ZAO “Polyus” has announced today that it has purchased from IG “ALROSA” 99,2% of the shares of LLC “Aldanzoloto GRK”, 50% of the shares of OJSC “Yuzhno-Verkhoyanskaya Mining Company” and 100% of the shares of OJSC “Yakutskaya Mining Company”. The acquired companies hold licenses for three gold deposits – Kuranakh ore field, Kyutchus field and Nezhdaninskoye deposit – located in the region of the Republic of Sakha (Yakutia).

These three major gold assets located in the region of Yakutia were purchased by the Polyus Group as part of its strategic development plan which is aimed at the Polyus Group becoming one of the top global gold producers. The mineral base attributable to the shares and interests that Polyus acquired is estimated, according to the Russian classification system, at more than 28 million troy ounces (over 875 tonnes), which is comparable to that of the largest Russian gold deposit, Sukhoi Log.

The mineral base attributable to the shares and interests acquired by ZAO “Polyus” comprises, according to the Russian classification system (B + C1 + C2 + P1), more than 28 million troy ounces (over 875 tonnes) of gold, including:

• at Kuranakh ore field – 4 116 k oz of reserves (В+С1), 3 244 k oz of resources (С2 + Р1);
• at Kyutchus field – 2 629 k oz of reserves (В+С1), 4 271 k oz of resources (С2 + Р1);
• at Nezhdaninskoye field – 3 567 k oz of reserves (В+С1), 10 308 k oz of resources (С2 + Р1).

According to the Polyus Group CEO Evgueny Ivanov, “with this acquisition, the Company opens a new region for its operations, an area with significant prospects in terms of resources and production growth”. “We acquired unique assets and made a crucial effort for reaching our strategy’s key goal – to create a true Russian international gold major”, he added.

The total purchase price will not exceed USD 285 million. In accordance with the terms of the transaction, Polyus has made a pre-payment in the amount of USD 115 million.

Notes for editors:
LLC “Aldanzoloto GRK” is the largest gold producer in the region of the Republic of Sakha (Yakutia). In 2004 its production output reached 4,814 tones of gold (155 k oz).

Nezhdaninskoye gold filed is one of the largest gold deposits in the Russian Federation; by mineral base, according to the Russian classification system, it’s ranked second in Russia, only behind the largest Russian gold deposit Sukhoi Log (Irkutsk region).

For more information please contact:

Denis Davydov
Polyus Group Head of Investor and Public Relations
+(7 095) 641 33 65
e-mail: pr@polyusgold.com

The MMC Norilsk Nickel Press Service
Tel: (+7) 095 797 8294
Fax: (+7) 095 786 8394
E-mail: uosmail@nornik.ru

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