Polyus : reports Ore Reserves of 104 Million Ounces Gold

Press Release

29 April 2021

PJSC Polyus

Polyus reports Ore Reserves of 104 Million Ounces Gold

PJSC Polyus (LSE, MOEX - PLZL) ("Polyus", the "Company") announces its Ore Reserves and Mineral Resources estimates as at 31 December 2020, in accordance with JORC Code 2012.

The Company's total Proved and Probable Ore Reserves have increased 71% to 104 million ounces of gold, compared to 61 million ounces of gold as at 31 December 2019.

The updated estimate primarily reflects the inclusion of Ore Reserves for Sukhoi Log as well as additions at several operating mines, derived from a comprehensive drilling program across the Company's asset portfolio launched in 2018.

The Measured, Indicated and Inferred Mineral Resources are estimated at 204 million ounces of gold, compared to 188 million ounces of gold as at 31 December 2019.

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

"Polyus is now confirmed to have the largest reserve base globally, with approximately 97% of these reserves attributable to our operating mines and our flagship greenfield project, Sukhoi Log, where we plan to complete the Bankable Feasibility Study and make a final investment decision on the project in 2022. This is further confirmation of the Company's ability to maintain long-term sustainable gold production.

We will proceed with exploration activities across the group aimed at expanding our resource base."

Ore Reserves Highlights

• Polyus' Ore Reserves are estimated at 104 million ounces of gold, up from 61 million ounces of gold as at 31 December 2019 and allow for mining depletion. This increase mainly reflects:

1. The addition of a maiden Ore Reserve estimate of 40 million ounces of gold for Sukhoi Log.

1. Revisions to Ore Reserve estimates for Blagodatnoye Kuranakh and Verninskoye, following mining studies update and preparation of new resource models for Blagodatnoye and Kuranakh as a result of a comprehensive exploration program initiated in 2018.

1. At Blagodatnoye, the completed drilling program allowed for pit shell expansion down to -160 mrl from -70 mrl, resulting in an increase of 3.6 million ounces of gold in the Ore Reserve estimate, before accounting for mining depletion.

• 1. At Kuranakh, Polyus conducted more than 200 kilometres of drilling at several mines of the Kuranakh ore field in 2018-2020. This facilitated more accurate definition of gold mineralization and allowed to update resource models of these mines, resulting in an increase of 2.4 million ounces of gold in the Ore Reserve estimate, before accounting for mining depletion.
• At Olimpiada, Natalka, and Alluvials Polyus only reported mining depletion.
• 58% of the Company's estimated Ore Reserves of gold are located within its operating assets:

1. Polyus Krasnoyarsk has the largest share of the Company's Ore Reserves among operating assets, with 23 million ounces of gold at Olimpiada and 12 million ounces of gold at Blagodatnoye.

1. Natalka has an estimated Ore Reserve of 14 million ounces of gold.

• 1. Ore Reserves at Kuranakh, Verninskoye and Alluvials contain 6.4 million ounces, 4.5 million ounces and 0.54 million ounces, of gold respectively.
• 38% of the estimated Ore Reserves are attributable to Polyus' key greenfield project,
  Sukhoi Log
• An average gold grade in the Company's Ore Reserve estimates stands at 1.9 g/t, compared to 1.8 g/t as at 31 December 2019.
• 1. Approximately 1,506 million tonnes of Ore Reserve, containing 97 million ounces of gold out of the total 104 million ounces, are expected to be mined by conventional open pit truck-and-shovel or underground mining methods at a gold grade of 2.0 g/t.

1. The remaining Ore Reserve totalling 234 million tonnes is lower grade and stored in stockpiles or in situ at the Alluvial operations.

Changes to Ore Reserves, moz

															40
					3,8							6,2
								0,6					104
	61
Ore Reserve	Depletion	Stockpile	Drilling	Maiden Ore	Ore Reserve
2019							inventories	campaign &	Reserves	2020
											mining studies
											additions

Mineral Resources Highlights

The Company's Mineral Resources are estimated at 204 million ounces of gold, compared to 188 million ounces as at 31 December 2019. This increase mainly reflects:

• Updated Mineral Resource estimates for Olimpiada, Blagodatnoye, Verninskoye, Kuranakh and Sukhoi Log, following mining studies update and preparation of new resource models.
• Approximately 60% of the Company's Mineral Resources are attributable to operational mines:

1. Olimpiada's Mineral Resource is estimated at 49 million ounces of gold. o Natalka's Mineral Resource amounts to 32 million ounces of gold.
   o Blagodatnoye's Mineral Resource stands at 17 million ounces of gold.

1. Verninskoye and Kuranakh Mineral Resources are estimated to be 14 million ounces and 11 million ounces, of gold respectively.

Changes to Mineral Resources, moz

												20			204
					4,2
	188							0,6
Mineral Resource	Depletion	Stockpile	Drilling campaign &	Mineral Resource
2019							inventories	mining studies	2020
											additions

2021 Exploration Highlights

• The Company continues its deep levels exploration program of Olimpiada and plans to drill approximately 35 kilometres in 2021.
• Polyus is also proceeding with exploration activities at Kuranakh. In 2021, the Company expects to drill more than 100 kilometres, while exploration activities at Kuranakh will continue in 2022 and 2023.
• At Sukhoi Log, Polyus is progressing with its deep-level and flank exploration drilling campaign. As the Sukhoi Log ore body extends below the limits of the verification and exploration drilling, Polyus has initiated additional deep-level drilling aimed at estimating resources below the current exploration horizon. Flank exploration is focused on the Northern and Eastern parts of the ore body in order to define its dimensional limits and explore potential satellite ore formations. The Company plans to drill 40 kilometres at Sukhoi Log in 2021.

Mineral Resource and Ore Reserve estimates

The Company's Mineral Resource and Ore Reserve estimates are summarized in the Tables below. The effective date for the estimates is 31 December 2020.

Since the 2019 Polyus Annual Review, there have been material changes to some individual Mineral Resource and Ore Reserve estimates. JORC Code Table 1 disclosures for all estimates are available on the Polyus website and can be accessed using the following link:

https://polyus.com/en/operations/reserves_and_resources/

Polyus Ore Reserve estimates as at 31 December 20201,2,3

		Proved					Probable				Total
		Tonnes	Gold	Gold		Tonnes	Gold	Gold		Tonnes	Gold	Gold
		(Mt)	(g/t)	(Moz)		(Mt)	(g/t)	(Moz))		(Mt)	(g/t)	(Moz)
Mines in Operation
Olimpiada	20	2.6		1.7	231	2.8	21	252	2.8	23
Blagodatnoye	70	0.81		1.8	214	1.5	10	284	1.3	12
Titimukhta	5.3	1.6		0.27	6.3	3.1	0.63	12	2.4	0.90
Verninskoye	16	1.4		0.70	68	1.7	3.8	84	1.7	4.5
Alluvials4	0	0.0		0.0	44	0.38	0.54	44	0.38	0.54
Kuranakh	0	0.0		0.0	200	1.0	6.4	200	1.0	6.4
Natalka	115	1.6		5.7	143	1.8	8.3	258	1.7	14
Development and Exploration Projects
Sukhoi Log	0	0.0		0.0	540	2.3	40	540	2.3	40
Panimba	0	0.0		0.0	5.7	1.9	0.35	5.7	1.9	0.35
Chertovo Koryto	0	0.0		0.0	62	1.5	3.1	62	1.5	3.1
Total	226	1.4		10		1,514	1.9	94		1,741	1.9	104

1. - the estimates for all deposits are presented on a 100% ownership basis.
2. - any minor discrepancies for sums in the table are related to rounding.
3. - Gold price assumptions:
4. • US$1,350/oz for those deposits where new mining studies were conducted during 2020 (Blagodatnoye, Kuranakh, Verninskoye, Sukhoi Log, and Panimba)
   • US$1,250/oz for Olimpiada, Titimukhta, Natalka, Alluvials, Chertovo Koryto.
5. - for the Alluvials, cubic metres (m3) have been converted to tonnages using the general bulk density factor of 1.85 t/m3 strictly for the purpose of the summary accumulations. Gold grades have been adjusted from g/m3 to g/t accordingly. Contained gold estimates are not affected.

Comparison of Polyus Ore Reserve estimates as at 31 December 2020 and as at 31 December 2019

				Total Ore Reserves 20195										Total Ore Reserves 2020
				Tonnes (Mt)					Gold (g/t)			Gold (Moz)			Tonnes (Mt)			Gold (g/t)				Gold (Moz)
Mines in Operation
Olimpiada			266					2.8					24						252						2.8					23
Blagodatnoye			205					1.3					8.8					284						1.3					12
Titimukhta			12						2.4					0.90					12							2.4					0.90
Verninskoye			89						1.6					4.6					84							1.7					4.5
Alluvials			57						0.36				0.65					44							0.38				0.54
Kuranakh			117					1.1					4.1					200						1.0					6.4
Natalka			269					1.7					15						258						1.7					14
Development and Exploration Projects
Sukhoi Log			-					-					-						540						2.3				40
Panimba			-					-					-						5.7						1.9				0.35
Chertovo Koryto			62					1.5					3.1					62							1.5				3.1
Total			1,077						1.8						61							1,741					1.9						104
	Polyus Mineral Resource estimates as at 31 December 20206,7,8
		Measured							Indicated				Inferred					Total
		Tonnes		Gold		Gold		Tonnes		Gold		Gold			Tonnes			Gold		Gold			Tonnes		Gold		Gold
		(Mt)			(g/t)		(Moz)		(Mt)		(g/t)		(Moz))			(Mt)			(g/t)		(Moz)			(Mt)		(g/t)		(Moz)
	Mines in Operation
	Olimpiada	20		2.6		1.7			297		2.9		28			209			2.9		20			526		2.9			49
	Blagodatnoye	70		0.81		1.8			272		1.5		13			59				1.3		2.5			401		1.3			17
	Titimukhta	5.3		1.6		0.27		6.1		3.3		0.65			0.33			1.4		0.01		12		2.5			0.92
	Verninskoye	16		1.4		0.70		218		1.6		11			47				1.9		2.8			280		1.6			14
	Alluvials9	0			0.0		0						182		0.17		1.0			31				0.40		0.40		212		0.21		1.4
	Kuranakh	0			0.0		0						235		1.0		7.8			110			1.0		3.5			345		1.0			11
	Natalka	120		1.7		6.6			257		1.8		15			147			2.1		9.9			524		1.9			32
	Development and Exploration Projects
	Sukhoi Log	0			0.0		0						668		2.1		46			441			1.5		21			1,110		1.9			67
	Panimba	0			0.0		0						10		2.0		0.63			12				1.8		0.71		22		1.9			1.3
	Razdolinskoye10	0			0.0		0						35		2.7		3.1			8.4			3.2		0.86		44		2.8			4.0
	Chertovo Koryto	0			0.0		0						67		1.5		3.3			7.8			1.3		0.33		75		1.5			3.6
	Bamskoye	0			0.0		0						15		1.8		0.87			5.1			1.6		0.26		20		1.8			1.1
	Medvezhy	0			0.0		0						0		0.0		0			6.5			1.8		0.38		6.5		1.8			0.38
	Zapadny
	Total	232			1.5		11					2,261		1.8		130			1,084			1.8		63				3,578		1.8			204

1. - Using a gold price assumption of US$1,250/oz
2. - the estimates for all deposits are presented on a 100% ownership basis.
3. - any minor discrepancies for sums in the table are related to rounding.
4. - Gold price assumptions:

• US$1,650/oz for deposits with new resource models in 2020 (Verninskoye, Blagodatnoye, Kuranakh, Sukhoi Log, Panimba, and Razdolinskoye)
• US$1,500/oz for Olimpiada, Natalka, Chertovo Koryto. Bamskoye, Medvezhy

1. - for the Alluvials, cubic metres (m3) have been converted to tonnages using the general bulk density factor of 1.85 t/m3 strictly for the purpose of the summary accumulations. Gold grades have been adjusted from g/m3 to g/t accordingly. Contained gold estimates are not affected.
2. - Measured, Indicated and Inferred Mineral Resources 2020 estimate for Razdolinskoye includes estimates for Svetloye, Zmeinoye, Antoninovskoye, and Poputninskoye deposits.

Comparison of Polyus Mineral Resources estimates as at 31 December 2020 and as at 31 December 2019

	Total Mineral Resources 2019	Total Mineral Resources 2020
	Tonnes	Gold	Gold	Tonnes	Gold	Gold
	(Mt)	(g/t)	(Moz)	(Mt)	(g/t)	(Moz))
Mines in Operation
Olimpiada	425	2.9	39	526	2.9	49
Blagodatnoye	400	1.4	17	401	1.3	17
Titimukhta	12	2.5	0.92	12	2.5	0.92
Verninskoye	228	1.6	12	280	1.6	14
Alluvials	228	0.21	1.6	212	0.21	1.4
Kuranakh	220	1.2	8.4	345	1.0	11
Natalka	536	1.9	32	524	1.9	32
Development and Exploration Projects
Sukhoi Log	962	2.1	63	1,110	1.9	67
Panimba	40	2.0	2.6	22	1.9	1.3
Razdolinskoye11	45	3.3	4.7	44	2.8	4.0
Chertovo Koryto	75	1.5	3.6	75	1.5	3.6
Bamskoye	20	1.8	1.1	20	1.8	1.1
Medvezhy Zapadny	6.5	1.8	0.38	6.5	1.8	0.38
Total	3,196	1.8	188	3,578	1.8	204

Competent persons

The Ore Reserve and Mineral Resource estimates are classified and reported according to the JORC Code reporting requirements.

The Competent Persons responsible for each estimate of Ore Reserves and Mineral Resources are:

• Mr Dean Carville, AMC Principal Geologist (Mineral Resource for Olimpiada open pit and underground, Verninskoye open pit, Sukhoi Log open pit, Bamskoye open pit);
• Mr Alex Virisheff, AMC Principal Geologist (Mineral Resource for Blagodatnoye open pit);
• Mr Mohan Srivastava, consultant, Red Dot 3D (Mineral Resource for Natalka open pit and underground);
• Mr Mark Burnett, AMC Principal Geologist (Mineral Resource for Alluvials);
• Mr Nick Szebor, AMC Principal Geologist (Mineral Resource for Razdolinskoye);
• Mr Ingvar Kirchner, AMC Principal Geologist (Mineral Resource for stockpiles for all projects; Titimukhta open pit, Kuranakh open pits, Panimba open pit, Chertovo Koryto and Medvezhy Zapadny open pit).
• Mr Mark Chesher, AMC Principal Mining Engineer (Ore Reserves for open pits at Olimpiada, Verninskoye, Chertovo Koryto, Kuranakh, Blagodatnoye, Titimukhta, Natalka, Sukhoi Log, Panimba and all stockpiles);
• Mr Anthony Cameron, Principal Mining Engineer Cameron Mining Pty Ltd (Ore Reserves for Alluvials);
• Mr Leo Dawson, AMC Principal Mining Engineer (Ore Reserves for Olimpiada underground).

All Competent Persons are Members of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists, or approved Recognized Professional Organisations, and have sufficient experience relevant to the style of

11 - Measured Indicated and Inferred Mineral Resources 2019 estimate for Razdolinskoye includes estimates for Zmeinoye and Poputninskoye deposits.