11.02.2015

For immediate release

Polyus Gold International Limited (LSE and MOEX - PGIL, "Polyus Gold" or the "Company"), announces that its Board of Directors has approved the construction of 220 kV Razdolinskaya-Taiga grid and 220 kV Taiga substation ("The Project") in the Krasnoyarsk region.

The commissioning of the Project is expected to significantly increase the existing power delivery capacity to the Company's Krasnoyarsk operations, thereby reducing the electricity costs at Polyus Gold's mines and providing sufficient power capacity to support the Company's development projects in the region.

The commissioning of the 228-kilometres grid and substation will increase the power delivery capacity to the Severo-Eniseysky district of the Krasnoyarsk region from present 150 MW to 400 MW. It is expected that at least 250 MW will be available for use by other electricity consumers.

Following the commissioning of the Project, the Company expects to significantly reduce its consumption of coal and heating oil used by its Krasnoyarsk operations for power generation. The coal consumption is expected to decrease by 40% to approximately 300 thousand tonnes per year (compared to approximately 500 thousand tonnes per year presently). The heating oil consumption is expected to decrease by two thirds to approximately 10 thousand tonnes per year from approximately 30 thousand tonnes per year presently. As a result, the Company's electricity consumption from carbon-intensive energy sources at its Krasnoyarsk operations is expected to reduce by over 40% to approximately 200 million kWh per year.

Additionally, direct greenhouse gas emissions by the Company's Krasnoyarsk operations are expected to decrease by 37% (or 600 thousand tonnes of CO2 equivalent per year), while the reduction in total greenhouse gas emissions (direct and indirect) at the Company's Krasnoyarsk mines is expected to be near 21% (or over 400 thousand tonnes of CO2 equivalent per year).

The Project is being carried out in accordance with the Cooperation Agreement signed by the Government of the Krasnoyarsk region, Federal Grid Company and Polyus Gold on 28 February 2014 to support the development and improve the reliability of the region's power grid operations.

The commissioning of the grid and the substation is expected in H2 2016. Following the completion of the Project, the power grid and the substation are expected to be bought out by Federal Grid Company following which it will be integrated into the United National Power Grid.

The capital expenditure for the Project is currently estimated at approximately RUB 6.7 bln (USD 110 mln).

To date, the Project design documentation has been completed and approved by the State Expertise. A tender for construction has been conducted, and the Company is currently reviewing the bids.

Pavel Grachev, CEO of Polyus Gold, commented:

Pavel Grachev, CEO of Polyus Gold, commented:"The development of electricity infrastructure and the increase in capacity are critical for our continued growth in the Krasnoyarsk region. The commissioning of the Razdolinskaya-Taiga project will allow Polyus Gold to substantially decrease its carbon footprint, while providing additional benefits to other consumers of electricity in the area and contributing to further social and economic development in the region."

Enquiries:

Sergey Krivokhizhin, Director Investor Relations
+44 (0) 203 731 42 90 [email protected]

Sergey Lavrinenko, Director Communications
+44 (0) 203 731 42 90 [email protected]