Pavlov initial Mineral Resource estimate

Polymetal announces an initial JORC-compliant Mineral Resource estimate for the Pavlov property of 0.7 Moz of gold.

“Substantial high-grade open-pit resources at Pavlov demonstrates the success of Polymetal’s approach to greenfield exploration. We started from scratch and delivered a six-year LOM extension for Voro for less than US$ 5 million. The potential for a standalone operation is also high as we continue drilling”, said Vitaly Nesis, Group CEO of Polymetal.

HIGHLIGHTS

• The initial open-pit Mineral Resource estimate as at October 1^st, 2021 comprises 9.7 Mt of mineralised material with an average Au grade of 2.3 g/t containing 0.7 Moz of gold. Resource estimate is based on US$ 1,500/oz gold price.

• The deposit is represented by free-milling ore which can be processed at Polymetal’s Voro and Varvara mills.

• The resource estimate is based on data from 142 drill holes with a total length of 14.9 km completed by Polymetal in 2020-2021. Total exploration capital costs amounted to US$ 4.8 million, an average of US$ 7 per ounce of gold resources.

MINERAL RESOURCE STATEMENT

The Mineral Resource estimate is reported in accordance with the JORC Code (2012) and was prepared by Polymetal as at 1 October 2021 using US$ 1,500/oz gold price. A cut-off grade of 0.9 g/t was applied for the primary ore and 1.0 g/t for the oxidized ore. Any discrepancies in calculations are due to rounding.

Pavlov Mineral Resources

ABOUT PAVLOV

Pavlov deposit is located in the Nizhnyaya Salda municipality of the Sverdlovsk region (population of 18,000), 7 km east from the city limits. The property is 330 km away from Voro and 740 km from Varvara by railway. The region is characterized by low agricultural population density and excellent industrial infrastructure (grid power, railways and paved highways).

Presence of gold in the region was first discovered in 2005-2007 in the course of government-funded advanced geochemical exploration. In 2018, Polymetal’s analysed publicly available exploration report and successfully applied for the 65 km² license area on “first come first served” basis.

In 2019, the Company carried out geochemical exploration. As a result, an intense gold geochemical anomaly was localized, which was confirmed by RC drill holes. Subsequently, a preliminary assessment of the identified mineralisation was carried out along strike and to the depth of up to 100 m using diamond core drill holes on a wide-spaced grid. In 2020-2021, the evaluation of the Pavlov along the strike and to a depth of up to 200 m continued with drilling on a regular 80-40x40 m grid.

Mineralisation is localised in the contact zone between altered and volcanogenic-sedimentary rocks. It is represented by a series of medium-dip (30-45 degrees) structures with an average true width of 8 m and a length of up to 1 km. Mineralised zones are characterised by intense carbonate-quartz alteration with disseminated sulfides (1 to 8%).

The potential parameters of the open pit used to estimate the Mineral Resources are as follows: length - 1,200 m, width – 575 m, depth – 170 m.

The metallurgical properties of mineralized material make it possible to apply conventional whole-ore cyanidation (CIP). 635 ore samples were tested by Polymetal Engineering to estimate potential gold recovery and other process characteristics. Gold recovery in the tests averaged 88% with cyanide consumption of less than 1 kg/mt.

Potential increases in Mineral Resources at Pavlov and adjacent areas are associated with known geophysical resistivity anomalies bearing strong similarity to the geophysical signature of the main mineralised zone.

The next milestones at the property include:

1. Mineral Resource update in Q1 2023

2. Initial Ore Reserve estimate in Q3 2023

3. Mining license approval in Q4 2023

4. PFS of property development in Q1 2024

Figure 1 Pavlov geological cross-section

COMPETENT PERSONS

This estimate was prepared by employees of JSC Polymetal Management Company, led by Mr Andrey Gottman.

Mr Gottman is employed full-time as the chief exploitation geologist chief exploitation geologist JSC Polymetal Engineering and has more than 20 years’ experience in gold, silver and polymetallic mining. He is a Member of the National Association for mineral resources assessment.

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).

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.