PETROPAVLOVSK PLCFY 2018 Results & Q1 2019 Production Update24 April 2019

Cautionary and Forward-looking Statements

— Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements, including references to guidance. Such statements reflect the Company’s current views with respect to future events and are subject to risks, assumptions, uncertainties and other factors beyond the Company’s control that could cause actual results to differ from those expressed in such statements. Although the Company believes that such forward-looking statements, which speak only as of the date of this presentation, are reasonable, no assurance can be given that they will prove to be correct. Therefore, you should not place undue reliance on these statements

— There can be no assurance that the results and events contemplated by the forward-looking statements contained in this presentation will, in fact, occur. The Company will not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation, except as required by law or by any appropriate regulatory authority. Nothing in this presentation or in documents referred to in it should be considered as a profit forecast.

— The past performance of the Company and its securities is not, and should not be relied on as, a guide to the future performance of the Company and its securities

— This presentation does not constitute, or form part of or contain any invitation, recommendation or offer to any person to underwrite, subscribe for, buy, sell, otherwise acquire, exchange or dispose of any shares or securities in the Company or advise persons to do so in any jurisdiction, including, but not limited to, the Russian Federation, nor shall it, or any part of it, form the basis of or be relied on in any connection with or act as an inducement to enter into any contract or commitment therefore or engage in any other investment activity. In particular, this presentation and the information contained herein are not an offer of securities for sale in the United States. This presentation does not constitute an advertisement of any securities in the Russian Federation

— No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents or otherwise in connection therewith.

— The development and production plans and estimates set out herein represent the current views of the Company's management. The Company’s Board reviews the production estimates on an ongoing basis. All planning is subject, inter alia, to available funding and capital allocation decisions

— English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this presentation

FY 2018 Highlights

4

Restoring leadership and progressing growth ambitions2018 Highlights

Commissioning of the POX Hub + Malomir flotation plant

— Unlocks value embedded in c.5.3Moz of refractory reserves

— Significantly increases optionality of the Group to process own refractory ores or treat 3rd party material

— Production growth to resume in 2019, from higher grades + material contribution from POX

Improved operating performance

— H2 2018 operational turnaround enabled FY 2018 targets to be met: production in line with guidance, costs reduced

— IRC: ongoing ramp-up of K&S

Board and management teams strengthened

— Leadership restored: return of Dr Pavel Maslovskiy as CEO

— Additions of Sir Roderic Lyne (Non-Executive Chairman), Robert Jenkins, James Cameron Jr , Damien Hackett, Harry Kenyon-Slaney (Independent Non-Executive Directors) + Bektas Mukazhanov (Non-Executive Director)

— Board fully compliant with UK Corporate Governance Code

Balance sheet de-risking

— New US$240m facility signed between Gazprombank and IRC, payment schedule aligned with K&S ramp-up

— New gold sales agreement for c.175Koz signed

— Ongoing de-leveraging / reduction in net debt

5

A transitional year - following a disappointing H1 2018, strong performance + exceptional measures taken in H2 2018 by new leadership

2018 Key Achievements

— Production of 422Koz Au (incl. 52Koz of gold in high-grade refractory concentrate produced by the new Malomir flotation plant), in line with guidance

— FY TCC of US$786/oz, down 13% vs. H1 2018 (US$899/oz)Production + Costs

— Net Debt reduced by US$17m to US$568m— IRC: increased production volumes + higher EBITDA

Other

— Malomir: following flotation plant commissioning, c.46Kt of high-grade refractory concentrate was produced (c.36g/t), ready for POX processing

— Material improvement in flotation flowsheet uplift in concentrate grade vs. initial design of c.24g/t + decrease in mass pull

— POX Hub: autoclaves 1 + 2 commissioned Q4 2018, ahead of schedule— Smooth ramp-up, first gold poured Dec 2018— 3rd party refractory concentrate being acquired in preparation for launch of autoclaves

3 + 4 (which were tested in Q1 2019 and shown to be fully working)

Malomir Flotation + POX Hub

— Group R&R totalled 20.5Moz Au with Reserves of 8.2Moz Au— Reserves increased by 0.6Moz despite depletion to 8.2Moz due to new discoveries at

Pioneer + MalomirExploration

FY 2018 Financials

7

Headline performance impacted by scheduled inventory build and sub-optimal H1FY 2018 Financial Results Highlights

Units 2018 2017 Change

Gold production Koz 422.3 439.6 (4%)

Gold sold Koz 369.6 439.8 (16%)

Avg. realised gold price US$/oz 1,263 1,262 0%

Group revenue US$m 499.8 587.4 (15%)

Total cash costs (TCC) US$/oz 786 741 +6%

All-in sustaining costs (AISC) US$/oz 1,117 963 +16%

Operating profit US$m 126.6 100.4 +26%

Underlying EBITDA US$m 143.0 196.8 (27%)

Profit before tax US$m 82.4 48.9 +69%

Profit for the period US$m 25.9 37.1 (30%)

Net cash from operating activities US$m 217.2 124.0 +75%

Net debt (as at 31 Dec) US$m (568.0) (585.1) (3%)

Development capex US$m 112.8 66.2 +70%

Exploration capex US$m 21.6 21.9 (1%)

(1) Incl. c.52Koz of gold contained in high-grade refractory concentrate produced by the Malomir flotation plant

(1)

8

741 786

12348 3 0.2 91

39

TCC

FY20

17

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FY20

18

TCC increased by 6% for the FY 2018 (but down from US$899/oz in H1 2018) and within guided range of US$750/oz – US$800/oz

FY 2018 Total Cash Costs (TCC)

+6%

TCC affected by inflation of some RUB denominated costs, higher volumes of stripping + suboptimal organisation of mining works in H1, partially mitigated by higher processed grades (Pioneer,

Malomir), higher recoveries (Pioneer, Albyn, Malomir) + effect of RUB depreciation

US$/oz

9

Cash expenses -3% yoy as inflation of certain RUB denominated costs (electricity, diesel) somewhat offset by the effect of RUB depreciation

Precious metals operating cash expenses 2018 vs. 2017

(2) Before movement in ore stockpiles, GIC, flotation concentrate and bullion in process of US$55.6m

Consumables +Other

Materials37%

(1) Before movement in ore stockpiles, GIC and bullion in process of US$19.2m

Consumables+

Other Materials

34%

Labour23%

Fuel14%

Electricity10%

Other 7%

External Services12%

= US$313.4m(1) = US$302.7m(2)

Consumables+

Other Materials

31%

Labour22%

Fuel15%

Electricity9%

Other 8%

External Services15%

FY2017 Precious Metals Operating Cash Expenses FY2018 Precious Metals Operating Cash Expenses

2018 2017 ChangeAvg. RUB/US$ FX 62.7 58.3 +7%

Avg. Gold PM Fix US$/oz 1,269 1,257 +1%

10

Total FY 2018 exploration + development capex = US$134.4mFY 2018 Development and Exploration Spend

61.5

21.619.3 19.1

10.5

2.4

POX Exploration Malomir Pioneer Albyn PPE Upgrade

FY2018 Development US$112.7m

Pioneer US$10.0mMalomir US$5.5m

Albyn US$5.0mOther US$1.1m

US$m FY2018 Exploration US$21.6m

Tailings, underground development, machinery /

equipment

Tailings, access roadFlotation,

tailings, underground development

Active development continued ahead of scheduled Q4

commissioning

11

Net Debt down c.3% to US$568m due to an increase in cash + cash equivalents of c.US$15m2018 Change in Net Debt

1.9

160.3

122.6

585.1

134.457.0

55.5 9.0 6.8 5.0

568.0

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US$m

12

New Gazprombank facility de-risks Petropavlovsk’s liability due to longer maturity + more relaxed amortisation schedule

Successful Refinancing of ICBC Project Finance Facility

— Successful negotiation of new US$240m facility with Gazprombankmore favourable terms vs. ICBC facility

— Principal repayments of the Gazprombank facility are skewed to the latter part of the loan term so that the repayment pattern will better align with the ramping-up of K&S + will assist IRC’s cash flow position

— With new facility, IRC benefits from extended period to repay through to 2026

— New facility approved by Petropavlovsk shareholders in Mar 2019 and was drawn down by IRC to repay:

— (i) Outstanding ICBC facility of US$169m

— (ii) 2 x bridge loans advanced by Petropavlovsk to IRC amounting to c.US$57m

— (iii) US$3m drawn as working capital for K&S

Successful refinancing of IRC Facility

Corporate Guarantee

Fixed Term Guarantee

2019

$120m $40m

2020

2021$40m

2022

2023$40m

2024

2025$120m

2026

Guarantee mechanism structure— New facility guarantee mechanism is implemented as follows,

subject to certain operating conditions being met:

Q1 2019 Update

14

A good start to the year with c.25% of Q1 output attributable to the processing of our own refractory ore reserves

Q1 2019 Production Update

Production in linewith budget

— Production / sales of 108Koz, with 28Koz from refractory processing via the POX Hub— Strong contribution from Malomir underground, with grades of over 8g/t

Malomir flotationcontinues to produces refractory concentrate

with improved parameters

— Successful test work carried out on concentrate from lower grade material 87% recovery with lower than designed mass pull (2.8% – 3.5% vs. 5.5%) = lower TCC

— c.29Kt of concentrate at 28g/t containing 26Koz of gold stockpiled for processing

POX: Q1 recoveries reached 91%,

autoclaves 3 + 4 ready for launch

— c.32Kt of high-grade concentrate at 32g/t processed via POX Hub— POX recoveries reached 91% in March, targeting 94% in H2 2019— Autoclaves 3 + 4 tested + shown to be fully-functioning. Ready to begin operating at full

capacity once supply of 3rd party concentrate secured

Acquisition / trial of3rd party concentrate to optimise POX utilisation

rates

— Concentrate successfully trialled from two different sources— 2 x batches of concentrate secured, incl. 17Kt at 65g/t – 75g/t + 20Kt at 40g/t – 60g/t

IRC: successful refinancing of ICBC

project finance facility

— New facility with Gazprombank on better terms— Petropavlovsk has received c.US$57m as full repayment for 2 x bridge loans advanced to

IRC in 2018

15

Q1 2019 Operations ReviewStrong performance let down by water issues at Pioneer(2) – remain on track to meet 2019 guidance

Malomir production above budget

— Non-refractory ore via RIP: gold recoveries exceeded budget by 6.2Koz due to larger quantity of high-grade ore mined from underground + higher recoveries

— Flotation: 25Kt of concentrate produced at avg. grade of 23g/t

— POX Hub: 32Kt of concentrate processed at avg. grade of 32g/t, with 2.8Koz of metal produced above quarterly budget

Albyn production above budget

— c.200Kt of ore at 1.2g/t was mined above budget, resulting in 4.3Koz of production above plan

Pioneer production below budget

— Underground delays caused by persistence of water inflow + lower grade material from open pit(2)

— Production 6.7Koz below budget

Company remains on course to meet FY2019 guidance

Albyn41Koz (38%)

Malomir (incl. POX)

Pioneer22Koz(20%)

45Koz (41%)

Total production

108Koz

Q1 2019 Au Production by Mine(1) Q1 2019 Production Highlights

(1) Percentages may not add up due to rounding(2) At Pioneer, all water has been pumped out of mine, cement backfill has been implemented and pump size increased

16

Production rates expected to increase from Q2 2019 once the Malomir flotation plant begins processing higher grade material to produce higher grade concentrate

Malomir Flotation Plant

Background— Malomir flotation plant is a two-stage development— Stage 1: 3.6Mtpa capacity across 2 x 1.8Mtpa processing

lines (line 1 launched Jul, line 2 Oct 2018)— With both lines ramped-up, the flotation plant produced

c.46Kt of high-grade refractory concentrate with grades of up to 36g/t in 2018

Flotation process flowsheet improvements— Gold losses reduced: more efficient flotation reagent to

suppress carbon has eliminated need for carbon flotation stage

— c.50% improvement in concentrate grade vs. original design parameters (c.24g/t vs. c.36g/t – 40g/t)

— Concentrate mass pull improved from 5.5% to c.2.8% (using lower grade ores), reducing volume of material transported

Tests work has produced 25Kt of concentrate from low grade material— Low grade trial material (c.0.7g/t), stripped ahead of

accessing main ore body was processed, achieving concentrate grades of 22g/t – 24g/t at 87% recovery

— Resulting concentrate yield of c.2.8% significantly better vs. 5.5% long-term plan, reducing transport volumes / costs Flotation cells at the Malomir flotation plant

Stage 2 flotation plant expansion

— Stage 2 will expand Malomir flotation to 5.4Mtpa by adding a third 1.8Mtpa line to the existing two

— This will fully calibrate combined flotation + RIP plant capacity with existing crushing + grinding capacity

— Management considering fast-tracking expansion to maximise utilisation of POX Hub capacity (currently 2020)

The Pokrovskiy POX Hub

18

Our New Pressure Oxidation (POX) Hub Presents Growth OpportunitiesCommissioned in Q4 2018, the POX plant is the result of almost a decade of work by our in-house group of scientific experts + engineers

Non-refractory35% / 2.9Moz

Refractory60% / 12.3Moz

20.5Moz

8.2Moz

JORC Resources(1) JORC Reserves(1)

We expect to unlock c.60% of our R&R via the POX Hub

Non-refractory40% / 8.2Moz

Refractory65% / 5.3Moz

(1) In accordance with the JORC Code, as at 31 Dec 2018. Resources (M,I&I) are inclusive of Reserves. For full details and asset by asset breakdown please refer to the 2018 Petropavlovsk annual report

Over 50% of Russia’s defined gold resources are refractory or partially refractory

Extraction of gold from refractory ore requires additional stages eg.flotation, then pressure oxidation (POX) to extract gold from flotation concentrate

POX is a globally recognised process for treating refractory ore and flotation concentrate

The POX Hub repositions the Group as a technological + operational leader, within Russia + in a global context

Optionality / growth: treatment of 3rd party concentrate, acquisition of refractory deposits

External view of the POX Hub complex

Autoclaves

19

Total installed capacity of 400Ktpa – 500Ktpa(1)

POX Hub: Successfully Commissioned End of 2018

– Commissioned Q4 2018

– 32Kt of concentrate processed at avg. c.32g/t in Q1 2019

– Tested in Q1 2019 fully-functioning

– Ready to start once 3rd

party concentrate secured

100 - 125Ktpa(1)

2019 plans— Lines 1 + 2 at POX expected to treat 155Kt – 175Kt of

refractory concentrate in 2019 at 30g/t – 31g/t— This includes:

— 125Kt –145Kt at 29g/t – 32g/t representing material mined in 2019

— 29Kt at 28.2g/t representing material mined in 2018 and stockpiled

— 37Kt at 40-75g/t of 3rd party concentrate

2020 onwards— Once additional flotation lines have been installed at

Malomir + Pioneer, POX will be able to treat up to:— 200Ktpa of concentrate from Malomir (at 27%

sulphur) from 2020— 240Ktpa from Pioneer (at 23% sulphur) from 2023

Autoclaves 1 + 2 Autoclaves 3 + 4

Autoclave 1 Autoclave 2 Autoclave 3 Autoclave 4

100%

30%

100% 100%

100 - 125Ktpa(1) 100 - 125Ktpa(1) 100 - 125Ktpa(1)

30%

Mined in 2019 Mined in 2018 and stockpiled 3rd party concentrate

40%

(1)POX capacity determined by sulphur levels, hence capacity shown here as ranges which depend on specific qualities of source material (lower sulphur = higher POX plant capacity)

R&R / Exploration

21

Track Record of Resource GrowthAs at 31 Dec 2018, Group Reserves & Resources totalled 20.5Moz Au, with Reserves of 8.2Moz Au

Depletion + DisposalsRefractory Resources

6.8 5.2

13.0 12.8 12.1 12.0 9.3 9.3 9.3 9.6 12.32.1 6.0

10.1 12.3 11.7 13.814.0 14.4

10.4 11.2 8.2

1.4 1.9 2.4 3.8 5.1 5.9 6.6 7.211.2 11.7 12.5

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Non-Refractory Resources

— Following successful commissioning of POX, some transitional Resources and Reserves suitable for either RIP or refractory processing, were reclassified from non-refractory to refractory.

— As a result, and due to the success of 2018 exploration campaign, total refractory Resources increased by 2.7Moz to 12.3Moz— There was a corresponding decrease in non-refractory Resources from 11.2Moz to 8.2Moz (this change also reflects mine depletion and

disposals)

22

Mine by Mine JORC Resource BreakdownNew Resources at Pioneer, Albyn, Malomir and Pokrovskiy

Malomir Pioneer Albyn Pokrovskiy

Refractory ResourcesNon-Refractory Resources

6.7Moz97%

0.2Moz3%

1.4Moz24%

1.1Moz21%

4.5Moz76%

4.2Moz79%

0.9Moz100%

6.9Moz 5.9Moz 5.3Moz 0.9Moz

Total JORC Resources (as at 31/12/2018)

20.5Moz8.2Moz40%

12.3Moz60%

Decrease due to disposals +

sterilisation due at POX facility

Albyn main ore body + Unglichikanskoye

KatrinNikolaevskyaUlunginskaya

RIP tailings for reprocessing via

flotation + POX and Quartzitovoye

New Resources -Explanation

Note: Tokur, not shown above, contains non-refractory Resources of 1.4Moz

23

IRC Update

24

FY 2018 IRC ResultsStrong FY performance due to successful continuation of K&S ramp-up + refinancing of ICBC project finance facility

Corporate

Financials

Operations

Amur bridge

— Total revenue +39% to US$152m (vs. US$ 109m in 2017) due to increased K&S output— EBITDA +42% to US$29m (vs. US$20m in 2017) due to stronger revenues + stricter cost-control— Net profit of US$68m (vs. US$113m in 2017)— Impairment reversal of US$91m

— Iron ore concentrate production +43% to 2,235Kt (vs. 1,563Kt in 2017)— Iron ore concentrate sales + 44% to 2,224Kt (vs. 1,539Kt in 2017)— Avg. selling price of US$68/t (vs. US$70/t in 2017)— In Dec 2018, K&S achieved a record-breaking monthly production by operating at an average capacity

of c.84%— Care + maintenance at Kuranakh mine remains satisfactory

— K&S (a subsidiary of IRC), entered into a new loan facility agreement with Gazprombank to refinance existing ICBC loan, with principal repayments better aligned with ramp-up of K&S

— Mr Peter Hambro appointed as Non-Executive Chairman of IRC

— Russian + Chinese sections of Amur river bridge successfully connected — The bridge is expected to be operational in Sep 2019 once customs checkpoints + other ancillary

infrastructure are in place

2019 Outlook

26

2019 OutlookGuidance has improved following successful commissioning of POX Hub

— US$45m – US$55m, consisting of sustaining, exploration + remaining POX capexCapex

— Targeting 450Koz – 500Koz Au, an increase vs. 2018 due to contribution from POX Hub facility (incl. gold in concentrate stockpiles from FY 2018), but excluding potential upside from 3rd party concentrate processing

— c.125Kt – 145Kt of refractory concentrate expected to be produced by Malomir flotation plant at 29gt –32g/t

— c.155Kt – 175Kt of refractory gold concentrate at 30g/t – 31g/t to be treated at POX Hub

Gold production

— Net debt to continue to fall in line with ramp-up of production + increase in free cash flow(1)De-leveraging

— TCC FY 2019: US$850 – 950/oz, based on a RUB:US$ FX of 66, reflecting additional POX Hub ramp-up costs

— Once POX is operating at full production from 2020, TCC expected to normalise at c.15% below 2019 guidance

Costs

— Autoclaves 3 + 4 to begin operating at full capacity once supplies of 3rd party concentrate secured— Management + Board are considering benefits of accelerating construction of additional flotation lines

at Pioneer / MalomirDevelopment

(1) Net debt (unaudited) as of 31 March 2019 reduced to c.US$550m

Appendix

27

28

Group production summaryFY 2018 Operations Overview

Mining Units FY 2018 FY 2017Total material moved m3 000 44,383 57,539Ore mined t 000 10,294 17,990Average grade g/t 1.2 0.9Processing Units FY 2018 FY 2017RIPTotal milled t 000 13,595 16,620Average grade g/t 1.0 0.8Gold content Koz 417 448Recovery rate % 84% 80%Gold recovered Koz 351 360Heap LeachOre stacked t 000 701 1,250Average grade g/t 0.5 0.4Gold content Koz 11 18Recovery rate % 54% 50%Gold recovered Koz 6 9Gold in concentrate – POX Koz 52 -TOTAL gold production Koz 422 440Gold sales Koz 370 440Costs Units FY 2018 FY 2017TCC US$/oz 786 741AISC US$/oz 1,117 963