20.07.2015

For immediate release

Polyus Gold International Limited (LSE - PGIL, MICEX-RTS - PGIL, "PGIL", "Polyus Gold" or the "Group"), the largest gold producer in Russia, today releases its operating results for 2Q and 1H 2015.

2Q and 1H 2015 Highlights

• Refined gold output in 2Q 2015 reached 432 koz, a 22% increase over 1Q 2015 as a result of production growth at Olimpiada and Verninskoye, and the start of the washing season at Alluvials
• 1H 2015 refined gold production amounted to 783 koz, a 5% increase y-o-y mainly due to outperformance at Titimukhta and Verninskoye
• Strong 2Q performance at Olimpiada saw record processing volumes of 2.5 mt and high recoveries of 79.2%
• Verninskoye reached the design recovery level of 86%
• Efficient ore blending at Kuranakh enabled to reach record recoveries of 89.2% in 2Q
• Cash position is estimated at $1,370 million with net debt at $381 million as at 30 June
• Quarterly gold sales are estimated at $485 million

Pavel Grachev, Chief Executive Officer of Polyus Gold, commented:

"Our mines delivered a strong performance in both 2Q and 1H resulting in further increases in gold production. This was primarily driven by higher recoveries and treatment volumes at Olimpiada, as well as continuing recovery improvements at Verninskoye, Kuranakh and Titimukhta.

Our total operational efficiency program continued to deliver encouraging performance at the Krasnoyarsk Business Unit, Verninskoye and Kuranakh and was launched at Alluvials and service units in 2Q 2015.

Our financial position remains strong with net debt amounting to $381 million and cash at hand of $1,370 million.

We remain on target to produce 1.63-1.71 million ounces of gold in FY 2015. Elsewhere in the portfolio, we intend to provide an update on Natalka in 3Q 2015"

Conference call information

Polyus Gold will host an analyst conference call today at 2 pm London time to present and discuss the 2Q 2015 operating results.

To join the conference call, please dial:

UK toll free 0808 237 0060
UK International +44 (0) 20 3426 2886
USA toll free 1877 841 4559
Russia toll free 8108 00206 85011

A replay of the conference call will be available from 4 pm London time on 20 July 2015, for the duration of 30 days.

To access the replay, please dial:

UK toll free: 0808 237 0026
UK International: +44 (0) 20 3426 2807
Access number: 660316#

Enquiries:

Sergey Krivokhizhin, Director Investor Relations
+44 (0) 203 713 4290 [email protected]

Artem Gorbachev, Press Secretary
+44 (0) 203 713 4290 [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 actors 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.