Polus · RUS:PLZL
Polus — Polyus — Investor Presentation (February 2022)
93 slides from Polus's investor presentation, February 2022
Slide 1: Corporate Presentation February 2022
Ss POLYUS CORPORATE PRESENTATION FEBRUARY 2022
Slide 2: Disclaimer
DISCLAIMER Ss PoLyus The information contained herein has been prepared using information available to PJSC Polyus at the time of prepara- tion 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 a
Slide 3: ve POLYUS
a, ve POLYUS
Slide 4: Assets
ASSETS Se PoLyus STRONG GROWTH ACROSS KEY METRICS SINCE 2013 LARGE-SCALE ASSETS SPREAD ACROSS SIBERIA AND THE FAR EAST TOTAL ROCK ORE MOVED, PROCESSED, ths n mt TOTAL GOLD OUTPUT), koz 4106% 4113% *65% 136,430 2,717 1,652 66,351 48 * | | 2021 2021 2021 41% — OLIMPIADA 19% —NATALKA 11% — VERNINSKOVE
Slide 5: Gold Major of Choice
GOLD MAJOR OF CHOICE Se PoLyus USUAL DISTINCTIVE FEATURES INDUSTRY LEADING ESG FOOTPRINT SUSTAINALYTICS SCORE: 25.1 (MEDIUM RISK] DELIVERY ON PROMISES 8 STRAIGHT YEARS OF EXCEEDING THE GUIDANCE TIER 1 ASSET BASE 104 MOZ OF P&P RESERVES TRACK RECORD OF OPERATIONAL ACHIEVEMENTS 65% GROWTH IN GOLD OUTP
Slide 6: Slide 6
Slide 7: Recent Highlights
RECENT HIGHLIGHTS Se PoLyus A ENVIRONMENTAL pons} SOCIAL fos GOVERNANCE 100% of consumed electricity covered by renewable sources from early 2021 (up from 36% in 2020) 93.47% of water recycled and reused (2020) $8.5 MLN Total environmental protection expenditure (2020) 18% reduction in carbon intens
Slide 8: ESG Dashboard
ESG DASHBOARD Sp PoLvus NEWS RATINGS AND ASSESSMENTS Y Polyus won Minex ESG award by Russian Mining Forum for the Water management ‘S) : S&P Global rAINALY MSCI conpaign SUSTAINALYTICS S&P Global OO 25.1 A 57 ¥ Polyus supported the publication of the ICMM's Russian guidance on handling and resolving
Slide 9: Climate Change Water
Climate Water Climate Water Change Management Change Management Climate Water Change Management
Slide 10: ESG Ratings: Guidance for Future
ESG RATINGS: ..AND SERVING AS GUIDANCE FOR FUTURE e PoLvus Polyus uses ESG ratings as a source of feedback and as an instrument of prioritizing areas of further development S&P Global 79 I 50 57 I 36 I I I I ul aussia aussia PoLYUS Dus! AVERAGE AvenAGE Men avenage cunmen PATING ‘S) SUSTAINALYTICS (l
Slide 11: Climate Change: Our Response
CLIMATE CHANGE: OUR RESPONSE Ss PoLyus RISK ASSESSMENT CLIMATE STRATEGY Pilot climate risk assessment project completed in 2020, expanded in 2021 Mapping of climate risks ln Scenario analysis “= and capacity building eC) Quantitative risk analysis To create a framework to reduce Polyus’ carbon footp
Slide 12: Climate Change: Switching to Hydropower
CLIMATE CHANGE: SWITCHING TO HYDROPOWER Se PoLvuS SHARE OF RENEWABLE ENERGY IN THE ELECTRICITY SUPPLY OF POLYUS PRODUCTION ASSETS Increase in share of renewable energy follows major agreements with RusHydro (largest HPP 100% operator in Russia) and is a key part of the Company's de-carbonization eff
Slide 13: Water Management
WATER MANAGEMENT Sp PoLyus Responsible water managements an essential aspect of Polyus’ environmentalperformance. {\iin'2024) Polyus became the firstmajor Russian|company topublishits) || >| Water Report | ‘OUR KEY GoaLs INCREASING THE EFFICIENCY REDUCING THE VOLUME INCREASING THE SHARE OF QUARRY OF
Slide 14: COVID-19: Our Response
COVID-19: OUR RESPONSE POLYUS a KEEPING EMPLOYEES SAFE All operating assets sufficiently equipped with protection devices and sanitizers Daily medical checks and disinfection at all business units and offices SUPPORTING LOCAL COMMUNITIES RUB 1 bin fund established in a partnership with the Far East
Slide 15: Board of Directors & Shareholder Structure
BOARD OF DIRECTORS & SHAREHOLDER STRUCTURE = PoLvus INDEPENDENT DIRECTORS INDEPENDENT DIRECTORS’ PROFESSIONAL EXPERIENCE MARIA GORDON Senior Independent Director, Chairman of Nomination & Remuneration Committee SENIOR INDEPENDENT DIRECTOR EDWARD DOWLING Chairman of the Board & Strategy Committee CHA
Slide 16: Historical & Recent Results
HISTORICAL & RECENT RESULTS
Slide 17: Historical Performance vs Guidance
HISTORICAL PERFORMANCE VS GUIDANCE Se PoLvus Initial Revised Actual Initial Revised Actual PRODUCTION — guidance Mil guidance ‘ll — production tcc! guidance Mll—guidance Ml— Tec - ea eS - Difference to initial guidance < 450 < 450 450 5% | [6%] <425 425 425 4 6501220.1,696 2014 2015 2016 2017 2018 2
Slide 18: Production Delivery and Guidance
PRODUCTION DELIVERY AND GUIDANCE? e PoLvus Actual number —x Guidance FY 2020 FY 2021 FY 2022 FY 2023 GOLD PRODUCTION Tcc! CAPEX' O duane" © GuibANcE © GutoaNce ca.2.8 moz $ 375-425 /oz $ 700-750 min IN LINE WITH GUIDANCE REVISED INITIAL: $ 400-450/oz $ 425-450 /oz $ 425-450 /oz $ 400-450 /oz $ 1,000
Slide 19: FY 2021 Operational Snapshot
FY 2021 OPERATIONAL SNAPSHOT Ss PoLyus ROCK MOVED ORE MINED ORE PROCESSED RECOVERY VOLUMES, VOLUMES, VOLUMES, RATE, ths m: k kt % 136,430 67,321 47,895 82.7 410% Y-0-V 5% Y-O-Y A 6% V-0-V 1.1 PPTS Driven by lower volumes of ore Driven by throughput capacity mined at Olimpiada, Natalka and expansion
Slide 20: 3Q 2021 Financial Snapshot
3Q 2021 FINANCIAL SNAPSHOT POLYUS REVENUE, $min CAPEX, $min FREE CASH FLOW' $min 1,400 412% a Attributable to: + seasonally higher production volumes at Alluvials + increased refined gold production volumes ‘O-Q across almost all hard-rock deposits EBITDA BREAKDOWN 9% Q-0-Q Reflecting: seasonal incr
Slide 21: Polyus
POLYUS
Slide 22: JORC Update: Leading Reserve Base
JORC UPDATE: LEADING RESERVE BASE = PoLvus 2020 RESERVE UPDATE HIGHLIGHTS =< & Polyus now is the largest gold company globally in terms of gold reserves Key drivers of a y-o-y increase in Ore Reserves: @ The addition of a maiden Ore Reserve estimate of 40 moz for Sukhoi Log. @ Additions at operating
Slide 23: Reserves: Polyus vs. Peers
RESERVES: POLYUS VS. PEERS Je PoLvus THE LARGEST «WHICH TRANSLATES INTO RESERVE BASE... THE HIGHEST LOM? AVERAGE GRADE, yest —— PoLyus? Bi 49 PoLyus? 338 NEWMONT 4.0 HARMONY [i 27 BARRICK NT NEWCREST [ 23 NEWcREST 98 : GOLD FELDS | 23 GOLD FIELDS —_______|_ __ig HARMONY {67 POLYMETAL | 18. KINROSS o
Slide 24: Drilling Programme Across the Group
DRILLING PROGRAMME ACROSS THE GROUP Je Potvus CAPEX FOR DRILLING AND EXPLORATION PROGRAMMES 2018 2019 DRILLING — Sukhoi Log — 418 — 329 — Other assets 4 ~ At average FY21 RUB/USD FX rate of 73,52, — 2 At RUB/USD FX rate of 65 24
Slide 25: Reserves: Polyus Mines vs. Benchmarks
RESERVES: POLYUS MINES VS. BENCHMARKS! P&P RESERVES, LOM, GRADE IN PGP | 2020 GOLD PRODUCTION, 2020 TCC, MOZ YEARS RESERVES, G/TONNE | KOZ — $102 NEVADA OPERATIONS 452 BO TANAMI 5.1. | NEVADA OPERATIONS 3,467 | OLIMPIADA, OLIMPIADA 1900 LOULO 43 i ‘OLIMPIADA | BLAGODATNOVE LIKI 280 KIBALI 38 : PUEBL
Slide 26: Production Guidance 2021-2023
PRODUCTION GUIDANCE 2021-2023 = PoLvus ACTUAL PRODUCTION VS GUIDANCE moz Guidance Actual Production 2021 2022 2023 * Temporary grades decline at + Partial recovery of grades * Further grades recovery at Olimpiada at Olimpiada Olimpiada * Throughput capacity expansion * Throughput capacity + Partial
Slide 27: Bringing Profitable Ounces Online
BRINGING PROFITABLE OUNCES ONLINE Se Potyus ORE PROCESSED mt Wesninsxow’ PRODUCTION koz ree * 22 NEXT STEPS: New Expansion to — 15.0 mtpa Completion in —— Mid-2022 17.0 mtpa 2025 869 327 3.5 mtpa Csseac New 7.5 mtpa 2024
Slide 28: Polyus' Project Pipeline
POLYUS’ PROJECT PIPELINE Status: HE completed HE ongoing 2015 2016 2017 2018 2019 2020 2024 2022 OLIMPIADA BLAGODATNOYE KURANAKH VERNINSKOVE NATALKA SUKHOI LOG Mill-1 reconfiguration +CA. 220 koz +CA. 20 koz Bio-4 construction Antimony project’ Bio units modernization Mills expansion to 13.4 mtpa Mi
Slide 29: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Je PoLvus INVESTMENT CRITERIA IN GOLD INDUSTRY IRR, % | eee : PREVIOUS ASSUMPTIONS CURRENT ASSUMPTIONS . {MID 2015 - NOVEMBER 2020 SINCE NOVEMBER 2020 POLVUS APPLIES | ,1O50 THE INDUSTRV-LEADING | $e “ IRR CRITERIA aa ' M20 a an 60 Rub /USD ¢—_. NEWMONT / BARRICK / ANGLO
Slide 30: Olimpiada: Expansion to 15.0 mtpa
OLIMPIADA: EXPANSION TO 15.0 MTPA HIGHLIGHTS. Cc DEBOTTLENECKING INITIATIVES ON EXISTING FACILITIES AIMED a, = AT A FURTHER THROUGHPUT CAPACITIY INCREASE INCREMENTAL CAPEX EXPECTED OUNCES PA REQUIREMENTS COMPLETION PFS is completed, project is in the implementation phase ca 5O tor ca BBO nin nid Z2O
Slide 31: Olimpiada: Bio Upgrade, Concentrate Processing
OLIMPIADA: BIO UPGRADE. CONCENTRATE PROCESSING ve POLVUS TECHNOLOGICALLY UNIQUE 7) IMPROVED BLENDERS @ ADDITIONAL OXIDATION CIRCUIT FULLY AUTOMATED BY THROUGHPUT TOTAL VOLUME Ne 2 in the world 4 Vs. m3 BIO UPGRADE STRATEGIC PROGRAM 1n2018, BIO-4 equipped with 8 modernized bio-units was successfully
Slide 32: Blagodatnoye: Mill Expansion to 17.0 mtpa
BLAGODATNOYE: MILL EXPANSION TO 17.0 MTPA Jp PoLvus Mill-4 now FURTHER MILL EXPANSION operates on 2 Significant reserve base allows for further mill identical lines expansion to 17 mtpa via construction of Mill-S + in-pit crushing and conveying (IPCC) + filtration « thickening circuits + other infra
Slide 33: Blagodatnoye: Construction of Mill-5
BLAGODATNOYE: CONSTRUCTION OF MILL-5 ed Be a) Project's first ADDITIONAL INCREMENTAL EXPECTED S yoar avers 0 INVES MENT CAPACITIES OUNCES! LAUNCH 5-year average Project's first 5-year average tcc PROJECT 8.0 mtpa « B9O., 2025 3203: vocinclded nthe seal Investment Project (see slide 81 for more detai
Slide 34: Blagodatnoye: Key Economic Metrics of Mill-5 Project
BLAGODATNOYE: KEY ECONOMIC METRICS OF THE MILL-5 PROJECT Se POLyus CAPEX' CURRENT STATUS Completed —_Inprogress =< $S600.. including procurement of mining fleet DESIGN DOCUMENTATION PREPARATION CONTRACTORS’ SELECTION & Contractor selected INSTALLATION AND CONSTRUCTION WORKS, Concrete works Structura
Slide 35: General Layout of the Complex
GENERAL LAYOUT OF THE COMPLEX POLYUS Proposed layout allows to optimize earthworks across the mill site BLAGODATNOVE MILL EXPANSION TO 17 MTPA M Blagodatnoye (current layout) New Mill-5 facilities AN * Maximum synergy with the existing ’ CRUSHED ORE STOCKPILE Mill-4 facilities and utilities ‘ ‘ . IP
Slide 36: Verninskoye: Mill Expansion to 3.5 mtpa Completed
VERNINSKOYE: MILL EXPANSION TO 3.5 MTPA COMPLETED _ :«; powus AHEAD-OF-SCHEDULE CAPACITY GAIN 90.1% As a result of project initiatives 89.9% (primarily — introduction of an Recovery rate,% 89.6 soon additional reactivation kiln), recovery : rate at Verninskoye has reached the oo 25 noo copacty was r
Slide 37: Kuranakh: Mill Expansion to 7.5 mtpa
KURANAKH: MILL EXPANSION TO 7.5 MTPA Ss POLYUS PROJECT PROCESSING RATE HIGHLIGHTS Throughput, Mt Expansion projects, Stages 1-3 Having completed 3 stages of plant capacity expansion, Polyus decided to proceed with a fourth stage aimed at increasing throughput from current 6.1 to7.5 mtpa 3.9 4.2 2015
Slide 38: Natalka: Debottlenecking
NATALKA: DEBOTTLENECKING Se Potvus HAVING COMPLETED MILL'S RAMP UP AND REACHED ANNUALIZED NAMEPLATE CAPACITY OF 1OMTPA IN 2018, POLYUS STARTED TO REVIEW DEBOTTLENECHING OPTIONS HIGHLIGHTS Over the course of 2019, Polyus’ technical team completed a set of operational initiatives which allowed to proc
Slide 39: Natalka: Flash Flotation
NATALKA;: FLASH FLOTATION DESIGN FLOW According to the initial design, flash flotation Saas OO Ree ae Following the flash flotation rollout, a set of initiatives aimed at improving mill throughput Part a —> ae A was implemented * Among others, there were adjustments of a!) —_ the SAG mill discharge
Slide 40: 2021 Capex Breakdown
2021 CAPEX BREAKDOWN e PoLvus KURANAKH = MAINTENANCE SUKHOI LOG BLAGODATNOYE $40-6Omin — $30°40min FOREX 3 45-6Omn ps — $ 135-160mIn Fs Cyclical increase Reconstruction —_ in spending $ 77 min $730 min Completion of of tailings on mining fleet $653 min Yd Y, the major part _—_storage facility mainte
Slide 41: Capex Guidance 2021-2023
CAPEX GUIDANCE 2021-2023 CAPEX GUIDANCE! $bn Stay-in-business CAPEX @ ~$450-500 min 2021F 2022F POLYUS KEY GROWTH PROJECT IcoNSTRUCTION CAPEX) MILL-5 SUKHOI LOG CAPEX $600 mIn3 $3.3 bIn4 200-300 min REFLECTED IN yA bac start of internal GUIDANCE infrastructure 4 ~CAPEX guidance based on 2 ~ ackition
Slide 42: Operational Efficiency
ve POLYUS OPERATIONAL EFFICIENCY 22S
Slide 43: Increasing Rock Moved Volumes Across the Group
INCREASING ROCK MOVED VOLUMES ACROSS THE GROUP vs PoLvus ROCK MOVED VOLUMES " OLIMPIADA BLAGODATNOYE VERNINSKOYE KURANAKH NATALKA 50,245 ars 25,052 28,119 27,733 2013-2024 2013-2024 ROCK HAULING AND SHOVEL LOAD AT KRASNOYARSK ASSETS TRUCKS SIZE: 37% ii 5% fF 19% Tet 34% | 51% 62% SHARE IN ROCK aim 5
Slide 44: 1,500 160.0 160.0 160.0 1400 2.0140.0 140.0 140.0 1,000 160.0 1.80 120.0 120.0 900
1,500 160.0 160.0 160.0 1400 2.0140.0 140.0 140.0 1,000 160.0 1.80 120.0 120.0 900 120.0 140.0 1.60 500 120.0 100.0 1.40 100.0 100.0 100.0 1.20 0 80.0 40080.0 80.0 80.0 1.0 .80 60.0 60.0 60.0 -500 60.0 .60 40.0 40.0 40.0 40.0 -100 .40 -1,000 20.0 .20 20.0 20.0 20.0 0.0 .0 0.0 -6000.0 0.0 -1,500 160.
Slide 45: Flash Flotation
FLASH FLOTATION Ss PoLyus TECHNOLOGY Flash flotation is the unit operation A flash flotation cell recovers liberated designed to reduce overgrinding by valuable minerals in the cyclone removing fine particles from underflow (recirculating load) before classification cyclone underflow they returned t
Slide 46: Spending on Business Transformation and IT Projects
SPENDING ON BUSINESS TRANSFORMATION AND IT PROJECTS. »%; potvus 2020! $ 4 Bain BUSINESS AREAS 2021F? s TQmin erp TT infrastructure Equipment and software for workstations Other $31 min $19 min $10 min $11 min ae 3) fe Production and Finance Capital construction Digitalization * Accounting & IFRS * C
Slide 47: Wireless Broadband Roll-out
WIRELESS BROADBAND ROLL-OUT Ss PoLyus BASE STATION. “ Polyus is establishing wireless communication infrastructure at Olimpia- da, Natalka and Kuranakh to enable reliable data transfer from operating vehicles to the dispatch management system in control rooms. Bandwidth of 2.9 Mbps per device provid
Slide 48: IT-Infrastructure: Digital Pit
IT-INFRASTRUCTURE: DIGITAL PIT Se PoLyus AERIAL DRONES REMOTE CONTROL MINING EQUIPMENT Drone applications include: Remote control mining equipment allows to enhance safety of Polyus operations S Aerial surveying & 3D mapping sq) Drill & blast 7 & REMOTE CONTROL * CENTER Infrastructure inspection De
Slide 49: ve PoLvus
a, ve PoLvus
Slide 50: Asset Overview
ASSET OVERVIEW Sp PoLvus « gti {co3 200] BY JORC RESERVES ss ( SUKHOILOG "Verninskoye } Ne T sovaliy i potkin © Yakutsk : x = : Bodaybo © Sukhoi Log Ust-Kut 9 bTaksimo ‘OSeverobaykalsk a 145 tn J JORC P&P RESERVES 40 wrt 203 et POSSIBLE LOGISTIC ROUTES FOR CARGO DELIVERY ee © Taksimo — Bodaybo —Sukh
Slide 51: Sukhoi Log Consolidation
SUKHOI LOG CONSOLIDATION Je PoLvus 2016-2017 2017-2020 2020 In 2016, Polyus and ‘Rostec Business Polyus entered into a number of cash In September 2020, Polyus Development’ ("RT") established SL Gold and equity option agreements with RT exercised its right to accelerate in order to participate in th
Slide 52: Sukhoi Log vs Other Greenfields
SUKHOI LOG VS OTHER GREENFIELDS\... Ss PoLyus SUKHOI LOG IS THE LARGEST GREENFIELD ASSET IN TERMS OF GOLD RESERVES... «WITH STRONG PRODUCTION PROFILE, LONG LIFE OF MINE AND ONE OF THE HIGHEST GRADES GLOBALLY P&P AVERAGE LOM ANNUAL RESERVES PRODUCTION Lom Moz Moz Years® 10 7 Roca, core SUKHoILoc |= 4
Slide 53: Sukhoi Log vs Currently Operating Gold Mines
SUKHOI LOG VS CURRENTLY OPERATING GOLD MINES' SUKHOI LOG’S RESERVE BASE IS ONE OF THE LARGEST AMONG BOTH UNDER- GROUND AND OPEN PIT OPERATIONS SUKHOI LOG POSSESSES LEADING ANNUAL PRODUCTION CAPACITY ALONG WITH HIGH GRADE IN RESERVES e PoLvus P&P AVERAGE LOM ANNUAL GRADE IN P&P RESERVES PRODUCTION LO
Slide 54: Progress on Sukhoi Log
PROGRESS ON SUKHOI LOG Ss PoLyus Sukhoi Log vs other greenfields of comparable scale SUKHOI LOG POLYUS sistent progress ey project milestones NORTE ABIERTO BARRICK / NEWMONT Focus of JV mem s projects. No clarity development of the project DONLIN GOLD BARRICK / NOVAGOLD Prolonged period of receipt o
Slide 55: Drilling Programme at Sukhoi Log (2017-2020)
DRILLING PROGRAMME AT SUKHOI LOG (2017-2020)... vs PoLvus COMPLETED DRILLING PROGRAMME IN 2017-2019 Combined with 324 km of historical drilling (1961-1999), total drilling at Sukhoi Log amounted to ca. 546 km. = q (23) @ Hydrogeology so1000 TOTAL DRILLING DRILLING PROGRAMME 7.5 km AT SUKHOI LOG IN 2
Slide 56: And Continued Exploration (2021 & Onwards)
eeAND CONTINUED EXPLORATION (2021 & ONWARDS) Ss PoLyus POLYUS PROGRESSES WITH ITS DEEP-LEVEL AND FLANK EXPLORATION DRILLING CAMPAIGN scnine the 2017-2010 exploation 38.2 KM 76.7 KM drilling campaign it became evident that the orebody extends below of deep-level / flank drilling of core drilling at S
Slide 57: MI&I Resources and P&P Reserves Estimates
MI&I RESOURCES AND P&P RESERVES ESTIMATES vs PoLvus MI&I RESOURCES 2017 2020 TONNES Grape TONNES Grape 887. 2.03. BBN ino. i9,. E70 Indicated 668 mt 2.1g/t AG moz Inferred 44imt 1.5 g/t 21moz 101 Inferred 69% Indicated 1% Inferred P&P RESERVES 2017 2020 TONNES Grape No data 540 mt 2.3 g/t Bm 100% Pr
Slide 58: Mining Equipment
MINING EQUIPMENT Ss PoLyus 50 M? NOMINAL PAYLOAD SHOVELS Available from all major suppliers (P&H (Komatsu), WK and CAT) 4 rope shovels cost-efficient and reliable for 15 m benches hydraulic excavators The PFS confirms that the characteristics of Sukhoi Log's ore distribution favors the selection of
Slide 59: Processing Flowsheet Design
PROCESSING FLOWSHEET DESIGN Ss PoLyus CONVENTIONAL GRAVITY - FLOTATION SCHEME average annual throughput capacity 92. average recovery rate 2.3 «x average grade in ore processed (P&P reserves) 2.3 1: average annual gold production, LOM JORC
Slide 60: Process Plant Design
PROCESS PLANT DESIGN Ss PoLvus 3D PROCESS PLANT MODEL
Slide 61: Comminution Scheme
Ss PoLyus COMMINUTION SCHEME NoMINaL. eee 33.2 mtpa PRIMARY CRUSHING SECONDARY CRUSHING The PFS assumed the application of gyratory A conventional Semi-Autogenious Ball Pebble-Crusher scheme was selected for the PFS based on the hardness of the ore and the availability and relative crushing based on
Slide 62: Gold Extraction
GOLD EXTRACTION Ss PoLyus SUKHO!I LOG FLOWSHEET INCLUDES BEST-IN-CLASS TECHNOLOGIES! FOR PROCESSING THIS TYPE OF ORE GRAVITY AND FLASH FLOTATION CONCENTRATORS x24 Significant, but not excessive presence of gravity-recoverable gold FLASH FLOTATION UNITS x 8 flash flotation units installed in 2017-202
Slide 63: Sukhoi Log Site at Scale
SUKHOI LOG SITE AT SCALE Je Potvus
Slide 64: Recovery Estimate Based on Testwork Programme
RECOVERY ESTIMATE BASED ON TESTWORK PROGRAMME _ *; po.vus @ The samples for testwork originated from contiguous drill core samples to specifically cover as much of the entire ore body as possible and include the expected range of grades the processing plant would see, with a focus on better coverage
Slide 65: Key Project Economic Metrics
KEY PROJECT ECONOMIC METRICS Sp PoLvus BASED ON NOV-20 PRE-FEASIBILITY STUDY! PRELIMINARY GOLD PRODUCTION PROFILE Gracie nore MINING RATE AVG. WASTE- BASE THROUGH- processed, (AT PEAK) TO-ORE RATIO PUT CAPACITY g/t 2.3 a a 168 mtpa 3.257 ut 33.2 mtpa Average first 10y Production 5 2.3 23 23 23 23 23
Slide 66: Capital Costs Breakdown
CAPITAL COSTS BREAKDOWN Estimated Initial Construction CAPEX stands at $3.3 bln CAPEX is estimated with Pre-Feasibility Study Class 4 estimate with the level of accuracy +/-20% PROJECT INITIAL CONSTRUCTION CAPEX Capital costs are in real as of the end of 2019 USD terms, CAPEX COMPONENTS, $bin CONTIN
Slide 67: Capex: Estimate Evolution
CAPEX: ESTIMATE EVOLUTION Ss PoLyus FROM SCOPING STUDY TO PRE-FEASIBILITY MINING CAPACITY O.2bIn Throughput capacity increase from 30 to 33.2 mtpa $2.3bIn Higher mining equipment CAPEX due to a comprehen- sive update of the mining plan with a focus on optimising mining and stripping volumes to ensur
Slide 68: Sukhoi Log Capex Intensity
SUKHOI LOG CAPE INTENSITY' Ss PoLyus based on Pre-Feasibility estimate of capital expenditures, Sukhoi Log ranks favourably in CAPEX intensity and life of mine compared to other greenfield projects TERMS OF LIFE OF MINE, ___ Bubble size represents LoM production YEARS 60 Ksm NEW PROSPERITY 40 FRIEDA
Slide 69: PFS Estimates
PFS ESTIMATES THROUGHPUT CAPACITY RECOVERY TCC INITIAL CONSTRUCTION CAPEX AVERAGE ANNUAL GOLD PRODUCTION, LOM 33.2 sen 92. :390.. s Seon 2.3 woz
Slide 70: Off-site Infrastructure Overview
OFF-SITE INFRASTRUCTURE OVERVIEW Ss POLYUS POWER GRID Existing electricity facilities (~3 MW) enable Polyus to launch the construction at Sukhoi Log To cover operational power needs (~229 MW) Polyus has already signed an agreement with Federa Grid Company (FGC) for technologi- cal connection of Sukh
Slide 71: Developing Power Grids
DEVELOPING POWER GRIDS Sp PoLvus Since 2015, Polyus has been developing power infrastructure in its regions of presence to gain access to renewable electricity r PELEDUY - Ust-Omchug - OS MAMAKAN Omchak RAZDOLINSKAYA - TAIGA CAPEX $60 APEX cA. MLN. c LN CAPEX FINANCING ° Bought out by the FGC in Pe
Slide 72: Sukhoi Log Power Supply Chain
SUKHOI LOG POWER SUPPLY CHAIN Ss PoLyus POWER SUPPLY INFRASTRUCTURE REQUIREMENTS GENERATION SCOPE Ust-llimskaya Hydro Power Plant Ust-Ilimskaya Hydro Power Plant (CURRENT STATUS Constructed SUKHOI LOG Verninskoye Rad Peleduy Rin, " d ae O&odaybo : C e “Novaya Chara Severobaykalsk ™ LONG-DISTANCE GRI
Slide 73: Update Project Timeline
UPDATE PROJECT TIMELINE Sp PoLvus 2017 2018 2019 2020 2021 | pon 2023 2024 2025 2026 2027 ENGINEERING Initiation ---- Scoping study Pre-feasibility - Feasibility study Investment decision Project Design Documentation Regulatory procedures, GGE Plant construction permit | ----------------------------
Slide 74: Plans for 2022
PLANS FOR 2022 2018 2019 2020 2021 2023 2024 2027 ENGINEERING RR EXPLORATION “a CONSTRUCTION QP > Completion of the Bankable Feasibility Study > Completion of comprehensive engineering surveys according to GOST > Finalization of design documentation for the flotation TSF and mine infrastructure faci
Slide 75: Polyus
POLYUS
Slide 76: Key Financial Figures & Benchmarking
KEY FINANCIAL FIGURES & BENCHMARKING Se PoLyus EBITDA ADJUSTED TOTAL CASH COSTS ~ +7 pots] MARGIN 3,690 2,680 hese ‘702 1865 soso (Nel8 NET DEBT / EBITDA ADJUSTED, x? 242%) 24 2.0 20 a2 ow 07 07 $/oz ¢ 38% 585 | 424-389-364 34g.si3865sB 2020 CAPEX $m [+47] 804 736 525 466 630 653 a | | 2020 FCF' 2,0
Slide 77: % % 600 600 400 400 200 200 0 0
% % 160 0 160 0 140 0 140 0 120 0 120 0 100 0 100 0 800 800 600 600 400 400 200 200 0 0
Slide 78: Total Cash Cost Performance
TOTAL CASH COST PERFORMANCE Se PoLyus CASH OPERATING COSTS STRUCTURE, FY 2020 USD SHARE IN TCC, FY 2020 2021E Most of the costs are RUB-denominated @—uso — RUB $14230mnin som 20% Excluding MET Excluding MET sper costs are ~30% denominated Including MET ~35% Including MET LABOUR Split roughly equally
Slide 79: Cost Guidance 2021-2023
COST GUIDANCE 2021-2023! Ss PoLyus $/oz 4 —TCC guidance based on assumptions FX 65 rub and a gold price of $1,300/oz in real 2024 US dollars GUIDANCE HIGHLIGHTS A gradual increase in TCC from 2020 levels, driven by: > inflationary factors; > a temporary reduction of head grades at Olimpiada; » adecr
Slide 80: Key Cost Components Inflation
KEY COST COMPONENTS INFLATION POLYUS CPI IN RUSSIA PRICE DASHBOARD - GROWTH ACROSS KEY CONSUMABLES AND SPARES* +119% According to CBR target, +66% inflation in Russia is expected 90% +50% to be in a range of 4.0-4.5% by | | som the end of 2022 10% -30% -70% 1019 2419 3019 4a1e 1020 262030204020 1021
Slide 81: Regional Investment Project
REGIONAL INVESTMENT PROJECT Sp PoLvus Regional Investment Project is a special tax regime, which allows for tax benefits for the projects in the Far Eastern region of Russia. The tax regime provides for lower mineral extraction tax rate (MET) and profit tax rate for the projects. TAX RATES FOR RIP M
Slide 82: Focus on Shareholder Returns
FOCUS-ON SHAREHOLDER Sregeseooosscecs 1s te = ETU PR N Ss vOROeeeneeseeasee: | . s ane f wi a eeeeneees ‘3 Wir NN
Slide 83: Free Cash Flow & Dividends
FREE CASH FLOW & DIVIDENDS Ss PoLyus POLYUS DIVIDEND PAYOUT VS FREE CASH FLOW $min Dividends Levered FCF 755 709 693 563 462 440 410 340) 296 331342 239 - L Li FY 2016 4H 2017 2H 2017 4H 2018 2H 2018 4H 2019 2H 2019 4H 2020 2H 2020 H ' | Target average Net Debt/ EBITDA at 1.0-2.0x throughout the cyc
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