Information about ALROSA`s placement

Please be advised that the exchange has set the following terms, timeframe, and procedure for executing trades in Alrosa ords (ISIN RU0007252813, ticker ALRS) effective from 14 through 28 October inclusive (pursuant to the MICEX Stock Exchange's trading rules, official letter from the Issuer and resolution of the general director).

1. CJSC "VTB Capital" (MICEX Stock Exchange trading member ID MC0280200000) will sell a block of shares in the Placement: Direct Orders trading mode as follows:

   1.1. Trading members will enter direct bids with activation on 28 October to CJSC "VTB Capital" in the exchange's trading systems on 14-25 October.

   1.2. The bids will be activated at 9:30 am MSK on 28 October. At that time they will be checked for whether sufficient collateral was posted on them in accordance with the National Clearing Centre's equity market rules. Following the check, registration of trades based on such bids will become available.

   1.3. The process for submitting direct bids on the shares, with the activation date indicated, will have the following specifics: 

   1.3.1  Eligible settlement code will be Т0;

   1.3.2. Two types of bids will be available:

   1.3.2.1. bids to buy a definite number of lots in which the purchase price is specified;

   1.3.2.2. bids to buy securities at the counteragent's price in an amount specified in the order.

   1.3.3.Any bids with a price outside the RUB 35-38 range will be rejected by the trading system.  

   1.3.4. The minimum bid size is RUB 35,000.

   1.3.4.1. Bids with lot sizes less than the established threshold will be rejected.

   1.3.4.2. Bids with volumes less that the established threshold will also be rejected.

   1.3.5. The lot size is 100 shares.

   1.4. The price tick will be RUB 0.001 during the bid submission and trade execution in the shares.

   1.5. The trading hours for the shares are the following:

   Collection of direct bids in shares from trading members:

   •  10:00–19:00  MSK on 14-25 October;

   Cancellation of previously submitted bids:

   • 10:00–19:00  MSK on 14-25 October;

   Execution of trades on activation day stated in Clause 3.1:

   • 9:30– 10:00 MSK.

    2. Failure to ensure sufficient cash to execute a trade in the shares when collateral is verified will incur a penalty of 3% of the order size.

Additional information:

1. If the volume of bids does not exceed the offer volume, all bids will be filled at the offer price confirmed by VTB Capital.
2. Bids of RUB 100 mln and more will be filled to the extent defined by the seller after smaller bids are filled. Bids submitted by a member via their own account or the account of an end client will be added together; bids totalling more than RUB 100 mln will be filled as described above for large bids. 
3. The Seller may fill bids in part.

VTB Capital will reject orders not eligible to be filled until 10:00 am MSK on the bid activation date.

Notification letter

Disclaimers

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "wiII", "could," "may" or "might" the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in the Russian Federation, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations.

Neither these materials nor any copy of it may be taken or transmitted into the United States, Australia, Canada or Japan. These materials do not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The offer and the distribution of these materials and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

These materials are not for distribution in or into the United States (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")), and do not constitute or form a part of any offer or solicitation to purchase or subscribe for  any securities in the United States. The securities mentioned herein have not been, and will not be, registered under the Securities Act. The securities mentioned herein may not be offered or sold in the United States except pursuant to an exemption, or a transaction not subject, to the registration requirements of the Securities Act of 1933. The Company has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.

This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within ArticIe 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as "relevant persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

This communication is distributed in any member state of the European Economic Area which applies Directive 2000/71/EC (this Directive together with any implementing measures in any member state, the "Prospectus Directive") only to those persons who are investment professionals for the purposes of the Prospectus Directive in such member state, and such other persons as this document may be addressed on legal grounds, and no person that is not a relevant person may act or rely on this document or any of its contents.

For further information, please contact the Public Relations Department at (495) 363-3232.