On 6 October 2011, PGIL announced proposals to put in place (by way of a scheme of arrangement under Jersey law) a new parent company for the Polyus group, Polyus Gold plc, which will be incorporated in the UK (the "Scheme"). A circular (the "Scheme Circular") was sent to shareholders containing, amongst other things, the terms of the Scheme, notices convening the requisite Court Meeting and Scheme General Meeting and the details of the actions to be taken by shareholders.

The Company is pleased to announce that, at the Court Meeting held earlier today to approve the Scheme, the resolution approving the Scheme was passed on a poll.

In addition, at the Scheme General Meeting also held earlier today, each of the special resolutions and the ordinary resolution were passed by the requisite majorities on a poll. The full text of each resolution is contained in the Notice of Scheme General Meeting set out in the Scheme Circular, which is available on the Company's website, www.polyusgold.com.

As announced on 25 October 2011, there will be a delay in the implementation of the Scheme until the Strategic Law Approvals, a condition to the Scheme becoming effective, are obtained.  Accordingly, the Jersey Court Hearing to sanction the Scheme and to confirm the Company's reduction of capital is to be postponed.  All PGIL shareholders will have the right to attend the Court Hearing, further details of which will be provided to PGIL shareholders when the new date is confirmed.

Capitalised terms not otherwise defined in this announcement have the meanings given to them in the Scheme Circular.

For further information please contact:

PGIL:                                      Alexey V. Chernushkin
                                                Tel.: 0208 528 1450