Tax Exemption

Steppe Cement Limited
10 January 2006



                             STEPPE CEMENT LIMITED

                                 TAX EXEMPTION

The directors of Steppe Cement Limited ('Steppe' or the 'Company' AIM - STCM.L)
are pleased to announce that the Company's 100% owned subsidiary, Karcement JSC
('Karcement'), has concluded an agreement with the Ministry of Industry and
Trade of the Republic of Kazakhstan regarding the tax incentives covering its
capacity expansion project.

The agreement grants a five year income tax and property tax exemption
commencing on the date Karcement begins production from the refurbished dry
lines and expiring not later than 31 December 2012.

Karcement will undertake the refurbishment of dry lines number 5 and 6 for an
estimated total cost of US$93 million during 2006 and 2007. This will provide
the group with additional production capacity of 2.4 million tonnes of cement
per annum.

The Company is also discussing possible exemptions from import duties and VAT on
imported machinery for the project with the relevant authorities in Kazakhstan.
The Company will inform the market as soon as any agreement in relation to this
matter has been finalized and approved.













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