On December 13, 2011 ALROSA’s Executive Committee held its meeting andconsidered ALROSA’s consolidated budget for 2012. The Executive Committee approved the following planned figures of the Company’s consolidated budget for 2012. As compared to 2011, rough diamond production by ALROSA Group will grow 152,300 carats, up to 34.6 million carats. It is planned to sell rough and polished diamonds for some USD 5,074 million.

ALROSA’s production program for the next year is increased in terms of the major parameters. In particular, volume of construction and assembly works under the turn key contract of the Capital Construction Division will raise 32.0% and come upto RUB 7,398 million, volume of geological prospecting and onsite exploration works will raise 31.7% and come up to RUB 5,358.3million.

In 2012 the Company’s ore production volumein underground mines willgrow almosttwice, in particular it is planned to bring the Aikhal underground minetofull capacity.

Net profit byALROSA Group is planned over RUB 34,120 million, with the 16.9% growth as against the level of 2011.

The planned capitalinvestmentbyALROSAGroup is RUB 21,823.8 million.

The Executive Committee submitted ALROSA’s consolidated budget 2012 for approval to the Supervisory Board.

The Executive Committee also considered ALROSA’s gas projects developmentand prospects of reforming the MirnyAviation Division.

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In 2010 aggregate rough diamond production by ALROSAGroup amounted to 34.3 million carats. Following the results of the year, ALROSAGroup aggregate rough diamond sales totaled USD 3,484 million.