Name of the Project
Nezhda gold project.

Location
In north-east Yakutia, in the Tompon municipal district of Russia.

Project Owner/s
Polymetal International.

Project Description
Nezhda is the fourth-largest gold deposit in Russia.

The project has total proven and probable reserves of 38-million tonnes at an average grade of 3.4 g/t gold and 15 g/t silver.

Total measured, indicated and inferred mineral resources are estimated at 49.4-million tonnes grading 5 g/t gold and 10 g/t silver.

A feasibility study has concluded that the project is a long-life, high-grade asset with robust economics.

The life-of-mine plan includes about 19 years of conventional openpit mining using drill-and-blast and truck-and-shovel methods.

Projected openpit mining volumes are currently estimated at 2.2-million tonnes a year.

Mining will gradually switch to underground using longhole stoping with partially consolidated backfill. Underground mining will last for about 17 years.

The total expected mine life is about 27 years, but can potentially be increased by another ten years, following additional exploration to improve the confidence of the remaining mineral resources.

The feasibility study is based on a conventional 1.8-million-tonne-a-year flotation concentrator with gravity concentration circuit.

Combined recovery to concentrate of 85% is supported by extensive external and in-house metallurgical testing.

Gravity gold concentrate will be processed at the existing Amursk POX facility, while flotation concentrates will be sold to third parties.

Average yearly production is expected at 180 000 oz during the first full three years of operation and 155 000 oz of payable gold during the first full 15 years of operation.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 10% discount rate, of $302-million and an internal rate of return of 29%.

Capital Expenditure
$370-million.

Planned Start/End Date
First production is planned for the fourth quarter of 2021 ,with full ramp-up by the second quarter of 2022.

Latest Developments
Polymetal has produced first gold and silver concentrate at its new Nezhda mine, with nameplate capacity and full design recovery expected by April 2022.

The mine will produce up to 30 000 oz of gold-equivalent this year, with average output totalling 180 000 oz/y in 2022 to 2024, at an estimated all-in sustaining cost of $850/oz to $900/oz.

Further upside potential is linked to the opportunity of processing ore from the high-grade Prognoz silver deposit, owned by Polymetal.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Polymetal International investor relations, Eugenia Onuschenko or Maryana Nesis, tel +44 20 7016 9505 or email ir@polymetalinternational.com.