Statement of "COGEGOBI" LLC

Press release

February 20, 2014

The people led by J. Ganbaatar, the general coordinator of the National Anti-Disaster Center movement, and Ya. Khundaganai, the executive director of "Fire Nation Union" have recently begun to actively publicize the false, groundless and intentionally distorted information through the mass media against AREVA group and its subsidiary "Cogegobi" LLC. This situation deteriorated even more when a large number of these fellows broke into the central office of "AREVA Mongol" LLC on February 18, 2014, verbally insulted the employees of the company and acted obscenely.

Therefore, we issue the following statement. We state with the full responsibility that "AREVA Mongol" LLC and "Cogegobi" LLC adhere to the legislation of Mongolia and operate without any harm to the environment and health of the population and livestock.
"Cogegobi" LLC has been conducting exploration in Mongolia since 1997 without interruption. Throughout this period we strictly followed the laws and regulations of Mongolia and worked obtaining all the required permits. Nuclear Energy Agency, Ministry of Environment and Green Development and specialized inspection departments of aimags and sums permanently supervise the activities of "Cogegobi" LLC. As per the inspections of these institutions for 17 years, they did not identify any incident of a radioactive substance or radiation gas leak or any technological mistake during the activities of "Cogegobi". The company monitors the radioactivity in the site of the exploration and in the areas surrounding the site according to the schedule imposed by the radiation safety regulation of the Nuclear Energy Agency. We submit the monitoring report to the Nuclear Energy Agency according to the Law on Nuclear Energy and work under the permanent supervision of this agency.

"Cogegobi" LLC has never recovered yellow cake.
Since it was required by the Nuclear Energy Agency, the company extracted 2.7 tons of the uranium ore or soil from the deposit of Dulaan Uul as a part of the recovery technology test and it is stored under the special protection and supervision of the Nuclear Energy Agency. This ore is natural soil and not uranium, not yellow cake and does not present a radiation danger. The in-situ recovery technology of "AREVA" group is used for more than forty percent of the world's uranium production and this technology has currently the least negative impact on the environment.
The company annually produces the environmental protection plan for every licensed site during the exploration process, acquires the permission of the sum governor and the state environmental inspector in the region, secures the approval of the Ministry of Environment and Green Development, protects and restores the environment according to the plan.

The fellows of these non-governmental organizations criticized that this company had not entered into a closure agreement and made it publicly look as if the legislation was broken. No law in Mongolia has the concept of entering into a mine closure agreement. Article 45 of the Law on Minerals has a provision regarding the requirements during the closure of a mine and Article 29 of the Law on Nuclear Energy a provision about stipulating the general mine closure plan in the deposit development agreement. The regulation on the temporary and permanent closure of a mine adopted by the State Specialized Inspection Agency sets measures of restoration and improvement after the closure of a mine, but not the requirement to enter into a closure agreement. On the other hand, the works of closure and restoration proceed in the final stage of the complete exploitation of the deposit and the final completion. But with regards to the talk about the mine closure, today our company even did not open a mine.

However, "AREVA" group is a responsible company fulfilling the international standards and it stipulates the issue of the closure in the deposit development feasibility study and plans ahead the expenditure funds.

The Citizens' Representatives Assembly is not the entity authorized to terminate the license. Our company did not receive any statement from the Citizens' Representatives Assembly of Dornogovi aimag and, as we learned from a third party about this resolution of the Citizens' Representatives Assembly of Dornogovi aimag adopted on July 31, 2013 that the people of the non-governmental organizations had talked about, this resolution assigned the task to the governor of the aimag to deliver an opinion to the relevant institution. So the relevant institutions and the Nuclear Energy Agency considered that there were no grounds for the license suspension and did not issue any decision on the suspension if they made such a decision, we would have been informed.