PDAC 09 03 2005

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GOLD MINING COMPANY POLYUS Mr. Eugene Ivanov President and Chief Executive Officer PDAC Discussion Canadian Mining in Russia and Central Asia

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COMPANY AT A GLANCE Goal of becoming a TOP-5 Global Producer by 2010 Unparalleled exposure to Russian gold 3 operating mines and 9 development / exploration projects: presence in 4 regions, employing 9 800 people 2004 production – 1 087 k oz 2004 est. total cash costs – US$175 per oz 2004 est. EBITDA – US$199 mln Financial strength Focus on explosive growth with low total cash cost profile World class reserve base 18.9 mln oz reserves plus an additional 38.3 mln oz resources

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WHY RUSSIA? Growing Russian gold production outpaces rest of the world +7% vs. (1)% CAGR 3.7 4.1 4.6 4.9 5.4 5.5 5.4 1998 1999 2000 2001 2002 2003 2004 mln oz CAGR 7% Source: Russian Union of Gold Miners, GFMS

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WHY RUSSIA? Hard rock gold production is a driving force Source: Troika Dialog 39% 43% 50% 52% 53% 2000 2001 2002 2003 2004 Share of hard rock gold in total production CAGR 8%

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WHY RUSSIA? Sixth place in world gold output sets the stage for upside Source: Russian Union of Gold Miners, GFMS, Troika Dialog 3.6 4.2 5.5 6.8 8.7 11.9 8.8 5.4 Indonesia Canada Russia Peru China USA Australia South Africa Gold production, mln oz Upside

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WHY RUSSIA? World’s second largest reserve base Source: GFMS, U.S. Geological Survey Reserve base, mln oz 90 113 119 132 132 193 1 157 482 Indonesia Canada USA Peru China Australia Russia South Africa

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WHY RUSSIA? Reserve base remains significantly underdeveloped Source: GFMS, U.S. Geological Survey Mine life, years 14 19 22 24 25 27 89 97 USA China Australia Peru Indonesia Canada Russia South Africa

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HERE COMES POLYUS! Undisputable leader of Russian gold mining since 2001 Source: Company reports, BMO Nesbitt Burns, Troika Dialog 0.1 0.1 0.1 0.2 0.2 1.1 High River Gold Bema Gold Kinross Gold Highland Gold Peter Hambro Polyus 2004 production in Russia, mln oz 2004 production in the rest of the world, mln oz

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HERE COMES POLYUS! World class reserve base Source: Company reports 2003 - 2004 reserves in Russia, mln oz 2003 - 2004 reserves in the rest of the world, mln oz 2.2 18.9 7.7 0.4 0.3 Kinross Gold Bema Gold High River Gold Peter Hambro Highland Gold Polyus 1.2

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HERE COMES POLYUS! Attractive low total cash costs among Russian producers Source: Company reports, BMO Nesbitt Burns 2004 total cash costs, US$ per oz Peter Hambro Polyus Highland Gold Kinross Gold High River Gold Bema Gold 132 175 192 219 238 286

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LOCATION OF THE ASSETS HQ, Moscow Olimpiada, Krasnoyarsk Alluvials and Zapadnoe, Irkutsk Natalka, Magadan Bamskoe, Amur

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CORPORATE HISTORY October 2002 – MMC Norilsk Nickel (NN) acquired 100% of Polyus for US$226 mln August 2003 – NN acquired 45% of Matrosov Mine for US$36 mln September 2003 – NN acquired 50.5% of Lenzoloto for US$174 mln April 2004 – Polyus acquired Matrosov Mine and Lenzoloto from NN and became a stand-alone gold unit of NN 2002 2003 2004 Polyus Lenzoloto Matrosov Mine Polyus Group

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ASSET PORTFOLIO Exploration Pre- feasibility Feasibility Development Production Krasnoyarsk region Irkutsk region Magadan region Olimpiada Tyrada Blagodatnoe Olenii Titimukhta Panimba Zapadnoe Pervenetz & Verninskoe Chertovo Korito Mukodek Natalka Amur region Bamskoe

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KRASNOYARSK – OLIMPIADA Olimpiada reserves at 10.8 mln oz at 4.3 g/t are augmented by satellites – Tyrada and Olenii deposits Olimpiada open pit capacity is 1.7 mtpa of oxide ore and 2.3 mtpa of sulphide ore 2 processing facilities are in place: plant #1 with 1.5 mtpa capacity to treat oxide ores – resin in pulp plant #2 with 3.0 mtpa capacity to treat sulphide ores – flotation, biooxidation (the only world usage in permafrost region), and resin in pulp plant #3 with 5.0 mtpa capacity to treat sulphide ore will be in place by mid 2007 Pre-feasibility study of Blagodatnoe with 5.8 mln oz of resources will be ready by 2006

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KRASNOYARSK – PRODUCTION Gradual increase in total cash costs due to depletion of oxide ore and a shift to sulphide ore 814 796 818 809 884 1 051 1 167 838 130 160 165 192 215 209 211 95 2003 2004 2005F 2006F 2007F 2008F 2009F 2010F Production, k oz Total cash costs, US$ per oz

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IRKUTSK – HARD ROCK GOLD Consolidates hard rock gold mining companies and owns key infrastructure Zapadnoe mine with 0.4 mln oz in reserves at 3.3 g/t will proceed from pilot run mode to industrial production by 2006 Capacity of 0.8 mtpa of Sukhoi Log-type ore Acquired Pervenetz and Verninskoe brownfield projects with 1 mln oz in reserves at 3.1 g/t Estimated production start-up by mid 2007 Acquired mid stage exploration project Chertovo Korito with 3.7 mln oz in resources at 2.3 g/t and exploration area Mukodek

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IRKUTSK – HARD ROCK GOLD PRODUCTION Strong growth with new projects coming into production in 2007 Production, k oz Total cash costs, US$ per oz 2003 2004 2005F 2006F 2007F 2008F 2009F 2010F 32 48 216 216 248 452 12 4 332 179 194 191 191 255 259 325

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IRKUTSK – ALLUVIALS Lenzoloto – 2nd largest Russian gold company on a stand-alone basis 9 Lenzoloto subsidiaries operate 48 placer deposits and develop / explore another 74 deposits Alluvial reserves stand at 2.2 mln oz Estimated mine life > 15 years Three alluvial gold mining methods: open pit separate production dredging production – 10 dredges underground production

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IRKUTSK – ALLUVIALS PRODUCTION Stable production and total cash cost profile Production, k oz Total cash costs, US$ per oz 247 265 289 289 289 289 289 280 287 316 316 316 316 316 306 326 2003 2004 2005F 2006F 2007F 2008F 2009F 2010F

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MAGADAN – NATALKA Natalka deposit with 4.0 mln oz in reserves at 4.2 g/t will transform into 18.1 in reserves at 2.0 g/t by 2007 2005 – 2007 exploration budget of US$65 mln 108 km of diamond drilling, 20 km already completed Pre-feasibility study will chose between 23 or 30 mtpa processing plant, employing either gravitation / CIL or gravitation / flotation / CIL, recovery is 75% / 80% Est. development capex of US$600 – 800 mln Annual production of up to 1.4 mln oz at total cash costs of approx. US$200 per oz

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MAGADAN – NATALKA – OREBODY Plan under 0.4 g/t cut-off grade Plan under 0.8 g/t cut-off grade Plan under 0.6 g/t cut-off grade Plan under 1.0 g/t cut-off grade

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2004 CORPORATE RESULTS Corporate center set up as a strategic architect Raised US$500 mln of equity capital Financial statements for 2003 prepared in accordance with IAS Stakes in Lenzoloto and Matrosov Mine consolidated Hard rock gold company set up in Irkutsk region Chertovo Korito deposit and Panimba exploration area acquired Direct export contracts prepared for signing

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2004 SUSTAINABLE DEVELOPMENT Focus to improve labor and life conditions of 9 800 employees and their families: constructed canteen for 200 people and almost completed construction of dormitory for 1 000 people relocated and improved life conditions of former 200 employees of Matrosov Mine 2004 most significant charity programs: repair of a local kindergarten and a school, new medical equipment for a local hospital in Krasnoyarsk region 2nd largest taxpayer in Krasnoyarsk region and among TOP-10 taxpayers in Irkutsk and Magadan regions 2004 tax payments of US$123 mln federal taxes – US$32 mln, region taxes – US$47 mln, local taxes – US$30 mln, and MediCare & Social Security – US$14 mln environment taxes – US$2 mln

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2004 FINANCIAL RESULTS (ESTIMATED) Gold sold – 1.1 mln oz Realized gold price – US$407 per oz Sales – US$446 mln EBITDA – US$199 mln Cash Flow from Operations – US$113 mln Net Income – US$154 mln Ending cash balance – US$370 mln

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2005 OUTLOOK Planned production of 1 093 k oz Total cash costs – US$199 per oz Further ownership consolidation in subsidiaries International independent audit of Olimpiada, Blagodatnoe, Titimukhta, Zapadnoe and Natalka deposits in accordance with JORC by SRK Consulting Advanced exploration activities to increase reserve base by 2.9 mln oz Additional equity funding to finance Natalka exploration

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2005 – 2010 ACTION PLAN

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STRONG ORGANIC GROWTH PROFILE… Explosive growth with stable low total cash costs Production, k oz Total cash costs, US$ per oz 2003 2004 2005F 2006F 2007F 2008F 2009F 2010F 1.1 1.1 1.2 1.3 1.9 2.5 3.3 1.1 175 198 207 219 221 213 207 144

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… COUPLED BY ADVANCED EXPLORATION… 2005 – 2010 est. additions to reserves, mln oz 2005 - 2006 2006 - 2007 2007 - 2008 2009 - 2010 Growth in 2005 – 2010 Source: Polyus estimates, without production depletion Blagodatnoe Titimukhta Verninskoe Natalka Bamskoe Chertovo Korito Mukodek Panimba New projects 2.9 15.7 4.4 10.6 33.6

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… AND MAGNIFIED BY ACTIVE M&A September 2004 – acquired Panimba exploration area for US$76,700 with 1.6 mln oz of resources December 2004 – acquired Chertovo Korito deposit for US$35.1 mln with 3.7 mln oz of resources January 2005 – acquired Mukodek exploration area for US$205,000 with 579 k oz of resources February 2005 – acquired 74% of Pervenetz for US$27.8 mln with licenses for Verninskoe and Pervenetz deposits containing 1.0 mln oz reserves and 1.7 mln oz resources February 2005 – acquired Bamskoe deposit for US$900,000 containing .4 mln oz reserves and 2.4 mln oz resources 2005 – 2007 – will spend up to US$600 mln to acquire and develop Russian mineral base

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SOLID CASE FOR POLYUS Unparalleled exposure to Russian gold industry Key position of a leading Russian gold miner to capitalize on growth potential of Russian gold Existing assets with superior growth profile Solid cash flows Strong cash balance and debt-free balance sheet No hedging policy As for how to join TOP-5 please stay tuned

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