The meeting of the Board of Directors of JSC “MOESK” was held in the form of joint presence and absentee voting on 2 September 2010. Its agenda was as follows:

1.On consideration of the Report Prepared by the Company’s General Director about Compliance with the Resolutions Passed by the Board of Directors of JSC “MOESK”.

2. On consideration of the Report on the Credit Policy of JSC “MOESK” for the 2nd Quarter of 2010.

3.On consideration of the Report on the Results of Performance of the Annual Comprehensive Program of Competitive and Regulated Non-competitive Purchases of JSC “MOESK” for 2009.

4. On approval of the Procedure for Updating of the Annual Comprehensive Program of Competitive and Regulated Non-competitive Purchases of JSC “MOESK”.

5. On consideration of the Report on Performance of the Key Performance Indicators (KPI) Targets of JSC “MOESK” for the 1st Quarter of 2010.

6. On approval of the Program of Non-state Pension Coverage for the Employees of JSC “MOESK” for 2010.

7. On consideration of the List of Guidance Indicators of JSC “MOESK’s” efficiency.

8. On approval of the Dividend Policy Regulation of JSC “MOESK”.

9. On approval of the Organizational Structure of the Executive Body of JSC “MOESK”.

10. On approval of the List of the Positions, the Approval of Candidates for which is Included into the Competence of the Board of Directors of JSC “MOESK”.

Positive resolutions were passed in respect of all of the meeting agenda issues.

The Company’s Dividend Policy Regulation was especially attended. It was approved by the Board of Directors in order to ensure the balance of interests of the Company and its shareholders, increase in the Company’s investment appeal and growth of its market capitalization.
The Dividend Policy Regulation of JSC “MOESK” was developed according to the current laws of the Russian Federation and the Charter of JSC “MOESK”.
The Dividend Policy Regulation is placed in the Company’s corporate website.

The Board of Directors also approved the Report on the Credit Policy of JSC “MOESK” for the 2nd Quarter of 2010. The debt position of the company as at 30 June 2010 meets all of the set target limits. The Company’s solvency pertains to the group “A”, which proves its financial stability.
The Board of Directors meeting approved the list of guidance indicators in order to ensure comprehensive valuation of efficiency of JSC “MOESK’s” activities from the point of view of industrial, financial and economic indicators.