Ore Reserves, Mineral Resources and Exploration update as at 1 January 2023

Polymetal International plc (“Polymetal”, the “Company” or the “Group”) announces its Ore Reserves and Mineral Resources as at 1 January 2023, in accordance with the JORC Code (2012) and exploration update for the year ended 31 December 2022.

“Polymetal did not replace its ore depletion and recorded declining ore reserves in 2022. The exploration season was severely affected by the indirect impact of sanctions placed on, amongst other things, imports of diamond drilling spares and materials into Russia. We remain confident in the Group’s ability to grow our high-quality reserve base and expect the resumption of the upward trend in 2023”, said Vitaly Nesis, Group CEO of Polymetal.

HIGHLIGHTS

• In 2022, Group Ore Reserves (“OR”) decreased by 9% year-on-year (y-o-y) to 27.3 Moz of gold equivalent (GE)¹, mostly due to mining depletion. This was partially offset by the successful exploration results at Omolon hub (Burgali and Nevenrekan), Pesherny (Voro hub), as well as initial reserve estimates at Galka and Tamunier (Voro hub). The average grade in OR increased by 5% y-o-y and stood at 3.6 g/t of GE. Average mine-life stands at 13 years.

• Share of OR for open-pit mining remained unchanged versus previous year at 52%. Share of refractory reserves grew by 3 p.p. y-o-y to 74%.

• Mineral Resources (additional to Ore Reserves) (“MR”) grew by 5% y-o-y to 25.8 Moz of GE due to positive revaluation at Kyzyl, Omolon, and Nezhda, as well as initial resource estimates at Kegali and Tumanin (Omolon hub). The average GE grade in MR was up by 10% y-o-y to 4.5 g/t.

2023 OUTLOOK

In 2023, Polymetal will continue to invest in both near-mine and greenfield exploration projects.

The key objectives are:

• Re-evaluate Ore Reserves at Kyzyl.

• Prepare an initial Ore Reserve estimate at Talgiy (Albazino).

• Prepare an initial Ore Reserve estimate at Pavlov (Voro hub).

GE includes gold and silver, unless otherwise stated. Base metals are excluded due to their immateriality.

Ore Reserves and Mineral Resources summary ^{(1), (2)}

Notes:
(1) Ore Reserves and Mineral Resources from continuing operations. Base metals are not included in GE calculation as they are insignificant. Ore Reserves of rare earths metals are given separately and not included in GE calculation.
(2)Mineral Resources are additional to Ore Reserves. Mineral Resources of platinum group metals and rare earth metals are given separately and are not included in the calculation of GE. Discrepancies in calculations are due to rounding.

Ore Reserves and Mineral Resources structure by metal as at 1 January 2023

Ore Reserves reconciliation, GE Moz ⁽¹⁾

Note:
(1) Discrepancies in calculations are due to rounding.

Ore Reserves and Mineral Resources as at 1 January 2023 ⁽¹⁾

Note:
(1) Mineral Resources and Ore Reserves in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves. Detailed tables for Mineral Resources and Ore Reserves with a breakdown by deposits and metals are given below. Ore Reserves of rare earths metals are given separately and not included in GE calculation. Mineral Resources of platinum group metals and rare earth metals are given separately and are not included in the calculation of the gold equivalent. Discrepancies in calculations are due to rounding.

EXPLORATION RESULTS

Exploration areas and volumes (mine site exploration excluded) ⁽¹⁾

Notes:
(1) Discrepancies in calculations are due to rounding.
(2) Including JVs with more than 50% share owned by Polymetal.

In 2022, 314.2 km (including JVs) of exploration drilling was completed. As a result of the imposed sanctions on Russia, import of drilling spare parts and materials was restricted, leading to a substantial decrease in drilling activities. Furthermore, as a part of budget optimisation, JV grassroots exploration in Russia was reduced, contributing to overall drop in drilling volumes.

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SUPPLEMENTARY INFORMATION

This estimate was prepared by employees of JSC Polymetal Management Company and JSC Polymetal Engineering, led by Mr Valery Egorov, who assumes overall responsibility for the Mineral Resources and Ore Reserves Report.

Mr  Egorov is employed full-time as the Technical Director of Bakyrchik Mining Venture LLC and has more than 16 years’ experience in gold, silver and polymetallic mining. He is a Member of the Institute of Materials, Minerals & Mining (MIMMM), London, and a Competent Person under the JORC Code.

Listed below are other Competent Persons employed by the Company who are responsible for relevant research on which the Mineral Resources and Ore Reserves estimate for the Kazakhstan operations (Kyzyl and deposits of Varvara hub) is based:

• Ore Reserves - Valery Egorov, Technical Director of Bakyrchik Mining Venture LLC, MIMMM, with more than 16 years’ relevant experience;

• Geology and Mineral Resources - Victor Pchelka, Deputy Director for Mining Operations of the Mineral Resources Department of Polymetal Eurasia LLC, MIMMM, PONEN, with 36 years’ relevant experience.

Listed below are other Competent Persons employed by the Company that are responsible for relevant research on which the Mineral Resources and Ore Reserves estimate for the other Company’s operations is based:

• Ore Reserves – Victor Batalov, Head of Mineral Resources Estimate Division of JSC Polymetal Management, AusIMM, with more than 20 years’ relevant experience;

• Geology and Mineral Resources - Roman Govorukha, Head of Mining Geology Department, JSC Polymetal Management Company, AusIMM, with 22 years’ relevant experience;

All the above mentioned Competent Persons have sufficient experience that is relevant to the style of mineralisation and types of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code).

All Competent Persons have given their consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Metals prices used in estimating Mineral Resources and Ore Reserves are listed below (unless otherwise indicated in the footnotes of the above tables):

Au = US$ 1,500/oz;

Ag = US$ 20.0/oz;

Cu = US$ 7,500/t;

Zn = US$ 2,200/t;

Pb = US$ 2,000/t;

All metals presented in the tables of Mineral Resources and Ore Reserves were used in Mineral Resources and Ore Reserves estimates. The gold equivalent as of 01.01.2023 includes only gold and silver.  Data on conversion ratios into gold equivalent are given in the Appendix “Gold equivalent conversion ratios”.