11 standard bank bars of silver (332 kilograms) were successfully shipped by Polymetal to the LBMA. The bars were delivered by air transport to London Heathrow Airport based on DDU conditions.

The delivery of the silver to the LMBA was arranged by Standard Bank. The silver that was shipped was produced during Q1 2006 at Polymetal"s Dukat deposit in the Magadan region, and it was refined at the Kolyma Refinery. The delivery was made through a specialized customs post in Moscow.

This delivery was made within the framework of the working partnership between Polymetal and Kolyma Refinery for the purpose of the refinery obtaining the LBMA "Good Delivery" certificate. At present, the refinery is working on completing the expert stage of its evaluation to obtain the highest marks in the world for the quality of its silver bars.

The inclusion of Kolyma Refinery on LBMA"s "Good Delivery" List will allow Polymetal to obtain more attractive conditions when it concludes sales" contracts for silver (in particular, due to a reduction in the discounts taken to LME prices).

During 2006, Polymetal concluded agreements with the following gold and silver refineries: the Kolyma Refinery (Magadan region), the Prioksky Plant of Non-Ferrous Metals (Ryazan province), the Gulidov Krasnoyarsk Non-Ferrous Metals Plant (Krasnoyarsk region) and Uralelectromed (Sverdlovsk region).

Commenting on today"s announcement Pavel Orta, head of External Treasury said, "As one of the world"s leading silver producers, Polymetal hopes to continue to expand the geographical scope and volume of its metal exports, including to the rapidly developing markets of the Far East and southeastern Asia. In recent years, Polymetal has developed a strong reputation for being a reliable partner and supplier to foreign markets. This will help us become a leading player in new markets."