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ACRON : ACRON : Acron Group Releases 2012 Operating Results

         ACRON : ACRON : Acron Group Releases 2012 Operating Results

                                                              January 18, 2013

                 Acron Group Releases 2012 Operating Results

   Group's Consolidated Output (Operating Results for Acron, Dorogobuzh and
                                Hongri Acron)

          Stated in '000 t                  2012    2011    YOY, %
          CHEMICAL PRODUCTS
          Ammonia                          1,783.1 1,769.8        1
          Including inhouse consumption    1,630.7 1,573.6
          Nitrogen fertilisers             2,683.1 2,420.2       11
          including inhouse consumption     426.4   358.0
          AN                               1,423.0 1,412.4        1
          including inhouse consumption     100.0   78.1
          Urea                              571.4   458.8        25
          including inhouse consumption     326.4   279.9
          UAN                               688.7   549.0        25
          Complex fertilisers              2,546.2 2,607.1       -2
          including inhouse consumption     35.0    33.2
          NPK                              2,235.9 2,336.7       -4
          including inhouse consumption     35.0    33.2
          Bulk blends                       310.3   270.4        15
          Organic compounds, including      389.2   398.6        -2
          including inhouse consumption     202.4   208.5
          Methanol                          79.9    77.8          3
          including inhouse consumption     71.8    73.6
          Formalyn                          139.1   144.3        -4
          including inhouse consumption     129.7   134.1
          Urea-formaldehyde resins          170.2   176.5        -4
          Non-organic compounds, including  740.6   821.3       -10
          Low-density technical AN          241.9   247.6        -2
          Calcium carbonate                 302.1   364.8       -17
          Liquid carbon dioxide             55.7    55.7          -
          Argon                              7.0     7.2         -3
          Hydrochloric acid                 133.9   146.0        -8
          Total for commercial products
          (output less own consumption)    5,847.7 5,843.7        -
          PHOSPHATE RAW MATERIALS
          Apatite-nepheline ore
          Extraction                       1,238.5    -    increase
          Shipments to third-party buyers   563.7     -    increase
          Apatite concentrate (output)      22.3      -    increase

Acron Board of Directors Chair Alexander Popov comments on the results:

"In 2012, Acron's  production facilities  manufactured 5.8  million tonnes  of 
commercial products, which is comparable to 2011 output. The highlight of  the 
reporting year was the launch and first shipments of apatite-nepheline ore and
later of apatite  concentrate at our  Oleniy Ruchey mine.  In December,  Acron 
started manufacturing complex  fertilisers from  its own  phosphates. We  will 
incrementally increase apatite concentrate output to meet the requirements  of 
the Group's Russian facilities by mid-2013.

"A  number  of  factors  contributed  to  the  Group's  successful   operating 
performance in 2012.  The commissioning  of a new  330-kt urea  unit at  Acron 
Novgorod and the  increase in  complex fertiliser  output at  Hongri Acron  in 
China helped  us maintain  high production  rates. Total  output of  urea  and 
urea-ammonium  nitrate  (UAN)  was  up  25%.  According  to  our  plans,  urea 
production will reach design capacity of 800  kt in 2013, which will allow  us 
to increase our output of UAN. There is steady demand for this liquid nitrogen
fertiliser, and we intend to sell as  much as 1 million tonnes of it  annually 
within the next few years.

"I want  to  mention another  record,  this  time in  ammonia  production.  In 
aggregate, all of the Group's ammonia units manufactured 1,783 kt. Each of the
three ammonia units in Russia produced 1,700 tpd. Because we are committed  to 
continual improvement, we are gradually  upgrading equipment to attain  higher 
output  and  resource  efficiency.  Acron  has  considerable  human   resource 
potential and expertise  to maintain  its leading  position in  this area.  In 
addition, we began constructing a  large-tonnage 700-kta ammonia unit to  come 
on stream in 2015.

"The scheduled overhaul at Dorogobuzh in the second and third quarters of 2012
and the forced  stoppage of  the Group's Russian  NPK units  due to  phosphate 
shortages in the summer  of 2012 led  to a decrease  in operating results  for 
certain products. We expected the drop in production at Dorogobuzh, since  the 
facility shuts  down for  long-term capital  repairs every  two years,  during 
which operations are suspended for up to 40 days. Unfortunately, the  decrease 
in NPK production  was also  due to interrupted  apatite concentrate  supplies 
from the  manufacturer, and  this adversely  affected our  complex  fertiliser 
segment; however, the launch of our own apatite concentrate operations in late
2012 mitigates the risk of similar events in the future.

"In terms of our industrial product segment, I would like to note the improved
quality of the  Group's urea-formaldehyde resin  products. Acron is  gradually 
changing its focus to resins with low formaldehyde content, which are  popular 
in Russia.  For other  products, the  dynamics were  stable. The  decrease  in 
calcium carbonate figures was related to the suspension of NPK operations.

"The global  market and  sales of  NPK slowed  in the  fourth quarter  due  to 
seasonal factors.  At  the  same  time, many  countries  have  started  buying 
fertilisers for the spring season, which helps nitrogen fertiliser sales."

Average world prices, US$/t *

                         Q1 2012 Q2 2012 Q3 2012 Q4 2012 2012 2011
            NPK 16-16-16   451     459     452     439   451  452
            AN             310     331     276     307   306  313
            UAN            265     295     294     289   286  308
            Urea           381     465     377     377   400  416

* Indicative prices FOB Baltic Sea/Black Sea

For Further Information:

Acron

Ms. Elena Kochubey -                          Tel: 
+7 (495) 777 08 65
Head of Public Relations

Mr. Ilya Popov -                                 
Tel: + 7 (495) 411 55 94 (ext. 5252)
Head of Investor Relations

Background

Acron Group is a leadingRussian and global mineral fertiliser producer with a
diversified product  portfolio  consisting  of multi-nutrient  (NPK  and  bulk 
blends) and straight  nitrogen-based fertilisers (urea,  ammonium nitrate  and 
UAN), as well as industrial products.  In 2011, the Group's output  (exclusive 
of own use) totalled 5.8 million  tonnes. The Group's key markets are  Russia, 
China and other Asian countries, Europe, America, and CIS countries.

In 2011, the Group's consolidated revenues under IFRS were RUB 65,431  million 
(US$ 2,226 million), and net profit was RUB 20,328 million (US$ 692  million). 
Acron's shares are  listed and traded  on the Moscow  Exchange and the  London 
Stock Exchange (ticker AKRN). Acron employs over 14,000 people.

A high vertical  integration, including  development of  potash and  phosphate 
deposits, operation of three  large production facilities, own  transportation 
infrastructure and international distribution network,  is a platform for  the 
Group's sustainable growth. The  phosphate and potash  projects in Russia  and 
Canada are Acron  Group's most intensively  evolving segment. After  launching 
the Oleniy Ruchey mining  and processing complex, the  Group will reach a  new 
stage of development by securing supplies  of its own phosphate raw  materials 
to Acron's processing facilities.

For more information about the Group please visit www.acron.ru/en.

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