Polyus Gold Mining Company today announced the considerable increase of its mineral resources base in 2005. The Company’s balance reserves (B+C1+C2, Russian classification) amounted to 1758 tons (including 998 tons of B+C1 reserves) as on January 1st, 2006, as compared to 800 tons (including 545 tons of B+C1) in 2004. The significant increase was achieved through acquisitions of new licenses and interests in gold producing companies as well as through large-scale exploration. Among the most significant achievements in 2005 should be mentioned state registration of 222 tons of gold of Blagodatnoye deposit in Krasnoyarsk, acquisition of new assets in Sakha Republic (Yakutia) and a number of subsoil licenses for new deposits in Krasnoyarsk, Irkutsk, Magadan and Amur region.

Commenting on Polyus’ achievements in 2005 the company’s CEO Evgueni Ivanov said: “In 2005 we met all the targets in accordance with our strategy which is aimed at substantial increase in reserves and resources whilst maintaining stable production in the coming years”. Mr. Ivanov stressed that, “by strictly following our strategy in 2005 we were able to get the Company well-prepared for the successful spin-off from Norilsk Nickel to become a new “blue chip” of the Russian market”.

In 2005 Polyus produced 32.3 tons (1 038 k oz) of gold as compared to 33.8 tons (1 085 k oz) in 2004.

In 2005 the company significantly intensified its exploration works. The drilling works increased by 150% to 143 000 running meters from 57 000 running meters in 2004.