2014 09 08 Denver presentation · 2014-09-08 · presentation. Percentages and certain amounts included in this presentation have been rounded for ease of presentation. Accordingly

September 2014

Investor presentation

Bakyrchik mine site (Kyzyl Gold Project)

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Disclaimer

THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED ASINFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESENTATION OR BY READING THEPRESENTATION SLIDES YOU ACKNOWLEDGE AND AGREE TO THE FOLLOWING:

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This presentation does not constitute or form part of, and should not be construed as, an offer, invitation, recommendation to purchase, sell or subscribe for any securities of the Company in any jurisdiction orsolicitation of any offer to purchase, sell or subscribe for any securities of the Company in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be reliedupon in connection with any contract or commitment whatsoever, or act as any inducement to enter into, any investment activity. The information in this presentation has not been independently verified. Norepresentation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the presentation and the information contained herein and no reliance should be placed on such information.None of Morgan Stanley & Co International plc, the Company, their advisers, connected persons or any other person accepts any liability for any loss howsoever arising, directly or indirectly, from this presentationor its contents.

This presentation includes forward-looking statements that involve known and unknown risks and uncertainties, many of which are beyond the Company’s control and all of which are based on the directors’ beliefsand expectations about future events. These forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions, predictionsand other statements, which are other than statements of historical facts. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “may,” “should”, “shall”, “could”, “risk”, “aims”,“plans”, “predicts”, “continues”, “assumes”, “positioned” and similar expressions or the negative thereof identify certain of the forward-looking statements. Forward-looking statements include statements regarding:strategies, outlook and growth prospects; future plans and potential for future growth; liquidity, capital resources and capital expenditures; growth in demand for products; economic outlook and industry trends;developments of markets; the impact of regulatory initiatives; and the strength of competitors. These forward-looking statements include all matters that are not historical facts. The forward-looking statements in thispresentation are based upon various assumptions and predictions, many of which are based, in turn, upon further assumptions and predictions, including, without limitation, management’s examination of historicaloperating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions areinherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control because they relate to future events and circumstances, and the Company maynot achieve or accomplish these expectations, beliefs or projections. Forward-looking statements are not guarantees of future performance and the actual results, performance, achievements or industry results ofthe Company’s economy may differ materially from those described in, or suggested by, the forward-looking statements contained in this presentation. Many factors could cause the actual results to differ materiallyfrom those contained in predictions or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia andKazakhstan, rapid technological and market change in the industries in which the Company operates, as well as other risks specifically related to the Company and its operations. Past performance should not betaken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. Neither the Company, nor any of its agents, employees or advisorsintend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation to reflect any change in their expectations or any change in events,conditions or circumstances on which such statements are based

To the extent available, the industry, market and competitive position data contained in this presentation come from official or third party sources. Third party industry publications, studies and surveys generallystate that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each ofthese publications, studies and surveys has been prepared by a reputable source, the Company has not independently verified the data contained therein. In addition, certain of the industry, market and competitiveposition data contained in this presentation come from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the market in which theCompany operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independentsource for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in thispresentation. The information contained in this presentation has not been independently verified. Neither the Company, any of its affiliates, subsidiaries or subsidiary undertakings nor any of their respective advisorsor representatives makes any representation or warranty, express or implied, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in thispresentation. Percentages and certain amounts included in this presentation have been rounded for ease of presentation. Accordingly figures shown as totals in certain tables may not be the precise sum of thefigures that precede them. Neither the Company, or any of its affiliates, advisors or representatives accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any informationcontained in the presentation.

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Polymetal at a glance

Mayskoye

Dukat

Omolon

KhakanjaSvetloye

Amursk POXAlbazino

Kyzyl project

Voro

Varvara

Saint-Petersburg

Astana

Khabarovsk

Nearby Town

Principle Town

Operating Mines

Development projects

Kostanay

Oskemen

Russia

Kazakhstan

Okhotsk

Magadan

Anadyr

> 1,375 Koz of GE production for the LTM1

> 21 Moz GE reserves at 4.3 g/t> Market Cap US$3.5 bn2

Source: Company information, Bloomberg(1) GE (gold equivalent) at 60:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conversion ratios. Last 12 months ending 30 June 2014(2) As of 3 September 2014.

Pevek

Ekaterinburg

3

1H 2014 1H 2013 % Change (1) FY 2013

Production, GE koz 652 559 +17% 1,282

Revenue, US$m 727 721 +1% 1,707

Adjusted EBITDA, US$m 310 239 +30% 598

Total cash cost, US$/GE oz 627 787 -20% 745

All-in cash cost, US$/GE oz 938 1,210 -22% 1,086

Underlying net earnings, US$m 101 17 NM 117

Dividend for the period, US$/share 0.08 0.01 NM 0.09

Net operating cash flow, US$m 140 59 +137% 462

Capital expenditure, US$m 105 171 -38% 319

Free cash flow, US$m 29 (125) NM 138

Financial highlights

Source: Company data, IFRS accounts

(1) % changes can be different from zero even when absolute amounts are unchanged because of rounding. Likewise, % changes can be equal to zero when absolute amounts differ due to the same reason. This note applies to all the tables in this presentation.

956 883 853 834 821 804

752 750 747 734 708 693 673 662 650 630 627 610 563

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1H 2014 TCC in comparison with peers

Co-product total cash costs (US$/oz)

Source: Companies’ data. The following companies report on a by-product basis and therefore are not included in the comparison: Fresnillo, NewGold, Pan American Silver, Newcrest. The following companies do not report total cash costs: Centerra, Gold Fields* Centamin total cash costs for the Q2 2014 adjusted for royalties (source: BMO report)** Based on 60:1 Au/Ag ratio*** Newmont reported CAS (costs attributable to sales)

1,302 1,287

1,1181,058 1,049 1,032 1,027 1,008 988

942 938 905 899 871 840 809

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1H 2014 AISC in comparison with peers

Co-product all-in sustaining cash costs (US$/oz)

$ 1,290/oz average LBMA gold price (1H2014)

Source: Companies’ data. The following companies report on a by-product basis and therefore are not included in the comparison: Fresnillo, NewGold, Pan American Silver, Newcrest. The following companies do not report AISC: Detour, Petropavlovsk.* Based on 60:1 Au/Ag ratio

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Average reserve grade

6.1

5.2

4.3

3.6 3.0 3.0

2.1 2.1 2.0 1.4 1.4 1.4 1.3 1.3 1.2 1.2 1.2 1.1 1.1 1.1 1.0 0.8 0.8

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Proven and probable reserves, g/t GE

Source: Company data. Gold, silver, copper proved and probable reserves as of 01.01.2014Peers GE at 60:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conversion ratios. Polymetal GE at 59.4:1 Ag/oz/ Au oz in accordance with the JORC code (2012)* Pro forma impact of the Kyzyl gold project acquisition** Proved and probable reserves as of 30.06.2013

Kyzyl gold project: strategic rationale for the deal

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Large high-grade reserves

> Mineral Reserves: 6.7 Moz of gold at 7.5 g/t (JORC)* > Expected production start in 2018> Average annual gold production of 310 Koz based on current FS*> LOM of 20 years

Conventional mining> Initial development via open-pit mining (up to 10 years of production)> Cut-and-fill with consolidated backfill underground mining

Favourable location within familiar jurisdiction

> Well-understood and straightforward operating environment – a country in which Polymetal has successfully operated since 2009

> Excellent Infrastructure

Significant exploration upside

> Substantial exploration potential through resource-to-reserve conversion> Resources (inclusive of the reserves) of 10.5 Moz of gold at 8.1 g/t (JORC)*

Refractory competency and flowsheet optionality

> Leverages Polymetal’s core competencies in pressure oxidation (“POX”) processing and refractory gold concentrate trading

> Concentrate can be sold to off-takers

Significant long-term production growth from capital-light high-grade project

* Source: Roscoe Postle Associates feasibility study (October 2013)

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Source: Reserve and resource statement (JORC 2012) as at 01.01.2014 with further update for Svetloye. Average Au/Ag conversion ratio 59.6:1 Ag oz/Au oz.

Kyzyl gold project: impact on Polymetal

Reserves, Moz Average Reserve Grade, g/t

2019 Annual Production, Moz Life-of-Mine, Years

I

III

II

IV

13.3 19.7

16.720.6

30.0

40.4

Jan-14 Pro formaReserves Resources

+ 35%

+ 23%

+ 49%

3.64.3

1.8

Jan-14 Pro forma Peer GroupReserve grade (g/t)

+ 19%

1.1-1.3

1.5-1.6

Current portfolio Pro forma

(1)

10

15

Jan-14 Pro formaLOM (years)

+ 50%

Notes: 1) Average for ABG, Randgold, Centerra, Gold Fields, Polyus, Goldcorp, Anglogold, Eldorado, Newmont, Harmony, Iamgold, Yamana, Newcrest, NewGold, Centamin, Barrick Gold, Nord Gold, Petropavlovsk,

Kinross2) Life of mine is calculated as a ratio of reserves (13.3 Moz for Polymetal and 20.0 Moz pro forma) to Polymetal’s production of 1.28 Moz in 2013

(2)

+ 29%

1,063 1,282 1,350 1,350 1,400 1,400 1,350 1,225

100-150 325-375

1,063

1,282 1,350 1,350 1,400 1,400 1,450-1,500 1,550-1,600

2012A 2013A 2014E 2015E 2016E 2017E 2018E 2019E

Kyzyl

Existingoperations

55% 63% 65% 68% 70% 70% 75% 80%

2012A 2013A 2014E 2015E 2016E 2017E 2018E 2019E

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Production guidance – estimated impact of the Kyzyl project* Gold production, Koz of GE1

Source: Company information(1) GE at 60:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conversion ratios* Indicative, preliminary unaudited estimate for the Kyzyl project which is subject to the results of the new feasibility study (Q4 2015).

Gold share in GE production1

10

114 153

208 190 180 170 170 170 170

66 68

59 60 60 60 60 60 60

282 176 52 30 40 20

40

200-250150-250

50-100

462

397

319

250

310

470-530400-500

280-330

230

2011A 2012A 2013A 2014E 2015E 2016E 2017E 2018E 2019E

Kyzyl

Svetloye

Project Capex

Exploration

Stay-in-businessCapEx (includingcapitalised stripping)

Capital expenditure – estimated impact of the Kyzyl project*US$ million**

** Total capital expenditure on a cash basis, adjusted for D&A

Notes:* FY 2015 guidance is updated for the Kyzyl (include investments in the feasibility study and detailed engineering) and Svetloye projects. This is a preliminary estimate which is subject to review in Q4 2014.Capital expenditure for the Kyzyl project is indicative unaudited estimate and is subject to the results of the new feasibility study (Q4 2015).

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Kyzyl gold project: established local infrastructure

> The mine is adjacent to the village of Auezov(population: ~3,000)

> Access by paved highway and gravel roads> A railway station at Chalobai, 6 km from the

mine site, this line provides rail connections to Russia, China, and Europe

> The Kazakhstan-China railway crossing at Alashankou is 510 km away

> Water will be supplied from:

> the Kyzyl Su Dam, which is a State-owned facility located ~ 9 km south of the mine site

> The Kyzyltu Borefield located approximately 3.5 km north of the mine site

> Underground mine drainage water.

> The mine site has access to two 110 Kv grid power lines with 110/35/6 kV transformer belonging to the project

* Source: Roscoe Postle Associates feasibility study (October 2013), Company data

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Kyzyl gold project: preliminary open pit analysis

N

Source: Company data

1

1 2

2

150

430405

Section 1-1

40-60 m

430450

220

Section2-2

Green Indicative pit limits

Red Open pit development plan

Grey Surface

Pink Ore bodies frames (MSO)

Final optimization of the open pit subject to geotechnical studies and updated assessment of underground mining costs

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3-D View of the Bakyrchik depositLenses 1 and 12 carry +75% of currently estimated reserves

Source: Roscoe Postle Associates feasibility study (October 2013)

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Lens 1: Deep levels

Grams per tonneMeters

Drilling depth of ~900 m

Source: Company data

Kyzyl gold project: different development approaches

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Mining method

Concentrate processing

Final product

Previous owners’ approach

Polymetal potential approach Pros & cons

> Underground

> Dore

> On site processing (roasting or BIOX)

> Open pit followed by underground mining

> Concentrate

> Concentrate offtake (potentially can be later replaced with concprocessing at POX)

> High strip ratio> Lower CapEx

> Lower engineering risks> Faster construction and

ramp-up

> Significantly lower execution risk

> Staged CapEx> Faster cash flows

> Processing optionality

Polymetal’s key objective is to limit capital exposure and ensure higher ROIC

Kyzyl gold project: expected development timeline

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Q4 2015

• Revised feasibility study with updated reserve estimate• Completion of the permitting

Q1 2016

• Start of construction

1H 2017• Signing of concentrate offtake contract

2H 2018• First production

2019• First year of production at full capacity

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Net debt, US$ million

Source: Company data* Includes dividend payable

As of June 30, 2014:> Bilateral only 3-5 year credit facilities with the

major Russian and European banks> The average cost of debt remained low at 3.04%

(2013: 3.06%) > Net Debt/ EBITDA = 1.55> Average debt maturity of 2.7 years> Mostly dollar-denominated debt

Debt portfolio

620 632

1,030 905

417

66315

132

1,037

1,295*

1,045 1,038

31/12/2012 30/06/2013 31/12/2013 30/06/2014

Short-term debt (net of cash)Long-term debt

EU banks56%

Russian banks38%

UK banks

6%

Debt structure by source

> No threats to covenants onexisting debt

> Firm commitment to continuepaying regular dividends

> All options to be considered forthe financing of project CapExwith the decision to be made inlate 2015 – early 2016

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Maturity profile and financing considerations

52

236

299

56

404

5 3

2014 2015 2016 2017 2018 2019 2020

Cash Debt

Debt maturity profile, US$ million(as at June 30, 2014)

Appendix

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Kyzyl gold project: general deposit geology

Alluvium Bukon Formation Lower Kokpeckty Formation Upper Kokpeckty Formation

> Mineralised shear zone with fine-grained gold associated with arsenopyrite and pyrite

> Shear zone is 11.5 km long, dips 30°to 40° north with widths of 10 m to 240 m and traced to depths of 1.0 km to 1.5 km in the west and 3.0 km to 3.5 km in the east

> Average ore body width is 8 m

> No signs of grade or ore body width decline with depth

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Typical section of Lens 1Drilling depth of ~750 m

Source: Roscoe Postle Associates feasibility study (October 2013)

Svetloye development project

> Open-pittable reserves of 7.3 Mt at 2.8 g/t for 0.7 Moz of contained gold1

> 1.0 Mtpa heap leach operation followed by Merrill-Crowe processing of the solutions

> Initial mine life: 8 years

> Annual production: 70 Koz of gold based on the average recoveries of approximately 82%

> Gold-bearing silicification occurs as flat lenses or pods, which outcrop at the surfaceand have true widths of between 20 and 120 m. The average strip ratio over the life of the mine is 1.4 t/t.

> Further substantial exploration potential exists within the existing license area of 40 km2.

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Source: Company informationEstimate prepared by Snowden as of 01.01.2014 in accordance with the JORC Code 2012. Au price = US$ 1,300/oz

Capital-light, low-risk and low-cost

Project development timeline

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Q1 2015• Complete project design and permitting

Q3 2015• Start construction

Q3 2017• First production

2018• Full year of production at nameplate capacity

Svetloye development project (cont.)

Robust project economics

> AISC: US$ 750-800/oz of gold

> Pre-production capital expenditure: US$ 90 million1

> Project IRR of 44% at gold price of US$ 1,250/oz, Brent oil price of US$110/bbl, and RUB/USD exchange rate of 33.

> Project IRR of 23% at gold price of US$ 1,000/oz.

Source: Company information(1) Do not take into account potential synergies with Khakanja (mining equipment) and Omolon (equipment from postponed Sopka heap leach project).

Capital-light, low-risk and low-cost

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Dukat

Key facts> Location: Northeast of Magadan, Russia

> Mining: mostly underground

> Processing: 1600 Ktpa concentrator and 400 KtpaMerrill Crowe plant

> Production start date: 2002

> Life of mine: 2023 (Lunnoye), 2021 (Dukat)

2014 highlights

> Dukat mine completely shifted to underground mining. As a result of debottlenecking at the concentrator its capacity increased to 1.6 Mtpa

> Diversified concentrate off-taker base in Japan, South Korea and Kazakhstan

> Lunnoye: the new SAG mill successfully commissioned increasing total processing capacity to 400 kt of ore per annum

> Near mine exploration ongoing

Our flagship operation and the largest primary silver mine in Russia

Source: Company data, IFRS accounts.GE based on actual realized prices

Dukat/Lunnoye/Arylakh/Goltsovoye 1H 2014 2013 2012Waste mined (Kt) 233 1,034 3,558

Ore mined (Kt) 994 1,815 1,782Open pit 36 86 316Underground 958 1,729 1,465Ore processed (Kt) 1,019 1,912 1,772Gold head grade (g/t) 0.92 0.80 0.77Silver head grade (g/t) 449 419 403Gold recovery 86% 84% 83%Silver recovery 88% 87% 85%Gold produced (Koz) 26 41 36Silver produced (Moz) 13.1 22.1 19.2

Total cash costs/ silver ounces sold ($/oz) 9.1 11.6 12.1Adjusted EBITDA, US$m 129 229 378CapEx, US$m (excluding exploration) 13 37 49

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Albazino/Amursk POXNew high-grade open-pit mine and state-of-the-art POX plantKey facts

> Location: Khabarovsk region, Russia

> Mining: open-pit

> Processing: 1600 ktpa flotation concentrator with further autoclaving/CIL at the Amursk POX plant


> Life of mine: 2021

2014 highlights

> The Amursk plant successfully achieved its design throughput and recoveries in August and October 2013 respectively

> No further off-take required from 2014. All concentrate will be processed through the POX plant

> Significant increase in resources to c. 6 Moz of gold to be followed by a revised reserve estimate and construction decision on Albazino potential by year end

Albazino 1H 2014 2013 2012Waste mined (Kt) 7,974 16,135 15,160Ore mined - open pit (Kt) 787 1,338 1,216Ore processed (Kt) 795 1,513 1,226Gold head grades (g/t) 4.8 5.6 5.3Gold recovery 88% 88% 87%Concentrate produced (Kt) 66 140 115Gold grade in concentrate (g/t) 53 53 49Gold in concentrate (Koz) 107 239 181Concentrate sold (Kt) - 49 40Payable gold in concentrate sold (Koz) - 79 64Amursk POXConcentrate processed (Kt) 75 127 16Gold head grade (g/t) 53 50 38Recovery 93% 86% 79%Gold produced (Koz) 115 159 14Total Production (Albazino/Amursk)Gold (Koz) 115 238 78

Total cash costs/ GE ounces sold ($/oz) 668 790 739Adjusted EBITDA, US$m 67 103 24CapEx, US$m (excluding exploration) 9 36 79Source: Company data, IFRS accounts.

GE based on actual realized prices

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Mayskoye

Key facts

> Location: Chukotka, Russia

> Mining: underground mechanised mine

> Processing: 850 ktpa flotation concentrator + offtake/POX

> Production start date: Q2 2013


> Current resources: 6.1 Moz of gold at 9.5 g/t including 2.0 Moz reserves at 8.8 g/t (JORC)

2014 highlights

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Started-up in April 2013

1H 2014 2013 2012

Underground development (m) 5,158 9,989 11,068

Ore mined, underground (Kt) 318 667 40

Ore processed (Kt) 392 488 -Gold head grade (g/t) 8.7 7.1 -Gold recovery 81% 78% -Concentrate produced (Kt) 46 49 -Gold grade in concentrate (g/t) 59 55 -Gold in concentrate (Koz) 88 87 -Concentrate sold (Kt) - 30 -Payable gold in concentrate sold (Koz) - 48 -Amursk POXConcentrate processed (Kt) 2 - -Gold head grade (g/t) 46 - -Recovery 80% - -Gold produced (Koz) 2 - -Total Production (Offtake+Amursk)Gold produced (Koz) 2 48 -

CapEx, US$m (excluding exploration) 9 54 66Source: Company data, IFRS accounts.GE based on actual realized prices

> The split between own-processing and third-party off-take will be determined based on the relative cost/recovery attractiveness of each route.

> It is expected that the volume shipped out in the current year will be approximately evenly split between AmurskPOX and off-take sales.

> Contracts with three off-takers in China were signed during the Q2 on terms which were meaningfully improved compared to 2013 off-take agreements.

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Voro

Key facts

> Location: Sverdlovsk Region, Central Russia

> Mining: open pit

> Processing: Carbon-in-pulp, heap leach


> Life of mine: 2027 (CIP)

2014 highlights

> In 2014, mining will focus on primary ore.

> Efforts are under way to identify additional sources of primary and oxidised ore, including third-party supplies.

> Carbon-in-Column (CIC) process was introduced in 2013 for the extraction of gold from heap leach solutions as changing ore chemistry slowed down recoveries at the historical Merrill Crowe circuit.

Lowest cost and highest margin mine

1H 2014 2013 2012Waste mined (Kt) 5,221 11,099 11,265Ore mined, open pit (Kt) 887 1,787 1,684

- oxidised 409 981 926- primary 477 807 758

Ore stacked (Kt), heap leach 310 850 901Gold head grade (g/t), heap leach 1.5 1.4 1.6Gold recovery, heap leach - 74% 74%Ore processed (Kt), CIP 459 924 917Gold head grade (g/t), CIP 5.9 5.7 5.3Gold recovery, CIP 83% 80% 79%Gold produced (Koz) 74 153 154Silver produced (Moz) 0.043 0.079 0.154

Total cash costs/ GE ounces sold ($/oz) 421 503 506Adjusted EBITDA, US$m 59 130 182CapEx, US$m (excluding exploration) 3 8 11


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OmolonProcessing hub with multiple feed sourcesKey facts

> Location: Magadan region, Russia

> Mining: open-pit/ underground

> Processing: 850 ktpa CIP/ Merrill Crowe and 1,000 ktpa Birkachan Heap Leach


> Life of mine: 2020 (CIP)

Mining Processing Reserves(GE koz)

Grade(GE g/t)

Sopka OPcompleted

MC 379 3.9

Birkachan UG CIP/HL 497 4.1

Dalneye OP MC 218 5.4

Oroch OP MC 241 6.7

Tsokol Kubaka OP CIP 207 7.4

1,541 4.8

Ore reserves (JORC)

Source: Ore reserves as of 01.01.2014. GE based on 60:1 gold/silver ratio

29

Omolon (cont.)

2014 highlights> The Birkachan open pit is on care and maintenance

since Q3 2014 after a brief summer mining campaign.

> Underground development at Birkachan started in Q3 2014.

> Heap leach at Birkachan will operate during 2014-2016 to process low-grade ore stockpiles

> The increased amount of ore from Tsokol, Dalneye and Oroch are expected to compensate for the suspension of mining at Birkachan

1H 2014 2013 2012Waste mined (Kt) 6,244 16,537 21,471

Ore mined, open pit (Kt) 1,497 2,065 2,662Ore stacked (Kt), heap leach - - 116

Gold head grade (g/t), heap leach - - 1.1

Ore processed (Kt), Kubaka mill 400 767 724Gold head grade (g/t) 7.3 5.1 5.9Silver head grade (g/t) 146 118 135GE grade processed (g/t), Kubaka mill 9.7 7.1 8.2Gold recovery 95% 95% 94%Silver recovery 84% 88% 88%Gold produced (Koz) 92 115 129Silver produced (Moz) 1.4 2.6 2.7


Processing hub with multiple feed sources


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Varvara

Key facts> Location: North-western Kazakhstan

> Mining: open pit

> Processing: 1000 Ktpa flotation and 2800 Ktpa CIL

> Production start date: 2007 (acquired by Polymetal in 2009)

> Life of mine: 2024 (Leach), 2030 (Float)

2014 highlights

> Some decline in grades in the leaching circuit in 2014 is expected, as in October 2013 Varvara discontinued purchases of third-party ore due to its declining quality.

> By the third quarter of 2014, we expect to complete the pushback in the North-West and North-East pits and return to a normalised stripping ratio.

> The current weakness in the copper concentrate market led to the accumulation of excess concentrate stockpiles. To prevent further increases in working capital, the flotation circuit was temporarily switched off in July with freed grinding capacity diverted to leaching circuit. Copper concentrate production will be resumed shortly after the current stockpile is sold in full

Standalone gold and copper mine

1H 2014 2013 2012Waste mined (Kt) 15,964 31,053 26,072Ore mined - open pit (Kt) 1,512 2,008 3,609Ore processed (Kt), Float 493 1,005 992Gold head grade (g/t) 1.1 1.3 1.2Copper head grade (%) 0.40% 0.58% 0.76%Gold recovery, Float 46% 56% 61%Copper recovery, Float 81% 89% 92%Ore processed (Kt), Leach 1,297 2,671 2,654Gold head grade (g/t), Leach 1.2 1.3 1.2Gold recovery, Leach 77% 82% 85%Gold produced (Koz) 45 107 101Copper produced (t) 1,527 4,841 6,567



31

Khakanja

Key facts

> Location: Khabarovsk region, Russia

> Mining: Khakanja, Ozerny open-pit mines and Avlayakan underground

> Processing: 600 Ktpa Merrill Crowe



2014 highlights

> Sustaining the grade profile and extending the life-of-mine remain our top priorities for Khakanja

> Commencement of underground mining at Khakanja has been postponed due to geotechnical concerns with the corresponding reserve being re-classified as resource

> High-grade feed in 2014 will come from Ozerny and Avlayakan mines

> Avlayakan: active ore mining from stopes will commence in Q3. High-grade ore shipment from Avlayakan resumed in July; this should result in stronger half-on-half gold production in H2 2014.

31

Approaching the end of LOM

1H 2014 2013 2012

Waste mined (Kt) 4,710 9,097 6,521

Ore mined, open pit (Kt) 427 690 1,346Ore mined, underground (Kt) 8 8 148

Ore processed (Kt) 307 619 622Gold head grade (g/t) 3.6 5.7 4.8Silver head grade (g/t) 122 147 277GE grade processed (g/t) 5.6 8.2 9.4Gold recovery 90% 92% 96%Silver recovery 77% 84% 80%Gold produced (Koz) 32 103 91Silver produced (Moz) 0.9 2.4 4.4



32

12.6672

583

723

1,120

963

787

11.0

824

430

819756

707 721

9.1

792

421

648 622 668

627

0

200

400

600

800

1000

1200

1400

1600

1800

Dukat Khakanja Voro Varvara Omolon Albazino Mayskoye Total cash cost -Polymetal

1H 2013 2H 2013 1H 2014

957

32

Cash cost dynamics 2013-2014Improvements across portfolioTotal cash cost, US$/oz of GE1

Source: Company data(1) Co-product total cash cost: cost of sales + on-mine part of SG&A – deprecation and amortization . GE (gold equivalent) based on actual realized gold, silver and copper prices(2) Silver equivalent based on average realised prices

2

NA NA

3.7

1.51.5

2.0

1.21.2

1.9

6.70.9

20.6

2.60.5

3.6

4.10.3

0.1

2.6

3.8

2.319.7

Dukat Omolon Albazino Mayskoye Khakanja Voro Varvara Bakyrchik Other Total

Reserves Resources

33

Source: Reserve and resource statement (JORC 2012) as at 01.01.2014 including Svetloye reserve and resource estimate announced on 12.05.2014 (as a part of the Khakanja hub)Average Au/Ag conversion ratio 59.4:1 Ag oz/Au oz.(1) Includes Maminskoye, Kutyn, Tamunier

GE

Moz

8.1

5.2

4.8

8.5

5.1

4.8

8.8

9.9

3.7

5.2

2.8

2.1

1.4

1.7 6.9

4.3

4.0

Resource grade

GE

g/t

Reserve grade

1

6.32.0

5.1

6.11.5

1.3

4.53.2

40.4

Gold equivalent reserves and resources

2023 2020 2021 2022 2018 2027 2030

LOM

Reserve mine life

7.5

2038

2.2

1.9

10.5

Documents

2014 09 08 Denver presentation · 2014-09-08 · presentation. Percentages and certain amounts included in this presentation have been rounded for ease of presentation. Accordingly