Slide 1: aie ye —~
aie ye —~ — =) > - =
Slide 2: Disclaimer
DISCLAIMER The information contained herein has been prepared using information available to PJSC Polyus at the time of preparation of the presentation. External or other factors may have impacted on the business of Polyus and the content of this presentation, since its preparation. In addition all
Slide 3: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 4: Natalka: Production Profile Overview
PROJECTS UPDATE Natalka: Production Profile Overview Rock moved1 2013: 125,019kt MAGADAN CLUSTER 2017: 224,423kt KRASNOYARSK 6 YAKUTIA +80% CLUSTER 2 1 CLUSTER 7 8 5 4 3 IRKUTSK CLUSTER Ore processed Natalka 2013: 22,480kt Kuranakh 0.2% 8% 2017: 28,663kt Alluvials PRODUCTION 7% 5 6 Olimpiada 54% 1.
Slide 5: Natalka: Production Profile Overview
PROJECTS UPDATE Natalka: Production Profile Overview 68 moz gold P&P Reserves (the 2nd largest globally) 190 moz gold MI&I Resources (the 2nd largest globally) Average life of mine: above 30 years 100% open pit operations Moving from ca. 2.16 moz in 2017 to 2.8 moz in 2019 Production at
Slide 6: Board of Directors and shareholder structure
9 members, including 4 Independent Directors Independent Chairman: Edward Dowling 4 BoD Committees, including Audit and Nomination & Remuneration All committees headed by Independent Directors Independent Directors professional experience covers: Natural Resources: Metals & Mining Oi
Slide 7: ICMM membership and safety performance
International organization dedicated to a safe, fair Randgold 0.03 and sustainable mining industry Polyus 0.11 Uralkali 0.11 27 mining companies and 36 regional and Polymetal 0.15 commodities associations Severstal 0.19 Polyus is the first ICMM member from Eastern Glencore 0.20 Centamin 0.26 E
Slide 8: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 9: 2018 quarterly trading updates and financial results
2Q 2018 Trading Update: 2Q 2018 Financial results: Total gold output of 602 koz TCC of $345/oz Sukhoi Log verification drilling Total gold sales of 531 koz Adj. EBITDA of $457 mln and Scoping Study results Ore processed volumes of 9,872 kt FCF1 of $165 mln Recovery rate of 80.6%
Slide 10: Total gold output increased 15% to 691 koz
3Q'18 2Q'18 Q-o-Q 3Q'17 Y-o-Y 9M’18 9M’17 Y-o-Y Olimpiada 283.0 276.0 3% 264.1 7% 772.1 709.4 9% Blagodatnoye 110.1 102.0 8% 116.0 -5% 303.5 330.1 -8% Verninskoye 59.7 53.3 12% 53.1 12% 171.6 160.1 7% Alluvials 83.7 23.7 253% 85.0 -2% 107.4 115.9 -7% Kuranakh 43.9 44.1 -1% 43.4 1% 134.5 123.1 9% Nat
Slide 11: Quarterly EBITDA and free cash flow
642 691 580 602 380 383 507 324 345 345 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 231 537 181 475 465 457 165 387 149 70 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 Source: Company data 1 calculated on unlevered basis 11
Slide 12: Eurobond repurchase improving maturity profile
Polyus conducted repurchase of 2020, 2022, 2023 and 2024 notes in aggregate principal amount of $132 mln, thus improving the maturity profile 12
Slide 13: Leading Reserves and Resources Base
a ij a. 3. LEADING RESERVES AND | or RESOURCES BASE
Slide 14: Reserves and resources versus global peers
PROJECTS UPDATE Natalka: Production Profile Overview 68 moz gold P&P Reserves (#2 globally) 190 moz gold MI&I Resources (#2 globally) Average life of mine @ above 30 years1 vs. 16 years on average (among the largest producers globally) 68 68 64 62 54 50 49 26 26 23 Sibanye Newmont Newcrest Bar
Slide 15: 100% open-pit operator with high grades
PROJECTS UPDATE Natalka: Production Profile Overview 100% open-pit operator with grades typical for underground mining 95% of Reserves attributable to operating assets 80 60 40 20 0 Newmont Polyus Barrick Newcrest Goldcorp Anglogold Gold Fields Sibanye Kinross Harmony Open pit Underground Averag
Slide 16: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 17: Production growth to 2.8 moz
PROJECTS UPDATE Natalka: Production Profile Overview Moving from ca. 2.16 moz in 2017 to 2.8 moz in 2019 A suite of low risk and cost-efficient brownfield projects 5.3 5.2 Production at Natalka to be fully ramped-up in 2H 2018 3.8 Sukhoi Log moving to pre-feasibility study stage 2.7 2.6 2.3
Slide 18: 100% open-pit operations
100% open-pit operations 2017 highlights: 224 mt of rock moved1 on an annual basis 7 ore processing mills1 with a total capacity above 28 mt (excl. the Natalka Mill) 2.7 g/t in ore processed Transportation costs savings Economies of scale on infrastructure 3 mills at Olimpiada within
Slide 19: Production guidance track record
PROJECTS UPDATE Natalka: Production Profile Overview Actual production Guidance Platform for the next 2,800 2,800 development stage of 2,425 the Company 2,375 2,160 First gold at Sukhoi Log expected around 1,652 2026 2013 … 2017 2018 2019 2020 … LT Initial guidance revised 6% Guidance Guidance G
Slide 20: Mill throughput and recovery rates
1,311 1,304 1,077 1,106 1,3 50 1,3 00 1,241 1,255 110 .0 1,017 1,029 1,213 1,218 964 1,1 00 939 110 .0 1,2 50 853 855 100 .0 1,0 00 100 .0 1,122 1,2 00 900 90. 0 1,1 50 1,066 90. 0 800 1,1 00 80. 0 700 88.2 88.0 87.9 88.0 87.8 87.2 87.3 87.7 80. 0 81.0 80.7 1,0 50 80.1 80.0 79.0 79.2 600 1,0 00 73.6
Slide 21: Value accretive growth: project pipeline
VALUE ACCRETIVE GROWTH PROJECT PIPELINE ! 2016 | 2017 agit! a 2019 | 2020 OLIMPIADA MILL-1 ‘EE ANTIMONY << RECONFIGURATION PROJEC BIO-4 AT OLIMPIADA COMPLEX 2015 KRASNOVYARSK BUSINESS UNIT OLIMPIADA MILLS <> EXPANSION BLAGODATNOVE MILL BLAGODATNOYE MILL ro qo EXPANSION (STAGE 1) EXPANSION (STAGE 2)
Slide 22: Project IRR versus capex
Focus on low-risk high-return projects with expected IRR of over 20% under the following assumptions: 100 Gold price: $1,050/oz; FX: 60 RUB/USD 80 Expansion projects must meet both Completed projects capital and cost efficiency criteria Ongoing projects 60 More than 150 projects implemente
Slide 23: 2018F capex guidance
Alluvials Sukhoi Log 2018F capex guidance $20mln $30mln Verninskoye includes $150mln of $40mln 850 Natalka capitalisation 804 Kuranakh $40mln 650 550 Natalka $300mln Blagodatnoe $80mln $850 mln Others (including IT, 2017 2018F 2019F 2020F R&D, Logistics, Exploration) Actual capex Guidance capex $140
Slide 24: IT projects and infrastructure
42 Other projects 8 27 2 Other IT projects 3 Maintenance and repair 7 management platform 4 Wireless broadband access Investment management platform (Primavera) 6 Data transmission networks 28 ERP 9 IT infrastructure development 2018F 2018F ERP The Company continues to improve the reliability of
Slide 25: Natalka Update
5. NATALKA UPDATE —_ | | POLYUS
Slide 26: Natalka mining activity
Mining activity restarted in early 2017. In 3Q 2018, volumes of rock moved totaled 13,088 kt, while volumes of ore mined amounted to 1,998 kt. Average grades in ore mined were 1.05 g/t, as mining works were concentrated on lower grade zones of the ore body, in line with the mine plan Mining
Slide 27: Natalka mill performance and maintenance
The Company conducted scheduled maintenance works in July-August. Over the course of the maintenance works, Polyus put the gyratory crusher MK-60-110E back into operation. In 3Q 2018, the average grade in ore processed was 1.32 g/t, an 18% increase on the previous quarter. By the end of the th
Slide 28: Natalka total cash cost versus group assets
Natalka is the highest cost asset of the group ex. Alluvials, with forecast TCC of $550-600/oz1 1.74x Higher TCC is explained by relatively lower grades and 1.23x 1.08x 1.01x 1.0x recovery rate as well as higher cost of inputs Natalka Kuranakh Verninskoye Olimpiada Blagodatnoye 550-600 534 2.68x
Slide 29: Power grid and mine expansion at Natalka
Minor auxiliary equipment is still working The Grid is supposed to link Ust-Srednekanskaya HPP in a test mode with Natalka, increasing available power capacity Tailings facility to be expanded (in stages) Grid length: 120 km Timeline: 2018-2020 Capex: RUB 8.8 bln (state subsidy) Timeli
Slide 30: Regional Investment Project tax regime
% % 8 30 6.0 20 6 20 4 4.8 4.8 10 10 10 10 10 2.4 2.4 3.6 3.6 10 2 1.2 1.2 0.0 0.0 0 0 0 0 0 0 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 RIP regime Base rate Regional Investment Project is a special tax regime, which allows for tax benefits for the projects in the Far
Slide 31: Sukhoi Log
3. OPERATIONAL PERFORMANCE
Slide 32: Sukhoi Log: one of the largest undeveloped gold deposits
One of the largest undeveloped gold deposits globally with 58 moz of gold Chertovo Koryto, Vysochayshy, JORC resources @ 2.0 g/t 100 km 30 km Zapadnoye Close proximity to other Polyus assets Sukhoi Log creates opportunities for: Optimisation of processing facilities and potential economies of
Slide 33: Sukhoi Log versus global gold projects
South Deep 66 Sukhoi Log 58 106 98 45 Lihir 52 58 41 35 33 28 25 20 Mponeng 50 Pebble KSM Sukhoi Donlin Reko Diq Snowfield Cerro La Colosa Caspiche Frieda Log Casale River Muruntau 48 Olimpiada 44 2.2 Klerksdorp 40 2.0 ERPM 39 0.8 Snowfield 35 0.4 0.5 0.5 0.5 0.3 0.2 0.2 Cadia East 35 Pebble KSM Suk
Slide 34: Sukhoi Log scoping study completed
Polyus has completed the Scoping Study for Sukhoi Log. This study summarizes all the available data on the project and outlines key areas for further evaluation at Pre-Feasability and Feasibility Stages Analysis of missing data to be further investigated within Pre-Feasibility (PFS) and Feasibil
Slide 35: Potential processing schemes for Sukhoi Log
Scoping study resulted in 3 potential processing schemes, which will be evaluated further at pre-feasibility and feasibility stages Open-pit Scoping study will be followed by a pre- Tailing Storage Facility Mill feasibility and feasibility studies which are currently expected to last through 202
Slide 36: Scoping study estimates and throughput
Run-of-mine Crushing Milling (2 lines x 15 mtpa) Gold SAG mill Ball mill Extraction Gravity Flotation Cyanidation Carbon-in-leach Smelting Electrowinning pebble crusher (SABC) The estimates are at the scoping study level of accuracy Throughput capacity: 30 mtpa Preliminary production volumes e
Slide 37: Drilling stages at Sukhoi Log
3. Deep levels and flanks step-out Этап бурения и назначение скважин 2. In-fill Drilling for open pit ore drilling resource/reserve estimation: 1st stage 2nd stage Участок создания разведочной сети для подсчета запасов по категории В 1. Verification drilling Участок создания разведочной сети для
Slide 38: Sukhoi Log pre-feasibility timeline
Mineral resource Mineral reserve estimate estimate 1 Engineering completed Investment Decision September 2018 Mill launch Key pre-feasibility study sections are: 1 1. Detailed open pit design and mining schedules 2. Detailed design of processing plant 3. Review of infrastructure 4. Detailed es
Slide 39: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 40: Cost and margin comparison with peers
Total cash costs, $/oz 707 585 424 389 364 (6%) EBITDA adjusted, $ mln 917 1,018 1,278 1,536 1,702 11% EBITDA adjusted, margin % 39% 45% 58% 62% 63% 1 ppts Capex2,$ mln 1,432 525 268 466 804 72% FCF1, $ mln (908) 282 351 902 610 (32%) Net debt / EBITDA adjusted, “x” 0.3 0.3 0.3 2.1 1.8 (14%) -5% 5%
Slide 41: Lowest cost producer globally
PROJECTS UPDATE Natalka: Production Profile Overview The lowest cost producer among top-10 gold mining companies globally 110% TCC and AISC in the 1st decile of global cost curves 100% 90% 87% 80% 78% 70% 60% 46% 50% 40% 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 Polyus Polymetal Pet
Slide 42: Operational efficiency program
Program launched in 2015 at KBU and extended to other business units during 2016-2017 539 Investments < RUB 35 mln per initiative Payback period of < 2 years 369 252 Focused on: Equipment productivity Recovery rate improvement Consumables use optimization 2015 2016 2017 239 143 94 2015
Slide 43: Consumables price inflation
200% 162% 2018 CPI inflation in Russia is expected 159% at around 3.5% vs estimated 3.7% in 100% 117% 2017 Despite slowing local inflation Polyus 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 expects that prices on most key Brent oil prices, $/bbl Ammonium nitrate, $/t FOB Black Sea consumables will g
Slide 44: Key operating and financial results
Gold production (doré) (koz) 699 628 11% 636 10% 1,865 1,607 16% Gold production (refined) (koz) 691 602 15% 642 8% 1,800 1,580 14% Average realised refined gold price excl. SPPP ($/oz) 1,209 1,300 (7%) 1,279 (5%) 1,275 1,254 2% Average realised refined gold price incl. SPPP) ($/oz) 1,213 1,300 (7%)
Slide 45: TCC structure and guidance
Outsourced Other Consumables 500 Initial guidance: below 450 below 450 mining services 8% and spares 450 below 425 1% 27% 400 364 MET Revised 350 19% guidance: 300 below 400 250 200 Power 150 4% 100 Fuel 50 Labour 9% 0 32% 2017 2018 2019 2020 1 At gold price $1,330/oz and RUB/USD fx rate 60 45
Slide 46: Mineral extraction tax comparison
8% MET payments for gold and diamond companies are 6% linked to underlying commodity prices (6% for gold). MET payments for other sectors are either calculated of the cost of mining (iron ore, base metals, potash etc.) or 1% 1% represent an absolute amount on a per tonne basis (coal). Diamond Go
Slide 47: Focus on Shareholder Returns
8. FOCUS ON SHAREHOLDER RETURNS
Slide 48: Dividend policy and payments
FY 2017 and FY 2018 dividend: 30% of EBITDA but not less than $550 million $340 mln 400 10. 00% Post FY 2018: 30% of EBITDA 350 $311 mln 9.0 0% $253 mln Record date: 8.0 0% $239 mln 300 7.0 0% Threshold for the dividend policy: 250 200 3.7% 3.8% 6.0 0% 5.0 0% 18-Oct-2018 Net Debt/EBITDA < 2.5x
Slide 49: Debt Management
9. DEBT MANAGEMENT —_ | | POLYUS
Slide 50: Debt repurchases, new facilities and maturity profile
In April, Polyus conducted repurchase of convertibles for $50 mln nominal (20% of the total issue). 1,246 • J.P. Morgan Securities acted as dealer manager • The convertibles were repurchased at 86.7% for a total consideration of $43.4 mln 3 770 432 632 In May, Polyus attracted a bilateral bank c
Slide 51: Debt breakdown
As of 30 Jun 20181 As of 30 Sep 20182 Eurobonds Eurobonds Bank loans Bank loans 59% 28% 62% 30% $4,116 mln $4,029 mln Convertibles Convertibles 4% 5% RUB bonds RUB bonds 6% 6% 72% 28% 70% 30% Public debt Private debt Public debt Private debt Floating rate Floating rate 2% 2% $4,116 mln $4,029 mln Fi
Slide 52: Guidance Overview
GUIDANCE OVERVIEW —_ | | POLYUS
Slide 53: Guidance overview
GUIDANCE OVERVIEW 2017 2018F 2019F 2020F GOLD PRODUCTION, MOZ 2.16 2.375-2.425 2.8 2.8 TCC, S/OZ 364 BELOW 400 | BELOW 450. BELOW 450 2017 ... 2020 CAPEX, SMLN 804 850 | PRODUCTION GROWING 30% | omi7 | SMis | y-o-v,% | oe TO28MOZ ~— q GOLD PRODUCTION, Moz 158 | 180 | 4% poe e ee ee eee eH HHH een nn
Slide 54: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 55: Currency structure of costs and capex
USD USD USD ~25% ~40% ~35% ~60% ~65% ~75% RUB RUB RUB Consumables and spare parts (ca. 32% of TCC excl. Investments are dominated by RUB MET) split roughly equally on USD-linked components expenditures – mostly in and RUB items construction and maintenance Although fuel (ca. 15% of TCC excl. M
Slide 56: Mining fleet renewal
Polyus has already delivered all units of large-scale mining equipment planned for 34 2018. Four WK-35 were introduced in 2018, 18 14 gradually replacing small-scale OMZ EKG- 8 11 5 5 4 6 2 10 with 10 m3 load and decreasing unit loading cost 1H17 2H17 1H18 2H18 Shovels: WK-20 and WK-35 Dozers: K
Slide 57: Processing optimization initiatives
Before 250 mm 5m After 150 mm 4m At Mill-4, the installation of an additional Old drilling pattern at Alluvials required high explosive consumption at blasting conveyor to transport pebble to the large stage cone crusher bypassing the first stage Optimized drilling pattern allowed to pebble crus
Slide 58: Infrastructure and consumables cost savings
Lack of strategic approach to Consumables (e.g. diesel oil and PREVIOUSLY infrastructure-related issues, ad- Suboptimal standard quality of ammonia nitrate) procured on spot hoc maintenance of supporting consumables and relatively high basis, which is inefficient due to high mining facilities
Slide 59: Mine-to-Mill technology
Mine-To-Mill technology aims to modify blasting and processing practices to achieve a more suitable mill feed size and can provide for an increase in throughput 1 2 3 4 5 Review of detailed RC drilling with a Test explosions with Mathematical Ore feed to the exploration data pattern of 10*
Slide 60: Automation at Olimpiada mills
Automation introduced at Olimpiada Mills-1,2,3 in 2015-17 has paved the way for throughput increase and allowed to increase recovery, with the following automation processes involved: Dispatched control over main equipment: conveyors, feeders, mills, pumps, agitators Analysis of technological
Slide 61: Flash flotation
Unit operation designed to remove fine valuable mineral particles otherwise returned to a new processing cycle Improved Minimized Improved concentrate Minimizes overgrinding and improves overall mill overgrinding recovery quality throughput, recovery and optimizing water cycles Improves flotat
Slide 62: Column leaching tests at Blagodatnoye
Column leaching tests at Blagodatnoye Blagodatnoye low-grade ore column leaching tests identified several technological issues Low ore permeability and the necessity of agglomeration result in lower recovery and higher project risks Exploration at Blagodatnoye identified increased reserves all
Slide 63: Olimpiada mills expansion
Crushing: Ore feed optimization via Mine-to-Mill Further Olimpiada mills expansion is a Grinding: complex set of small & medium-scale Equipment modernization initiatives aimed on throughput capacity Gravitation / Flotation: increase and recovery stabilization (more Introduction of flas
Slide 64: Olimpiada expansion initiatives
1 2 3 Introduction of Lokotrack Replacement of SAG Mill at mobile crusher and cone Mill-3 Flash flotation at Mills-1,2,3s crusher at Mill-2 Replacement of pumps and Installation of Jameson flotation cells Mine-to-Mill introduction cyclones 4 5 BIO-1,2,3 modernization1 High-temperatur
Slide 65: Blagodatnoye mill expansion
Blasting and Crushing: Reconfiguration and increase of availability of existing Blagodatnoye Mill operated at above 8.1 mtpa equipment in 2017 with 457 koz produced Ore feed optimization via Mine-to-Mill Gradual roll-out of the Mine-to-Mill from 2018 Grinding: 1 unit of Flash flotation
Slide 66: Kuranakh mill expansion
Kuranakh Mill, operating since 1960s, was constructed in Soviet times with significant spare capacity Prior to launch of the expansion project 1 out of 3 milling lines was operating less than 10% of the total available time The buildings of the milling complex had extensive space for additiona
Slide 67: Antimony overview
Refined Antimony Antimony Concentrates Minor metal, elementally a brittle silvery-white shiny metalloid The content of antimony in the earth Superfine Crude crust is only 0.0001%. Sodium Antimony Antimony Antimonate White (Sb2O3) Antimony Antimony mainly occurs in deposits with White (Sb2O3) l
Slide 68: Antimony ore processing at Olimpiada
Low content antimony ore High content antimony ore current reserves Potential Mill-2,3 ore processing Mill-1 ore processing LoM – 8 years reserves to be (gravitation and flotation) (gravitation and flotation) mined below 4th cut back Concentrate Au-Sb FC Flotation tailings BIO and hydrometallurgy Fi
Slide 69: Sukhoi Log geology and mining scale comparison
229 Mining Capacity, 2016 MTPA Material (LHS) Stripping ratio, t/t (RHS) 250 5 Similarly to porphyry deposits, Sukhoi Log has the 200 4 following features: 180 177 166 156 137 134 Disseminated quartz-sulphide mineralization in 150 3 110 102 carbonaceous shales 97 100 2 Large and giant scale of t
Slide 70: Preliminary open pit for Sukhoi Log
A preliminary open-pit was developed for Sukhoi Log based on the resource model by AMC, which was used for Sukhoi Log resource estimation in 2017 The model consists of 50 m by 12.5 m by 10 m parent blocks for grade estimation The open pit overall wall slopes were determined to be 25° for the s