Agenda and draft resolutions of examinable issues of shareholders meeting of JSC “Liepājas metalurgs” to be held on May 8, 2012:

1. Council’s Report of Joint-Stock Company "Liepājas metalurgs" on performance results in the year 2011.

- The Board of Joint-Stock Company "Liepājas metalurgs" proposes to take notice of the Report on the performance results in the year 2011.

2. Approval of Financial Report of Joint-Stock Company "Liepājas metalurgs" for 2011.

- The Board of Joint-Stock Company "Liepājas metalurgs" proposes to approve the financial report of  JSC "Liepājas metalurgs" for the year 2011 and the consolidated reports for year 2011.

- Shareholder Mr. K.Lipmans proposes to take a notice of the approval of financial reports for the year 2011 and consolidated reports for year 2011 of JSC "Liepājas metalurgs".

3. Release from liabilities of Board and Council of Joint-Stock Company "Liepājas metalurgs" for activities in the year 2011.

- The Board of Joint-Stock Company "Liepājas metalurgs" proposes to release members of the Board and the Council from any responsibility for the activities carried out in the year 2011.

4. Distribution of profit of Joint-Stock Company "Liepājas metalurgs" in the year 2011

- The Board of Joint-Stock Company "Liepājas metalurgs" proposes to divert profit of JSC "Liepājas metalurgs"  for the year 2011 amounting to 2.47 Mio. LVL (3.51 Mio. EUR) for coverage  of a long-term credit.

- Shareholder Mr. K.Lipmans proposes to divert profit of JSC "Liepājas metalurgs"  for the year 2011 for a payout to shareholders.

5. Approval of budget of Joint-Stock Company "Liepājas metalurgs" for 2012

- The Board of Joint-Stock Company "Liepājas metalurgs" proposes to approve the budget for year 2012 with the expected revenues 342.9 Mio. LVL (487.8 Mio. EUR), expenses 332.7 Mio. LVL (473.4 Mio. EUR) and profit 10.2 Mio. LVL (14.5 Mio. EUR).

- Shareholder Mr. K.Lipmans proposes not to approve the draft budget for 2012, delaying approval of the budget for 2012 till publishing of Financial Report and Consolidated Financial Report for the three-months period of 2012, and to approve it during the next shareholders meeting.

6. Election of Council of Joint-stock company "Liepājas metalurgs"

- The Board of Joint-Stock Company "Liepājas metalurgs" proposes to approve the Council of Joint-stock company "Liepājas metalurgs" in following membership: S.Zaharjins, A.Zaharjins, K.Lipmans, M.Pomerancis, A.Deniņš, G.Vilnītis.

7. Election of Auditorial Committee of Joint-stock company "Liepājas metalurgs"

- The Board of Joint-Stock Company "Liepājas metalurgs" proposes to approve Auditorial Committee of Joint-stock company "Liepājas metalurgs" in following membership: Mrs Inna Kromkina, education – higher, The University of Latvia, specialization – analysis of economic activities, having previous experience as an Auditor.

8. Electing a Certified auditor.

- Board of the Joint-Stock Company "Liepājas metalurgs" proposes the functions of Certified auditor to be carried out by the audit company JSC “BDO”.

- Shareholder Mr. K.Lipmans proposes that the functions of Certified auditor to be carried out by the audit company “Deloittte&Touche”.

9. Other issues.

10. Reports on activities in 2011 from all the commercial companies, in which the JSC Liepājas Metalurgs has invested its own assets. (proposal received from Mr. K.Lipmans)

- The Board of Joint-Stock Company "Liepājas metalurgs" proposes to take a notice of the Reports on activities in 2011 from all the commercial companies, in which the JSC "Liepājas metalurgs" has invested its own assets.

         Līga Šenfelde
         Assistant of Chief Economist
         t.: +371 63455926
         shenfelde@metalurgs.lv