POG.L Regulatory News (POG)

05 June 2017

Petropavlovsk PLC

IRC Update

Petropavlovsk PLC ("Petropavlovsk" or the "Company" or, together with its subsidiaries, the "Group") is a shareholder (31.1%) of IRC Limited ("IRC"), the iron ore producer and developer. The Company would like to highlight the progress being made by IRC as per the IRC announcements on 11 and 17 May and 2 June, which can be found at www.ircgroup.com.hk.

· K&S, IRC's 3.2mtpa project, has successfully sold more than 600,000 tonnes of iron ore concentrate since its initial production.

· IRC's Board of Directors has authorised a strategic assessment of the option to restart the operation of IRC's 100% owned Kuranakh mine, previously moved to care and maintenance due to extreme depressed bulk commodity prices. The decision follows the positive price movements in 2017 and recent stabilisation in the bulk commodity market.

· The K&S mining contractor has successfully upgraded its fleet and is aiming to be mining at full scale in June.

· IRC continues to aim at operating K&S at full capacity in H2 2017.

IRC also published its Notice of Annual General Meeting ("AGM") and supporting documents on 19 May. The meeting will take place on 20 June.

Peter Hambro, Chairman, comments:

"These positive developments are very encouraging and illustrate the progress IRC is making across its main strategic projects. Our investment is being derisked accordingly as IRC emerges from a difficult period to demonstrate its attractiveness as an asset."

About Petropavlovsk

Petropavlovsk is one of Russia's leading gold mining companies. As at 31 December 2016, the Company had produced approximately 6.4Moz of gold.

Petropavlovsk is in the construction phase of a state of the art pressure oxidation facility to process the Company's substantial refractory resource base. The Company's combined 3,600km2 license holding has untapped resource potential. The Company is a leading employer and contributor to the development of the local economy in the Amur region, Russian Far East, where it has operated since 1994.

Petropavlovsk is a shareholder (31.1%) of IRC Limited and is the guarantor of the US$340 million project finance facility (US$234 million principal outstanding, as at 31 December 2016). IRC is a vertically integrated iron ore producer and developer in the Russian Far East and North Eastern China. IRC is listed on the Hong Kong Stock Exchange (Ticker: 1029.HK).

Petropavlovsk is listed on the Main Market of the London Stock Exchange (Ticker POG:LN)

Important Information Regarding the Upcoming AGM

The Company's Annual General Meeting will be held on 22 June 2017. A copy of the AGM circular is available on the Company's website at www.petropavlovsk.net. The Company has also made available on its website a video of a 'Pre-AGM Update' by the Company's Chairman, Mr Peter Hambro and Mr Andrew Vickerman, Independent Non-Executive Director.

Enquiries

For more information, please visit www.petropavlovsk.net and www.ircgroup.com.hk or contact: