LSR Group obtains right for 2 quarries

LSR Group wins the auction to obtain the right for two quarries

OJSC Rudas (a subsidiary of LSR Group), the largest supplier of sand in St. Petersburg and the Leningrad region, has obtained the right for two quarries in the Leningrad region through the auctions held by the Mineral Resources Department of the North-West Federal District. According to the Regional Agency for Mineral Resources and Environment, aggregate reserves of the quarries reach approximately 1 million cubic meters.

The company acquired the rights for exploration and sand extraction on the following sites:

·; site "Yatka", Vsevolozhsky district of the Leningrad region (sand reserves of around 347,000 cubic meters);

·; site "50 kvartal", Viborgsky district of the Leningrad region (sand reserves of around 653,000 cubic meters).

As soon as OJSC Rudas obtains a license for geological survey and sand extraction on these sites, the company would be able to reduce its logistics costs due to the short distance between the sand quarries and construction sites': the "Yatka" quarry is located close to the Ring road-Skotnoye-Priozersk highway which is under construction and "50 kvartal"quarry is close to Skandinaviya highway, which renovation is scheduled for the next 4 years.

Note to Editors:OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials, real estate development and panel construction.LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine.In 2009, the sales revenues of LSR Group were RUB 51,024 million (IFRS).LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS. 

OJSC Rudas was founded in 1976, since 1997 - it is a subsidiary of LSR Group. Today Rudas is a group of companies extracting, transporting, storing and selling sand, almost fully covering the needs of the construction sector in St. Petersburg and the Leningrad region.The company supplies sea sand, quarried mining sand and quarried inwash sand as well as ground sand.Currently OJSC Rudas extracts and processes quarried sand from nine quarries, and sea sand - from four quarries.

For more details please contact:LSR Group Press ServiceTel.: +7 812 314 10 44Fax: +7 812 458 83 72E-mail: [email protected]www.lsrgroup.ru