Kumtor Gold Company (“KGC”), in response to the reported opening of a criminal case by the General Prosecutor’s Office against KGC and arrest of Kyrgyzaltyn’s CEO Dilger Japarov for paying a dividend, has the following to state:
As previously disclosed in the Company’s official commentary of April 1, 2014, paying a dividend to the only shareholder, Centerra Gold Inc., was a normal business transaction done in compliance with all applicable legal regulations of the Kyrgyz Republic. Similarly, dividends were paid in previous years in perfect agreement with the generally accepted principles of corporate activity. Under the existing legislation, any joint-stock company is a commercial organization created to make profit and distribute it among shareholders.
The legal consultants of Kumtor Gold Company don’t believe paying a dividend runs counter to the Law of the Kyrgyz Republic “On Joint-Stock Companies.”
Additional information on Centerra is available on SEDAR at www.sedar.com and www.centerragold.com. Information on KGC is available at www.kumtor.kg
