Polymetal's corporate culture values professionalism and emphasizes each worker's  ontribution to the Company's goals. Polymetal takes a proactive approach to the issues of industrial safety, labor conditions and employee health, adopting practices that reflect the highest Russian and international standards.

Polymetal's HR policy is based on the 0following strategic goals:

• Creating a system to regulate labor relations and develop social partnership that balances the needs of employees and the Company;

• Modernizing the employee incentive system by offering competitive salaries and benefits packages that lead to increased productivity and improved individual and collective results;

• Training personnel in order to ensure that all Polymetal units have the necessary amount of qualified specialists;

• Improving labor conditions and safety equipment;

• Improving living conditions at production sites;

• Developing a strong corporate culture, ensuring employees' social stability and facilitating a healthy psychological environment within every working team.

Polymetal believes that internal unity is a key factor that allows it to achieve its long-term goals and targets. The Company greatly values the spirit of long-term partnership with its employees and makes every effort to promote it.

The goal of these Collective Labor Organizations is to represent the interests of all Polymetal employees and to handle questions of social and labor relations, including issues concerning collective bargaining and the creation of collective bargaining agreements.

In 2007 collective bargaining agreements went into force at three Polymetal subsidiaries: Magadan Silver, Okhotskaya Mining and Geological Company and Gold of Northern Urals.