GLENCORE PLC - GLN - New strategic partnership between Glencore and Qatar Investment Authority relating to Rosneft

GLN - New strategic partnership between Glencore and Qatar Investment Authority relating to Rosneft

GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64

Baar, Switzerland
12 December, 2016

New strategic partnership between Glencore and Qatar Investment Authority relating to Rosneft

Glencore and QIA have concluded various agreements which provide for the establishment of a 50:50
consortium (the Consortium).

The Consortium has entered into agreements in connection with the further privatisation of Rosneft
whereby the Consortium will acquire from Rostneftegaz a 19.5% interest in the issued share capital of
Rosneft (the Shares) for €10.2 billion (the Consideration). Under the proposed arrangements, Glencore
will commit €300 million in equity (the Glencore Equity) and QIA will commit €2.5 billion in equity to the
Consortium with the balance of the consideration for the acquisition of the Shares to be provided by non-
recourse bank financing, principally by Intesa Sanpaolo S.pA., with Russian banks also providing
financing and credit support.

The other material terms of the transaction for Glencore are:

    -   New 5 year offtake agreement with Rosneft representing a sizeable additional 220,000 bbls/day
        for the Glencore Marketing business
    -   Additional opportunities through a strategic partnership for further cooperation, including
        infrastructure, logistics and global trading
    -   Other than the economic exposure represented by the Glencore Equity (representing a 0.54%
        indirect equity interest in Rosneft), Glencore will not have any economic exposure to its interests
        in the Shares
    -   Limited liability structure fully ring-fenced and non-recourse to Glencore apart from its €300
        million equity contribution and the provision of margin guarantees of up to €1.4 billion, for which
        Glencore has obtained full indemnification from appropriate Russian banks.

The overall transaction, including the acquisition of the Shares, is conditional on the finalisation of all
relevant financing, guarantee and other agreements and is expected to close in mid-December 2016.

Commenting on the transaction, Glencore CEO Ivan Glasenberg said:

"We are delighted that the strong relationships that already exist between Rosneft, QIA and Glencore
have enabled us to successfully enter into this transaction. Glencore looks forward to working with both
parties to take advantage of the significant opportunities which are expected to be presented across the
Russian and global oil markets."

The value of the gross assets the subject of the transaction attributable to Glencore (being 50% of the
Consideration) is €5.1 billion. The profits attributable to the Shares, (being 9.75% (50% of 19.5%) of the
net income attributable to shareholders of Rosneft), as shown in Rosneft’s latest published audited
accounts for the year ended 31 December 2015, are RUB34.6 billion (€510.6 million).

This transaction is not connected with the recently announced privatisation by the Russian government of
Bashneft.

In this announcement:

Glencore means Glencore plc and its subsidiaries
QIA means the subsidiaries and investments of Qatar Investment Authority
Rosneft means Rosneft Oil Company
Rosneftegaz means Joint Stock Company Rosneftegaz
RUB means Russian roubles
€ means Euros.

For the purposes of the penultimate paragraph of the text above:

    1. the net income attributable to the shareholders of Rosneft for the year ended 31 December 2015
       was RUB 355 billion; and
    2. the exchange rate used is RUB 67.7660 to one Euro.

For further information please contact:

Investors
Martin Fewings              t: +41 41 709 2880      m: +41 79 737 5642      martin.fewings@glencore.com
Carlos Francisco            t: +41 41 709 2369      m: +41 79 129 9195      carlos.fernandez@glencore.com
Fernandez
Stefan Ogden                t: +65 6415 7625        m: +65 9828 3700        stefan.ogden@glencore.com

Media
Charles Watenphul           t: +41 41 709 2462      m: +41 79 904 3320      charles.watenphul@glencore.com
Pam Bell                    t: +44 20 7412 3471     m: +44 77 3031 9806     pam.bell@glencore.co.uk
Company secretarial
John Burton                 t: +41 41 709 2619      m: +41 79 944 5434      john.burton@glencore.com
Nicola Leigh                t: +41 41 709 2755      m: +41 79 735 3916      nicola.leigh@glencore.com

www.glencore.com

Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer
and marketer of more than 90 commodities. The Group's operations comprise around 150 mining and
metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore's
industrial and marketing activities are supported by a global network of more than 90 offices located in
over 50 countries.

Glencore's customers are industrial consumers, such as those in the automotive, steel, power
generation, oil and food processing. We also provide financing, logistics and other services to producers
and consumers of commodities. Glencore's companies employ around 160,000 people, including
contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative.

Follow us on social media:
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Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking Division)

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