Ore Reserves increase at Kyzyl

Ore Reserves (Proved + Probable) changes

Ore Reserves	Category	01.01.20191	01.07.2019	Change, %
Open pit	Tonnage, Mt	13.6	22.9	+68%
	Au grade, g/t	7.0	5.7	-19%
	Au content, Moz	3.1	4.2	+37%
Underground	Tonnage, Mt	15.1	18.8	+25%
	Au grade, g/t	8.5	7.1	-16%
	Au content, Moz	4.1	4.3	+4%
Total	Tonnage, Mt	28.7	41.7	+45%
	Au grade, g/t	7.8	6.3	-19%
	Au content, Moz	7.2	8.5	+18%

Ore Reserves reconciliation, Moz

Ore Reserves, 01.01.2019	Depletion	Revaluation	Ore Reserves, 01.07.2019
7.2	-0.2	+1.5	8.5

Notes: Discrepancies in calculations are due to rounding. This note applies to all tables in this release.

ORE RESERVES

The Ore Reserve estimate is reported in accordance with the JORC Code (2012) as at 1 July 2019 using a gold price of US$ 1,200/oz and was prepared by Polymetal. A cut-off grade of 1.0 g/t of gold was applied for the open pit and 3.0 g/t for the underground. Ore Reserves were estimated solely for Zone 1 of the Bakyrchik deposit, Zone 2 (East Bakyrchik) reserves were not estimated.

Kyzyl Ore Reserves estimate as at 1 July 2019

Ore Reserves	Tonnage,	Gold grade,	Gold content,
	Mt	g/t	Moz
Proved
Open pit	1.2	6.3	0.3
Stockpiles	0.5	5.9	0.1
Total Proved	1.7	6.2	0.3
Probable
Open pit	21.2	5.7	3.9
Underground	18.8	7.1	4.3
Total Probable	40.0	6.3	8.1
Proved+Probable
Open pit	22.5	5.7	4.1
Underground	18.8	7.1	4.3
Stockpiles	0.5	5.9	0.1
Total Proved+Probable	41.7	6.3	8.5

MINERAL RESOURCES

The Mineral Resources estimate for Zone 1 is reported in accordance with the JORC Code (2012) as at 1 July 2019 using a gold price of US$ 1,200/oz and was prepared by Polymetal. A cut-off grade of 1.0 g/t of gold was applied for the open pit and 3.0 g/t for the underground. The Mineral Resources estimate for Zone 2 was prepared by RPA Inc. in accordance with the JORC Code (2012) as at 1 January 2015. Cut-off grades for the open pit and the underground are 2.0 g/t and 3.7 g/t of gold, respectively. Revised estimate for Zone 2 was not conducted due to the lack of material changes.

Kyzyl Mineral Resources estimate

Mineral Resources	Tonnage,	Gold grade,	Gold content,
	Mt	g/t	Moz
Indicated
Underground (Zone 1)	2.3	5.0	0.4
Total Indicated	2.3	5.0	0.4
Inferred
Open-pit	0.5	3.8	0.1
Zone 1	0.2	2.3	0.01
Zone 2	0.3	4.8	0.05
Underground	10.8	6.7	2.3
Zone 1	2.4	6.4	0.5
Zone 2	8.4	6.8	1.8
Total Inferred	11.4	6.6	2.4
Indicated + Inferred
Open-pit	0.5	3.8	0.1
Zone 1	0.2	2.3	0.01
Zone 2	0.3	4.8	0.05
Underground	13.1	6.4	2.7
Zone 1	4.7	5.7	0.9
Zone 2	8.4	6.8	1.8
Total Indicated + Inferred	13.6	6.3	2.8

Notes: Mineral Resources are additional to Ore Reserves.

ABOUT KYZYL

Kyzyl is a world-class asset located in north-eastern Kazakhstan in a traditional mining region with good infrastructure and easy access to grid power and the railway. In 2014, the asset was acquired by Polymetal. The initial Feasibility Study and the updated Ore Reserve and Mineral Resource estimates was completed by the Company in 2015.

The operation comprises the Bakyrchik refractory gold deposit and a state-of-the-art 2.0 Mtpa processing plant employing conventional flotation technology. The ultimate product of the production facility is flotation concentrate. Low carbon concentrate is sent for processing to the Company’s POX facility in Amursk, while the high carbon concentrate currently goes to third party off-takers. With the launch of POX-2, Polymetal intends to process 100% of Kyzyl concentrate in-house.

Competent persons

This estimate was prepared by employees of JSC Polymetal Management Company and JSC Polymetal Engineering, subsidiaries of the Company, led by Mr. Valery Tsyplakov.

Mr. Tsyplakov is employed full-time as the Managing Director of JSC Polymetal Engineering and has more than 18 years’ experience in gold, silver and polymetallic mining. Being a Member of the Institute of Materials, Minerals & Mining (MIMMM), London, he is a Competent Person under the JORC Code.

Listed below are other Competent Persons employed by the Company that are responsible for relevant research on which the Mineral Resources and Ore Reserves estimate is based:

• Geology and Mineral Resources – Victor Pchelka, Head of Production and Geology Department, Polymetal Eurasia, PONEN, MIMMM, with 33 years’ relevant experience;

• Mining and Ore Reserves: Open Pit -  Dmitriy Teterin, Head of Mineral Resources and Ore Reserves Audit Department, Polymetal Engineering, MIMMM, with 10 years’ relevant experience; Underground - Andrei Somov, Head of underground mining Department, Polymetal Engineering, MIMMM, with 31 years’ relevant experience

• Concentration and Metals – Igor Agapov, Deputy Director of Science and Technology, Polymetal Engineering, MIMMM, with 21 years’ relevant experience.

All the above-mentioned Competent Persons have sufficient experience that is relevant to the style of mineralisation and types of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code).

All Competent Persons have given their consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

¹Previous JORC-compliant estimate was prepared by RPA Inc. as at 01.01.2015. Price: Au = US$1,200/oz. Revised estimate prepared by Polymetal as at 01.01.2019 accounts only for depletion.