Slide 1: aie ye —~
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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: 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 3 4 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: Production Profile Overview
PROJECTS UPDATE Natalka: Production Profile Overview 68 moz gold P&P Reserves (one of the largest globally) 190 moz gold MI&I Resources (one of the 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 Producti
Slide 6: Board of Directors: 9 members, including 4 independent
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: Member of the International Council on Mining and Metals
Since June 2015, Polyus has been Member of the Uralkali 0.08 International Council on Mining and Metals (ICMM) Rangold 0.09 Polyus 0.13 ICMM is an international organization dedicated to Polymetal 0.19 a safe, fair and sustainable mining industry Severstal 0.24 Rio Tinto 0.26 Bringing together
Slide 8: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 9: Recent events and upcoming news flow
Amendment to the Dividend Appointment of New Board Policy Members of Polyus FY 2017 Trading Update FY 2017 Financial Results First Doré gold poured at $250 mln Convertibles issue Natalka $500 mln Eurobonds issue Capital Markets Day: Production, Projects, Cost 1Q 2018 Trading Upda
Slide 10: Convertible and Eurobond issues
Strong investor demand with the book covered within The lowest-ever spread On April 12-13, Polyus 3 hours after launch ~4x oversubscription conducted repurchase of Priced: January 2018 Priced: January 2018 convertibles for $50 mln nominal or Size: $250 mln Size: $500 mln 20% of the t
Slide 11: 2017 quarterly financial results
475 465 380 379 380 383 379 324 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2017 2Q 2017 3Q 2017 4Q 2017 181 2.0 1.9 1.9 1.8 182 149 98 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Source: Company data 1 calculated on unlevered basis 2 ex. Sukhoi Log license acquisition costs 11
Slide 12: 1Q 2018 gold output
1Q'18 4Q'17 Q-o-Q 1Q'18 1Q'17 Y-o-Y Olimpiada 213.1 297.9 -28% 213.1 219.1 -3% Blagodatnoye 91.4 126.7 -28% 91.4 108.2 -16% Verninskoye 58.6 45.6 29% 58.6 53.7 9% Alluvials - 29.8 n/a - - n/a Kuranakh 46.5 48.4 -4% 46.5 41.0 13% Natalka 22.5 3.3 582% 22.5 - n/a Refined gold, koz 432.1 551.7 -22% 432
Slide 13: Leading Reserves and Resources Base
a ij a. 3. LEADING RESERVES AND | or RESOURCES BASE
Slide 14: Reserves and resources vs 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 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, 2017 highlights
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 Official production guidance 2,800 2,800 Platform for the next surpassed by 5% on average over development stage of the last 4 years the Company 2,425 First gold at Sukhoi Log expected at 2026 2,375 2,160 1,652 2013 … 2017 2018 2019 2020 … L
Slide 20: Mill recovery and throughput
1,241 1,255 1,029 1,017 1,3 00 1,213 1,218 110 .0 1,1 00 964 1,2 50 1,0 00 939 110 .0 1,2 00 1,122 100 .0 900 853 855 100 .0 1,1 50 1,1 00 1,066 90. 0 800 90. 0 88.2 88.0 87.9 88.0 87.8 87.2 700 80. 0 1,0 50 80. 0 80.1 81.0 80.7 80.0 600 75.9 1,0 00 70. 0 73.6 70. 0 500 950 60. 0 60. 0 400 900 300 5
Slide 21: Value accretive growth: brownfield project pipeline
VALUE ACCRETIVE GROWTH BROWNFIELD PROJECT PIPELINE EVOLUTION I 2016 | 2017 | 12018 ! 2015 OLIMPIADA MILL-1 CSE SS RECONFIGURATION BIO-4 AT OLIMPIADA COMPLEX KRASNOVYARSK BUSINESS UNIT OLIMPIADA MILLS EXPANSION BLAGODATNOVE MILL BD BLAGODATNOYE MILL EXPANSION (STAGE 1) EXPANSION (STAGE 2) KURANAHKH M
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: Capex guidance
Alluvials Sukhoi Log $20mln $30mln Verninskoye $40mln 850 804 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 $140mln Olimpiada (incl.Titimukhta) $200mln 35 850 150 75 30 40 610
Slide 24: Natalka Update
5. NATALKA UPDATE —_ | | POLYUS
Slide 25: Natalka mining activity
Mining activity restarted in early 2017 In 2017, volumes of rock moved totalled 21.8 mt, while the volumes of ore mined amounted to 2.9 mt Average grades in ore mined were 0.96 g/t in 2017, as mining works were concentrated on lower grade zones of the ore body according to the mine plan 6.77 6
Slide 26: Natalka processing ramp-up
The entire processing flow sheet is fully operational, including primary crushing, SAG and ball milling circuits, three stages of gravity separation, intensive cyanidation, CIL circuit, electrowinning and smelting facilities The construction works at auxiliary facilities are ongoing Natalka op
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: Natalka power grid and mining expansion
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: Sukhoi Log
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, 100 km 30 km JORC resources @ 2.0 g/t Zapadnoye Sukhoi Log Close proximity to other Polyus assets creates opportunities for: Optimisation of processing facilities and potential economies of
Slide 31: Sukhoi Log vs global deposits
Pebble 106 Olympic Dam 106 Grasberg 91 KSM 98 South Deep 63 Sukhoi Log 58 Sukhoi Log 58 Donlin 45 Lihir 52 Reko Diq 41 Mponeng 50 Snowfield 35 Muruntau 48 Cerro Casale 33 Olimpiada 44 La Colosa 28 Cadia East 35 Caspiche 25 Nevada Operations 34 Frieda River 20 Obuasi 34 31
Slide 32: 197,000 meter drilling campaign
In November 2017, the Group started a 197,000 meter drilling campaign, which is scheduled to last 2 years AMC Consultants has been engaged for supervising the drilling program and results review in compliance to JORC standards Two drilling contractors (local majors) were engaged for drilling p
Slide 33: Scoping study results
Preliminary Mill throughput capacity estimation: 30 mtpa Preliminary production volumes estimation: ca 1.6-1.7moz pa LoM Open-pit Scoping study resulted in 3 potential Tailing Storage Facility Mill processing schemes, which will be evaluated further at pre-feasibility and feasibility stages
Slide 34: Processing scheme options
Identical across the Variable across options Similar across the options: gravity, options: SAG mill, ball flotation, cyanidation, CIL, mill and pebble crusher electrowinning and smelting 1 ~10% concentration Gravity Pre- Еau=95% ~ 90% Key circuit is a 4-stage gravity pre-concentration 2 Bulk Sulphid
Slide 35: Sukhoi Log camp and core storage
SUKHOI LOG jee eee ee ee He Ke KK KK CORE STORAGE AND SAMPLING FACILITY Pm CONSTRUCTION OF CAMP SITE, INCLUDING CORE STORAGE AND SAMPLING FACILITIES, IS COMPLETED —_—e ee eee wee eee ee DORMS mii gy | Ss POLYUS «
Slide 36: Sukhoi Log work program
1 2 Engineering completed Mill launched 1 Exploration program 2 Metallurgical sampling Original geological data Pilot mining and verification and new data base processing development (Verninskoye processing plant as an option) Flowsheet parameters development 36
Slide 37: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 38: 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 39: Lowest cost producer among top-10
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% 84% 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: Cost inflation and consumables prices
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: TCC structure and outlook
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 42
Slide 43: Focus on Shareholder Returns
8. FOCUS ON SHAREHOLDER RETURNS
Slide 44: Dividend policy and net debt
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% 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% Net Debt/EBITDA < 2.5x 150 2.3% 4.0 0% 3.0 0% 100 If N
Slide 45: Debt Management
9. DEBT MANAGEMENT —_ | | POLYUS
Slide 46: Debt maturity schedule
In February 2017, Polyus priced $800 Maturity schedule as of 31 December 2016, $ mln mln Eurobond due 2023 @ 5.250% 1,748 In 2Q 2017, the proceeds combined with 937 956 777 571 cash on balance were spent on prepayment 32 21 of bank loans maturing in 2021-23 2017 2018 2019 2020 2021 2022 2023 I
Slide 47: Debt structure
As of 31 Dec 2016 As of 31 Mar 2018 Eurobonds Eurobonds Bank loans Bank loans 25% 61% 70% 28% Share of public $4,981 mln $4,174 mln debt increased RUB from 30% to 72% bonds Convertibles 5% 5% RUB bonds 6% 30% 70% 72% 29% Public debt Private debt Public debt Private debt Floating rate 4% Share of flo
Slide 48: Guidance Overview
GUIDANCE OVERVIEW —_ | | POLYUS
Slide 49: Guidance Overview
GUIDANCE OVERVIEW 2018 2019 2020 GOLD PRODUCTION, MOZ 2.375-2.425 2.8 2.8 TCC, $/OZ BELOW 425 BELOW 450 BELOW 450 CAPEX, SMLN 850 650 550 2017 ... 2020 psp SSS SSS 5 S555 SSS 5S S595 SS SS 59559555 5555555 a TCC REMAINING AT BELOW $450/0Z TERRITORY ! rrr 1 i} ! POLvUS | Lo. eo eee 49
Slide 50: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 51: 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 52: 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 53: Mining fleet renewal
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 54: Small-scale optimisation 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 55: Infrastructure and consumables procurement improvements
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 56: 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 57: 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 58: 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 59: Blagodatnoye column leaching tests
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 60: 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 61: Olimpiada mill 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 62: 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 63: 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 64: Antimony overview and applications
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 65: 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