PLZL.L Regulatory News (PLZL)

2 Apr 2008 08:19

OJSC Polyus Gold02 April 2008 For immediate release Moscow, April 2, 2008 Polyus Gold signs agreement with RusHydro about power supply to future NatalkaMine in Madagan region. OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer,today announced the signing of the agreement on intentions with OJSC FederalHydroGeneration Company (RusHydro) regarding power supply from the existingKolymskaya hydropower plant and Ust-Srednekanakaya hydropower plant currentlyunder construction to future Natalka Mine in Magadan region. The State Investment Committee of the Russian Federation on a meeting held inOctober last year reviewed the application for the state support of the Natalkainvestment project submitted by OJSC Matrosov Mine (a subsidiary of PolyusGold). The application was recognized as corresponding to the goals andobjectives of the Investment Fund. Taking into account the recommendations of the Investment Committee, Polyus Goldhas studied the possibilities of various power companies to participate in theproject, basing on the principles of state-private partnership. That resulted inthe agreement signed with RusHydro. The agreement covers the preliminary arrangements regarding the terms of thepower supply and specifies the technical solutions of the project. RusHydro and Polyus Gold agreed to supply power to the facilities of the Natalkamine via the following routes: the high-voltage 220kV line Kolymskaya Powerplant- Substation Omchak; and, when the Ust-Srednekanskaya Powerstation andadditional power lines infrastructure are launched - switchgearUst-Srednekanskaya Powerplant - Substation Orotukan - switchgear Kolymskayapowerplant. The 570 MW Ust-Srednekansk powerplant with average long-term production of 2.5billion kW/hour is currently being constructed on the Kolyma river. The plant isto be launched in 2012. The Natalka hard-rock gold deposit is located in Magadan region in the basin ofOmchak river. The balance reserves of the deposit amount to 1449.5 tonnes (46.6m oz) of the metal. The mine is to be launched in 2013. - Ends - RusHydro is the largest electric power generation company in Russia and thesecond hydrogenation company in the world in terms of installed capacity.RusHydro operates 24 140 MW of installed hydro and renewable capacity in theRussian territory. The Company was established in Y2004 in the process of RAOUES reform. The total electricity production for Y2006 was 80.4 TWh with US$820mln in revenues (IFRS). Credit Rating - Baa3 (Investment Grade) - Moody's.Corporate Governance Score - "CGS 5" (Standard & Poors). RusHydro is the keycontributor to the development of eco-electricity generation in Russia (hydro,wind, tidal, small-scale hydro). The Investment program envisages 4 013 MW ofnew capacities to be commissioned by the Y2010. RusHydro is represented by 8 200employees in Russia. The Company's headquarter is located in Moscow. Accordingto the Federal Law - more than 50% +1 share in RusHydro are to be held by theRussian Federation after RAO UES reorganization is completed in July 2008.RusHydro plans to become a public company in February 2008 (listing in Russia). More information is available at: www.gidroogk.ru Polyus Gold is the largest gold producer in Russia. Headquartered in Moscow,Polyus Gold's operating mines and development/exploration projects are locatedin five major gold mining regions of Russia - Krasnoyarsk, Irkutsk, Magadan,Amur regions and the Republic of Sakha (Yakutia). The company produced 1.2 m ozof gold in 2007. For further information please contact For investors: Alexey V. Chernushkin, Director, CM and IR Evguenia V.Buydina, IR manager +7(495) 641-3377 +7(495) 785-4031 ir@polyusgold.com For press: Victoria V. Vergelskaya, PR DirectorElena D. Evstigneeva, Media Relations+7 (495) 641-3365+7 (495) 544-5496 pr@polyusgold.com This information is provided by RNS The company news service from the London Stock Exchange