PLZL.L Regulatory News (PLZL)

18 Dec 2007 09:35

OJSC Polyus Gold18 December 2007 For immediate release Moscow, December 18, 2007 OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer,today announced that its Board of Directors on a meeting held today consideredpreliminary results of the company's activities in 2007, examined the course the2015 Strategy implementation, discussed the issue of the streamlining of thecompany's exploration business, and approved the regulations of Investmentcommittee of OJSC Polyus Gold. The Board of Directors noted the information on the preliminary results of thecompany's activities in 2007. General Director of Polyus Gold Eugene Ivanovsaid: "We expect 2007 full year gold production to amount to 37.8 tonnes (1 215k oz), exceeding the plan by one tonne (32 k oz). Following the discussion on the strategy implementation until 2015 the Boardentrusted General Director Eugene Ivanov to develop an integrated costmanagement programme and submit it to the Board by April 1, 2008. Following the discussion of the development of the company's projects pipelinethe Board considered it advisable to invite a partner to participate in one ofthe most capital-intensive project. The Board commissioned General Director withthe selection of such a partner. "That would help to reduce financial burden andwill allow sharing the risks relating to development of several large-scaleprojects within a limited timeframe,"- Eugene Ivanov noted. Having considered the project of the structuring of the company's explorationbusiness the Board noted the information on the project implementation andapproved the management's actions aimed at carving out some of the explorationassets selected by the Board meeting on May 25, 2007. The Board entrusted Mr. Ivanov to prepare and submit to the Board thecomparative analyses of possible variants to carve out the above explorationassets: by means of delivery of exploration licenses to the independent entitywith the subsequent listing of this entity on Russian and international stockexchanges, or by means of selling these exploration assets. In addition, Mr. Ivanov was entrusted with the preparation of the FairnessOpinion for the carve out of the exploration assets and the preparation of theIndependent Experts's Report to ensure the fair value of the assets. During today's meeting the Board of Directors also approved the regulations ofthe investment committee. The investment committee viewed to be one of crucialinvestment decision-making institutions in the company, which will determine anadvisability of participating in a strategic investment projects, will examinethese projects to the point of submitting for the Board of directors, willcontrol the projects execution. Besides this, the Board of Directors re-elected its'Audit committee. Twoindependent directors were elected: Valery Braiko and Lord Pathric Gillford, whopresides the committee. 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 For press: Victoria V. Vergelskaya, PR DirectorElena D. Evstigneeva, Media Relations+7 (495) 641-3365+7 (495) 544-5496 pr@polyusgold.com For investors: Alexey V. Chernushkin, Director, CM and IREvguenia V.Buydina, IR manager+7(495) 641-3377+7(495) 785-4031ir@polyusgold.com This information is provided by RNS The company news service from the London Stock Exchange