Exillon Energy plc is subject to a wide range of Russian Federal regulations relating to health and safety, notably Federal Law No. 116-FZ ‘‘On Industrial Safety of Hazardous Industrial Facilities’’ and various parts of the Russian Labour Code. Exillon Energy is committed to complying with GOST standards on environmental and production safety.

We have a comprehensive Environmental and Production Safety Programme (EPSP), which includes policies related to personnel safety, emergency control and production safety. Employees receive regular mandatory training and drills on emergency response, well blow-out prevention, oil and other hazardous liquid spills prevention, hydrogen sulphide safety knowledge, first aid training, fire safety and fire fighting equipment.

Audits

The Federal Service for Ecological, Technological and Nuclear Supervision (Rostekhnadzor), which ensures compliance with safety rules, periodically inspects our field operations and has found them compliant to date. In addition, the Group’s Health, Safety and Environment Department carries out quarterly safety audits of our field operations. Findings on these audits are presented to the General Directors of Exillon TP and Exillon WS as well as the Group’s Chief Operating Officer. There are at present no significant recommendations arising from these audits. Again in 2010, the Group reported no fatalities and no work-related injuries.

Targets

The Group’s Lost Time Injury Frequency Rate for 2010 was therefore zero and our long-term target would be to sustain this impressive level. Any incidents are a cause of grave concern and we remain committed to providing a safe and supportive work environment for all. The Group did not pay any compensation claims in 2010. With the exception of those based in Moscow, all Group employees in Russia are provided with medical insurance, which includes health checkups. The families of employees of Exillon Middle East (Dubai) are also provided with medical insurance.