PLZL.L Regulatory News (PLZL)

11 Mar 2008 14:47

OJSC Polyus Gold11 March 2008 For immediate release Moscow, March 11, 2008 Polyus Gold announces the decisions taken by the Board on a meeting held onMarch 11, 2008. OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer,today announced the decisions taken by its Board on a meeting held today, March11, 2008, relating to the upcoming extraordinary general shareholders meeting(EGM), which will take place on April 7, 2008. Particularly, the Board approvedthe list of nominees to the Board (according to Russian legislation theshareholders whose stake exceed 2% have the right to nominate theirrepresentatives to the Bod)/. The Board meeting also approved the ballot for the EGM, the list of documents tobe provided to the shareholders as well as the materials distribution procedure.The Board also approved the Board's report for the EGM, articulating itsposition on the agenda items. The Board came to the conclusion to recommend that the shareholders vote FOR theintroduction of amendments into the Charter of OJSC Polyus Gold, and AGAINST theearly termination of the powers of the Board. The Board believes that the proposed amendments conform to the Russian andinternational norms of corporate governance. They would allow for enhancingsignificantly the role of the Board of Directors in taking decisions ofstrategic importance, as well as in conclusion of important transactions, whichdo not formally fall under the criteria of either major transactions orinterested-party transactions. Moreover, the proposed amendments would enable the Board to strengthen itscontrol over the company's activities by way of participation in the formationof the company's managerial bodies, as well as taking part in decision makingprocess of the company's subsidiaries for those decisions that might directly orindirectly effect the market capitalization of Polyus Gold. The Board's recommendation to vote AGAINST the early termination of the power ofthe Board elected by the annual shareholders meeting (AGM) in June 2007 is basedon the assessment of the results of the present Board's activities and itscontribution into the company's success. Most Board members of the existing Board of Polyus Gold were elected upon thecompany's creation in 2006. Their efforts have helped the company to take itsposition among global gold mining leaders. The existing Board had formed thecompany's long-term strategy until 2015, one of the most ambitious strategies inthe industry, and made several importance steps towards its implementation. Particularly, the largest in Russia ore processing plant was developed onOlimpiada mine in Krasnoyarsk region. Impressive results have been achieved onthe exploration and reserves addition front - the company's reserves inaccordance with JORC standards have been increase 4 times, making Polyus Goldthe forth largest globally in terms of reserves. The present Board of Directors is well balanced in terms of the representationof interests of both major and minority shareholders. The latter are representedon the Board by independent directors, which meets international corporategovernance guidance. 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 IREvguenia V.Buydina, IR manager+7(495) 641-3377+7(495) 785-4031ir@polyusgold.com For press: Victoria V. Vergelskaya, PR DirectorElena D. Evstigneeva, Media Relations+7 (495) 641-3365+7 (495) 544-5496pr@polyusgold.com This information is provided by RNS The company news service from the London Stock Exchange