13.03.2015

For immediate release

Polyus Gold International Limited (LSE and MOEX - PGIL) ("PGIL", "Polyus Gold", "the Group" or the "Company"), the largest gold producer in Russia, today releases its consolidated audited financial results for the year 2014.

FY 2014 - Financial highlights:

• Gold sales up 4% y-o-y to 1,691 koz, compared to 1,631 koz in FY 2013, as a result of the Verninskoye ramp-up and higher output at Olimpiada.
• Revenue down 4% y-o-y to $2,239 million from $2,329 million in FY 2013 as a result of lower average realised gold price.
• Losses from continuing operations for the period amounted to $182 million, compared to a profit of $143 million in FY 2013, caused by losses from derivative financial instruments and investments of $934 million (2013: loss of $5 million).
• Adjusted net profit1 increased by 9% to $615 million from $565 million in FY 2013.
• Adjusted EBITDA1 up 11% to $1,011 million y-o-y, compared to $910 million in FY 2013, due to the implementation of cost reduction initiatives and the Rouble devaluation.
• The rapid Rouble devaluation caused a translation loss of $1,751 million reducing net assets.
• Cash and cash equivalents and bank deposits at the end of FY 2014 amounted to $1,486 million, 73% up from $857 million at the end of FY 2013.
• Net cash flow of $809 million from operations, up 92% y-o-y, compared to $422 million in FY 2013, due to stringent working capital control and higher operating profit.
• Capital expenditure ("Capex") reduced by 64% to $525 million from $1,440 million in FY 2013, owing to lower spending on Natalka, tight capital control and Rouble devaluation.
• A special dividend of $500 million announced and paid.
• Total cash cost (TCC)1 fell 17% y-o-y to $585/oz, compared to $707/oz in FY 2013, due to cost-cutting initiatives and the weaker Rouble, more than offsetting inflationary pressure.
• All-in sustaining cash cost (AISC)1 reduced by 18% y-o-y to $825/oz from $1,002/oz in FY 2013 as a result of the Rouble devaluation, the cost optimisation programme and lower sustaining Capex.
• No impairment charge as a result of a downgrade to reserves and resources at Natalka was required following the Rouble devaluation.

Link to full announcement

Conference call information

Polyus Gold will host an analyst conference call on 13 March at 2 p.m. London time to present and discuss the financial results for the year 2014.

To join the conference call, please dial:

UK Free 080 8237 0060

UK International +44 (0) 20 3426 2886

USA free 1877 841 4559

Russia free 8108 00206 85011

No pin code needed

A replay of the conference call will be available for a duration of 30 days.

To access the replay, please dial:
UK Free 0808 237 0026
UK International +44 (0) 20 3426 2807
Access number 655386#

Enquiries:

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

Artem Gorbachev, Press Secretary
+44 (0) 203 713 42 90 [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.