PLZL.L Regulatory News (PLZL)

Press Release 29 April 2020

PJSC Polyus

Ore Reserves and Mineral Resources Update

PJSC Polyus (LSE, MOEX - PLZL) ("Polyus", the "Company") announces the results of its Ore Reserves and Mineral Resources review as at 31 December 2019, in accordance with JORC Code 2012. This review only reflects depletion of Ore Reserve and Mineral Resource estimates, and changes to stockpile inventories, and does not include updated models, mine plans and production schedules, which Polyus will derive from the results of the ongoing drilling programme.

Polyus' Proved and Probable Ore Reserves are estimated at 61 million ounces of gold. Later this year, the Company anticipates reporting a Maiden estimate of Ore Reserves for the Sukhoi Log.

The Measured, Indicated and Inferred Mineral Resources are estimated at 188 million ounces of gold, including 63 million ounces of Indicated and Inferred Mineral Resources for Sukhoi Log.

In the first half of 2021, Polyus expects to report revisions to Mineral Resource and Ore Reserve estimates for existing operations incorporating the results of the ongoing drilling programme.

Ore Reserves Highlights

· Polyus' Ore Reserves are estimated at 61 million ounces of gold, down from 64 million ounces as at 31 December 2018.

· Over 90% of the Company's estimated Ore Reserves of gold are located within its operating assets:

o Polyus Krasnoyarsk has the largest share of the Company's Ore Reserves, with 24 million ounces at Olimpiada and 8.8 million ounces at Blagodatnoye.

o Natalka has estimated Ore Reserves of 15 million ounces.

o Ore Reserves at Verninskoye and Kuranakh contain 4.6 million ounces and 4.1 million ounces, respectively.

· The Polyus' Ore Reserve estimate of 61 million ounces has an average of 1.8 g/t.

· Approximately 861 million tonnes of Ore Reserve, containing 54 million ounces of gold out of the total 61 million ounces, are expected to be mined by conventional open pit truck-and-shovel or underground mining methods at a grade of 2.0 g/t. The remaining Ore Reserve totaling 216 million tonnes is lower grade and stored in stockpiles or in situ at the Alluvial operations.

Mineral Resources Highlights

The Company's Mineral Resources are estimated at 188 million ounces of gold, compared to 192 million ounces as at 31 December 2018.

· Approximately 60% of the Company's Mineral Resources are attributable to operational mines:

o Olimpiada's Mineral Resources are estimated at 39 million ounces.

o Natalka Mineral Resources amount to 32 million ounces.

o Blagodatnoye's Mineral Resources stand at 17 million ounces.

o Verninskoye and Kuranakh's Mineral Resources include estimates of 12 million ounces and 8.4 million ounces, respectively.

Exploration Highlights

· Polyus has been conducting a comprehensive drilling programme across its asset portfolio since 2018.

· Following completion of the programme, the Company expects to report updated Ore Reserves and Mineral Resources estimates for existing operations in the first half of 2021.

· At Sukhoi Log, the Company completed an exploration, verification, geotechnical and hydrogeological drilling programme of approximately 222 kilometres launched in 2017.

· In 2020, Polyus plans to proceed with an additional 30 kilometres of in-fill drilling along with additional drilling at flanks and deep levels at Sukhoi Log.

· Later this year, the Company anticipates publishing Maiden estimate of Ore Reserves for Sukhoi Log.

Mineral Resource and Ore Reserve estimates

The Company's Mineral Resource and Ore Reserve estimates are summarized in the Tables below. The effective date for the estimates is 31 December 2019. There is no material change to the base estimates since the original statement on 5 June 2017, apart from mining depletion and an update to the Sukhoi Log Mineral Resource estimate. As a result, there is no requirement to update the JORC Code Checklist of Assessment Criteria (Table 1) summaries[i].

Polyus Ore Reserve estimates as at 31 December 2019[ii]

For comparison, the Company's reported 2018 Ore Reserve estimate was 1,147 Mt grading 1.7 g/t and containing 64 Moz of gold as at 31 December 2018. The changes in the estimates from 2018 to 2019 are due to depletion by mining and changes to stockpile inventories due to additions from mining and reclaim for processing.

Polyus Mineral Resource estimates as at 31 December 2019[vi]

For comparison, the Company's reported 2018 Mineral Resource estimate was 3,272 Mt grading 1.8 g/t and containing 192 Moz of gold as at 31 December 2018. The changes in the estimates from 2018 to 2019 are due to depletion by mining and changes to stockpile inventories due to additions from mining and reclaim for processing.

Competent persons

The Ore Reserve and Mineral Resource estimates are classified and reported according to the JORC Code reporting requirements. All material assumptions and technical parameters underpinning the estimates in the announcement have been reported previously, have not materially changed, and continue to apply.

The Competent Persons responsible for each estimate of Ore Reserves and Mineral Resources are:

· Mr Mark Chesher, AMC Principal Mining Engineer (Olimpiada open pit, Verninskoye, Chertovo Koryto, Kuranakh, Blagodatnoye, Titimukhta, Natalka and all Stockpile Ore Reserve estimates).

· Mr Leo Dawson, AMC Principal Mining Engineer (Olimpiada Underground Ore Reserve estimate).

· Mr Anthony Cameron, Cameron Mining Pty Ltd, Principal Mining Engineer (Alluvials Ore Reserve estimate)

· Mr Ingvar Kirchner, AMC Principal Resource Geologist (Kuranakh, Poputninskoye, Chertovo Koryto, Medvezhy, Titimukhta, Panimba, Zmeinoye and all Stockpile Mineral Resource estimates).

· Mr Dean Carville, AMC, Principal Resource Geologist (Sukhoi Log, Olimpiada, Verninskoye, Bamskoye Mineral Resource estimates).

· Mr Alex Virisheff, AMC, Principal Resource Geologist (Blagodatnoye Mineral Resource estimate).

· Mr Mark Burnett, AMC, Principal Resource Geologist (Alluvials Mineral Resource estimate)

· Mr Mohan Srivastava, Red Dot 3D, Principal Consultant (Natalka Mineral Resource estimate).

All Competent Persons are Members of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists, or approved Recognized Professional Organisations, and have sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Persons as defined in the JORC Code.

In reporting the Mineral Resources and Ore Reserves referred to in this public release, AMC, Cameron Mining Pty Ltd and Red Dot 3D have acted as independent parties, have no interest in the outcomes of Polyus projects, and have no business relationship with Polyus other than undertaking those individual technical consulting assignments as engaged, and being paid according to standard per diem rates with reimbursement for out-of-pocket expenses. Therefore, AMC, Cameron Mining Pty Ltd, Red Dot 3D and the Competent Persons believe that there is no conflict of interest in undertaking the assignments which are the subject of the statements.

Polyus

Polyus is the largest gold producer in Russia and one of the top 5 gold miners globally with the lowest cost position. At the time of reporting, the Polyus group's 2019 Ore Reserves estimates rank third by attributable gold reserves among the world's largest gold mining companies.

The Polyus group's principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).

Enquiries

Investor and Media contact

Victor Drozdov, Director

Communications & Investor Relations (CIR) Department

+7 (495) 641 33 77

drozdovvi@polyus.com

Forward looking statement

This announcement may contain "forward-looking statements" concerning Polyus and/or Polyus group. Generally, the words "will", "may", "should", "could", "would", "can", "continue", "opportunity", "believes", "expects", "intends", "anticipates", "estimates" or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus' and/or Polyus group's operations. Many of these risks and uncertainties relate to factors that are beyond Polyus' and/or Polyus group's ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.