Statement re Cancellation of Notes

Statement re Cancellation of Notes

Bank of Georgia

30 November 2011



NOTICE OF CANCELLATION

relating to the

U.S.$200,000,000 9.0 per cent. Loan Participation Notes due 2012 issued by BG Finance B.V.

(ISIN: XS0283756624

Common Code: 028375662)

Reference is made to the U.S. $200,000,000 9.0 per cent. Loan Participation Notes (the "Notes") due 2012 issued by BG Finance B.V. (the “Issuer”) for the sole purpose of funding a loan (the "Loan") to Joint Stock Company Bank of Georgia ("JSC Bank of Georgia").

JSC Bank of Georgia has purchased Notes in a principal amount of US$14,607,000.00 with its excess cash and these Notes have now been cancelled. Accordingly, at the date of this notice, US$ 55,507,000.00 in aggregate principal amount of the Notes remains outstanding. In accordance with the provisions of Clause 7.6 of the Loan Agreement dated 6 February 2007 between JSC Bank of Georgia and BG Finance B.V., JSC Bank of Georgia has been credited with the prepayment of US$14,607,000.00 of the principal amount of the Loan together with accrued interest on such amount of the Loan.

For more information contact:

Thea Jokhadze

JSC Bank of Georgia

29a Gagarin Street

Tbilisi 0160

Georgia

Tel.: [phone]

Email: [e-mail]