Key features of 2009

Mergers & acquisitions

• Successfully completed the acquisition of 50.1% of shares of KazakhGold Group Ltd. Gained access to resource-rich areas of Kazakhstan and Central Asia. Polyus Gold expanded outside the Russian Federation, and became an international company.

Production and finance

• Production target of 1.3 million ounces of gold met
• The average selling price of USD 968.7 per ounce of gold, compared to USD 867.3 in 2008
• The continued increase in gold price was fully reflected in gold revenues, thanks to unhedged sales
• Gold sales increased to USD 1,199 million, or by 13%
• Profit for the year increased to USD 323.2 million, from USD 60.8 million in 2008
• EBITDA increased to USD 549 million, or by 26%
• Gross profit margin and EBITDA margins reached historically high levels of 51% and 45%, respectively
• Total cash costs per ounce of sold metal (ТСС) amounted to USD 391, as compared to USD 392
  in 2008
• Operating margin grew to USD 578 per ounce, or by 22%
• Capital expenditure in 2009 was equal to USD 496, as compared to USD 630 in the previous year

Production development and new projects

• In April 2009, the Titimukhta project was successfully completed; the capacity of modernized
  Mill No. 1 (Olimpiada Mine), which processes Titimukhta ores, was increased from 1.5 to 2.2 million tonnes per year
• Nearing completion of construction of Blagodatnoye Mine: the plant with a processing capacity
  of 6 million tonnes per year is to be launched in the 2nd half of 2010
• Construction of Verninskoye Mine with an annual capacity of 2.2 million tonnes is on schedule
• The new strategy for development of the Natalka deposit was prepared; the project plan to develop Natalka deposit was submitted to the Federal Agency for Subsoil Use (Rosnedra) and GlavGosExpertiza of Russia

Exploration and reserves growth

• Total growth in the Group’s reserves (Russian classification) in 2009 amounted to 10.5 million ounces of gold
• Exploratory drilling volume amounted to 164.2 thousand meters