PLZL.L Regulatory News (PLZL)

22 Jan 2007 08:33

OJSC Polyus Gold22 January 2007 For immediate release Moscow, January 22, 2007 Reserves of Natalka deposit in Magadan region have been confirmed by the State Reserves Committee in the amount of 1500 tonnes of gold OJSC Polyus Gold (RTS, MICEX, LSE: PLZL), Russia's leading gold producer, todayannounced that the State Reserves Committee (GKZ Rosnedra) of the Ministry ofNatural Resources of the Russian Federation had completed its expertise of thescoping study for Natalka deposit in Magadan region. The license holder forNatalka deposit is OJSC Matrosov Mine, a subsidiary of Polyus Gold. The expertise resulted in the state listing of 1500.8 tonnes (48 m oz) of goldin Russian B+C1+C2 categories in pit outline at the average grade 1.7 g/t,including 1282.9 tonnes (41,2 m oz) of B+C1. In addition to this, the stateexpertise confirmed 335.3 tonnes (11 m oz) as off-balance reserves outside thepit outline. The scoping study is based on the open pit mining. According to Polyus GoldStrategy, approved by the Board in September last year, the investments into theprojects will amount up to US$1.5 billion. The production of gold at Natalka isscheduled to commence in 2012. The annual gold production will amount to approx.30 tonnes (1 m oz), on reaching full project capacity. Commenting on the event, Polyus Gold CEO Evgueni Ivanov said: "The state listingof Natalka reserves signifies emergence of a new gigantic gold deposit inRussia, and one of the largest deposits in the world. The discovery of Polyus'geologists is a major step forward for the gold mining industry of Magadanregion, and a boost for economic development of the Russian Far East". Natalka deposit is located in Tenkinsky district of Magadan region, in theOmchak river basin, 450 km. to the North-West from Magadan. The deposit wasdiscovered in 1944. In 1945, underground mining started at the deposit; 93.2tonnes (3 mln oz) of gold had been mined from Natalka deposit during thoseyears. The mining was stopped in May 2004 as the production was not viableanymore. Large-scale exploration programme was launched in 2004, aimed atadditional exploration of the deposit's flanks and deep levels. Note for editors: OJSC Polyus Gold was formed in March 2006 as a result of the spin-off of MMCNorilsk Nickel's gold mining assets. Polyus Gold is the leading gold producer inRussia. The group's asset portfolio includes 20 hard rock gold deposits locatedin Krasnoyarsk, Irkutsk, Magadan, Yakutia and Amur regions of Russia. Thecompany produced over 1.0 million ounces of gold in 2006. GKZ Rosnedra (State Reserves Committee) is a governmental body responsible forthe state expertise of mineral resources and listing of reserves at the statebalance; state listing of reserves means that the scoping study (TEO condicii)of the deposit was considered viable by GKZ. Polyus Gold is to hold a conference call devoted to the listing of Natalka reserves by GKZ Rosnedra. The conference call will be held on January 22, 2006, at 17.00 Moscow time (09:00 New-York, 14:00 London) To join the conference please dial: (800) 230-1951 (US) and (612) 332-0226(non-US). Replay of the conference will be available at (800) 475-6701 (US) and (320)365-3844 (non-US), password: 860668, for the duration of one week starting at20:30 Moscow time (12:30 New-York, 17:30 London) on January 22, 2006. The conference call web-cast will be available at: www.polyusgold.com inInvestor relations/ Presentations & Events section. Password: 860668. 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