History

2006

RusForest Ltd's forestry activities were established through Vostok Nafta's acquisition of PIK-89 (now RusForest Ust-Ilimsk), Tuba-Les and Tublesprom.

The investment company RusForest (then Varyag Resources AB) was listed on First North on 7 August, which provided the Company with SEK 441 million before issue expenses. RusForest became Vostok Nafta's co-investor in RusForest Ltd after the share issue, when RusForest acquired 50 per cent of Vostok Nafta's share in PIK-89, Tuba-Les and Tublesprom.

2007

In March, RusForest entered into an agreement concerning the acquisition of OOO Boguchansky LPK, where the principal asset was a sawmill plant located in Boguchany in the Krasnoyarsk region. At the time of the acquisition, the plant, which had a capacity of 50,000 m3 sawnwood, had been closed since 2000.

In May, RusForest acquired 100 per cent of OOO Lesprom; a harvesting and forestry company with smaller sawmilling operations in Magistralny, in the Irkutsk Region. OOO Lesprom's main asset was a forest lease agreement for 34,000 hectares.

In August, RusForest acquired 50 per cent of the shares in OOO Nebelsky, a Russian harvesting and forestry company located in the city of Magistralny in the Irkutsk Region. At the time of the acquisition, OOO Nebelsky's main assets were two forest leases for 90,000 hectares.

In December, RusForest carried out a new share issue in the amount of SEK 200 million.

In addition to the investments in the forestry operations, at year end the portfolio also included investments in a gravel business as well as coal mining operations in Russia.

Forest Land (ha)* Total AAC (m3)*  Harvesting (m3)*  Sawmilling (m3)*
723,664 1,449,000 708,404 153,672

*Refers to RusForest's portfolio company RusForest Ltd In which RusForest held 50 per cent until 1 June 2009.

2008

In June, RusForest entered into an agreement to acquire the Russian forestry company TSLKK (now RusForest Angara). At the time of the acquisition, TSLKK held a forest lease with an annual allowable cut of 112,400 m3, and covered approximately 48,700 hectares.

In July, RusForest entered into an agreement to acquire the Russian forestry company ZAO Bamlesstroi, with a forest lease holding an annual allowable cut of 233,000 m3, spread over approximately 231,600 hectares.

Operations at the new sawmill in Boguchansky LPK started in October.

An agreement to split the Nebelsky joint venture project into a forestry company, owned by Russian shareholders, and a sawmilling site, RusForest Magistralny, owned by RusForest, was concluded.

In 2008, the Company sold its stake in the Unal coal project.

Forest Land (ha)* Total AAC (m3)* Harvesting (m3)* Sawmilling (m3)*
1,005,020 1,654,100 593,529 120,617

*Refers to RusForest's portfolio company RusForest Ltd In which RusForest held 50 per cent until 1 June 2009.

2009

In June, RusForest acquired 50 per cent of RusForest Ltd from its co-investor, Vostok Nafta, through an issue in kind. The acquisition was part of RusForest's transition from an investment company to a pure play forestry company. Alexandr Williams was appointed managing director of RusForest AB at the same time. The Company also changed its name from Varyag Resources AB to RusForest AB in August of the same year.

Forest Land (ha) Total AAC (m3) Harvesting (m3) Sawmilling (m3)
864,784 1,443,200 716,826 166,333

2010

In order to increase the Company's financial flexibility, RusForest carried out a bond issue with a 12 month maturity and a volume of SEK 50 million in February. The bond was redeemed on December 28, 2010.

Martin Hermansson was appointed President and CEO of RusForest as of 1 June.

In November RusForest carried out a rights issue of approximately SEK 437 million before issue expenses.

In December, RusForest's acquired 86 percent of LDK-3, a sawmilling operation located in the city of Arkhangelsk, in North West Russia, and 100 percent of Infa, a planing mill at the same site.