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 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: Natalka: 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 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: 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 Capital Markets Day: Policy Production, Projects, Cost FY 2017 Trading Update FY 2017 Financial Results Guidance, Capex Update $250 mln Convertibles issue Ore Reserves and Mineral $500 mln Eurobonds issue Resources Update 1Q 2018 Trading Update 1Q 2018 F
Slide 10: Convertibles and Eurobonds issue
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: Quarterly results highlights
475 465 383 379 387 380 379 380 383 324 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 181 2.0 1.9 1.9 1.8 182 1.8 149 98 70 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 1Q 2017 2Q 2017 3Q 2017 4Q 2017 4Q 2017 Source: Company data 1 calculated on unlevered basis 11
Slide 12: 1Q18 operating results
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 versus 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: Open-pit operator with high reserve 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 and peer comparison
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 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: Recovery rates and mill 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: 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 small scale project
Slide 23: 2018 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 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 mill 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 position
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 infrastructure
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 overview
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 versus undeveloped deposits
Pebble (Northern Dynasty) 106 Sukhoi Log (Polyus) 1.6 KSM (Seabridge) 98 Donlin (Barrick/Novagold) 1.1 Sukhoi Log2 (Polyus) 58 Cerro Casale (Barrick/Goldcorp) 1.1 Donlin (Barrick/Novagold) 45 Snowfield (Pretium) 1.0 Reko Diq (Barrick/Antofagasta) 41 La Colosa (AngloGold) 0.9 Snowfield (Pretium) 35 C
Slide 32: Sukhoi Log versus global gold deposits
South Deep (Gold Fields) 66 Pueblo Viejo (Barrick/GoldCorp) 36 Muruntau (Navoi M&M) 2.6 Sukhoi Log (Polyus) 58 Sukhoi Log (Polyus) 35 Sukhoi Log (Polyus) 1.6 Lihir (Newcrest) 52 Cadia East (Newcrest) 30 Cortez (Barrick) 1.3 Mponeng (AngloGold) 50 Sukari (Centamin/Egyptian Mineral) 25 Olimpiada (Poly
Slide 33: Sukhoi Log drilling campaign
In November 2017, the Group started a 197,000 m drilling campaign scheduled to last 2 years Polyus has completed verification drilling. The assaying and interpretation is being finalized. Based on the currently available data, Polyus sees strong reconciliation of the results of verification dr
Slide 34: Sukhoi Log scoping study
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: Sukhoi Log mill throughput and production
Preliminary Mill throughput capacity estimation: 30 mtpa Preliminary production volumes estimation: ca 1.6 moz 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 Sco
Slide 36: Sukhoi Log processing flowsheet
Run-of-mine Crushing Milling (2 lines x 15 mtpa) Gold Extraction SAG mill Ball mill Gravity Flotation Cyanidation Carbon-in-leach Electrowinning Smelting pebble crusher (SABC) A B C Extensive pre-concentration ensures minimum Flash flotation is used to improve overall material feed (ca. 8.35% by wei
Slide 37: Sukhoi Log key parameters
Throughput capacity: 30 mtpa Avg. Waste-to-ore ratio: 2.2 t/t Resource (Inferred): 58 moz at 2.0 g/t Avg. Annual production: ~1.6 moz TCC ($/oz): 420-470 Project Construction Capex: $2.0 – 2.5 bln Capital intensity: $1.2 – $1.6/oz pa The estimates are at the scoping study level of ac
Slide 38: Sukhoi Log construction capex
Estimated construction capex is in the range of $2.0-2.5 bln Capex is estimated with scoping study level of accuracy Project construction capex is split into three main parts: Direct costs – the costs of all equipment and materials, Process Facilities together with construction and installat
Slide 39: Sukhoi Log drilling stages
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 40: Sukhoi Log pre-feasibility study path
Mineral resource Mineral reserve estimate estimate Standard set of tests (SAG-design/SPI, E-GRG, flotation, cyanidation) using multiple drilling samples 1 Engineering completed Investment Decision June 2018 Mill launch Key pre-feasibility study sections are: 1 1. Detailed open pit design and m
Slide 41: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 42: Cost 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 43: 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% 84% Implementation of cost-cutting
Slide 44: 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 45: 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 46: Cost 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 46
Slide 47: Focus on Shareholder Returns
8. FOCUS ON SHAREHOLDER RETURNS
Slide 48: 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 49: Debt Management
9. DEBT MANAGEMENT —_ | | POLYUS
Slide 50: Debt issuance and maturity profile
In January 2018, Polyus issued $250 mln convertibles due 2021@1.0% 2,064 $500 mln Eurobonds due 2024 @4.7% The proceeds combined with cash on balance were spent on prepayment of bank loans On 12-13th of April, Polyus conducted repurchase 595 772 521 of convertibles for $50 mln nominal or 2
Slide 51: 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 52: Guidance Overview
GUIDANCE OVERVIEW —_ | | POLYUS
Slide 53: 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 53
Slide 54: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 55: Currency exposure 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: 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 57: 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 58: Operational 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 59: 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 60: 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 61: Mill automation at Olimpiada
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 62: 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 63: 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 64: 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 65: Olimpiada mill upgrade 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 66: 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 67: 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 68: Antimony
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 69: 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 70: Sukhoi Log versus porphyry deposits
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 71: Sukhoi Log preliminary open pit
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