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Meeting of the Board of Directors of OJSC Irkutskenergo is held by absentee voting on March 18, 2013 in Moscow

On March 18, 2013, the meeting of the Board of Directors of OJSC Irkutskenergo was held by absentee voting in Moscow. During the meeting, issues related to the Company’s business were considered. Board members approved a number of non-arm's length transactions, including a securities purchase agreement with OJSC AKME-Engineering (OJSC Irkutskenergo has been a shareholder of OJSC AKME-Engineering since November 2011). On December 3, 2012, OJSC AKME-Engineering was notified of the state registration of the additional securities issue by the Federal Service for Financial Markets in the Central Federal District.

Under the terms of the transaction, OJSC AKME-Engineering shall transfer the ownership of an additional issue of its ordinary registered book-entry shares to OJSC Irkutskenergo; the number of shares totals 87,900,000, which accounts for 50% of the total issue. Under the terms of the additional issue, the rest of the shares have been purchased by SC Rosatom, the other shareholder of OJSC AKME-Engineering. On October 8, 2012, the Board of Directors of OJSC AKME-Engineering made the decision to set the placement price at RUB 20 per share based on an independent appraiser’s report. Thus, OJSC Irkutskenergo will pay RUB 1.758 bln for its stake. After the additional issue, the stakes remain unchanged: SC Rosatom and OJSC Irkutskenergo have 50% stakes in the company.

As a result of OJSC AKME-Engineering’s additional share issue, investments in key business areas will continue until 2015-2016 and will include: Payment for engineering works, neutronic calculations and thermal and hydraulic designs related to developing the reactor.

Payment for the design of the pilot power generating plant in Dimitrovgrad.

Payment for conducting a wide range of tests and creating unique test equipment to prove that the designs used are efficient and safe.

OJSC AKME-Engineering was established in 2009 to design and roll out nuclear complexes with a new 100 MW lead-bismuth fast-neutron reactor (SVBR-100). Implementation of this project includes not only developing and commissioning a pilot power generating plant, but also starting the mass production of reactor units and nuclear power plants. Over the last three years, OJSC AKME-Engineering has resolved a number of key issues related to financing the project, transferring intellectual property rights over the previous R&D, has acquired the status of an operator and gained the ownership rights over nuclear materials and units, as well as the majority of the necessary certificates issued by regulatory and supervisory bodies. Currently, OJSC AKME-Engineering is taking measures to obtain a license for locating the pilot power generating plant in Dimitrovgrad (the Ulyanovsk Region). The next step is to obtain a license for constructing the power generating plant.

Evgeny Fedorov, CEO of OJSC Irkutskenergo: “As AKME-Engineering is a public-private joint venture and a rapidly growing nuclear power company, this is one of the key areas of investments and innovations within OJSC Irkutskenergo’s power generation business. I believe that the shareholders’ decision on the additional share issue indicates that the Company is strengthening its position in this promising industry.”

Press service of OJSC Irkutskenergo

March 19, 2013
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