PLZL.L Regulatory News (PLZL)

11 Sep 2007 08:45

OJSC Polyus Gold11 September 2007 For immediate release Moscow, September 11, 2007 Polyus Gold enters "Global Top 5 Index" after Confirming Natalka JORC P&P Reserves at 40.8 M Oz. Polyus Gold (RTS, MICEX, and LSE - PLZL), Russia's leading gold producer, isable to revise its estimate of reserves following completion of an internationalaudit of reserves for the Natalka field, the country's largest and world's thirdlargest gold deposit. As a result of the revised estimate, Polyus Gold's total P&P reserves now total68.6 M Oz (2.1 th. t). This figure exceeds the reserves target of 68 M Oz whichthe company set for it's 2015 strategic development plan and launches PolyusGold into the "Top 5 Global Gold Companies" in terms of P&P reserves. The auditors' report was approved by Polyus Gold's Board of Directors at ameeting held in Moscow on September 10, 2007. The audit of reserves according toJORC guidelines was performed by MICON International Ltd. According to the auditors' report Natalka P&P reserves comprise 40.8 M Oz(1,270.6 t) of gold with an average grade of 1.13 g/t. This calculation is basedon a gold price of US$625/Oz; cut-off grade of 0.3 g/t; average dilution of 7%,and recovery rate of 87% . Earlier in December 2006, Natalka reserves were listed with GKZ RF as 1,500.8 tunder B+C1+C2 category of which B+C1 accounts for 1,282.9 t. The auditors'reports also indicate considerable additional reserve potential as moregeological data becomes available. The full report is published and available onPolyus Gold's web-site (www.polyusgold.com) under /Investor relations/Reports/International Audit of Reserves. Commenting on the announcement, Pavel Skitovich, CEO of Polyus Gold, said, "theinternational audit of the Natalka deposit fulfills a key strand of PolyusGold's forward looking strategy. We have set ourselves three targets of i)reserves, ii) marcap and iii) production volume, for which we aim to be rankedin the top 5 in all three sectors by 2015. I am delighted that we have reachedone of these targets 8 years ahead of schedule. We will not rest until theremaining two targets have been reached on time as well." Pavel Skitovich also noted that Knight Piesold, an internationally renowned goldengineering consultancy, will complete on schedule, its pre-feasibility studyfor Natalka by the end of 2007. A full scale bankable feasibility study on theproject is due in Q1 2008. The Natalka mine is expected to have processingcapacity of 40 Mtpa of ore, and annual gold production above 1 M Oz. Natalkafield is developed by OJSC Matrosov Mine, a subsidiary of Polyus Gold. Natalka Mineable Ore Reserves at 1st January 2007* (Classified Following JORC Code Guidelines) category Tonnage Ore, Mt Grade, Gold, Gold, g/t Au tons M Oz Proved 242.3 1.32 320.1 10.3Probable 883.1 1.08 950.2 30.5TOTAL 1,125.4 1.13 1,270.6 40.8 * As for 100% ownership. For more information contact: Victoria V. Vergelskaya, PR DirectorElena D. Evstigneeva, Media Relations+7 (495) 641-3365+7 (495) 544-5496 pr@polyusgold.com This information is provided by RNS The company news service from the London Stock Exchange