PARAMETERS OF SUBGROUPS OF NON-INDEXED GS DEFINED FOR THIRD QUARTER OF 2016 FOR PURPOSES OF THEIR MARKET VALUATION

/KASE, June 30, 2016/ – The Expert Committee of Kazakhstan Stock Exchange (KASE) on June 22, 2016 according to the schedule revised parameters of non- indexed government securities (GS) subgroups used by KASE for their market valuation. We remind you that according to the Methodology of Securities Valuation, non- indexed GS are valued at yield-to-maturity whose values are defined within the limits of sub-groups pointed out by the Expert Committee depending upon the time left to maturity of each security. That stipulates that one subgroup shall include securities whose dependence of the yield-to-maturity on the number of days left to maturity may be most precisely described by one polynomial trend equation. The polynomial trend equation for each sub-group is determined by using the method of approximation of parameters of executed deals (dates before repayment and yield) in GS of that subgroup. Having analyzed the analytical data provided to KASE the Expert Committee members voted resulting in a failure to take a decision as no votes sufficient to approve the valuation parameters under consideration were casted. Since the absence of a decision on this item may lead to the impossibility of market valuation of non-indexed GS by the Exchange as of July 01, 2016, KASE Committee on Indices and Securities Valuation used its exclusive powers set out in clause 40 of the Methodology, and in accordance with sub-clause 4) of this clause for the fair valuation purposes by its decision of June 28, 2016 defined the non-indexed GS subgroup parameters for the third quarter of 2016 to be used by KASE for their market valuation. Given these parameters for the purposes of market valuation the non-indexed GSs were divided into two sub-groups with the following values of their limits: I subgroup – from 0 to 3,000 days left to their maturity, II subgroup – from 1,500 and more days left to their maturity. For buildin