Update regarding settlement agreement between Kazakhstan Kagazy and Alliance Bank

Kazakhstan Kagazy PLC ('KKPLC') is pleased to announce that its signed settlement agreement with Alliance Bank was yesterday approved by the Almaty District Court, following the removal of an arrest placed over certain land plots by the Almaty Region Financial Police. This arrest was delaying completion of the agreement, which is now legally binding and irrevocable.

KKPLC and Alliance bank will now proceed with performing the settlement agreement.

Settlement terms were agreed between Kazakhstan Kagazy JSC ('KKJSC') and Alliance Bank and announced in September. However, the agreement transferring KKJSC's land could not be signed and approved by court until the Financial Police arrest of KKJSC's land was released.

The obstacles to settlement between KKPLC and Alliance Bank have now been removed. The Financial Police arrest of KKJSC's land was identified as a material risk for the business in KKPLC's 2013 annual report.

For more information please contact:

Mr. Sadyr Shaguzhayev +7 727 244 02 08
Head of Investor Relations ir@kagazy.kz