AWARD OF EXTERNAL POWER SUPPLY CONSTRUCTION CONTRA

China Nonferrous Gold

08/08/2013 10:13

AWARD OF EXTERNAL POWER SUPPLY CONSTRUCTION CONTRACT

      Kryso Resources

      8 August 2013

      Kryso Resources Corporation Limited

      (??Kryso?? or the ??Company??)

      AIM: KYS

      AWARD OF EXTERNAL POWER SUPPLY CONSTRUCTION CONTRACT

      External power supply construction contract

      Kryso Resources Corporation Limited (AIM: KYS), the mineral exploration       and development company currently developing the Pakrut gold project in       the Republic of Tajikistan, is pleased to announce that its wholly-owned       subsidiary Kryso Resources Limited (formerly Kryso Resources Plc)       (??KRL??) has awarded Shanxi No.3 Electric Power Construction Company       (??Shanxi??) the contract for the construction of the external power       supply network for the Pakrut gold project (??the Construction Contract??).

      The total value of the Construction Contract is RMB 150,444,000       (approximately US$23.88million, based on the fixed exchange rate of 6.3       RMB to the Dollar, for the repayment of the RMB loan pursuant to the       loan agreement (the ??Loan Agreement??) entered into on 24 May 2012 with       China Nonferrous Metals Int??l Mining Co., Ltd. (??CNMIM??)). The cost of       the Construction Contract will be satisfied by a drawdown under the Loan       Agreement.

      Preparatory works are due to commence in September 2013 and the       construction period is 8 months. The works to be undertaken by Shanxi       under the Construction Contract will include: (1) the retrofit of the       110kV substation at Khamza; (2) the erection of a 110kV power supply       line from the Khamza substation to the Pakrut main step-down substation,       with a total length of about 73km; and (3) the construction of a 110kV       step-down substation at Pakrut.

      Shanxi were awarded the Construction Contract following a competitive       tender process undertaken by Kryso after receiving several tender       submissions. They were established in 1978, registered as a State Owned       Enterprise in 1986 and have over 3,600 employees. Shanxi have built a       significant number of power substations, power plants and power       transmission lines in China and worldwide.

      In line with the terms of an agency agreement entered into on 24 May       2012 between KRL, Limited Liability Pakrut (the Company??s indirect       wholly-owned subsidiary) (??LLC Pakrut??) and CNMIM, the Company??s largest       shareholder with approximately 38.5 per cent of the issued share       capital, CNMIM was appointed as the agent of KRL and LLC Pakrut for the       purposes of entering into certain agreements in connection with the       development of the Pakrut gold project. Accordingly, following approval       by KRL, CNMIM has entered into the Construction Contract as agent for       KRL and LLC Pakrut.

      Project Summary

      The Pakrut gold project, of which Kryso has 100 per cent ownership, is       situated in Tajikistan approximately 120km northeast of the capital city       Dushanbe. Pakrut has estimated total JORC compliant resources of       4,720,000 oz Au (assuming a cut-off grade of 0.5 grams per tonne of       gold) and is located within the Tien Shan gold belt, which extends from       Uzbekistan into Tajikistan, Kyrgyzstan and Western China, and which       hosts a number of multi-million ounce gold deposits.

      Kryso is currently in a construction phase with mining contractors on       site developing the underground mine and surface infrastructure. Kryso       has completed a number of new bridges and roads up to site. Tenders have       been completed for the large items of plant equipment and contracts are       now being finalised with successful tenderers. Infrastructure       construction began in October 2011 and construction of the mine       commenced in September 2012. At the same time exploration is continuing       with five drill rigs currently operating in the Pakrut Licensed Area       drilling at Eastern Pakrut, Rufigar and Sulfidnoye.

      For further information please visit the Company??s website (www.kryso.com)       or contact:

      Kryso Resources Corporation Limited

      Craig Brown, Managing Director

      Tel: +44 (0) 20 7349 9160

      Investec Bank Plc

      Jeremy Ellis, Chris Sim, George Price

      Tel: +44 (0)20 7597 5970

      XCAP Securities Plc

      Jon Belliss, Guy Peters

      Tel: +44 (0) 207 101 7070

      Blythe Weigh Communications

      Paul Weigh, Tim Blythe, Halimah Hussain

      Tel: +44 (0)20 7138 3204

      About Tajikistan

      Tajikistan is a secular republic located in Central Asia. The country is       a member of the Commonwealth of Independent States and the Shanghai       Cooperation Organisation. Tajikistan hosts numerous operating precious       metal mines as well as the largest aluminium smelter in Central Asia.       Kryso's management team has extensive experience in the mining industry       in Tajikistan.