NON-FERROUS METALLURGY: PRECIOUS METALS FACTS AND FIGURES

2014

ABOUT THE RUSSIAN DIRECT INVESTMENT FUND

The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.

RDIF was created in 2011 under the leadership of the President and Prime Minister of to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.

RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.

I RUSSIA IN THE GLOBAL PRECIOUS METALS INDUSTRY RUSSIA IN THE GLOBAL PRECIOUS METALS INDUSTRY

1.1 WORLD GOLD RESERVES BY COUNTRY

Ranking of countries based on volume of gold reserves* 2013, thousand tonnes 9.9

6 5 3.9 3 3

1. Australia 2. South Africa 3. Russia 4. Chile 5. USA 6. Indonesia

* Source: USGS data * Source: USGS data

6 WWW.INVESTINRUSSIA.COM 1.2 GLOBAL GOLD MINING Leading countries*, 2013, tonnes

420

255 229 227

150 120

1. China 2. Australia 3. Russia 4. USA 4. Peru 6. Canada

* Source: USGS data * Source: USGS data

WWW.RDIF.RU 7 RUSSIA IN THE GLOBAL PRECIOUS METALS INDUSTRY

1.3 WORLD SILVER RESERVES BY COUNTRY

Ranking of countries based on volume of silver reserves* 2013, thousand tonnes

88 87 85 77 66.7

43

1. Australia 2. Peru 3. Poland 4. Chile 5. Russia 6. China

* Source: USGS data

8 WWW.INVESTINRUSSIA.COM 1.4 GLOBAL SILVER MINING Leading countries*, 2013, tonnes

5,400 4,000 3,500

1,700 1,700

1,200

1. Mexico 2. China 3. Peru 4. Russia 5. Australia 6. Bolivia

* Source: USGS data

WWW.RDIF.RU 9 RUSSIA IN THE GLOBAL PRECIOUS METALS INDUSTRY

1.5 MAJOR GLOBAL PLAYERS 2013, % of global gold production

7.3 5.2 4.2 2.7 2.6 1.8 1.39

1. Barrick Gold 2. Newmont 3. AngloGold 4. Goldcorp 5. Kinross 8. Polyus 10. Polymetal Canada USA South Africa Canada Canada Gold International plc Russia Russia

10 WWW.INVESTINRUSSIA.COM MAJOR GLOBAL PLAYERS 2013, % of global silver production

4.5 4.25 4 3.3 2.9 2.7

1. KGHM Polska 2. BHP Billiton 3. Fresnillo plc 4. Goldcord 5. Polymetal 6. Pan American Miedz S.A. plc UK Inc. International plc Silver Corp. Poland Australia Canada Russia Canada

WWW.RDIF.RU 11

II RUSSIAN GOLD INDUSTRY: CURRENT ISSUES AND TRENDS RUSSIAN GOLD INDUSTRY: CURRENT ISSUES AND TRENDS

2.1 GOLD MINING

Gold mining in Russia and globally 2009-2013, tonnes*

2,660 2,690 2,770 2,450 2,560 191 192 200 218 229

2009 2010 2011 2012 2013

7.7 7.5 7.5 8.1 7.9

in Russia globally Russia’s share of global extraction volumes, %

* Source: USGS data

14 WWW.INVESTINRUSSIA.COM 2.2 GOLD PRODUCTION

Gold production in Russia 2009-2013, tonnes, including associated and secondary metals

112.5

106.8 104.3

100 98.8

205 202.6 211.4 221.8 247.7 2009 2010 2011 2012 2013

Production in Russia, % change from previous period

WWW.RDIF.RU 15 RUSSIAN GOLD INDUSTRY: CURRENT ISSUES AND TRENDS

2.3 DOMESTIC GOLD CONSUMPTION IN RUSSIA

Jewelry industry: gold consumption Gold purchases by Russian banks 2009-2013, tonnes 2009-2013, tonnes

60.95 181.4

CAGR 5% CAGR 12.1% 48.5 167.5 156.2 43 42.9 148.8 38.6 148.7

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

16 WWW.INVESTINRUSSIA.COM 2.4 RUSSIAN GOLD EXPORTS 2013, tonnes, by major importing coutries

China Switzerland

UK

1.5 69.2 0.05 42.7 10.9 2.9

0.3 Thailand

UAE Singapore

Hong Kong

WWW.RDIF.RU 17

III RUSSIAN GOLD INDUSTRY: GEOGRAPHY AND CORPORATE STRUCTURE GEOGRAPHY AND CORPORATE STRUCTURE

3.1 MAIN GOLD DEPOSITS RUSSIAN GOLD INDUSTRY: CORPORATE STRUCTURE Khabarovsk Krai Magadan Region

Krasnoyarsk Krai Irkutsk Region 3 10

1 1 6 3 Republic of Sakha 5 7 8 (Yakutia) 1 Chukotka AO 9 5 3 4 8

3 3

9 9

Orenburg Region

Republic of Amur Region Bashkortostan 5 2 7 7 Jewish Autonomous Region Chelyabinsk Region Khakassia Republic 6 3 Kemerovo Region Zabaykalsk Krai 7 Sverdlovsk Region 5 Buryat Republic Reserves, tonnes: <100 100-500 500-1000 >1000

20 WWW.INVESTINRUSSIA.COM MAIN GOLD DEPOSITS 3.2 RUSSIAN GOLD INDUSTRY: CORPORATE STRUCTURE Magadan Region

1 ZDK Polyus 2 Petropavlovsk GC

Olimpiadskoe Chertovo Koryto Pioner Albinskoe Blagodatskoe Kanavnoe Pokrovskoye Tokurskoe Titimukhta Yakokutskoe placer deposits of Amur Novogodnee-Monto placer deposits of Severnoe Region Petropavlovskoe Irkutsk Region Nezhdaninskoe Malomyrskoe Vysokoe Verninskoe Natalkinskoe Verkhne-Alminskoe Peresnets Bamskoe Zapadnoe 4 Chukotskaya GGK (Kinross Gold)

3 Polymetal Kupol Dvoynoe

Dukatskoe Mayskoye 5 Nordgold N.V. Lunnoe Albazinskoe Vorontsovskoe Kubaka Tabornoe Samartinskoe Khakandzhinskoe Birkachan Pogromnoe Smezhnoe Yuryevskoe Sopka Kvartsevaya Zun-kholbinskoe Pionerskaya placer Irokindinskoe, deposit 6 Russdragmet (Highland Gold Mining) Pravoberezhnoe Berezitovoe

Novo-Shirokinskoe Taseevskoe, Sredne- 7 Mnogovershinskoe golgotayskoe Yuzhurapzoloto GC Belaya Gora Kurosan Zapadny Berendzhak placer Kurosan Yuzhny deopsits 8 Vysochayshy Svetlinskoe Izekyul placer deposits Kochgarskoe placer deposits of Golets Vysochayshy Ykamkoe Bereznyakovskoe Krasnoyarsk Krai Ozherele Placer deposits of Kommunarovskoe Darasunkoe Drazhnoe Bolshaya Kuranakh River Oktyabrskoye Tapatuyskoe

9 Sovrudnik 10 Susumanzoloto Sovetskoye Dobroe Eldorado Vershinka Vetrenskoe Deposits of Magadan Region

WWW.RDIF.RU 21 GEOGRAPHY AND CORPORATE STRUCTURE

RUSSIAN GOLD INDUSTRY: CORPORATE STRUCTURE

Polyus Gold International LT D. Petropavlovsk

Polyus ZDK CJSC Pokrovsky Rudnik OJSC Lenzoloto ZDK CJSC Malomyrsky Rudnik LLC Pervents OJSC Albynsky Rudnik LLC Sukhoy Log GRK CJSC Tokursky Rudnik LLC Tonoda CJSC Jamalzoloto OJSC Aldanzoloto GRK OJSC Ilinskoe LLC Yuzhno-Verkhoyansk Mining Company OJSC Omchak Gold Mining Company CJSC Matrosov Rudnik OJSC Amurskaya GRP LLC

Polymetal International plc Kinross Gold Corp.

Serebro Magadana CJSC Chukotka GGK CJSC Zoloto Severnogo Urala CJSC Severnoe Zoloto LLC JV Okhotskaya GGK OJSC Mayskoe ZRK LLC Resursy Albazino LLC Omolenskaya Gold Mining Company LLC OJSC Vysochaishy

CJSC GMC Aldgold

22 WWW.INVESTINRUSSIA.COM Nord Gold N.V. JSC Yuzhuralzoloto GC

Neryungi Metallik LLC Etkulzoloto OJSC Rudnik Appurlovo CJSC Kommunarovsky Rudnik OJSC Buryatzoloto OJSC Artel Stareteley Priisk Drazhny LLC Berezitovy Rudnik LLC Darasunsky Rudnik LLC

Highland Gold Mining LT D. Seligdar Gold Mining Holding

Novo-Shirokinskoe Rudnik OJSC Zoloro Seligdara OJSC Mnogovershinsky CJSC Artel Stareteley Poisk LLC Taseevskoe LLC Artel Stareteley Sininda-1 LLC Belaya Gora LLC Ryabinovoe LLC Lunnoe CJSC Orenburgskaya GK LLC

WWW.RDIF.RU 23 GEOGRAPHY AND CORPORATE STRUCTURE

3.3 POLYUS GOLD: LEADER IN GOLD MINING IN RUSSIA

Polyus Gold capitalization Polyus gold capitalization Nov 2013- Nov 2014, % USD bln

- 7.3%

Newmont Mining Corp. - 0.04% 9.4 Nov. 13 Polyus Gold Int. 8.7 - 7.3% Nov. 14 POLYUS GOLD POLYUS

Turquoise Hill Resources + 13.3%

Zhongjin Gold Corp. 0%

Sources: Bloomberg, Reuters, Company data Sources: Bloomberg, Reuters, Company data

24 WWW.INVESTINRUSSIA.COM MAJOR GLOBAL INDUSTRY PLAYERS

Country Company Sales, Market USD mln capitalization, USD mln

3 USA Newmont Mining Corp. 8,350.00 9,741.49

4 Russia Polyus Gold Internationsl Ltd. 2,466.89 8,712.00

5 Canada Turquoise Hill Resources Ltd. 106.86 6,986.22

6 Australia Newcrest Mining Ltd. 3,810.93 6,963. 72

7 UK Randgold Resources Ltd. 1,205.09 6,547.49

8 Canada Agnico Eagle Mines Ltd. 1,589.34 5,472.26

9 Canada Eldorado Gold Corp. 1,090.33 4,733.79

10 China Zhongiin Gold Corp. 5,034. 60 4,645.76

11 USA Royal Gold, Inc. 237.16 4,565.60

12 Russia Polymetal International Plc 2,171. 70 3,987.73

Sources: Bloomberg, Reuters, Company data Sources: Bloomberg, Reuters, Company data

WWW.RDIF.RU 25 GEOGRAPHY AND CORPORATE STRUCTURE

POLYUS GOLD: KEY FINANCIAL INDICATORS 2009-2013

Adjusted EBITDA USD mln

557 5.8 6944.2 1,082 1,303 910

2009 2010 2011 2012 2013

POLYUS GOLD POLYUS Gold saled revenue USD mln 2013

2012

2011 1,172 5.8 1,5974.2 2,180 2,618 2,259 2010 2009 2010 2011 2012 2013 2009

26 WWW.INVESTINRUSSIA.COM POLYUS GOLD: KEY PERFORMANCE INDICATORS AND RESERVES 2009-2013 Gold production k oz

1,2315.8 1,2754.2 1,378 1,569 1,649

2009 2010 2011 2012 2013

Polyus Gold - JORC proved and Leading companies in the world in terms of gold probable reverves reserves (proved and probable reserves (P&P, JORC) mln oz at the end of 2013, mln ounces

2013 83.1 Barrick 104

2012 87.5 Newmont 88

2011 90.5 Polyus Gold 83.1

2010 78.2 Newcrest 78

74.1 2009 Anglogold 68

WWW.RDIF.RU 27

IV RUSSIAN SILVER INDUSTRY: CURRENT ISSUES AND TRENDS RUSSIAN SILVER INDUSTRY: CURRENT ISSUES AND TRENDS

4.1 SILVER MINING

Silver extraction in Russia and globally 2009-2013, tonnes*

23,100 23,300 25,500 26,000 21,800 1,400 1,150 1,350 1,500 1,700

2009 2010 2011 2012 2013

6.42 6.42 5.79 5.8 6.4

in Russia globally Russia’s share of global extraction volumes, %

* Source: USGS data * Source: USGS data

30 WWW.INVESTINRUSSIA.COM 4.2 SILVER PRODUCTION

Silver production in Russia 2009-2013, tonnes, including secondary metal

112.2

100.0 97.9 99.1 92.3

1,590 1,557 1,543 1,425 1,660

2009 2010 2011 2012 2013

production in Russia, % change from previous period

* Source: USGS data * Source: USGS data

WWW.RDIF.RU 31 RUSSIAN SILVER INDUSTRY: CURRENT ISSUES AND TRENDS

4.3 DOMESTIC CONSUMPTION OF SILVER IN RUSSIA

Jewelry industry: silver consumption 2009-2013, tonnes

103.0

100.0 99.1 114.8 71.4

159.9 158.5 113.2 130.0 134.0

2009 2010 2011 2012 2013

silver consumption, % change from previous period

32 WWW.INVESTINRUSSIA.COM 4.4 RUSSIA EXPORTS ABOUT 2/3 OF MINED SILVER

Russian silver exports 2013, tonnes, by major importing countries

Switzerland UK USA

18.8 252.4 6.3 332.7 52

230.3 160.2

UAE India

WWW.RDIF.RU 33

V RUSSIAN SILVER INDUSTRY: GEOGRAPHY AND CORPORATE STRUCTURE GEOGRAPHY AND CORPORATE STRUCTURE

5.1 MAIN SILVER DEPOSITS RUSSIAN SILVER INDUSTRY: CORPORATE STRUCTURE

Khabarovsk Region

Sverdlovsk Region Yamal-Nenets AO Magadan Region

Murmansk Region Krasnoyarsk Krai 1 Chukonka AO Karelia Republic Irkutsk Region 7 Republic Republic of Sakha of Dagestan 8 (Yakutia) 3 Republic of 4 2 North Ossetia — Alania 5

Karachay- Cherkess Republic

3 Sakhalin Region 9

9 Orenburg Region Amur Region Republic 10 Tyva Republic of Bashkortostan 6 Khakassia Republic Zabaykalsk Krai Chelyabinsk Region 10 Kemerovo Region Primorsk Krai Kabardino-Balkaria Republic Altai Krai Altai Republic Republic of Buryatia

Reserves, thousand tonnes: <5 5-15 15-20

36 WWW.INVESTINRUSSIA.COM MAIN SILVER DEPOSITS 5.2 RUSSIAN SILVER INDUSTRY: CORPORATE STRUCTURE

Magadan Region

1 Magadana CJSC 6 Baykalskaya Gornaya Company LLC

Dukatskoe (Magadan Region) Udokanskoe (Zabaykalskty Krai) Lunnoye (Magadan Region) Goltsovoe (Magadan Region) 7 MMC Norilsk Nickel OJSC 2 Okhotskaya GGK LLC Oktyabrskoe (Krasnoyarsk Krai) Talnakhskoe (Krasnoyarsk Krai) Khakandzhinskoe (Khabarovsk Krai)

8 Gorevsky GOK OJSC 3 Chukotskaya GGK CJSC Gorevsky (Krasnoyarsk Krai) Kupol (Chukotka OA)

9 Gaisky GOK OJSC 4 Prognoz-Serebro LLC

Gaisky (Orenburg Region) Prognoz (Republic of Sakha (Yakutia))

5 Yuzhno-Verkhoyanskaya OJSC 10 Uchalinsky GOK OJSC Gornodobyvayushchaya Company Uzelginsky (Chelyabinsk Region) Nezhdaninskoe (Republic of Sakha (Yakutia) Novo-Uchalinsky (Republic of Bashkortostan)

WWW.RDIF.RU 37 GEOGRAPHY AND CORPORATE STRUCTURE

RUSSIAN SILVER INDUSTRY: CORPORATE STRUCTURE

MMC Norilsk Nickel OJSC Kinross gold Corp.

Mining companies Mining companies

Polar Division Kolskaya MMC OJSC Chukotkaya GGK CJSC

Refineries Russian Mining Company OJSC Kombinat Severonikel OJSC Mining companies

Ural Mining and Metallurgical Company OJSC MMC Dalpolimetall OJSC Mining companies

Gaysky GOK OJSC Safyanovskaya Med LLC Merkury GC Bashkirskaya Med LLC Siberi-Polymetal OJSC Urupsky GOK CJSC Svyatogor OJSC Mining companies Uralelectromed OJSC Gorevsky GOK OJSC Refineries

Uralelectromed OJSC

38 WWW.INVESTINRUSSIA.COM Russian Copper Company CJSC

Refineries

Kyshtym Copper Electrolyte Plant Rytvina Supermetall NP Complex OJSC Krastsvetmet OJSC Ural Innovative Technologies CJSC Novosibirsk Refinery OJSC Sibproekt LLC Kopymsky Refinery OJSC FG UP Prioksky Nonferrous Metals Plant Ekaterinburg plant OCM OJSC Shchelkovsky Secondary Precious Metals Plant OJSC

Polymetal OJSC

Mining companies

Serebro Magadana CJSC Uralskoe GRP LLC Okhotskaya GGK LLC Resursy Albazino LLC Omolonskaya ZRK LLC Zoloto Severnogo Urala CJSC

WWW.RDIF.RU 39 GEOGRAPHY AND CORPORATE STRUCTURE

5.3 POLYMETAL INTERNATIONAL: MARKET CAPITALIZATION

Polymetal International capitalization Polymetal international capitalization Nov 2013- Nov 2014, % USD bln

+17%

Henan Yuguang Gold 3.99 Nov. 14 & Lead Co. 3.7 +48% Mar. 14 3,5 June 14 Polymetal Int. 3.4 +17% Nov. 13

Allgemeine Gold und POLYMETAL INTERNATIONAL INTERNATIONAL POLYMETAL Silberscheideanstalt AG + 2.9%

Stillwater +22%

Sources: Bloomberg, Reuters, Company data

40 WWW.INVESTINRUSSIA.COM MAJOR INDUSTRY PLAYERS

Country Company Sales, Market USD mln capitalization, USD mln

10 China Shandong Humon Smetting Co Ltd. 1,955.63 1,277.61

11 South Africa Sibanye Gold Ltd. 1,842.93 1,749.23

12 Russia Polymetal International Plc 2,171.70 3,987.73

13 Canada Yamana Gold Inc. 1,784.49 3,692.90

14 Canada Agnico Eagle Mines Ltd. 1,589.34 5,472.26

15 South Africa Harmony Gold Mining Co. Ltd. 1,474.11 756.86

16 Hong Kong Lingbao Gold Co. Ltd. 1,292.34 128.14

17 Netherlands Nord Gold NV 1,271. 25 491.56

18 UK Petropavlovsk Plc 1,270.87 56.97

19 UK Randgold Resources Ltd. 1,205.09 6,547.49

Sources: Bloomberg, Reuters, Company data

WWW.RDIF.RU 41 GEOGRAPHY AND CORPORATE STRUCTURE

POLYMETAL INTERNATIONAL: ONE OF THE LEADING COMPANIES IN RUSSIA AND GLOBALLY IN GOLD AND SILVER MINING

Leading gold mining companies globally 2013, mln ounces

7.3 5.2 4.2 2.7 2.6 1.28

1. Barrick 2. Newmont 3. AngloGold 4. Goldcorp 5. Kinross 10. Polymetal International plcs

Leading silver mining companies globally 2013, mln ounces POLYMETAL INTERNATIONAL INTERNATIONAL POLYMETAL

40.9 38.9 36.9 30.5 27.2 25.1

1. KGHM Polska 2. BHP 3. Fresnillo 4. Goldcord 5. Polymetal 6. Pan American Miedz S.A. Billiton plc plc Inc. International Silver Corp. plcs

42 WWW.INVESTINRUSSIA.COM POLYMETAL INTERNATIONAL: KEY FINANCIAL INDICATORS 2010-2013

Revenue USD mln

925 1,326 1,854 1,707

2010 2011 2012 2013

EBITDA USD mln

425 624 932 598

2010 2011 2012 2013

WWW.RDIF.RU 43 GEOGRAPHY AND CORPORATE STRUCTURE

POLYMETAL INTERNATIONAL: KEY PERFORMANCE INDICATORS AND RESERVES 2010-2013

Mining thousand tonnes

7 ,474 11, 002 12, 591 10 ,379

2010 2011 2012 2013

POLYMETAL INTERNATIONAL INTERNATIONAL POLYMETAL Ore processing thousand tonnes

7 ,845 8, 821 9, 808 10 ,749

2010 2011 2012 2013

44 WWW.INVESTINRUSSIA.COM NOTES

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