ALROSA reported an incident wherein a sharp increase in the volume of watered mined rock movement caused a mud-and-rock flow at the production site of Udachny Mining and Processing Division. The incident occurred on November 25, 2016 during the time ALROSA’s management, headed by the President Andrey Zharkov, in the scope of a field meeting of the Company’s Executive Committee were visiting commissioned capital construction facilities of the main subdivision Udachny Underground Mine named after Fyodor Andreev at the level -465 meters.

During the time the delegation was inspecting the crushing complex, the incident occurred. Two employees of the Company sustained injuries as a result of inrush of rock mass–flow of processed (partly crushed) rock mixed with water.

The underground mine is operating in a normal mode.

The company is investigating all the circumstances of the incident and is carrying out an inspection. The Company’s management, headed by the President Andrey Zharkov, have taken all the necessary relief measures to assist the injured persons.

The company noted its commitment to industrial and labor safety. All the circumstances of this incident will be thoroughly investigated by the Company’s specialized services with the assistance of officials from law enforcement authorities and Rostechnadzor (Federal Environmental, Industrial and Nuclear Supervision Service of Russia).