October 23, 2009

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Japan Oil, Gas and Metals National Corporation
Division in charge: Metals Finance Dept.
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JOGMEC signed Memorandum of Understanding on rare earth recovery projectin the Republic of Kazakhstan

On October 22, 2009, in Astana in the Republic of Kazakhstan, Japan Oil, Gas and Metals
National Corporation (JOGMEC, President: Hirobumi Kawano) signed a Memorandum ofUnderstanding on a rare earth recovery project which has been conducted by Sumitomo
Corporation (Sumitomo) and KAZATOMPROM, Kazakh National Atomic Company. The signingceremony was held in The First Joint Commission of the Japan-Kazakhstan Government andPrivate Sector on Economic Cooperation. The MOU was singed by Mr. Furuhata, Executive
Officer, Sumitomo; Mr.Yashin, Vice-President, KAZATOMPROM; and Mr. Shikado, Executive
Director, JOGMEC.
In August 2009, Sumitomo reached an agreement with KAZATOMPROM to undertake theproject to recover rare earth from uranium-ore residue. By the end of 2009, Sumitomo andKAZATOMPROM are going to establish a joint venture entity to produce rare earth concentratefrom uranium tailings by utilizing an existing facility in ULBA, which will commence steadyproduction of rare earth metals as soon as practical.
In the MOU JOGMEC has decided to provide technical support to the project throughSumitomo and consider necessary financial support for the project, based on the understandingthat the project contributes to stable supply of rare earth metals to Japan.
Rare earth such as dysprosium and neodymium are indispensable rare metals for highperformance magnets used in hybrid / electric vehicles, however, currently rare earth market isheavily dependent on China. It is an urgent matter to diversify the suppliers. It is expectedthat the project will open up doors and Kazakhstan will become a new supplier of rare earth.

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■ What is KAZATOMPROM?
KAZATOMPROM is a Kazakh national atomic company, which operates natural uranium
production, pelletizing, and reconversion of enriched uranium, including production of beryllium,niobium and tantalum.

The company has been eager to develop joint venture operation withforeign companies. It has engaged in joint venture with global uranium production companies
Cameco (Canada) and AREVA (France), and also Russian/Chinese/ Korean companies.
Japanese companies Sumitomo Corporation and The Kansai Electric Power Co., Inc. haveentered into a joint venture with APPAK LLP, a project of uranium mining development (the sharesof Kazatomprom, Sumitomo, and KEPCO are 65%, 25%, and 10% respectively).

Marubeni

Corporation, The Tokyo Electric Power Company, and Chubu Electric Power Co, Inc. also havejointly entered into Kharasan project of uranium mining development.

Toshiba Corporation has

transferred 10% shares of Toshiba’s affiliate company Westinghouse Electric Co., to Kazatomprom.
Thus a number of Japanese leading companies has involved in cooperation with Kazatomprom in
the field of nuclear power industry.
■ The First Joint Commission of the Japan-Kazakhstan Government and Private Sector on
Economic Cooperation
The meeting was conducted in Astana on the basis of an agreement on establishment offramework commissioned by governmental and private sectors, which was made between thenPrime Minister Fukuda and President Nazarbayev in 2008 on his visit to Japan.

The framework isintended to discuss comprehensively on environmental improvement for enhancing trade/investment and cooperation in the economic field.

In the meeting Vice-Minister Ishige, Ministry ofEconomy, Trade and Industry, served as chairman of the Japan side, and Vice-Minister Magauov,
Ministry of Energy and Mineral Resources, served as chairman of the Kazakhstan side.

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