The assets sold have been ring-fenced into Irbychan Gold LLC ('IG'), a separate legal entity established to warehouse non-core assets of the Omolon hub.

These assets include low-grade ore stockpiles from Sopka, Dalneye and Oroch deposits as well as mining and exploration licenses for Sopka, Dalneye, and Irbychan deposits. Mining at the properties ceased in 2018. All of the remaining high-grade ore has been trucked to Kubaka mill for subsequent processing.

Polymetal sold IG to an unrelated Russian private mining company. The transaction consideration comprises of RUB 800 million fixed upfront cash payment (US$ 10 million at the RUB/USD exchange rate as of the date of closing) and 1% annual NSR payable if gold price exceeds US$ 1,500/oz. The royalty proceeds are capped at US$ 50 million in rouble equivalent. Additionally, if average gold price in 2022 exceeds $1,600/oz, the buyer will be required to compensate any positive FX difference between the USD values of rouble fixed cash payment made (RUB 800 million) as at 31 December 2022 and as at 30 January 2020.

IG was classified as an asset held for sale in FY 2019 financial statements and the Company recognised a US$ 28 million write-down in its consolidated income statement. The fair value of the asset was estimated at US$ 13 million (RUB 800 million at the RUB/USD exchange rate as of 31 December 2019).

About Polymetal

Polymetal International plc (LSE, MOEX: POLY, AIX: POLY, ADR: AUCOY) (together with its subsidiaries - 'Polymetal', the 'Company', or the 'Group') is a top-20 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.

Contact:

Tel: +44.20.7887.1475

(C) 2020 Electronic News Publishing, source ENP Newswire