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 Russia 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