10.12.2014

For immediate release

Polyus Gold International Limited (LSE - PGIL, OTC (US) - PLZLY, "PGIL", "Polyus Gold" or the "Company"), announces that its Board of Directors has approved the payment by the Company of a special dividend of US 16.49 cents per ordinary share (the "Special Dividend") or USD 500 mln in total.

The Special Dividend will be paid on 5 January 2015 to shareholders on the Company's register at close of business (UK time) on 19 December 2014.

The decision to pay a special dividend is a reflection of the ongoing strong underlying financial performance of the Company and its exceptionally robust liquidity position.

In Q1 2015, the Board intends to review and amend the Company's existing Dividend Policy in a way which would achieve an optimal balance between the capital requirements of the Company and distributions to shareholders.

According to the existing Dividend Policy, approved in April 2012, the Company aims to pay dividends in the aggregate amount of a minimum of 20 per cent of its net profit calculated in accordance with International Financial Reporting Standards (IFRS) per annum.

The Board remains committed to disciplined capital allocation. In developing recommendations on the amount of dividends to be paid to shareholders, the Board will continue to take into account the need to balance the funding of growth projects, including any limitations imposed by the production, investment and other financial needs of the Company, whilst maintaining an appropriate debt leverage position.

Enquiries:

Sergey Krivokhizhin, Director Investor Relations
+44 (0) 203 585 35 37 [email protected]

Sergey Lavrinenko, Director Communications
+44 (0) 203 585 35 37 [email protected]

Forward looking statements

This announcement may contain "forward-looking statements" concerning PGIL. Generally, the words "will", "may", "should", "could", "would", "can", "continue", "opportunity", "believes", "expects", "intends", "anticipates", "estimates" or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of PGIL's operations. Many of these risks and uncertainties relate to factors that are beyond PGIL's ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. PGIL assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.