November 28, 2007

Watchdog Recommends Pulling Tsar Emerald License

MOSCOW. Nov 28 (Interfax) - Russian natural resources watchdog Rosprirodnazdor is recommending that the license to the Malyshevskoye emerald deposit in the Sverdlovsk region, held by CJSC Zelen Kamen, a subsidiary of Canada's Tsar Emerald, be revoked, the Russian Natural Resources Ministry said in a press release.

"Zelen Kamen has not fulfilled the demands set down in an earlier notice," the statement said.

"The license holder did not, for example, finish rehabilitating the underground mine by the stipulated deadline, to enable it to mine emerald ore as per the technical project," the statement said.

"The enterprises is not fulfilling an approved plan for mine works in 2007 where this concerns the volume of work and levels of ore extraction. In addition, emeralds are being recovered from waste without permits having been drawn up in the legally prescribed manner," the statement said.

Malyshevskoye is the biggest emerald deposit in Eurasia.

Tsar Emerald postponed a listing on the Alternative Investment Market (AIM) in June this year for the second time.

Russian subsurface resources agency Rosnedra almost pulled Zelen Kamen's license in 2006 for not fulfilling the license terms.

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