Sale of the Degdekan deposit

PJSC Polyus (MOEX: PLZL) (“Polyus”, or the “Company”) announces that on June 21 its wholly owned subsidiary JSC Polyus Krasnoyarsk completed the sale of its entire interest in Magadan Geological Exploration Company LLC (“MGEC”) to JSC Almazy Anabara, a 100% subsidiary of PJSC ALROSA.

MGEC holds the license for the Degdekan gold deposit located in Tenkinsky District, Magadan Region.

Alexey Vostokov, Chief Executive Officer of Polyus PJSC, commented:

As we prepare to start developing Sukhoi Log, we decided to optimize the Company’s portfolio of exploration stage projects. The sale of the Degdekan deposit reflects our commitment to effective resource allocation and the management’s focus on initiatives that enhance Polyus’ main competitive advantages.

Asset overview

Polyus acquired the Degdekan ore field license in 2005. Based on geological exploration results performed in 2015, the State Reserves Commission confirmed C1+C2 gold balance reserves of 38.3 t, with an average grade of 2.2 g/t (excluding off-balance reserves).

Polyus

Polyus is the world’s fourth-largest gold mining company by production volumes and one of the largest gold miners in terms of attributable gold ore reserves. The Company has the lowest production costs among major global gold producers. Its principal operations are located in Siberia and the Russian Far East: Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).

Investor and media contact

Capital Markets Department

Forward-looking statements

This announcement may contain “forward-looking statements” concerning Polyus and/or Polyus group. Generally, the words “will”, “may”, “should”, “could”, “would”, “can”, “continue”, “opportunity”, “believes”, “expects”, “intends”, “anticipates”, “estimates” or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.