Polymetal wins the auction for exploration and mining license on Albazino East prospective area in the Khabarovsk Territory

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Saint Petersburg, Russia, March 05, 2010 – JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”), through its subsidiary Albazino Resources LLC, won the auction for exploration and mining license on the Albazino East prospective area located in the Khabarovsk Territory. The Albazino East license covers the area of 197 km² and is located immediately adjacent to the 82 km² license area covering Polymetal’s Albazino deposit with 2.9 Moz of JORC-compliant resources.

The auction took place in Khabarovsk on February 19, 2010, and Polymetal’s winning bid amounted to 1.5m roubles (US$51 thousand). The license will expire 25 years after its issuance in 2010. The licensing agreement stipulates that Polymetal will have to undertake no less than 40,000 m³ trenching and 9,000 meters drilling during the five years after the license is issued.

The Albazino East license covers the eastern rim of the Albazino caldera (ancient collapsed volcano). The Albazino deposit is located on the western rim of the same caldera. Results from geophysical and geochemical work to date indicate that Albazino East is a highly promising greenfields target, with potential to add to an already substantial resource base at the Albazino deposit.

In the Khabarovsk Territory, Polymetal operates Khakanja gold-silver mine, owns 5 exploration licenses with a total area of c. 2,700 square kilometers, and develops the Albazino-Amursk project.

ABOUT POLYMETAL
Polymetal is a Russian gold and silver miner with operations and development projects in Russia and Kazakhstan. The Company produced 0.6 million of gold equivalent ounces in 2009 and is targeting to double its total production by 2012 mostly as a result of commissioning of the new projects, all of which are now under construction. A key element of Polymetal’s strategy is creation of processing hubs with the goal to ensure the most efficient and responsible utilization of financial and human capital by treating ores and concentrates from various sources at centralized locations.

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