal reserves into production for export and domestic use.

Commenting on the deal, Anatoly Mitroshin said, "I am delighted to announce the partnership for the development of Kolmar with Gunvor and Volga Resources. Together we are investing in one of the most prospective regions in Russia, Siberia and the Far East.  We are committed to the development of Kolmar into a high class and efficient operation using the latest international technology for underground mining in a harsh environment."  

Torbjorn Tornqvist, Chairman and Founder of Gunvor, added, "This deal marks our first entry into Russian coal mining and we are delighted to be able to play a major part in the development of Kolmar in a way that combines our knowledge of the Russian energy sector with our proven commodity trading skills. The development of Kolmar will also lead to the creation of many new and qualified jobs in Yakutia."

Notes to editors:

About Kolmar

OOO Kolmar is a coking coal mining and processing company located in the Republic of Sakha (Yakutia). It owns four licences which allow production of coal by open pit and underground methods. Licenses fall within the Chulmakan and Denisovsky coalfields. OOO Kolmar's attributable resources amount to 363Mt (calculated as ABC1 reserves under Russian classification). The operating assets of OOO Kolmar include: Denisovskaya mine and Inaglinsky open pit. Planned production is approximately 3 to 4 million tons of coking coal per annum.

About Gunvor

Gunvor Group Ltd is registered in Nicosia, Cyprus, with major trading operations in Geneva and Singapore. The Group has a number of other offices and entities around the world. As one of the world's major independent commodity trading companies, it is a market leader in the trade, transport, storage and optimization of oil and other energy products.

About Volga Resources

Volga Resources is a Luxembourg registered investment fund. The Fund invests in projects in the oil & gas sector, infrastructure, development and financial services in Central and Eastern Europe, CIS, Russia and Turkey. More information is avalable at: http://www.volga.lu

For more information:

Stuart Leasor
+44(0)7703-537721
leasor@mcomgroup.com

Anton Kurevin
+7(495)956-3972
Volga@m-p.ru
kurevin@m-p.ru