PLZL.L Regulatory News (PLZL)

20 Feb 2007 07:30

OJSC Polyus Gold20 February 2007 For immediate release Moscow, February 20, 2007 Polyus Gold Board of Directors Approves the Year 2007 Budget and Business Plan as well as the Revised Exploration Programme till 2010. OJSC Polyus Gold, Russia's largest gold producer, today announced that the Boardof Directors meeting held on February 16th, 2007 had reviewed the report on theyear 2006 results, approved the Company's 2007 budget and business plan, as wellas the amended version of the geological exploration programme for the years2007-2010. The 2007 business-plan of Polyus Gold provides for execution of the followingprojects: • Submission of the exploration results for Chertovo Koryto deposit (Irkutsk region) and Titimukhta (Krasnoyarsk region) to the State Reserves Committee (GKZ Rosnedra) seeking a listing of reserves of these deposits by the State; • Completion of construction and launch of the 3rd mill at Olimpiada deposit in the Krasnoyarsk region; • Preparation of the pre-feasibility study for Natalka deposit (Magadan region); • Preparation of the scoping studies to develop Nezhdaninskoye deposit and to expand the production facilities at Kuranakh group of deposits in the Republic of Sakha (Yakutia); • Carrying out vast cost cutting corporate initiative; • Streamlining the Company's exploration business. According to the exploration programme 2007-2010, Polyus Gold expects itsmineral resources base to be increased to 3707 tonnes of gold reserves in C1+C2categories and 1210 tonnes of resources in P1 category (Russian classification). Commenting on the event, Polyus Gold CEO Evgueni Ivanov said: "In 2007 we planto spend on exploration over $150 million. We have already seen our explorationefforts in Russia much rewarded with the discoveries of large hard -rock golddeposits such as Blagodatnoye in Krasnoyarsk region and Natalka in Magadanregion". Note for editors: Polyus Gold is the largest gold producer in Russia. The group's asset portfolioincludes hard rock and placer gold deposits located in Krasnoyarsk, Irkutsk,Magadan, Yakutia and Amur regions of Russia. Polyus Gold produced 1.2 millionounces of gold in 2006. 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