On 24^th June, 2004 Deputy Minister of Geology and Mines of the Republic of Angola Samuel Tito Armando and President of ALROSA Co. Ltd. Vladimir Kalitin signed a Memorandum of Co-operation.

At the ALROSA Moscow office Mr. Kalitin and Mr. Samuel Tito Armando discussed partnership in diamond mining and energy production in Angola, ALROSA’s contribution to the social development of the Lunda Sul province, were ALROSA’s operations in Angola are located.

V. Kalitin characterized the present level of economic co-operation as positive and proposed that a program for ALROSA’s involvement in mutually beneficial economic projects should be worked out. In his opinion, it is within ALROSA’s capabilities not only to develop primary diamond deposits, construct hydro electric stations, or assist in organization of education and training of Angolan engineers and workers in Russia. The Company can also become an active participant in an international project for the development of Angolan alluvial deposits, in marketing of Angolan diamonds, development of the country’s social infrastructure and agriculture.

Mr. Samuel Tito Armando gave a very high appraisal of ALROSA’s role in the implementation of such projects in his country as Catoca Mining Co., the construction of a hydro electric station on the Chicapa River, development of Camatchia and Camagico diamond deposits, and, on his part, also made a number of proposals how to expand the current partnership. He stressed that the both sides have converging views as to a number of issues concerning future co-operation. That will make it easier for ALROSA and the Angolan government to find consensus in the future.

The Angolan Deputy Minister of Geology and Mines will be in Russia until 28^th June. While in Moscow, he will make a tour of USO ALROSA, the Company’s diamond sorting, valuation and sales division, and Brillianty ALROSA, its diamond manufacturing unit. In Sakha (Yakutia) he will have meetings with some of ALROSA senior managers and visit the Nyurba Integrated Diamond Mining and Processing Complex, the Company’s newest and most dynamic operation.