KazakhGold Trading Stmt-Amend

RNS Number:2790R
KazakhGold Group Ltd
14 February 2007

The following replaces the announcement issued at 1.29pm (RNS 2591R).  The
sentence at the end of the first paragraph has been amended.

The full amended release appears below.


February 14, 2007


TRADING UPDATE FOR THE YEAR ENDED DECEMBER 31, 2006


                   KAZAKHGOLD PRODUCES 220,000 OUNCES OF GOLD
                  IN FIRST YEAR AS FULLY-LISTED LONDON COMPANY

KazakhGold Group Limited (LSE: KZG), one of the leading gold producers in
Kazakhstan, reports production of 45,986 ounces in the final quarter of 2006.
This brings to 219,853 ounces the total output for the 12 months ended December
31, 2006, the company's first year as a fully-listed London company.  2006
production at Kazakhaltyn, KazakhGold's principal operating subsidiary, has
increased 175% on the 80,069 ounces produced in the 12 months ended 31 December
2005.

Production at Aksu, Bestobe and Zholymbet, the Group's three principal mines in
Northern Kazakhstan, was below expectations in the final quarter of 2006 as a
result of an unexpected period of extremely cold weather in November and
December which had an adverse impact on the Group's heap leaching operations at
Aksu and Bestobe.  Stockpiling of ore continued, however.

During the year, the company treated 4.68m tonnes of ore at an average grade of
1.92g/t gold of which 1.76m tonnes grading 2.13g/t gold were treated in the CIP
plants, 2.86m tonnes grading 1.66g/t gold were heap-leached and 0.061m tonnes
grading 7.76g/t gold were processed in the Bestobe flotation plant. The average
gold recovery rate was 76%.

The Group is continuing technical upgrading work at all the mines, including the
overhaul of crushing and milling equipment and upgrading and re-equipping the
shafts.  This work is being undertaken to enable the Group to optimise
production costs.

KazakhGold has engaged Altynor and MAED as project managers to advise the
Group's internal technical team on the construction of the new CIP plants, which
form a major part of the Group's Accelerated Investment Plan. During this
process the team will be able to draw on experience gained when constructing the
CIP plants commissioned in 2005.  In addition, the Group will be evaluating
tenders for construction of the proposed plants.

The main focus of the programme is to increase the proportion of ore treated by
carbon-in-pulp to around 70%.  This should result in higher gold recovery, more
stable cash flows and substantial reductions in production costs. It will also
reduce the seasonal variation in production.

At the Kaskabulakskoe gold project in Eastern Kazakhstan, the pilot production
plant has been completed and additional crushing and heap leaching capacity is
now being added. The project will treat a mixture of open pit ore and stockpiled
tailings, with full-scale mining and stacking on the leach pads expected to
begin in May 2007.   No gold was produced during the fourth quarter of 2006.

The Group has now paid the balance of the US$3.5m purchase price for its joint
acquisition with Oxus Gold of the assets of a Romanian gold project.  The
agreement between the two Groups for the formation of a 50:50 joint venture,
Romaltyn, is expected to be signed shortly.

Wardell Armstrong International (WAI) has continued its programme of
re-classifying certain ore reserves and resources at KazakhGold's three main
operating gold mines to JORC standard.  The first results of this work are
expected by the end of the first quarter 2007.

China Gold has now established a local Kazakh company whose services have been
sub-contracted by Kazakhaltyn to carry out underground development at the
Bestobe mine.

Conference Call

Mr Aidar Assaubayev, Deputy Chief Executive of KazakhGold, will discuss the
company's Trading Update and answer questions via a conference call facility
arranged for 9.30am London time on February 15, 2007

Those wishing to participate should telephone: 00 +44 (0)20 7162 9961

Password: KazakhGold

A remote replay facility will be available from February 15 to midnight February
17

Please call:  00+44 (0)20 7031 4064   Access Code: 738980


Further Information:

Ron Marshman/John Greenhalgh
City of London PR Limited
Tel:  00 +44 (0)20 7628 5518

Production Summary for 12 months ended December 31, 2006.

Mining

                             Ore Mined                Grade                  Gold Content

Aksu                       2.247m tonnes             1.66g/t                119,773 ounces
Bestobe                    1.302m tonnes             2.09g/t                 87,604 ounces
Zholymbet                  685,964 tonnes            2.35g/t                 51,795 ounces
Totals                      4.23m tonnes             1.90g/t                259,172 ounces

Processing
                            Ore Treated               Grade                  Gold Produced

CIP Plants                  1.76m tonnes             2.13g/t                 95,335 ounces
Flotation                  60,616 tonnes             7.76g/t                 15,443 ounces
Heap Leach                  2.86m tonnes             1.66g/t                109,075 ounces
Totals                      4.68m tonnes             1.92g/t                219,853* ounces



*Total production includes a small amount of gold recovered from
quartz ore and other sources




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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