Pesherny initial Ore Reserve estimate

Polymetal reports initial Ore Reserve estimate for Pesherny deposit (Voro hub) of 0.4 Moz of gold.

“Establishing high-grade reserves for Pesherny is an important achievement in extending Voro’s life-of-mine”, said Vitaly Nesis, Group CEO of Polymetal.

HIGHLIGHTS

• The initial JORC-compliant Ore Reserve estimate as at 1 July 2020 comprises 2.1 Mt of ore with an average gold grade of 6.0 g/t containing 399 Koz of gold.

• The reserve estimate assumes 7 years of open-pit and underground mining which is expected to commence in Q3 2021.

• 90% of the reserves are represented by primary ore which will be processed at the Voro flotation plant (under construction, start of production in Q1 2023). Refractory gold concentrate will be treated at Amursk POX-2. Oxide ore will be processed at the existing Voro CIP plant.

• Life-of-mine production from refractory material is expected to amount 310 Koz of gold. Average annual production in 2023-2027 is estimated at roughly 55 Koz of gold at AISC of US$ 450-500/oz.

• Mineral Resources (additional to Ore Reserves) amount to 0.5 Mt of ore with an average gold grade of 6.5 g/t representing 97 Koz of gold contained.

ORE RESERVE AND MINERAL RESOURCE STATEMENT

The Ore Reserve and Mineral Resource estimates are reported in accordance with the JORC Code (2012) as at 1 July 2020 using a gold price of US$ 1,200/oz and were prepared by Polymetal. For primary ores a cut-off grade of 0.8 g/t and 2.4 g/t gold was applied for open pit and for underground, respectively. For oxidised ores a cut-off grade of 0.6 g/t of gold was used.

Pesherny Initial Ore Reserve estimate

Notes: discrepancies in calculations are due to rounding.

Pesherny Additional Mineral Resource estimate

Notes: discrepancies in calculations are due to rounding.

ABOUT PESHERNY

Pesherny is a refractory gold deposit discovered by Polymetal in 2017. It is located in Russia’s Sverdlovsk region, approximately 10 km from the city of Krasnoturinsk and 15 km from Polymetal’s Voro production site. The industrialised and moderately populated area around the deposit is home to several mining companies, ensuring good access to the grid and other infrastructure.

The deposit lies in the peripheral part of the Turinsky volcanotectonic depression. Metasomatically altered mineralisation zone is located at the steep contact area of volcanic-sedimentary rocks with a basalts layer. A series of gold-containing oxidised and primary ore deposits are detected and tracked within the mineralisation zone. Plan view the ore zone is stretched to the north-east, has a strike length of up to 360 m and width of 30-120 m. Section view it dips to the south-east at an average angle of 68 degrees and has a length of 330 m with width of 40-70 m. Morphology wise ore bodies have lens and bedding plane form with contractions and swells and heterogeneous internal structure. Mineralisation has disseminated and vein-disseminated characteristics.

COMPETENT PERSONS

This estimate was prepared by employees of JSC Polymetal Management Company and JSC Polymetal Engineering, led by Mr. Vladislav Kolosov.

Mr. Kolosov is the employed full-time as the Deputy Head of Production Department at Polymetal Management Company and has more than 20 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 Competent Persons employed by the Company that are responsible for relevant research on which the Mineral Resources and Ore Reserves estimate is based:

• Geology and Mineral Resources – Andrey Gottman, Chief Operations Geologist at the Ural branch of Polymetal Management Company, member of National Association for Natural Resources Expert Appraisal (NAEN), with 20 years’ relevant experience;

• Mining and Ore Reserves – Vladislav Kolosov, Deputy Head of Production Department at Polymetal Management Company, MIMMM, with 20 years’ relevant experience;

• Concentration and Metals – Nikolay Rylov, Head of the Laboratory at Polymetal Engineering, MIMMM, with 13 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.