Prognoz initial Ore Reserve estimate

Polymetal announces initial JORC-compliant Ore Reserve estimate for Prognoz of 142 Moz of silver (“Ag”) at 560 g/t.

“The estimate confirms that Prognoz is one of the best silver development projects globally”, said Vitaly Nesis, CEO of Polymetal. “We will continue to advance the project towards development”.

HIGHLIGHTS

• The initial JORC-compliant open-pit Ore Reserve estimate as at 1 March 2020 comprises 7.9 Mt of ore with an average Ag grade of 560 g/t containing 142 Moz of silver. Reserves have been assessed for Glavnaya (Main), Boloto (Swamp) and Yuzhnaya (Southern) ore zones only.

• Reserve estimate is based on US$ 15/oz silver price with silver representing approximately 90% of value contained at this price level.

• Mineral Resources additional to Ore Reserves are estimated at 5.6 Mt of mineralized material with an average grade of 552 g/t for 100 Moz of silver contained.

• The Preliminary Feasibility Study assumes 9 years of open-pit mining with conventional flotation flowsheet producing clean high-grade concentrate.

• The Company expects average annual production of 13.5 Moz of payable silver at AISC in the range of US$ 8-9/oz.

• Total project’s capital expenditures are expected to amount to US$ 319 million comprising US$ 250 million of pre-production CAPEX (including pre-stripping costs) and US$ 69 million of maintenance CAPEX.

ORE RESERVE AND MINERAL RESOURCE STATEMENT

Prognoz Open Pit Ore Reserves¹

 Prognoz Additional Mineral Resources²

ABOUT PROGNOZ

Prognoz is the largest undeveloped primary silver deposit in Russia. The license is located in the Verkhoyansk municipal district in the Republic of Sakha (Yakutia), Russia. The property is located approximately 980 km from the regional center of Yakutsk (population of 300,000) and 720 km by road from Polymetal’s Nezhda project.

Silver-copper-lead-zinc mineralization, represented by quartz-carbonate-sulphide veins, is located in a sequence of sedimentary rocks composed of Triassic sandstones and siltstones. Nine mineralised zones are defined, with Main and Swamp being the largest. Mineralized material is partially oxidised with the depth of weathering varying widely dependent on relief and proximity of water table. The deposit lies in a mountainous region with elevations ranging from 300 m – 1,100 m above sea level. The local topographic relief in the area of the exploration ranges in elevation from 300 m to 350 m.

In April 2018, Polymetal consolidated 100% in the asset. In October 2018, the Company completed JORC-compliant Mineral Resource estimate of 237 Moz of silver at 731 g/t.

COMPETENT PERSONS

The information in this report that relates to the Mineral Resources is based on and fairly represents information which has been compiled by Dmitry Pertel. Mr. Pertel is employed full-time as the Principal Resource Geologist at CSA Global Pty Ltd. He is a member of the Australian Institute of Geoscientists.

The information in this report that relates to quality assurance/quality control analysis is based on information compiled by Vladimir Kiskin. Mr. Kiskin is employed full-time as the Head of Mineral Resources Department at Polymetal International Plc. He is a Fellow of the Institute of Materials, Minerals and Mining.

The information in this report that relates to the Ore Reserves is based on and fairly represents information which has been compiled by Mr Paul O’Callaghan. Mr. O’Callaghan is employed full-time as the Principal Mining Engineer at CSA Global Pty Ltd. He is a Fellow of the Australasian Insitute of Mining and Metallurgy.

All the above-mentioned 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).

Notes:
(1) This table represents the Ore Reserve estimate as at 1 March 2020 for silver only using the US$ 15/oz silver price. Full disclosure of Ore Reserve estimate in accordance with JORC Code (2012) will be soon available in the CSA report on our web site in the Results center - https://www.polymetalinternational.com/en/investors-and-media/reports-and-results/result-centre/#tab-25.
(2) This table represents Mineral Resource estimate as at 1 March 2020 for silver only using US$ 15/oz silver price. Discrepancies in calculations are due to rounding. Full disclosure of Mineral Resource estimate in accordance with JORC Code (2012) will be soon available in the CSA report on our web site in the Results center - https://www.polymetalinternational.com/en/investors-and-media/reports-and-results/result-centre/#tab-25.