Initial ore reserve estimate for the Nezhda gold property

Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY) (“Polymetal”, the “Company”) is pleased to report the initial Ore Reserve estimate for the Nezhda gold property in accordance with the JORC Code (2012).

HIGHLIGHTS

• Open-pit Ore Reserves are estimated at 15.5 Mt of ore with an average gold equivalent (GE) grade of 4.0 g/t for 2.0 Moz of GE contained.
• Additional Mineral Resources are estimated at 55.9 Mt of ore with an average GE grade of 5.0 g/t for 8.9 Moz of GE contained.
• Current reserve estimate assumes 11 years of open-pit mining from Ore Zone 1. Ore will be processed by a conventional concentrator with further off-site downstream processing or sale of concentrate to 3^rd parties.
• The Company expects average annual production of 150 Koz of payable gold in concentrate with all-in sustaining cash costs in the range of US$ 650-710/oz of GE and total cash costs in the range of US$590-640/oz of GE.
• Nezhda is expected to benefit from low capital intensity with robust project economics. Total capital expenditures are estimated at US$ 249 million (including pre-stripping costs).
• The project’s IRR is expected to be 20% with an NPV of US$ 132 million (using a 10% discount rate, US$ 1,200/oz gold price, US$ 16/oz silver price and RUB/USD exchange rate of 60). This estimate is only based on the current reserve estimate.
• Production start date is currently projected to start during first half of 2022, subject to a positive investment and development decision in Q4 of 2018. Such date would be after the successful ramp-up of Kyzyl and consolidation of 100% ownership in the Nezhda property.
• Polymetal is now focused on further exploration drilling for the conversion of resources into higher categories and the preparation of a feasibility study by the end of 2018.

“I am pleased that the initial Ore Reserve estimate for Nezhda reaffirms its economic viability and justifies Polymetal’s approach to developing the asset.” said Vitaly Nesis, Group CEO of Polymetal. “With low capital intensity and significant low-cost production, Nezhda retains significant optionality which we will work hard on to incorporate in the development plan before our final investment decision”.

INITIAL ORE RESERVE STATEMENT

The Nezhda Ore Reserve estimate for the open pit is reported in accordance with the JORC Code (2012) as at 1 July 2017 using a gold price of US$ 1,200/oz and silver price of US$ 16/oz. A cut-off grade of 2.0 g/t gold equivalent (GE) has been applied. The Ore Reserve statement was prepared by Polymetal.