OJSC Polyus Gold (RTS, MICEX, LSE: PLZL), Russia’s leading gold producer, today announced that the State Reserves Committee (GKZ Rosnedra) of the Ministry of Natural Resources of the Russian Federation had completed its expertise of the scoping study for Natalka deposit in Magadan region. The license holder for Natalka deposit is OJSC Matrosov Mine, a subsidiary of Polyus Gold.

The expertise resulted in the state listing of 1500.8 tonnes (48 m oz) of gold in Russian B+C1+C2 categories in pit outline at the average grade 1.7 g/t, including 1282.9 tonnes (41,2 m oz) of B+C1. In addition to this, the state expertise confirmed 335.3 tonnes (11 m oz) as off-balance reserves outside the pit outline.

The scoping study is based on the open pit mining. According to Polyus Gold Strategy, approved by the Board in September last year, the investments into the projects will amount up to US$1.5 billion. The production of gold at Natalka is scheduled to commence in 2012. The annual gold production will amount to approx. 30 tonnes (1 m oz), on reaching full project capacity.

Commenting on the event, Polyus Gold CEO Evgueni Ivanov said: “The state listing of Natalka reserves signifies emergence of a new gigantic gold deposit in Russia, and one of the largest deposits in the world. The discovery of Polyus’ geologists is a major step forward for the gold mining industry of Magadan region, and a boost for economic development of the Russian Far East”.

Natalka deposit is located in Tenkinsky district of Magadan region, in the Omchak river basin, 450 km. to the North-West from Magadan. The deposit was discovered in 1944. In 1945, underground mining started at the deposit; 93.2 tonnes (3 mln oz) of gold had been mined from Natalka deposit during those years. The mining was stopped in May 2004 as the production was not viable anymore. Large-scale exploration programme was launched in 2004, aimed at additional exploration of the deposit’s flanks and deep levels.

Note for editors:

OJSC Polyus Gold Gold is the leading gold producer in Russia. The group’s asset portfolio includes hard rock gold deposits located in Krasnoyarsk, Irkutsk, Magadan, Yakutia and Amur regions of Russia. The company produced over 1 million ounces of gold in 2005.

GKZ Rosnedra (State Reserves Committee) is a governmental body responsible for the state expertise of mineral resources and listing of reserves at the state balance; state listing of reserves means that the scoping study (TEO condicii) of the deposit was considered viable by GKZ.

Polyus Gold is to hold a conference call devoted to the listing of Natalka reserves by GKZ Rosnedra.

The conference call will be held on January 22, 2006, at 17.00 Moscow time (09:00 New-York, 14:00 London)

To join the conference please dial:

(800) 230-1951 (US) and (612) 332-0226 (non-US).

Replay of the conference will be available at (800) 475-6701 (US) and (320) 365-3844 (non-US), pass-word: 860668, for the duration of one week starting at 20:30 Moscow time (12:30 New-York, 17:30 London) on January 22, 2006.

The conference call web-cast will be available at: www.polyusgold.comin Investor relations/ Presentations & Events section. Password: 860668.

Conference call presentation Download in PDF, 2.5 Mb.

For further information please contact

Denis Davydov
Head of Investor and Public Relations
Tel.: +7 (495) 641 33 65
E-mail: pr@polyusgold.com