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: 1Q 2018 Trading Update, Convertible Bond buy-back
1Q 2018 Trading Update 1Q 2018 Financial Results Sukhoi Log verification drilling Convertible Bond buy-back Update on Natalka ramp-up and Scoping Study results $132 mln Eurobonds buy- 2Q 2018Trading Update 2Q 2018 Financial results back 9
Slide 10: Total gold output increased 19% compared to the previous quarter
2Q'18 1Q'18 Q-o-Q 2Q'17 Y-o-Y 1H’18 1H’17 Y-o-Y Olimpiada 276.0 213.1 30% 226.2 22% 489.1 445.3 10% Blagodatnoye 102.0 91.4 12% 105.8 -4% 193.4 214.0 -10% Verninskoye 53.3 58.6 -9% 53.3 0% 111.9 107.0 5% Alluvials 23.7 - n.a. 30.9 -23% 23.7 30.9 -23% Kuranakh 44.1 46.5 -5% 38.7 14% 90.6 79.7 14% Nat
Slide 11: Quarterly trends
475 465 457 379 387 379 380 383 324 345 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 181 1.9 1.9 1.8 1.8 1.8 149 165 98 70 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 Source: Company data 1 calculated on unlevered basis 11
Slide 12: Repurchase of notes
Polyus conducted repurchase of 2020, 2022, 2023 and 2024 notes in aggregate principal amount of $132 mln, taking into account heightened market volatility and 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 Ang
Slide 15: 100% open-pit operator with grades typical for underground
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 and assets versus peers
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: Actual production and guidance
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: Recovery rates and mill throughput
1,311 1,077 1,017 1,029 1,3 50 1,241 1,255 110 .0 1,1 00 964 939 1,3 00 1,213 1,218 1,0 00 110 .0 853 855 1,2 50 100 .0 100 .0 1,122 1,2 00 900 90. 0 1,1 50 1,066 800 90. 0 1,1 00 88.2 88.0 87.9 88.0 87.8 87.2 87.3 700 80. 0 80. 0 81.0 80.7 1,0 50 80.1 80.0 79.0 600 1,0 00 73.6 75.9 70. 0 500 70. 0
Slide 21: Value accretive growth: project pipeline evolution
VALUE ACCRETIVE GROWTH PROJECT PIPELINE EVOLUTION 2015 ! 2016 | 2017 2018! | 2019 | 2020 1 os ck OLIMPIADA MILL-1 ‘EE ANTIMONY (pate RECONFIGURATION, °<7) PROJECT Oe I ! BIO-4 AT OLIMPIADA COMPLEX KRASNOVYARSK BUSINESS UNIT OLIMPIADA MILLS <> EXPANSION BLAGODATNOYE MILL (Pe BLAGODATNOVE MILL i EXPAN
Slide 22: Focus on low-risk high-return projects
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 small scale project
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: Natalka Update
5. NATALKA UPDATE —_ | | POLYUS
Slide 25: Natalka mining activity
Mining activity restarted in early 2017. In 2Q 2018, volumes of rock moved totaled 9,828 kt, while volumes of ore mined amounted to 1,436 kt. Average grades in ore mined were 0.98 g/t, as mining works were concentrated on lower grade zones of the ore body, in line with the mine plan. During
Slide 26: Natalka capacity utilisation and construction
Natalka is currently operation at above 90% of its design capacity of 10 mt on an annualised basis. Mining fleet procurement is ongoing with nine dump trucks delivered on site in the reporting period. The construction works at the Natalka Mill’s auxiliary and infrastructure facilities are in p
Slide 27: Natalka cost forecast
Natalka is likely to become the highest cost asset of the group ex. Alluvials, with forecast TCC of $550- 1.74x 600/oz1 1.23x Higher TCC is explained by relatively lower grades and 1.08x 1.01x 1.0x recovery rate as well as higher cost of inputs Natalka Kuranakh Verninskoye Olimpiada Blagodatnoye
Slide 28: Power grid and mining 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 29: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 30: Sukhoi Log: large undeveloped gold deposit
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 31: Sukhoi Log versus global deposits
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 32: 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 33: Potential processing schemes
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 34: Scoping study estimates
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 35: Drilling stages and purpose
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 36: Sukhoi Log study 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 37: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 38: Costs and EBITDA margin versus 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 39: Lowest cost producer among top-10 gold miners
PROJECTS UPDATE Natalka: Production Profile Overview The lowest cost producer among top-10 gold mining companies globally TCC and AISC in 1 decile of global cost curves 110% Polyus outperformed other Russian gold 100% producers in TCC reduction due to: 90% 87% Implementation of cost-cutting
Slide 40: Total Optimisation Programme
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 41: 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, $/t FOB Black Sea consumables will g
Slide 42: Key financial and operating results 2Q 2018
Gold production (doré) (koz) 628 539 16% 532 18% 1,166 971 20% Gold production (refined) (koz) 602 507 19% 488 23% 1,109 938 18% Average realised refined gold price excl. SPPP ($/oz) 1,300 1,336 (3%) 1,261 3% 1,317 1,239 6% Average realised refined gold price incl. SPPP) ($/oz) 1,300 1,336 (3%) 1,26
Slide 43: TCC structure
Outsourced Other Consumables 500 below 450 below 450 mining services 8% below 425 and spares 450 1% 27% 400 364 MET 350 19% 300 250 200 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 43
Slide 44: Focus on Shareholder Returns
8. FOCUS ON SHAREHOLDER RETURNS
Slide 45: Dividend policy
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 46: Debt Management
9. DEBT MANAGEMENT —_ | | POLYUS
Slide 47: Convertible repurchase and new credit facilities
On April 12-13, Polyus conducted repurchase of convertibles for $50 mln nominal or 20% of the total issue, taking into account significant market dislocation. 1,250 1,177 • J.P. Morgan Securities acted as dealer manager 1,000 • The convertibles were repurchased at 86.7% for a 2 772 total considera
Slide 48: Debt structure
As of 31 Mar 2018 As of 30 Jun 20181 Bank loans Eurobonds Bank loans Eurobonds 28% 61% 28% 62% $4,174 mln $4,116 mln Convertibles Convertibles 5% 4% RUB bonds RUB bonds 6% 6% 72% 28% 72% 28% Public debt Private debt Public debt Private debt Floating rate Floating rate 4% 2% $4,174 mln $4,116 mln Fix
Slide 49: Guidance Overview
GUIDANCE OVERVIEW —_ | | POLYUS
Slide 50: Guidance overview
GUIDANCE OVERVIEW 2017 2018F 2019F 2020F GOLD PRODUCTION, MOZ 2.16 2.375-2.425 2.8 2.8 BELOW 425 BELOW 450 BELOW 450 TCC, $/OZ 364 CAPEX, SMLN 804 i 850 650 550 2017 ... 2020 | { 1H 2018 PERFORMANCE IN LINE WITH GUIDANCE || | PRODUCTION GROWING 30% | H17_ | HIB | v-o-v,% | toe VO Biss q | GOLD PRODU
Slide 51: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 52: 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 53: Credit ratings
Jun-2016 Dec-2016 Jun-2017 Dec-2017 Mar-2018 BBB- Fitch RatinSovereign Negative Fitch Ratin Sovereign Stable Fitch Ratin Sovereign Stable Fitch Ratin Sovereign Positive S&P Globa Sovereign Stable /Baa3 Fitch Ratin Sovereign Positive BB+ S&P GlobaSovereign Negative S&P Globa Sovereign Stable S&P Glob
Slide 54: Mining fleet upgrade
Two new TYHI WK-20 shovels with 20 m3 34 load, have been introduced at KBU in 2017 and another four WK-35 are being 18 introduced in 2018, gradually replacing 11 8 11 small-scale OMZ EKG-10 with 10 m3 load 5 5 4 6 2 and decreasing unit loading cost – more details on the next slide 1H17 2H17 1H18 2
Slide 55: Process improvement 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 56: Infrastructure and consumables optimisation
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 57: 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 58: 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 59: 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 60: 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 61: 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 62: Olimpiada modernization 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 63: Blagodatnoye mill expansion
Blasting and Crushing: Reconfiguration and increase of availability of existing Blagodatnoye Mill operated at above 8.1 mtpa in 2017 with 457 koz produced equipment Ore feed optimization via Mine-to-Mill Gradual roll-out of the Mine-to-Mill from 2018 Grinding: 1 unit of Flash flotation
Slide 64: 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 65: 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 66: Antimony ore and combined flotation concentrate
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 67: Sukhoi Log mining scale and mineralization style
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 68: 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