TOO Ognevka

 
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Hambledon Mining Plc("Hambledon" or "the Company")

TOO Ognevka

As expected, Hambledon's wholly owned subsidiary company, TOO Ognevka, has now been placed into bankruptcy and will be liquidated. (This was advised to shareholders in the Company's 2009 Annual Report).

The Company purchased TOO Ognevka in 2007 from its major creditor for a nominal sum, and purchased at a discount the majority of its debt at the same time. Since then, TOO Ognevka has been managed under a government controlled rehabilitation programme. As a result of the suspension of operations in 2009, this rehabilitation has been deemed to have failed.

Hambledon is a major secured creditor and can therefore expect to receive the majority of the liquidation proceeds, less the bankruptcy costs and tax, as partial repayment of its debt. The Company will be free to bid for the assets of TOO Ognevka from the liquidator on an arm's length basis.

The net assets of TOO Ognevka have been fully provided for in the Company's consolidated accounts and no further profit and loss charge will be required as a result of its bankruptcy.

A further announcement concerning TOO Ognevka will be made by the Company once the liquidation process has been completed.

ENQUIRIES:

HAMBLEDON MINING:

Telephone [phone]

Charles Zorab

FAIRFAX I.S. PLC:

Nominated Adviser and Broker

Telephone [phone]

Ewan Leggat/Laura Littley