ISE Irish Stock Exchange : Trading update1Q16

Release time IMMEDIATE

Date 14 April, 2016

Polyus Gold International Limited ('PGIL') announcesthat its subsidiary PJSC Polyus Gold (MOEX - PLZL) ('Polyus Gold', 'the Company'), the largest gold producer in Russia, today released its operating results for 1Q 2016.

1Q 2016Highlights

Ø Total gold production in 1Q 2016 amounted to 384 koz, up 9% y-o-y due to improvements at Verninskoye, Kuranakh and Blagodatnoye, but down 18% q-o-q as a result of a seasonal lack of production at Alluvials

Ø Volume of ore processed reached an all-time quarterly high of 6,384 kt thanks to continued de-bottlenecking at Olimpiada and Kuranakh

Ø Recoveries remained high across all operations averaging 84.0% with Olimpiada recoveries amounting to 80.2%

Ø Quarterly gold sales are estimated at $505 million with the average selling price
(incl. the impact from the Strategic Price Protection Programme) of $1,260/oz, 7% above the spot LBMA price

Ø The positive effect from the Strategic Price Protection Programme is estimated at
$30 million

Pavel Grachev, Chief Executive Officer of PJSC Polyus Gold, commented:

'1Q 2016 was another quarter of positive performance for Polyus Gold with total gold output rising 9% y-o-y.

Blagodatnoye, Verninskoye and Kuranakh were each able to demonstrate strong y-o-y performance as a result of improved recoveries and higher amounts of ore processed. At Olimpiada we expect intensive stripping works for a pit cutback to be completed in mid-2016 while already in 1Q 2016 the volumes of ore mined were increased and stripping volumes were reduced. Recoveries at Olimpiada remained high at 80.2%.

Our Strategic Price Protection Programme, which we expanded late last year, continued to yield positive results, increasing the average selling price during the reporting period by 7% or $77/oz compared with the spot price, for an the overall positive impact of $30 million in this quarter.

Based on the 1Q 2016 operational numbers, we confirm our intention to deliver 1.76-1.80 moz of total gold output in FY 2016'.

Health and safety update

The LTIFR rate for 1Q 2016 came in at 0.08, in line with the FY 2015 level and down 11% from the 0.09 registered in 1Q 2015.

With regret to report that there was one work-related fatality at our operations which took place at Kuranakh in February 2016.

The HSE Department of Polyus Gold has developed new corporate standards entitled 'Guidelines for the Group's integrated HSE management system' and 'Safety management with subcontractors'.

During the reporting period, BSI consultants conducted a third-party HSE MS Audit of Polyus Gold's professional services (for the Logistics, Construction, Schit, and Energy business units) in order to define the level of HSE MS development according to the Bradley scale (DuPont score). Based on the audit's results, development goals for 2016 have been identified, and plans to achieve these goals have been developed and agreed.

The second stage of DuPont's Safety Culture Development project was launched at the Krasnoyarsk Business Unit (BU), Verninskoye, Kuranakh, Alluvials, and Natalka. DuPont and Polyus Gold specialists identified goals and made plans for each operation this year.

The corporate standard for transport safety was approved and was recommended to be introduced throughout the Company from March 2016.

Lost Time Injury Frequency Rate (LTIFR)
1Q2016	1Q2015	FY 2015	FY 2014	FY 2013
0.08	0.09	0.08	0.09	0.11

Consolidated operating results

	1Q 2016	4Q 2015	Q-o-Q change	3Q 2015	2Q 2015	1Q 2015	Y-o-Y change
Olimpiada	151.3	196.4	-23%	189.6	195.5	161.6	-6%
Blagodatnoye	100.2	126.7	-21%	111.7	94.6	91.6	9%
Titimukhta	28.4	17.0	68%	28.0	28.2	29.1	-2%
Poputninskoye	1.5	2.4	-38%	-	-	-	N.M.
Verninskoye	55.9	38.6	45%	43.3	42.0	37.2	50%
Alluvials	0.2	47.4	N.M.	87.8	32.8	0.2	0%
Kuranakh	37.9	34.9	9%	44.0	32.8	33.0	15%
Refined gold, koz	375.4	463.4	-19%	504.4	425.9	352.7	6%
Gold in flotation concentrate, koz	8.9	2.5	N.M.	9.2	5.3	-	N.M.
Gold payable in concentrate, koz	5.8	1.9	N.M.	6.8	3.9	-	N.M.
Total gold produced, koz	384.3	465.9	-18%	513.6	431.2	352.7	9%
Total rock moved, kt	37,797	40,516	-7%	41,111	40,492	40,947	-8%
Average stripping ratio, t/t	5.7	7.1	-20%	7.8	7.0	8.2	-31%
Total ore mined, kt	6,577	5,700	15%	5,296	5,774	5,016	31%
Total ore processed, kt	6,384	6,372	0%	6,283	6,121	5,965	7%
Recovery rate, %	84.0	83.7	0.3ppts	85.2	83.3	82.7	1.3 ppts
Total doré and slime gold production, koz	398.3	444.0	-10%	496.8	457.6	368.9	8%

In 1Q 2016, the Company produced 384 koz of gold, up 9% y-o-y and down 18% q-o-q. Of this, 375 koz was refined gold and 9 koz was gold contained in concentrate. Doré and slime production was up 8% y-o-y to 398 koz, while on a q-o-q basis production fell 10% due to the seasonality of alluvial operations, where no gold was produced in 1Q 2016.

Polyus Gold moved a total of 37.8 mln t of rock in 1Q 2016, 8% below the 1Q 2015 level and 7% less than in 4Q 2015. The average stripping ratio during the reporting period was down 31% y-o-y to
5.7 t/t, reflecting a reduction in stripping works at all Krasnoyarsk mines.

Volumes of ore mined totaled 6,577 kt, up 31% y-o-y and 15% q-o-q, due to marked increases at Olimpiada and Blagodatnoye.

Processed ore volumes were up 7% y-o-y to 6,384 kt, being flat q-o-q. The y-o-y outperformance was on account of Olimpiada and Verninskoye. Recoveries were slightly upq-o-q to an average of 84.0%, while y-o-y they increased by 1.3 ppts, reflecting positive changes at Olimpiada, Blagodatnoye, Verninskoye and Kuranakh.

Operating results by mine

Olimpiada

In 1Q 2016 Olimpiada produced 180 koz of doré gold, a 1% decrease y-o-y and a 4% drop q-o-q. Refined gold output totalled 151koz, down 6% y-o-y and 23% q-o-q, while gold contained in concentrate production came in at 9 koz. Thus, total gold output (refined and concentrate) amounted to 160 koz, which was down 1% y-o-y and 19% q-o-q.

Large stripping works for a pit cutback continued at the mine in 1Q 2016, however overall volumes of extracted material started to change in favor of mined ore. The amount of ore mined increased 40% q-o-q to 1,340 kt, while stripping volumes were down 6% q-o-q to 13.3 mln t. Accordingly, the stripping ratio fell 33% q-o-q and 54% y-o-y to 9.9 t/t. The grade in mined ore started to normalize, rising 14% q-o-q and 17% y-o-y to 3.2 g/t.

Ore treatment volumes broke another record, reaching 2,509 kt in 1Q 2016 (10,036 ktpa on an annualized basis, up 3% q-o-q and 11% y-o-y), thanks to an increase in equipment efficiency. The 11% y-o-y decrease in the grade in ore processed was on account of an average grade reduction in stockpiled material used as feedstock for the mills. Recoveries remained high at above 80%, owing to improvements at the mills' sorption, gravitation and flotation units in 1Q 2016.

Despite the q-o-q increases in processed ore volumes, as well as the average grade in the treatment material and higher recoveries, doré gold production was down 4% q-o-q to 180 koz, which was due to an increase in inventories of unprocessed flotation concentrate during the reporting period. That amount will be treated going forward and inventories will normalize.

Mining works and ore processing

	1Q 2016	4Q 2015	Q-o-Q change	3Q 2015	2Q 2015	1Q 2015	Y-o-Y change
Total rock moved, kt	14,661	15,062	-3%	14,997	14,479	15,781	-7%
including stripping, kt	13,321	14,107	-6%	14,502	13,855	15,078	-12%
Stripping ratio, t/t	9.9	14.8	-33%	29.3	22.2	21.5	-54%
Ore mined, kt	1,340	955	40%	495	624	703	91%
Average grade in ore mined, g/t	3.18 2,509	2.79	14%	2.69	2.45	2.71	17%
Ore processed, kt	2,509	2,432	3%	2,312	2,499	2,263	11%
incl. purchased ore from the Veduga mine, kt	242	-	N.M.	-	50	-	N.M.
Average grade in ore processed, g/t	2.99	2.96	1%	3.08	3.34	3.36	-11%
Recovery, %	80.2	79.5	0.7 ppts	81.8	80.0	78.9	1.3 ppts
Doré gold (incl. gold in concentrate), koz	179.5	186.5	-4%	185.8	204.2	181.8	-1%
Refined gold production, koz	151.3	196.4	-23%	189.6	195.5	161.6	-6%
Gold contained in concentrate, koz	8.9	2.5	N.M.	9.2	5.3	-	N.M.
Total gold produced, koz	160.2	198.9	-19%	198.8	200.8	161.6	-1%

OPERATING RESULTS BY MINE

Blagodatnoye

In 1Q 2016 Blagodatnoye produced 110 koz of doré gold, which is 16% above the 1Q 2015 level and 6% below the 4Q 2015 result. Refined gold output totaled 100 koz, representing a 9% y-o-y increase and a 21% decline from the previous quarter.

The quarter marked a significant decline in stripping ratio, which was down 44% y-o-y and 46% q-o-q to 2.7 t/t as a result of both higher volumes of ore mined and reduced stripping, which was in line with the mining plan. Volumes of mined ore surged to 2,874 kt, up 68% y-o-y and 47% q-o-q.

There was a slight decline in volumes of processed ore, down 4% y-o-y and 7% q-o-q to 1,840 kt. This was due to maintenance works held at the mill in February. 1Q 2016 recoveries remained high at 88.7%, rising 1.7 ppts y-o-y but slightly off on a q-o-q basis. Thus, the 16% y-o-y increase in doré output was due to improved recoveries and higher grades, while the main reason for the q-o-q weakness was lower volumes of ore processed and reduced recoveries.

A 21% q-o-q decline in refined gold production was the result of inventory movements at the refinery and a high base effect from 4Q 2015.

Mining works and ore processing

	1Q 2016	4Q 2015	Q-o-Q change	3Q 2015	2Q 2015	1Q 2015	Y-o-Y change
Total rock moved, kt	10,711	11,735	-9%	11,958	12,016	9,946	8%
including stripping, kt	7,837	9,785	-20%	10,104	9,900	8,239	-5%
Stripping ratio, t/t	2.7	5.0	-46%	5.4	4.7	4.8	-44%
Ore mined, kt	2,874	1,950	47%	1,854	2,116	1,707	68%
Average grade in ore mined, g/t	2.00	2.01	0%	2.00	2.01	1.84	9%
Ore processed, kt	1,840	1,983	-7%	2,003	1,607	1,920	-4%
Average grade in ore processed, g/t	2.07	2.06	0%	2.04	2.03	1.85	12%
Recovery, %	88.7	89.4	-0.7 ppts	88.4	86.4	87.0	1.7 ppts
Doré gold, koz	109.9	116.3	-6%	115.4	94.7	94.6	16%
Refined gold production, koz	100.2	126.7	-21%	111.7	94.6	91.6	9%

OPERATING RESULTS BY MINE

Titimukhta

In 1Q 2016, Titimukhta produced 25 koz of doré gold, which marked a 3% y-o-y decline, but a 17% increase from the previous quarter. The mine's refined gold output totaled 28 koz, representing a 2% decrease
y-o-y and a 67% increase q-o-q.

Overall stripping volumes and the stripping ratio continued to decline as planned. Volumes of ore mined fell both y-o-y and q-o-q, however the average grade were maintained at around 1.6 g/t.

The amount of ore processed was broadly in line with the level of ore mined, however selective processing initiatives continued in order to increase the grade in the material fed to the mill. Thus, in the absence of purchased ore from the Veduga mine, the average grade of processed ore was maintained thanks to re-sorting and the use of stockpiled ore. As a result, the average grade in ore fed to the mill was down only 4% y-o-y to 2.2 g/t, while the q-o-q decline was due to the large amount of the higher-grade Veduga ore processed in the previous quarter. Ore processing volumes increased 5% y-o-y and 54% q-o-q to 415 kt. That, coupled with the flat q-o-q recoveries helped to increase doré gold production by 17% q-o-q to 25 koz, despite the lower grade in ore fed to the mill. The 3% y-o-y decrease in doré production was on account of reduced recoveries and slightly lower grades in the ore processed.

Mining works and ore processing

	1Q 2016	4Q 2015	Q-o-Q change	3Q 2015	2Q 2015	1Q 2015	Y-o-Y change
Total rock moved, kt	1,040	2,377	-56%	2,990	3,426	5,209	-80%
including stripping, kt	628	1,539	-59%	2,216	2,453	4,568	-86%
Stripping ratio, t/t	1.5	1.8	-17%	2.9	2.5	7.1	-79%
Ore mined, kt	412	838	-51%	774	973	641	-36%
Average grade in ore mined, g/t	1.61	1.58	2%	1.57	1.58	1.60	1%
Ore processed, kt	415	269	54%	405	446	394	5%
incl. purchased ore from the Veduga mine, kt	0	106	N.M.	35	62	34	N.M.
Average grade in ore processed, g/t	2.22	2.89	-23%	2.34	2.34	2.31	-4%
Recovery, %	85.4	85.4	0.0 ppts	88.2	87.7	86.9	-1.5 ppts
Doré gold, koz	25.0	21.4	17%	27.0	29.1	25.7	-3%
Refined gold production, koz	28.4	17.0	67%	28.0	28.2	29.1	-2%

OPERATING RESULTS BY MINE

Verninskoye

At Verninskoye, doré gold output grew 31% y-o-y, but fell 5% q-o-q to 44 koz. Refined gold production of 56 koz advanced 50% on a y-o-y basis and 45% q-o-q.

The stripping ratio in 1Q 2016 was up 57% q-o-q to 4.4, reflecting the planned reduction in low-grade ore mining and the corresponding growth in stripping works. In turn, the overall amount of ore mined fell 18% y-o-y to 827 kt at the expense of low-grade ores. That led to an 18% y-o-y increase in the average grade of ore mined to 2.28 g/t.

Processed ore volumes amounted to 586 kt in 1Q 2016, up 28% y-o-y and down 9% q-o-q. The y-o-y growth was on account of extensive maintenance conducted at the mill in 1Q 2015. The q-o-q decrease was due to the planned maintenance downtime at the mill, however optimization efforts were able to significantly reduce the maintenance period.

Recoveries made another step forward to a new quarterly high of 87.0%, advancing 1.8 ppts y-o-y or
0.6 ppts q-o-q. This, supported by higher treatment volumes, helped to boost doré production by 31% y-o-y. The main reason for the increase in refined gold output in 1Q 2016 was refining in January a portion of the doré material that was produced in 4Q 2015.

Mining works and ore processing

	1Q 2016	4Q 2015	Q-o-Q change	3Q 2015	2Q 2015	1Q 2015	Y-o-Y change
Total rock moved, kt	4,429	4,170	6%	4,157	4,091	3,852	15%
including stripping, kt	3,602	3,355	7%	3,086	3,027	2,849	26%
Stripping ratio, t/t	4.4	4.1	7%	2.9	2.8	2.8	57%
Ore mined, kt	827	815	1%	1,071	1,064	1,003	-18%
Average grade in ore mined, g/t	2.28	2.29	0%	2.06	2.10	1.94	18%
Ore processed, kt	586	645	-9%	580	600	458	28%
Average grade in ore processed, g/t	2.72	2.60	5%	2.62	2.62	2.70	1%
Recovery, %	87.0	86.4	0.6 ppts	86.4	86.4	85.2	1.8 ppts
Doré gold, koz	43.7	46.2	-5%	42.1	44.5	33.3	31%
Refined gold production, koz	55.9	38.6	45%	43.3	42.0	37.2	50%

OPERATING RESULTS BY MINE

Alluvials

Due to the seasonality of placer deposits no gold was produced at Alluvials in 1Q 2016. The washing season ended in November 2015, as usual, and was resumed in April 2016. Meanwhile, maintenance and preparation work was performed at the deposits.

Sands washing

	1Q 2016	4Q 2015	Q-o-Q change	3Q 2015	2Q 2015	1Q 2015	Y-o-Y change
Sands washed, 000 m³	-	1,685	N.M.	5,059	2,626	-	N.M.
Average grade, g/m³	-	0.60	N.M.	0.55	0.54	-	N.M.
Gold in slime, koz	-	32.7	N.M.	89.8	45.8	-	N.M.
Refined gold production, koz	0.2	47.4	N.M.	87.8	32.8	0.2	N.M.

OPERATING RESULTS BY MINE

Kuranakh

In 1Q 2016 doré gold output at Kuranakh was up 13% y-o-y and 4% q-o-q to 38 koz, while refined gold production increased 15% y-o-y and 9% q-o-q to 38 koz.

The results of the mining works at Kuranakh were largely flat both q-o-q and y-o-y in 1Q 2016. The average grade in ore mined was 1.31 g/t, slightly up q-o-q and y-o-y as a result of effective ore blending from different mining areas.

Ore treatment volumes rose 7% y-o-y and 2% q-o-q to 998 kt, partly due to reduced maintenance downtime at the mill, marking a record quarterly average for processing at Kuranakh. The average grade in ore processed remained flat q-o-q, but was up 5% y-o-y to 1.34 g/t owing to the use of stockpiled higher-grade ore. Recoveries increased 1.1 ppts y-o-y and 1.1ppts q-o-q to 88.5%, slightly below the 89% attained in 2Q-3Q 2015. Thus, the main reasons for higher gold output in 1Q 2016 were increased recoveries and rising ore treatment volumes.

Mining works and ore processing

	1Q 2016	4Q 2015	Q-o-Q change	3Q 2015	2Q 2015	1Q 2015	Y-o-Y change
Total rock moved, kt	6,294	6,301	0%	5,891	6,199	6,118	3%
including stripping, kt	5,264	5,271	0%	4,884	5,203	5,155	2%
Stripping ratio, t/t	5.1	5.1	0%	4.9	5.2	5.4	-6%
Ore mined, kt	1,030	1,030	0%	1,007	996	963	7%
Average grade in ore mined, g/t	1.31	1.29	2%	1.30	1.36	1.28	2%
Ore processed, kt	998	982	2%	983	968	930	7%
Average grade in ore processed, g/t	1.34	1.31	2%	1.30	1.37	1.28	5%
Recovery, %	88.5	87.4	1.1ppts	89.1	90.2	87.4	1.1 ppts
Doré gold, koz	37.9	36.6	4%	36.8	39.4	33.4	13%
Refined gold production, koz	37.9	34.9	9%	44.0	32.8	33.0	15%

FINANCIAL UPDATE for PJSC Polyus Gold

In 1Q 2016, the Company solda total of 400 koz of gold, 9% down q-o-q and 3% up y-o-y.

Polyus Gold estimates its 1Q 2016 gold sales (including the SPPP effect) will be approximately
$505 million, which is a 4% decrease over 4Q 2015 and a 2% increase from 1Q 2015.

The estimated weighted-average gold selling price (excluding the SPPP effect) in 1Q 2016 was $1,186/oz, 8% up q-o-q and 3% down y-o-y. However, with the inclusion of the SPPP, the estimated weighted-average gold selling price amounted to $1,260/oz, 6% up q-o-q and 1% down y-o-y. Thus, the positive effect from the SPPP totalled $30 million.

As of 31 March 2016, the Company's estimated cash position was $1,324 million (31 December 2015: $1,825 million) and its estimated net debt position amounted to $3,500 million (31 December 2015: $364 million).

Item	1Q 2016(estimated)	4Q 2015	Q-o-Q change	3Q 2015	2Q 2015	1Q 2015	Y-o-Y change
Refined gold sold, koz	400	432	-7%	520	408	390	3%
Gold payable in sold concentrate, koz	0	9	N.M.	1	0	0	N.M.
Total gold sales, koz	400	441	-9%	521	408	390	3%
Gold sales (incl. an SPPP effect), $ mln	505	526	-4%	627	509	496	2%
Weighted-average refined gold selling price (excl. SPPP), $/oz	1,186	1,095	8%	1,137	1,186	1,219	-3%
Weighted-average refined gold selling price (incl. SPPP), $/oz	1,260	1,191	6%	1,203	1,246	1,271	-1%
SPPP effect, $ mln	30	37	-19%	34	24	20	50%
Average LBMA price, $/oz	1,183	1,106	7%	1,124	1,192	1,218	-3%
Net debt, $ mln	3,500	364	N.M.	208	430	224	N.M.

FINANCIAL UPDATE for Polyus Gold International Ltd (for reference)

As of 31 March 2016, the estimated cash position of Polyus Gold International Ltd amounted to
$1,729 million (31 December 2015: $2,039 million) and its estimated net debt totalled $3,092 million
(31 December 2015: $146 million).

Item	1Q 2016(estimated)	4Q 2015	Q-o-Q change	3Q 2015	2Q 2015	1Q 2015	Y-o-Y change
Net debt, $ mln	3,092	146	N.M.	121	375	224	N.M.

CORPORATE UPDATE

On 26 January 2016, Polyus Gold announced that JSC Polyus entered into a 7-year credit facility with PJSC Sberbank worth $2.5 billion.

On 11 March 2016, Polyus Gold announced that its Board of Directors approved the distribution by LLC 'Polyus-Invest', an indirect wholly-owned subsidiary of Polyus Gold ('Polyus-Invest'), of an information memorandum to holders of its ordinary shares and ADRs, who were holders of the shares and/or ADRs as at the close of trading on March 10, 2016, on the terms and conditions for the submission of applications to enter into securities purchase agreements, and the entry into securities purchase agreements, in respect of their shares and/or ADRs in an amount not exceeding 33.14% of the shares and/or, if applicable, 33.14% of the ADRs, held by them as at the close of trading on March 10, 2016 (the 'Information Memorandum'), subject to further conditions and limitations that may be set forth in the Information Memorandum. The purchase price of the shares/ADRs under the securities purchase agreements, if executed, would be RUB 4,041.19 per share and RUB 2,020.60 per ADR (which constitutes approximately $56.8438 and $28.422, respectively, at the official exchange rate of the Central Bank of Russia as of March 11, 2016). The purchase price would be paid in Russian Rubles. The purchase price per share represents a premium of RUB 722.34, or 21.76%, to the average weighted price of shares on the Moscow Exchange over a three-month period ending on March 9, 2016. On March 9, 2016, the closing price per share on the Moscow Exchange was RUB 4,017.The period for submission of applications to enter into securities purchase agreements in respect of shares and/or ADRs commenced on March 11, 2016 and will expire at 4:00 p.m. Moscow time on May 27, 2016 (with a closed period from April 4, 2016 (inclusive) to April 12, 2016 (inclusive), when no applications will be accepted and no securities purchase agreements signed).

On 11 March 2016, Polyus Gold International Limited, the controlling shareholder of Polyus Gold, entered into a securities purchase agreement and completed the sale of 60,211,461 ordinary shares of Polyus Gold, representing approx. 31.59% of Polyus Gold's share capital, to Polyus-Invest for the total purchase price of RUB 243,325 million, which is equivalent to approximately $3.42 billion. Following completion of such sale, Polyus Gold International Limited used part of the funds received to repurchase 909,873,900 of its own ordinary shares (representing 30.04% of its issued share capital), for the total purchase price of $3.1 billion. The repurchased shares were cancelled at purchase.

New members were elected to Polyus Gold's Board of Directors at the AGM held on 5 April 2016. The new Board comprises of nine members, including three representatives of the controlling shareholder (Ms. Anastasia Galochkina, Mr. Said Kerimov, and Ms. Gulnara Kerimova), three representatives of Polyus Gold group management (Mr. Pavel Grachev, CEO of Polyus Gold, Mr. Vladimir Polin, CEO of JSC Polyus, Mr. Mikhail Stiskin, Senior Vice President for Finance and Strategy), and three independent directors: Mr. Edward Dowling, who served on the Board of Polyus Gold International Limited between 2013 and 2015 and headed its Health, Safety and Environment Committee; Mr. Kent Potter, who worked at Chevron for over 25 years, holding a variety of senior positions, before being appointed as CFO of TNK-BP. Mr Potter is currently a Board member of both EuroChem Group AG and SUEK Plc; and Mr. William Champion, who spent over 12 years at Rio Tinto, where he was responsible for the Group's diamond mining operations and Australian coal business. Mr. Champion currently sits on the Board of the Peru-based mining company, Compañía de Minas Buenaventura S.A.A.

CONFERENCE CALL INFORMATION

Polyus Gold will host an analyst and media conference call today at 2 pm London time to present and discuss the 1Q 2016 operating results.

Join the conference call, please dial:

UK toll free 0808 237 0060

UK International [phone]

USA toll free 1877 841 4559

Russia toll free 8108 00206 85011

A replay of the conference call will be available from 4 pm London time on 14 April 2016, for the duration of 30 days.

To access the replay, please dial:

UK toll free 0808 237 0026

UK International [phone]

Russia toll free 495 660 4512

USA toll-free 1866 535 8030

Access number 670988#

Enquiries:

Investor contact

Sergey Krivokhizhin, Director Investor Relations

[phone] [e-mail]

Media contact

Artem Gorbachev, Press Secretary

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Forward looking statements

This announcement may contain 'forward-looking statements' concerning PGIL. Generally, the words 'will', 'may', 'should', 'could', 'would', 'can', 'continue', 'opportunity', 'believes', 'expects', 'intends', 'anticipates', 'estimates' or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of PGIL's operations. Many of these risks and uncertainties relate to factors that are beyond PGIL's ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. PGIL assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.