OIL GASYAKUTIYA 2018

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Introduction

RNG is one of the leading oil and gas producers in the Far Eastern Federal District.

In 2014, the Company commenced active development of the license area designated Eastern Blocks of the Srednebotuobinskoye Oil and Gas Condensate Field. In 2018, RNG is to start test production.

In just four years, Company employees managed to complete a huge scope of work in field exploration and infrastructure development. This was possible owing to three key factors:

• engaging major international and Russian contractors;

• utilizing state-of-the-art innovative technologies;

• the extensive experience possessed by corporate leadership in implementing large-scale oil and gas projects.

Despite the fast pace of its development, the Company takes the time to make sure strict safety standards are complied with; it also takes steps to protect the environment in the Republic of Sakha (Yakutia), and makes sure that its natural resources are utilized rationally, with no exceptions allowed for compliance with environmental regulations.

The Company also pays close attention to how it interacts with the indigenous minorities in Russia’s Far North, and takes efforts to preserve their national culture.

RNG, together with its shareholders and investors, apply a odern, efficient, and responsible approach to organizing how work is performed, thereby providing for the Company’s sustainable growth, the well-being of its employees, and ositive development for the entire East Siberian oil and gas industry.

Contents

Introduction ................................................................................................3

Mission and goals ....................................................................................4

RNG today ....................................................................................................5

Map of licence areas controlled by RNG ...................................6

Competitive advantages of the project .......................................8

Srednebotuobinskoe field ...................................................................9

Project life cycle ....................................................................................10

Oil production profile .........................................................................11

Field Summary ........................................................................................13

Field Facilities Construction ...........................................................14

Board of Directors ................................................................................16

Management ............................................................................................18

Investment Committee of the Board of Directors ..............20

Agreement & Contract Commission (ACC) ............................21

Major contractors .................................................................................22

The images are the property of RNG and may not be used (displayed, modified, printed, etc.) without asking permission from the rightholder.

1. Oil well;2. Well cluster №7; 3. Central Gathering Plant.

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On the cover: Central Gathering Plant.

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4 MISSION AND GOALS

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Photo: Searchlight tower

Goals

Mission

Developing the fuel and energy industry in Eastern Siberia

- Protecting the environment and carrying out all social commitments

- Developing human resources, contributing to employment and welfare in the Republic of Sakha (Yakutia)

- Enhancing shareholder value and business performance of RNG

- Maximizing efficiency in development of Eastern blocks of the Srednebotuobinskoye oil and gas condensate field

RNG TODAY

start of production at the Eastern blocks of the Srednebotuobinskoye field

7,5 billion

0,6 million tons

1,20 million tons

28 million tons

2018 4Q roubles capital

of oil reserves (official government figures as of 1/1/2018)

of oil each year in the 1st stage

of oil each year in the 2st stage

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MAP OF LICENCEAREAS CONTROLLEDBY RNG

- Eastern Siberia-Pacific Ocean pipeline

- TAAS-Yuryakh Neftegazodobycha LLC pipeline

- Power of Siberia pipeline

- projected gas pipeline of RNG

- Sakha Transneftegaz gas pipeline

- year-round roadways

- winter road

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1. The Srednebotuobinskoye oil and gas condensate field is one of the largest deposits in Eastern Siberia by explored oil reserves.

2. The eastern blocks of the Srednebotuobinskoye field are close to strategic pipelines:

• the Eastern Siberia – Pacific Ocean trunk pipeline (distance to the connection point near the town of Lensk is 169 km);

• the Power of Siberia trunk gas pipeline (distance to the connection point near the town of Lensk is 149 km).

3. The eastern blocks of the Srednebotuobinskoye field are adjacent to other major fields, which are already in development. So there is much opportunity for mobilizing a qualified workforce and equipment to create infrastructure (roads, pipelines, electric power).

4. A well-developed power infrastructure of the south-western part of Yakutia, where the field is located, and surplus electricity generated in the region provide up to 20 MW available for development and operation of the field.

5. Cargoes of equipment and materials for field development can be delivered almost year-round to the eastern blocks of the Srednebotuobinskoye field by road and river via the following routes:

• from the town of of Ust-Kut (1023 km by road);

• from the city of Lensk (215 km by road);

• between Ust-Kut and Lensk (982 km) by river and by road (the highway running alongside the East Siberia-Pacific Ocean pipeline).

6. A number of oilfield service contractors are already active in the region, so there is healthy competition and opportunity to reduce spending on oilfield services.

Competitive advantages of the project:

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Projectlife

cycle

1970

DISCOVERY OF THE FIELD

1

PILOT PRODUCTION2014-2018

2

Drilling the projected number of wells. Achievement of annual production plateau.

Ramping up production to 1.2 million tons p/a.

EXPLORATION ANDCONSTRUCTION

2019-2022

3

Exploration drilling, reserve evaluation, сreation of infrastructure for annual production

of 1.2 million tons of oil. Start of pilot production in Q4 2018.

Oil production profile (thousand tons)

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

247

1 0921 229 1 172

1 292

1427 1 5321 517

1 2391 030

904798

722 656 603 555 514

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RNG holds Subsoil Use License No. YaKU 04493 NE issued September 3, 2015 for the exploration and production of hydrocarbons within the Eastern Blocks of SB OGCF. The license is valid till December 31, 2117.The licensed area is 385.5 sq. km.

Srednebotuobinskoye field

Licenсe

Eastern blocksoverview

The Srednebotuobinskoye oil and gas condensate field (OGCF) is situated in Mirny District of the Republic of Sakha (Yakutia), 130 km south-west of Mirny and 140 km north-west of Lensk.

Produced oil will be delivered to the Eastern Siberia – Pacific Ocean (ESPO) pipeline system in accordance with the received tie-in specification.

The short-term plans call for the completion and start-up of the Power of Siberia gas pipeline, which will run 150 km from the Eastern Blocks of the Srednebotuobinskoye OGCF.

85 km south-west of SB OGCF is the Chayandinskoye field, which is of strategic importance for the creation of the Yakut center for gas production and supply of gas to China via the Power of Siberia gas pipeline.

Tectonically, the field is divided into three large blocks: Central Block, Northern Block, and Eastern Blocks. The field is divided into four license areas.

The Botuobinsky horizon of the Vendian terrigenous complex is a major productive zone of the Srednebotuobinskoye field, spreading

over the entire area of the Central, Northern and Eastern Blocks.

Photo: Flame pad arrangement

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FIELD FACILITIES CONSTRUCTION RNG / 2018

Well pad No. 1 construction

Valve block site

Laying down a water main Pipeline Cleaning

Water intake at the Taas-Yurekh River (the effective foundation pit volume is 500,000 m3)

SB OGCF Eastern Blocks field facilities:• wellsite pads;• single wells;• integrated crude oil treatment site and

associated facilities: crude oil treatment and transfer department, crude oil treatment unit, CGF, integrated gathering facility, booster pump, booster pump with free water knockout unit, etc.

Site preparation and land developmentThe scope of site preparation and land development has reached 3,320 mln m3, including:

• 6 pads - 837,000 m3;• 14 single well pads;• 233,000 m3;• 135 km of intra-field service roads 1,307,000 m3;• CGF, FSB, energy facilities and other on-site facilities -

943,000 m3.

A bridge across the Taas-Yurekh River is built to enable year-round traffic from Tas-Yuryakh village to the Lensk-Mirny federal highway.

• working fluid injection areas for reservoir pressure maintenance, including cluster pump stations;

• integrated or preliminary gas and condensate treatment unit and related facilities: booster compressor, condensate de-ethanizer, etc.;

• intra-field oil, gas, and condensate transfer lines from sites to pipeline tie-in points (or to other treatment sites);

• auxiliary facilities associated with the above facilities, such as: metering units, brine plants, oil sludge pits, firefighting facilities, water supply and disposal facilities, other process facilities supporting the operation of field production facilities;

• water mains;• water intake;• service roads;• high-voltage power transmission lines;• transformer substations;• utility complex;• other infrastructure facilities (landfill, firefighting

depot, construction camp, etc.).

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Frederick Matthew Thomas Ponsonby, born in 1958. A British peer awarded the title of Lord in April 19, 2000.

From 1984 to 1986 Mr. Ponsonby was Petroleum Engineer at Charterhouse Petroleum. From 1989 to 1992 he held the position of Senior Petroleum Engineer at LASMO PLC.

From 1994 to 1998 he was the chief engineer in charge of international research and production projects at Phibro Energy.

Lord Ponsonby was Non-Executive Director at Emerald Energy PLC from August 15, 2003 to December 1, 2008 and Chairman of the Board of Directors of Yakut Energy Limited (formerly major shareholder of Taas-Yuryakh Neftegazodobycha) from January 2013 to the end of 2013 and Aladdin Oil & Gas AS since July 20, 2010.

Lord Frederick Matthew Thomas Ponsonby was once the Board Chairman and Chief Executive Officer at Rosehill Energy Plc, and was also delegated to some EU authorities, including the Council of Europe in 1997-2001 and the Organization for Security and Cooperation in Europe in 2001-2010.

He is the President of a British-Uzbek non-governmental humanitarian organization.

Currently, Lord Ponsonby is the Board Chairman at Eastsib Holding group of companies and RNG, its 100% subsidiary.

Mr. Menshikov was born in 1956 in Moscow. In 1980 he graduated from Lomonosov Moscow State University (Institute of Asian and African Studies) with a degree in International Economic Relations.In 2007 I. Menshikov got the Master of Business Administration (MBA) degree at the Open University (UK). Holds a postgraduate degree of Candidate of Science in Economics.From 1997 to 2003 he held positions of Vice President, Head of Investment Department, Deputy Director and Head of Project Finance (Corporate Finance Department) at Tyumen Oil Company OJSC. From 2003 to 2008 I. Menshikov held the position of Deputy Director of Corporate Finance in the Finance and Treasury Administration at TNK-BP Management OJSC. From 2008 to 2013 he held office of Chief Executive Officer at Taas-Yuryakh Neftegazodobycha.In December 2013 he was appointed Chairman of the Board of Directors at RNG.In June 2014 he was appointed Chief Executive Officer and Member of the Board of Directors at RNG.In 2016 he was awarded the Honoured Oilman title for his remarkable personal contribution to the development of the energy sector.Awarded a distinction of the Russian Ministry of Natural Resources and the Environment for excellence in exploration of mineral resources in 2016.

Holds a PhD in Economics. He holds the title of Distinguished Geologist from the Republic of Sakha (Yakutia).He is recognized as a Russian Federation Class II Active State Adviser.

Since 1993, he has held the office of supervisor at the Regional Policy Department, and is a panel member at the Russian State Committee for Geology and Use of Mineral Resources.From 1996 to 2001, he was the Russian Federation Deputy Minister of Natural Resources.In 2002, he chaired the Russian Fund for Geological Heritage.

He holds the title of Distinguished Lawyer from both the Republic of Sakha (Yakutia) and Russia. He is a Distinguished Officer at Russia’s Investigative Committee, and a Distinguished Officer with the Russian Federation Prosecutor General’s Office. From 1990 to 1994, he was a prosecutor with the Republic of Sakha (Yakutia).From 1994 to 2004, he was the Russian Federation Deputy Prosecutor General; In 2000, he was additionally appointed as the head of the Main Investigative Department at the Russian Federation Prosecutor General’s Office.From 2004 to 2006, he worked as the Advisor to the Russian Federation Prosecutor General, and was awarded the Order of Honor.

From 1999 to 2000, he held the position of Deputy Head of Administration for the Russian Ministry of Railways.From 2004 to 2010, he was the Vice President at EVROFINANCE MOSNARBANK.From 2010 to 2013, he worked as the Chief Security Officer for Sberbank’s Northwest Branch, and then, from 2013 to 2014, he was the Vice President at Soyuz Corporation.From 2014 to the present, he has been the First Deputy Chief Executive Officer of Inter-State Development Corporation.

FREDERICK MATTHEW THOMAS PONSONBY

Board Chairman

Ivan Menshikov

Nikolai Pinchuk

Vasily Kolmogorov

Yury Vilochkin

BOARD OF DIRECTORS

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RNG / 2018MANAGEMENT

Alexander Uskov

Deputy CEO & Head of Capital Construction Office

Sergey Nazarov

Advisor to CEO, Geology

Konstantin Shikin

Deputy CEO and Head of Construction & Transport Office

Evgeny Cherykayev

Deputy CEO & Chief Engineer

Vladimir Rakitin

Chief Financial Officer

Mikhail Soloshchak

Deputy CEO & Chief Geologist

IVAN MENSHIKOV

Chief Executive OfficerMember of the Board of DirectorsMember of Investment Committee

1986-1991: Chief Geologist in the Yakut Experimental Methodological Expedition of Yakutskgeofizika Group.1992-1996: Chief Geophysicist of QUANTUM Russian-Austrian joint venture. 1996-1998: Chief Geologist, Deputy General Director of the Engineering Research Centre of Sakhaneftegaz National Oil and Gas Company JSC. 1998-2006: Chief of the Head Office for Geology and Fields Development of Sakhaneftegaz National Oil and Gas Company JSC.2006-2007: Deputy General Director for Geology at Yakutgazprom JSC 2008-2011: Chief Geologist at Suntarneftegaz CJSC. Actively participated in the discovery and exploration of the Chayandinskoye, Verkhnevilyuchanskoye, Srednebotuobinskoye, Tas-Yuryakhskoye, Irelyakhskoye, Bysakhtakhskoye, Otradnenskoye and other oil and gas fields in Yakutia. An Honoured Geologist and winner of Sakha (Yakutia) National Award. 43 years of service in the oil and gas industry of the USSR and Russia.

From 1998 to 2011 Mr. Cherykayev held the position of Oil & Gas Production Foreman, Lead Technologist of Oil & Gas Production Shop, Shift Supervisor of Central Dispatch Office, Deputy Head of Central Dispatch Office at Orenburgneft.He held the position of Chief Engineer at Taas-Yuryakh Neftegazodobycha.

Graduated in 2008 from the Plekhanov RussianEconomic University, majoring in finance andcredit.Defended a thesis for the degree of Candidate ofEconomic Science in 2013.From 2007 to 2010 Mr.Rakitin held the position of the Head of the direct investment department at Eurofinance Mosnarbank.2010 through 2014: Senior tax consultant at the Moscow office of Lawrence Graham (CIS) LLP.

In 2002 through 2007 Mr. Uskov was Lead Engineer in Pipeline Construction at Surgutneftegaz’ Fedorovskneft Field Office.

2007 through 2012: Head of Technical Supervision in Construction for Uvat Project by TNK-Uvat.2012 through 2014: head of a separate Tyumen division of Taas-Yuryakh Neftegazodobycha.

In 1986 through 2000, Mr. Nazarov held positions ranging from production shop Lead Geologist to the Head of Exploration Division at Samotlor Field Office 2 (SNGDU-2). In 2001 through 2005 he worked at Orenburgneft TNK-BP Management OJSC, and held the position of Field Office Chief Geologist, Chief Geologist at Orenburgneft.2005 through 2010: Deputy General Director and Chief Geologist at Chepakovskoye NGDP. 2010 through 2011: Deputy General Director and Chief Geologist at RN-Sakhalinmorneftegaz.2012 through 2014: Chief Geologist at Taas-Yuryakh Neftegazodobycha.

He has vast experience in the construction of oil and gas facilities in Eastern Siberia; a holder of personal awards, such as the Order of Friendship, the Order of Honour, and the title of Merited Builder of the Russian Federation.In 2005 he was elected CEO at Vostoksibelektromontazh. Board director at Vostoksibelektromontazh. Board director at Elektromontazh.

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INVESTMENT COMMITTEEOF THE BOARD OF DIRECTORS

AGREEMENT & CONTRACT COMMISSION (ACC)

The Investment Committee is entitled to develop and issue recommendations to the Board of Directors on the investment development of the Company:

1. Assessing the Company’s policy in relations with investors and shareholders and submitting own recommendations for consideration by the Board of Directors.

2. Developing recommendations for the Company’s Board of Directors in respect of the Company’s priority areas of business.

3. Developing recommendations for the Company’s Board of Directors regarding the amount of dividends on shares and payment procedure.

4. Developing recommendations for the Company’s Board of Directors regarding Company’s profit and loss distribution based on financial year results.

5. Developing recommendations for the Company’s Board of Directors regarding Company’s policy towards its own securities.

Mr. Bondarenko was born in Sevastopol in 1972.

In 1994 he graduated from Saint Petersburg State University of Economics and Finance (a degree with honours in International Economic Relations). In 1998 he completed a postgraduate course in International Economic Relations at the same university. In 2001, A. Bondarenko defended his thesis at Moscow State Social University for a degree of Candidate of Sciences in Law.

In 2006, he completed a course in Private Equity at London Business School.

Holds a CIIA certificate.

From 2000 to April 2014 he held the positions of Senior Vice President, Deputy President and Chairman of the Management Board at EVROFINANCE MOSNARBANK.

Since 2009 to date, he has been Partner at Wragge Lawrence Graham CIS LLP.

2002 through 2006: Board director at NTV, TNT and NTV-Plus channels.2005 through 2010: Board director at PRIME-TASS Business News Agency.

2010 through 2011: Member of the Moscow Exchange (MOEX) Board’s Corporate Governance Committee and Member of the National Settlement Depository Board’s Internal Audit Commission. June 2013 through June 2014: member of the Supervisory Board at EVROFINANCE MOSNARBANK.

2008 through 2013: Board Chairman and Board director at Taas-Yuryakh Neftegazodobycha.

A. Bondarenko is a member of Association of International Petroleum Negotiators (AIPN), Chartered Institute of supply and procurement (CISP) and Guild of Investment and Financial Analysts (GIFA).

ALEXANDER BONDARENKO

ACC Functions:

• conducts the bidder pre-qualification process

• collects, stores, and evaluates proposals submitted by bidders

• selects potential contractors

• awards contracts or makes other decisions after bidding, submitting decisions to the CEO for approval.

A permanent commission established for the purpose of arranging and holding bids to award contracts for rendering services, performing work, and delivering sellable inventories.

* The Commission is an advisory body of the Board of Directors. ACC resolutions are of an advisory nature.

Photo: Tank farm at the Central Gathering Facility

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KEY PARTNERS

LOGGING SERVICES

Udmurtneftegeofizika LLC

OILFIELD SERVICES

Schlumberger

Baker Hughes

National Oilwell Varco

East-Siberian Engineering Company LLC

Scientific Drilling

EXPLORATION AND DEVELOPMENT SERVICES

GEOTECH Seismic Services PJSC

INTEGRATED DRILLING SERVICES

Halliburton International Inc.

DRILLING CONTRACTOR

VPT-Neftemash LLC

ESTIMATION OF OIL AND GAS RESERVES

DeGolyer&McNaughton

The Center of Scientific Research, Design, Fossil Raw Materials Geology (CNIP GIS LLC)

PRIMARY BANK

ROSBANK PJSC

CONCEPTUAL DESIGN

ThyssenKrupp AG

DESIGN & ENGINEERING

Giprovostokneft JSC

ENGINEERING SURVEYS

YakutStroyIzyskaniya LLC

NPO VKTB LLC

ROAD DESIGN

TEKPRO LLC

AUDITORS (RAS & IFRS)

Ernst & Young Ltd.

LEGAL ADVISORS

Intra Legem Law Firm

Allen & Overy Legal Services

INSURANCE PARTNERS

SOGAZ JSC

Willis insurance broker

ENVIRONMENTAL CONSULTANTS

Institute for Applied Ecology of the North

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Member of the Independent Oil and Gas Companies’ Association

Member of the U.S. - Russia Chamber of Commerce

Member of the Chamber of Commerce and Industry of the Republic of Sakha, Yakutia

Certificate GOST ISO 9001-2011 of the Quality Management System

Certificate GOST R 54934-2012 (OHSAS 18001:2007) of the Management System of the Occupational Safety and Health

Certificate GOST R ISO 14001-2016 (ISO 14001:2015) of the Environmental Management System

Offices in MoscowHeadquarters address: 27 Novy Arbat Str., Moscow, 121099Tel.: +7 (495) 662-71-33 Fax: +7 (495) 287-95-18 E-mail: office@mgoil.ru

Address: 12 1-st Troitskiy per., bldg. 5, Moscow, 129090 Tel.: +7 (495) 662-71-33 Fax: +7 (495) 287-95-18 E-mail: office@rngoil.ru

Mirny officeAddress: 12 Tikhonova str., bldg. A, Mirny, 678170Tel.: +7 (495) 287-95-19

Ust-Kut officeAddress: 136 Kirova street, Ust-Kut, Irkutsk Region, 666780Tel.: +7 (39565) 6-06-02

Yakutsk officeAddress: 2 Glukhoy per., bldg.1, 2rd floor, office 313, Portal Business Centre, Yakutsk, 677007Tel.: +7 (4112) 335090 Fax: +7 (4112) 33-50-99

Samara officeAddress: 23 Lesnaya St., bldg. 100, office 207, Samara, 443110 Tel.: +7 (927) 761-34-99

Lensk officeAddress: 32 Pervomayskaya str., bldg. A, office 1, Lensk, 678144

Irkutsk OfficeAddress: 263 Baikalskaya St., office 36 Irkutsk, 664050