PLZL.L Regulatory News (PLZL)

30 Nov 2007 14:09

OJSC Polyus Gold30 November 2007 For immediate release Moscow, November 30, 2007 Polyus Gold acquires licence to develop Medvezhiy field in Irkutsk region OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer,announces that it won an auction on entrails usage licences for Eastern andWestern parts of Medvezhiy field in Irkutsk region. The auction was held on November 30, and Polyus Gold's wholly owned subsidiaryOJSC "GRK "Sukhoy Log" became the winner. The acquisition of the licences forMedvezhiy deposit (Eastern and Western parts) was done as part of Polyus Gold'slong-term exploration programme. The total price of the two licences amounted to34.6 million ruble (approximately $1.3 million). The Eastern and Western parts of Medvezhiy deposit are located in Bodaibo areaof Irkutsk region in immediate proximity to the company's Verninskoye deposit,where a new mine is to be launched in 2009. Confirmation of reserves onMedvezhiy field (Eastern and Western parts) will help substantially increase themineral resources base of the mine and will support further production growth. Resources under categories P1+P2+P3 (Russian classification) of Western andEastern parts of Medvezhiy exceed 80 tonnes of gold. The total investments inexploration works in the coming 6 years will amount to 700 million rubles(approximately $18 million). "We estimate the potential of the Eastern and Western parts of Medvezhiy fieldas very high and expect the exploration works to be carried out there to lead tosubstantial increase in reserves, - General Director of Polyus Gold EvgueniIvanov said, - the exploration works at the field is an essential part of theprocess aimed at creating a large-scale gold mining complex in Irkutsk region".According to Mr. Ivanov, Bodaibo district is an area of strategic importance forthe company: having already developed industrial and social infrastructure inthe region, Polyus Gold is aiming at expanding its presence in Irkutsk region,where Russia's highest potential gold deposit - Sukhoi Log - is located. Note for editors: Polyus Gold is the largest gold producer in Russia. In 2006 its gold outputtotaled 1.2 million ounces. Headquartered in Moscow, Polyus Gold's operatingmines and development/exploration projects are located in five major gold miningregions of Russia - Krasnoyarsk, Irkutsk, Magadan, Amur regions and the Republicof Sakha (Yakutia). For further information please contact Press service of Polyus GoldTel.: +7 (495) 641-3365E-mail: pr@polyusgold.com This information is provided by RNS The company news service from the London Stock Exchange