Polymetal: Ore Reserves, Mineral Resources and Exploration update as at 1 January 2023

Polymetal International plc

Ore Reserves, Mineral Resources and Exploration update as at 1 January 2023

Polymetal International plc (“Polymetal”, the “Company” or the “Group”) announces its Ore Reserves and Mineral Resources as at 1 January 2023, in accordance with the JORC Code (2012) and exploration update for the year ended 31 December 2022.

“Polymetal did not replace its ore depletion and recorded declining ore reserves in 2022. The exploration season was severely affected by the indirect impact of sanctions placed on, amongst other things, imports of diamond drilling spares and materials into Russia. We remain confident in the Group’s ability to grow our high-quality reserve base and expect the resumption of the upward trend in 2023”, said Vitaly Nesis, Group CEO of Polymetal

HIGHLIGHTS

• In 2022, Group Ore Reserves (“OR”) decreased by 9% year-on-year (y-o-y) to 27.3 Moz of gold equivalent (GE)[1], mostly due to mining depletion. This was partially offset by the successful exploration results at Omolon hub (Burgali and Nevenrekan), Pesherny (Voro hub), as well as initial reserve estimates at Galka and Tamunier (Voro hub). The average grade in OR increased by 5% y-o-y and stood at 3.6 g/t of GE. Average mine-life stands at 13 years.
• Share of OR for open-pit mining remained unchanged versus previous year at 52%. Share of refractory reserves grew by 3 p.p. y-o-y to 74%.
• Mineral Resources (additional to Ore Reserves) (“MR”) grew by 5% y-o-y to 25.8 Moz of GE due to positive revaluation at Kyzyl, Omolon, and Nezhda, as well as initial resource estimates at Kegali and Tumanin (Omolon hub). The average GE grade in MR was up by 10% y-o-y to 4.5 g/t.

2023 OUTLOOK

In 2023, Polymetal will continue to invest in both near-mine and greenfield exploration projects.

The key objectives are:

• Re-evaluate Ore Reserves at Kyzyl.
• Prepare an initial Ore Reserve estimate at Talgiy (Albazino).
• Prepare an initial Ore Reserve estimate at Pavlov (Voro hub).

Ore Reserves and Mineral Resources summary (1), (2)

1. Ore Reserves and Mineral Resources from continuing operations. Base metals are not included in GE calculation as they are insignificant. Ore Reserves of rare earths metals are given separately and not included in GE calculation.
2. Mineral Resources are additional to Ore Reserves. Mineral Resources of platinum group metals and rare earth metals are given separately and are not included in the calculation of GE. Discrepancies in calculations are due to rounding.

Ore Reserves and Mineral Resources structure by metal as at 1 January 2023

Ore Reserves reconciliation, GE Moz (1)

1. Discrepancies in calculations are due to rounding.

Ore Reserves and Mineral Resources as at 1 January 2023 (1)

1. Mineral Resources and Ore Reserves in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves. Detailed tables for Mineral Resources and Ore Reserves with a breakdown by deposits and metals are given below. Ore Reserves of rare earths metals are given separately and not included in GE calculation. Mineral Resources of platinum group metals and rare earth metals are given separately and are not included in the calculation of the gold equivalent. Discrepancies in calculations are due to rounding.

EXPLORATION RESULTS

Exploration areas and volumes (mine site exploration excluded) (1)

1. Discrepancies in calculations are due to rounding.
2. Including JVs with more than 50% share owned by Polymetal.

In 2022, 314.2 km (including JVs) of exploration drilling was completed. As a result of the imposed sanctions on Russia, import of drilling spare parts and materials was restricted, leading to a substantial decrease in drilling activities. Furthermore, as a part of budget optimisation, JV grassroots exploration in Russia was reduced, contributing to overall drop in drilling volumes.

Please find the full PDF version of the announcement at the link at the bottom of the page.

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FORWARD-LOOKING STATEMENTS

This release may include statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “should” or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company’s control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company’s present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company’s actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.