Amendment to the Dividend Policy

Press Release 17 January 2018

PJSC Polyus

Amendment to the Dividend Policy

PJSC Polyus (LSE, MOEX - PLZL) ("Polyus", or the "Company"), the largest gold producer in Russia, announces an amendment to the Company's dividend policy.

The Company's Board of Directors (the "Board") has approved an amendment to the Company's dividend policy setting the minimum dividend payout in respect of each of the years 2017 and 2018 in the amount of 550 million US Dollars.

As a result, the dividend payment will comprise the higher of 30% of the EBITDA of Polyus stipulated by the policy or 550 million US Dollars for the respective reporting period.

The provision on the minimum dividends will apply exclusively for the dividends for 2017 and 2018 - starting from the dividends in respect of the year 2019 and onwards the Company will adhere to the initial payout basis of 30% of the EBITDA.

All other provisions of the Company's dividend policy remain unchanged.

Company pays dividends on a semi-annual basis. Payment will be calculated on the basis of the consolidated financial statements of the Company in accordance with IFRS requirements, provided that the net debt/adjusted EBITDA (last 12 months) ratio based on the consolidated financial statements of Polyus is lower than 2.5х.

Should the net debt/adjusted EBITDA (for the last 12 months) ratio increase to higher than 2.5x, the Board will exercise discretion on dividends, considering the Company's financial position, free cash flow, outlook and macro environment.

Edward Dowling, Chairman of Polyus' Board, commented:

"The Board is aware of the dividend commitments adopted between PGIL and Fosun in the transaction for the sale of 10% that has been terminated. The Board judged it advisable to partially reflect those commitments in the dividend policy for a period of 2 years to provide equity holders with visibility on the immediate cash flows. The decision underscores the Сompany's keen focus on creation of the shareholder value and the Board's comfort with the underlying performance of Polyus."

Polyus

Polyus (www.polyus.com) is the largest gold producer in Russia and one of the top 10 gold miners globally by ounces produced. Based on its 2016 ore reserves and mineral resources report, Polyus ranks second among the world's largest gold mining companies by both reserves and ranks third by resources.

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

Enquiries 

Investor Contact

Victor Drozdov, Director Investor Relations

+7 (495) 641 33 77 drozdovvi@polyus.com 

Media contact

Victoria Vasilyeva, Director Public Relations

+7 (495) 641 33 77 vasilevavs@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.