Avrora Fund, Ltd.

Fund Investment Objectives

The objective of the Fund is long-term capital appreciation through investment primarily in publicly traded securities of companies operating in Russia, the other former Soviet republics, including Kazakhstan and the Baltic republics, and certain early-stage Eastern European emerging markets, including Romania and Bulgaria. The Fund will invest primarily in the stocks of companies that are believed to be undervalued based on the Manager's analysis of their assets, franchises and current or potential earnings. The Fund may use short sales, put or call options, futures contracts, forward contracts, swap contracts and other derivatives for hedging purposes and in order to maximize returns. The Fund expects to hold some of its Russian securities through a wholly-owned subsidiary organized in Cyprus and may invest in other countries through the Subsidiary or one or more investment holding companies formed in other countries with favorable tax treaties.