PLZL.L Regulatory News (PLZL)

21 Dec 2006 14:39

OJSC Polyus Gold21 December 2006 For immediate release. Moscow, December 21, 2006 OJSC Polyus Gold announces 100% consolidation of SVMC, the Nezhdaninskoye deposit license holder. Moscow, December 21, 2006 - OJSC Polyus Gold, Russia's leading gold producer,today announces that it has completed the consolidation of 100% shares of OJSCSouth-Verkhoyansk Mining Company ("SVMC") which is a holder of the license forNezhdaninskoye gold deposit located in the Republic of Sakha (Yakutia). The 100% consolidation of SVMC by Polyus Group (OJSC Polyus Gold and itssubsidiaries) resulted from the acquisition of a 50% stake in SVMC from InterrosHolding Company. The acquisition of the stake was approved by the Polyus Gold'sBoard of Directors on its meeting held on November 7, 2006. Nezhdaninskoye deposit is currently undergoing extensive exploration, especiallyin the central and northern areas. These exploration works are expected toprovide substantial growth in gold reserves. The results of the exploration willbecome the basis for developing Nezhdaninskoye scoping study to be completed in2007 by Russian "VNIPIPromtechnologii" engineering company which was chosen as ageneral contractor for the study. Commenting on the event, Polyus Gold's CEO Evgueni Ivanov said: "Theconsolidation of SVMC goes in line with Polyus Gold's long-term strategy, aimedat increasing our mineral resources base and developing prospective golddeposits in the Russian Federation". Mr. Ivanov also added that "Nezhdaninskoyedeposit has strong geological potential and Polyus Gold has unique technologiesapplied which may provide positive results in developing the deposit andextracting gold out of its refractory ores". Note for editors Polyus acquired first 50% of OJSC SVMC in September 2005, as part of a largertransaction to acquire mining assets located in Sakha Republic (Yakutia) fromAlrosa Investment Group. Nezhdaninskoye deposit is one of the largest gold deposit in Russia. Accordingto Russian classification Nezhdaninskoye reserves amount to 220 tonnes (7.1 moz) of B+C1 categories and its resources amount to 690 tonnes (22.2 m oz) ofC2+P1 categories. OJSC Polyus Gold is the leading gold producer in Russia. The group's assetportfolio includes 20 hard rock gold deposits located in Krasnoyarsk, Irkutsk,Magadan, Yakutia and Amur regions of Russia. The company produced over 1 millionounces of gold in 2005. For further information please contact Denis Davydov Head of Investor and Public Relations Tel.: +7 (495) 641 33 65 E-mail: pr@polyusgold.com This information is provided by RNS The company news service from the London Stock Exchange