Director/PDMR Shareholding

5 October 2010

KAZAKHMYS ANNOUNCES REDUCTION OF CHAIRMAN'S HOLDING AND POTENTIAL HONG KONG LISTING

Kazakhmys PLC (the "Company" or "Kazakhmys") announces that its Chairman, Vladimir Kim, has sold an interest in 58,876,793 ordinary 20p shares (representing approximately 11% of the shares in issue). The transaction was executed on the Kazakhstan Stock Exchange at 3,363 KZT per share, based on a closing mid-market share price of 1,423 pence per share, as derived from the Official List of the London Stock Exchange, on 4 October 2010. The shares were purchased by National Welfare Fund Samruk-Kazyna JSC ("Samruk-Kazyna").

Mr Kim's interest in the Company is now 149,306,795 ordinary shares (representing 27.9% of the shares in issue). The interest of the Government of Kazakhstan has increased to 139,162,843 ordinary shares (representing 26.0% of the shares in issue), including The State Property & Privatisation Committee's* existing 15.0% interest.

The transaction enables Mr Kim to diversify his investment portfolio whilst retaining a significant long-term shareholding in Kazakhmys. The transaction represents the first disposal of Kazakhmys shares by Mr Kim since the Company's IPO on the London Stock Exchange in 2005. Mr Kim continues to be Chairman of Kazakhmys and remains firmly committed to his role leading Kazakhmys in delivering its strategic objectives. The Government of Kazakhstan's increased shareholding in Kazakhmys, through Samruk-Kazyna, demonstrates a positive commitment by the Kazakh sovereign wealth fund to a strategically important company within Kazakhstan.

Mr Kim has undertaken to the Company not to sell any further interest in Kazakhmys shares for 12 months following this announcement, save for up to 21,409,614 ordinary shares (currently representing 4.0% of the shares in issue) which he has agreed to make available to facilitate the provision of liquidity for a possible secondary listing on the Hong Kong Stock Exchange in 2011.

*State Property & Privatisation Committee of the Ministry of Finance of the Republic of Kazakhstan

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Kazakhmys PLC is a leading international natural resources group with significant interests in copper, gold, zinc, silver, power generation and petroleum.

It is the largest copper producer in Kazakhstan and one of the top ten worldwide with 16 operating mines, 10 concentrators and 2 copper smelters. Kazakhmys Copper operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Total copper cathode equivalent produced in 2009 from own ore was 320 thousand tonnes. Production is backed by a captive power supply and significant rail infrastructure.

Kazakhmys Copper produces significant volumes of other metals, including zinc, silver and gold. In 2009, it produced 149 thousand tonnes of zinc in concentrate. The Group is in the top ten largest silver producers in the world (17 million ounces produced in 2009).

Kazakhmys Gold, which acquired Eurasia Gold Inc in July 2007, includes new development and exploration opportunities. Kazakhmys Gold has measured and indicated gold equivalent resources of 2.5 million ounces. The Group produced 182 thousand ounces of gold in 2009.

Kazakhmys Power has a 50% interest in the coal fired Ekibastuz GRES-1 plant, the largest in Kazakhstan with a nameplate capacity of 4,000 MW.

Kazakhmys Petroleum is continuing its work programme at the East Akzhar exploration block, located on the eastern fringe of the Caspian depression, which was acquired in April 2007.

The Group is part of the FTSE-100 index of companies listed on the London Stock Exchange and is also listed on the Kazakhstan Stock Exchange (KASE). It had revenues of $3.7 billion in 2009 with EBITDA of $1.6 billion. The Group employs some 62,000 people, principally in Kazakhstan. The Group's strategic aim is to optimize its current operations, deliver its major growth projects and to diversify and participate in the development of the significant natural resource opportunities in Central Asia.

The National Welfare Fund Samruk-Kazyna JSC (the "Fund") was established in October 2008, through the merger of the Kazyna State Fund of Sustainable Growth and the Kazakh State Asset Management Holding Company, Samruk. Samruk-Kazyna was established to assist the growth of the national economy.

The major goal of the Fund's activities is the management of shareholdings in national development institutions, national companies and other legal entities that it holds investments in, with the view of maximising their long-term value and increasing their competitiveness.

The Fund's main activities are:

1. facilitating the modernization and diversification of the national economy;

2. helping stabilize the Kazakh economy; and

3. increasing the efficiency of the companies in which it invests.