Interim Management Statement

10 May 2012

Eurasian Natural Resources Corporation PLC

May 2012 Interim Management Statement and

Production Report for the First Quarter ended 31 March 2012

London - Eurasian Natural Resources Corporation PLC ('ENRC' or, together with its subsidiaries, the 'Group') today announces its May 2012 Interim Management Statement and its Production Report for the First Quarter ended 31 March 2012.

Highlights for the Three Months ended 31 March 2012

o Production restored to full available capacity across most of our principal commodities. Copper production increased by 36.8% compared to Q1 2011;

o Revenue decreased significantly when compared to very strong Q1 2011, principally driven by decline in prices for our main commodities.

o Cost inflation in line with guidance;

o Solid financial position: gross available funds of US$0.9 billion; total debt of US$3.3 billion;

o Organic growth programme is on track.

Recent Developments and Outlook for the Full Year 2012 

o Acquisition of Shubarkol completed, strengthening our portfolio of Tier-1 assets and providing synergies to our core businesses in Kazakhstan;

o Acquisition of FQM's assets and settlement of the residual claims in the DRC completed, consolidating our growth platform in the region;

o Production expected to remain at or close to full available capacity for the full year 2012;

o Annualised unit cost of sales growth in our products expected at approximately 20%, as previously guided;

o Planned capital expenditure for the year expected to be approximately US$2.7 billion.

"We have maintained production at full available capacity across most of our principal commodities, with recoveries in ferroalloys and iron ore production, as well as achieving a notable increase in copper production. However, depressed pricing and the temporary decrease in alumina production have impacted revenue for the quarter. We remain focused on controlling costs and executing our extensive growth programme, despite the climate of global economic uncertainty and near-term market volatility."

Felix J Vulis, Chief Executive Officer

For further information, please contact:

Results timetable

All future dates are provisional and subject to change.

About ENRC

ENRC is a leading diversified natural resources group, performing integrated mining, processing, energy, logistics and marketing operations. The operations comprise: the mining and processing of chrome, manganese and iron ore; the smelting of ferroalloys; the production of iron ore concentrate and pellet; the mining and processing of bauxite for the extraction of alumina and the production of aluminium; the production of copper and cobalt; coal extraction and electricity generation; and the transportation and sales of the Group's products. The Group's production assets are largely located in the Republic of Kazakhstan; other assets, notably the Other Non-ferrous Division, are mainly located in Africa; the Group also has iron ore assets in Brazil. The Group's entities in 2011 employed on average 77,441 (2010: 74,098) people. The Group currently sells the majority of its products to Russia, China, Japan, Western Europe and the United States. For the twelve months ended 31 December, 2011, the Group had revenue of US$7,705 million (2010: US$6,605 million) and profit attributable to equity holders of the Company of US$1,577 million (2010: US$2,266 million). ENRC has six operating Divisions: Ferroalloys, Iron Ore, Alumina and Aluminium, Other Non-ferrous, Energy and Logistics. ENRC is a UK company with its registered office in London. ENRC's shares are quoted on the London Stock Exchange ('LSE') and the Kazakhstan Stock Exchange ('KASE'). For more information on ENRC visit the Group's website at www.enrc.com.

Forward-looking Statements

This announcement includes statements that are, or may be deemed to be, 'forward-looking statements'. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms 'believes', 'estimates', 'plans', 'projects', 'anticipates', 'expects', 'intends', 'may', 'will', or 'should' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include matters that are not historical facts or are statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Group operates. Forward-looking statements are based on current plans, estimates and projections, and therefore too much reliance should not be placed upon them. Such statements are subject to risks and uncertainties, most of which are difficult to predict and generally beyond the Group's control. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. The Group cautions you that forward-looking statements are not guarantees of future performance and that if risks and uncertainties materialise, or if the assumptions underlying any of these statements prove incorrect, the Group's actual results of operations, financial condition and liquidity and the development of the industry in which the Group operates may materially differ from those made in, or suggested by, the forward-looking statements contained in this announcement. In addition, even if the Group's results of operations, financial condition and liquidity and the development of the industry in which the Group operates are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in future periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in regulation, currency fluctuations, changes in business strategy, political and economic uncertainty. Subject to the requirements of the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules or any applicable law or regulation, the Group expressly disclaims any obligation or undertaking publicly to review or confirm analysts' expectations or estimates or to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any changes in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be construed as a profit forecast. The forward looking statements contained in this document speak only as at the date of this document.

Disclosure and Transparency Rules

The Interim Management Statement ('IMS') and Production Report are prepared to meet the requirements of the Disclosure and Transparency Rules of the United Kingdom Financial Services Authority ('FSA') to provide additional information to shareholders. The IMS and Production Report should not be relied on for any other purpose or by any other party.

A copy of this announcement will be available on the Group's website at www.enrc.com.

May 2012 Interim Management Statement ('IMS')

The information in the IMS, unless stated otherwise, relates to the three months ended 31 March 2012, and is compared to the corresponding three month period of 2011. Save as set out in this statement, there have been no material events, transactions or changes to the financial position of the Group since 31 March 2012. The Group's performance trends from 31 March 2012 to date remain broadly consistent with those described herein.

Revenue

Group revenue in the first three months of 2012 decreased significantly compared to the corresponding period in 2011, which was the Group's strongest ever quarter in terms of revenue generation. This resulted, principally, from a significant decline in prices for all of the Group's commodities and for iron ore in particular. A decrease in sales volumes for iron ore and ferroalloys also negatively affected revenue. This was partially offset by increased sales volumes of copper, coal and electricity.

The Ferroalloys Division operated close to full available capacity. However, revenue deteriorated very sharply in the period against Q1 2011 due to a decrease in sales prices and sales volumes of chrome ore and high-carbon ferrochrome. The decrease in volumes compared to Q1 2011 was caused by the shutdown of production at Tuoli and capacity levels at Aksu being below Q1 2011 levels due to recovery of production after emergency furnace repairs in Q4 2011. Sales volumes increased for low-carbon ferrochrome and manganese concentrate. Average ferroalloys prices in Q1 2012 decreased by 9% on Q1 2011, and remained broadly unchanged against Q4 2011.

Production at the Iron Ore Division was at full available capacity. The Division's revenue showed a severe deterioration compared to the corresponding period in 2011, primarily as a result of a decline in sales prices from Q1 2011 highs and a change in the product mix. Against Q4 2011, demand for pellet increased strongly with total iron ore sales up 11%. Average realised prices for iron ore were 21% below Q1 2011 and 18% lower than in Q4 2011.

Alumina and Aluminium Division revenue declined sharply against Q1 2011 driven by lower prices for both alumina and aluminium and a drop in alumina sales volumes, partially offset by higher sales of aluminium. Reduced alumina sales were caused by processing problems at the alumina refinery. Alumina production is expected to return to full capacity in H2 2012. Supply of alumina for internal consumption remained stable and production of aluminium was at full capacity.

Production expansion continued at the Other Non-ferrous Division. Revenue was moderately below the corresponding period in 2011. Higher sales volumes of copper were offset by lower realised commodity prices and lower sales of cobalt concentrate. The average realised price for copper in the first three months of 2012 declined 15% compared to Q1 2011 but increased 14% against Q4 2011.

The Energy Division operated at full available capacity with Power Unit 2 having returned to operation in April 2011. Revenue was slightly above that of Q1 2011 due to an increase in sales volumes of both coal and electricity. However, sales prices declined 11% for coal and 1% for electricity against Q1 2011.

Costs

Operating costs experienced a noticeable increase in the first three months of 2012. This was driven by input material cost inflation, higher energy prices and higher labour costs. Depreciation and amortisation ('D&A') costs increased by approximately 20% reflecting growing capital expenditure and additional amortisation of mineral rights in the Other Non-ferrous Division. We expect D&A costs to be approximately US$700 million for the full year. Mineral Extraction Tax ('MET') showed an exceptional decrease due to lower commodity prices. General and administrative expenses grew by 50% as sponsorship and donations were brought forward to the beginning of the year compared to 2011. For the full year we expect these investments to be approximately US$140 million. Exploration costs in Africa, as well as fees for professional and other services provided to the Group, mainly in relation to recent M&A activity, increased strongly against the comparable period.

We expect cost pressure to continue in 2012. Materials and energy inflation, higher stripping and mining costs for mine development, as well as growing D&A charges will be the main drivers. We anticipate unit costs to rise up to 20% as previously guided. Meanwhile, we continue to implement production efficiency programmes to contain the rate of unit cost growth through the year.

Balance Sheet

Gross available funds as at 31 March 2012 were US$0.9 billion and debt of US$3.3 billion. In February 2012, the Group raised an unsecured five year US$2.0 billion facility with Sberbank of Russia to support the continuing growth of the business. The company also signed an amendment to an existing revolving credit facility of US$0.5 billion, which matures in 2014. In April 2012, an additional US$1 billion facility was signed.

Recent transactions

On 2 March 2012, we completed the acquisition of First Quantum Minerals Ltd.'s assets and settled residual claims in the DRC. The acquisition enables the Group to further consolidate its assets in the DRC and progress with the development of Kolwezi.

On 17 April 2012, the Group completed the acquisition of the outstanding common shares in Shubarkol, which is now a 100% owned subsidiary of ENRC. In 2012, Shubarkol is expected to produce approximately 8 million tonnes of thermal coal and 215 thousand tonnes of semi-coke, of which approximately one million tonnes and 120 thousand tonnes, respectively, will be consumed by the Group's other divisions.

Capital expenditure and projects update

During the first three months the Group's capital expenditure programme showed good progress due to higher implementation rates at the Logistics, Other Non-ferrous, Alumina and Aluminium and Energy Divisions.

In Q1 2012, principal areas of capital expenditure were:

·; Ferroalloys Division: the new Aktobe ferroalloys plant;

·; Iron Ore Division: mine expansion in Kazakhstan;

·; Alumina and Aluminium Division: anode production plant;

·; Other Non-ferrous Division: expansion of copper production;

·; Energy Division: reconstruction of Power Unit 6; and

·; Logistics Division: railway fleet expansion.

In 2012, we plan to decrease expenditures for the BMSA project in Brazil due to delays in obtaining the port licences. However, our expectation regarding the Group's total annual capital expenditure remains unchanged at approximately US$2.7 billion, including US$0.8 billion for sustaining capex, due to inclusion of the newly acquired assets.

Production Report for the First Quarter ended 31 March 2012

The information in this Production Report, unless stated otherwise, relates to the three months ended 31 March 2012, and is compared to the corresponding three months ended 31 March 2011. Production volumes for Q4 2011 are provided for additional information.

The Ferroalloys Division (except Tuoli), the Iron Ore Division and the Energy Division operated at full available capacity for the quarter. The Alumina and Aluminium Division operated at full available capacity for aluminium production and below full capacity for alumina production due to processing problems at the refinery.In the Other Non-ferrous Division, cobalt contained production was broadly in line with the Q1 2011 level, while production of copper contained showed exceptionally strong growth against the corresponding period.

·; Ferroalloys Division.Volumes for ferroalloy products decreased on average by 8.4% versus Q1 2011, with the exception of a 91.7% increase in ferrosilicochrome and stable medium-carbon ferrochrome and saleable silicomanganese production. Total saleable ferroalloys production for the quarter decreased 4.8% against Q1 2011.

·; Iron Ore Division.Iron ore extraction and primary concentrate production decreased by 4.8% and 2.5%, respectively, against the comparable period. Total saleable product increased 0.2% against Q1 2011.

·; Alumina and Aluminium Division. Bauxite extraction decreased 5.7% and alumina production decreased 18.3% against Q1 2011 in response to processing problems at the alumina refinery. Aluminium production was consistent with Q1 2011.

·; Other Non-ferrous Division. Production of saleable copper in Q1 2012 was 8,988 t, a 36.8% increase versus Q1 2011. At 2,736 t, saleable cobalt production remained broadly in line with production in Q1 2011.

·; Energy Division. Coal extraction and electricity generation increased by 1.1% and 4.4%, respectively, compared to Q1 2011. Electricity sales to third-parties increased 10.9% compared with Q1 2011.

·; Logistics Division.The volume of goods transported by rail decreased 8.6% compared to Q1 2011 as coal volumes to Russia are transported by customers using their own railcars. The proportion of volumes attributable to third parties increased by 2.6 percentage points in Q1 2011.

References to 't' in the Production Report are to metric tonnes unless otherwise stated and all references to 'kt' are to thousand metric tonnes unless otherwise stated.

Definition of Run of Mine ('RoM') extraction: uncrushed ore in its natural state, as when it is blasted.

FERROALLOYS DIVISION

Ore Mining and Processing

Chrome ore extraction in Q1 2012 amounted to 1,081 kt, a decrease of 10.6% on Q1 2011 but an increase of 6.8% on Q4 2011 reflecting planned repair works on the Molodezhnaya shaft at Donskoy GOK during Q4 2011 and Q1 2012. These repair works are being completed and the shaft will return to its full capacity in May. The Division produced 755 kt of saleable chrome ore, a decrease of 18.5% on Q1 2011 and 0.9% against Q4 2011, due to lower levels of ore mining and processing.

Internal consumption of saleable chrome ore in Q1 2012 decreased 6.9% versus the comparable period of 2011 and increased 2.4% against Q4 2011, reflecting the changes in ferrochrome production both in Kazakhstan and China (see page 11 for further details).

Manganese ore extraction increased 3.7% versus Q1 2011 and 2.1% versus Q4 2011. Saleable manganese concentrate production increased by 2.3% compared to Q1 2011 to 176 kt due to changes in market demand and decreased 10.7% against Q4 2011, mainly reflecting a seasonal decrease in fine concentrates market demand.

Production at Zhairem GOK, which mainly sells manganese concentrates for export, increased 11.7% to 134 kt (35.6% Mn) against Q1 2011 (120 kt; 35.6% Mn) but decreased 13.0% compared to Q4 2011 (154 kt; 33.7% Mn), due to market demand fluctuations. Production at Kazmarganets (42.0% Mn), which supplies manganese concentrate to the Aksu ferroalloys plant for use in silico-manganese production, amounted to 42 kt, a decrease of 17.6% from Q1 2011 (51 kt; 39.6% Mn) and 2.3% from Q4 2011 (43 kt; 38.0% Mn). This reflected partly lower market demand, as well as Aksu using up stockpiles of manganese fines in place of manganese concentrate from Kazmarganets. The proportion of total manganese concentrate production consumed internally was slightly lower in Q1 2012, at 56.9% (Q1 2011: 57.6%) but increased by 17.7% against Q4 2011.

Ferroalloys Production

Note: Table may not sum precisely due to rounding.

In Q1 2012, the Ferroalloys Division produced 375 kt of saleable ferroalloys, a 4.8% decrease from Q1 2011 and a 4.2% increase from Q4 2011. The decrease versus Q1 2011 in total saleable production was comprised of a reduction in high- and low-carbon ferrochrome production as well as a decrease in ferro-silicon production.

The decrease in high-carbon ferrochrome production versus Q1 2011 was due to production at Tuoli having been stopped in Q4 2011 (17 kt in Q1 2011), as well as production at Aksu smelter recovering to full capacity after emergency repairs at furnace 63 in Q4 2011. Low-carbon ferrochrome production decreased due to planned furnace repairs at both Aktobe and Serov smelters.

Ferrosilicochrome saleable production increased 91.7% compared to Q1 2011, as these furnaces were undergoing planned capital repairs in Q1 2011.

Ferrosilicon production decreased 7.7% against Q1 2011 as a result of a larger share of the high grade material being produced in 2012 (65% versus 45% grade of Si).

Serov contributed 57 kt of saleable ferroalloy production in Q1 2012 (Q1 2011: 58 kt; Q4 2011: 56 kt).

IRON ORE DIVISION

In Q1 2012, the Iron Ore Division extracted 10,204 kt of iron ore, a decrease of 4.8% on Q1 2011 (10,715 kt) and 3.0% on Q4 2011 (10,522 kt). The Division produced 4,178 kt of primary concentrate, a decrease of 2.5% on Q1 2011 and 1.1% compared to Q4 2011. Ore mining and primary concentrate production were decreased in Q1 2012 to reduce inventory levels.

Saleable concentrate production (with an iron content of 65.6%) was 2,021 kt, an increase of 20.7% compared to Q1 2011 (1,675 kt) but a decrease of 9.4%, or 209 kt, compared to Q4 2011 (2,230 kt). Pellet production (with an iron content of 63.2%) was 1,891 kt, a decrease of 15.1% on Q1 2011 (2,228 kt) and an increase of 15.0% versus Q4 2011 (1,644kt). The increase in concentrate production and corresponding decrease in pellet production against Q1 2011 reflects changes in customer demand. Total saleable product volumes were in line with Q1 2011 and 1.0% ahead of Q4 2011.

ALUMINA AND ALUMINIUM DIVISION

In Q1 2012, bauxite extraction was 5.7% lower than in Q1 2011 and 11.5% lower than in Q4 2011. Alumina production decreased 18.3% versus Q1 2011 and 22.9% versus Q4 2011. The decrease in alumina production was due to processing problems caused by interruptions to the supply of soda ash. Bauxite extraction was decreased in line with the reduced consumption for alumina production. Alumina production is expected to return to full capacity in H2 2012.

Internal consumption of alumina amounted to 120 kt (in line with Q4 2011) representing 36.4% of total alumina production and consistent with the aluminium smelter running at its full 250 ktpa capacity.

Primary aluminium production in Q1 2012 was 62 kt, consistent with Q1 2011 and a slight decrease (1.6%) versus Q4 2011.

Electricity generation in Q1 2012 increased 1.4% versus Q1 2011 and 8.2% on Q4 2011 due to seasonal factors. Supply of electricity to other Group Divisions decreased 6.4% against Q1 2011 but increased 30.8% against Q4 2011 reflecting seasonal generation increase and a decrease in internal consumption due to lower production of alumina. Electricity supply to third-parties increased by 2 GWh, or 3.8%, against Q1 2011 and 5.8% against Q4 2011.

OTHER NON-FERROUS DIVISION

Copper and Cobalt Production

Note: 1. Production numbers for saleable copper and cobalt refer to tonnes of contained metal. Contained metal consists of total units, whether in metal form or metal units contained in concentrate and sludge, net of internal consumption, but excludes copper contained in cobalt concentrate.

Copper ore extraction for the quarter was 7.8% higher than in Q1 2011 and 2.1% higher than in Q4 2011, primarily due to additional copper ore realised from the Kabolela South and Kakanda North pre-stripping programme.

In Q1 2012, higher copper grades were realised from Kabolela North compared to Q1 2011 and Q4 2011.

Saleable copper production for Q1 2012 was 8,988 t (Q1 2011: 6,572 t), an increase of 36.8% over Q1 2011 and 11.2% higher than Q4 2011. Growth in copper production has resulted from higher grades and increased capacity.

The production of total saleable copper metal produced at the cobalt SX/EW plant at Boss Mining in Q1 2012 was 2,403 t (Q1 2011: 1,169 t; Q4 2011: 2,425 t). The 105.6% increase compared to Q1 2011 was due to commissioning of bay two of the cobalt SX/EW plant. The remaining bays of the cobalt SX plant are currently being reviewed for conversion to a copper SX facility.

Cobalt contained production in Q1 2012 was 2.5% below Q1 2011 levels and 4.1% below Q4 2011 due to lower grade and electricity outages in the DRC.

ENERGY DIVISION

Note: 1. Electricity consumption and supply numbers may not round precisely due to the purchase of small volumes of electricity from third-parties.

In Q1 2012, the Energy Division extracted 5,866 kt of coal from the Vostochny mine, an increase of 1.1% versus Q1 2011 and 3.4% on Q4 2011.

Electricity generation in the period was 3,948 GWh, an increase of 4.4% on Q1 2011 and broadly in line with Q4 2011.

Electricity supplied by the Energy Division to other Group Divisions was 2,497 GWh, an increase of 2.1% on Q1 2011 mainly to compensate for less electricity being supplied by the Alumina and Aluminium Division. Electricity supply to other Divisions increased 2.9% on Q4 2011 reflecting a recovery of ferrochrome production at the Aksu smelter.

Third party electricity sales of 1,166 GWh increased 10.9% compared to Q1 2011 and decreased 4.9% against Q4 2011, reflecting the change in balance between electricity generation and internal consumption.

LOGISTICS DIVISION

In Q1 2012, the Logistics Division transported 14,675 kt by rail, a decrease of 8.6% compared to Q1 2011 and 1.3% against Q4 2011. Since Q4 2011, coal shipments to Russia are being transported by customers' own fleet.

A greater proportion of third-party volumes were transported in Q1 2012 (14.0%) than in the comparable period (Q1 2011: 11.4%).

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