Polymetal International plc

Polymetal increases itsinterest in Tarutin to 50%

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") has agreed to increase its interest in LLC "Vostochny Basis" (holder of license for Tarutinskoye copper deposit (Tarutin)) from current 25% to 50%.

Following the successful exploration results at Tarutin area, Polymetal has purchased an additional 25% from Gerosena Trading Ltd, the owner of the remaining stake in LLC "Vostochny Basis", increasing the Company's interest in Tarutin to 50%. The consideration comprises US$14.2 million payable by 1,746,692 newly issued Company shares (0.41% of Polymetal's increased ordinary share capital). The amount of shares was determined by dividing consideration by the unweighted mean average of Polymetal's closing share price during 14 calendar day period ending two calendar days before completion.

As result of the issuance of consideration shares, Polymetal's share capital will comprise 422,566,635 shares. Consideration shares are expected to be admitted to trading on or around 18 March 2015.

The Tarutin licence plot covers an area of 1.8 km² and is located 28 km from the town of Chesma (population approximately 7,000) in the Chelyabinsk region of Russia and approximately 150 km by road from the Varvara copper-gold mining operation in Kazakhstan, which is owned by the Company. The infrastructure in the region where the licence area is located is well developed, with a railway station located 20 km from the deposit.

Tarutin is a conventional copper-gold skarn mineralization.

Following the results of 2013-2014 drilling campaign on the deposit, Polymetal performed a JORC-compliant mineral resources estimate for the Tarutinskoye copper deposit up to the depth of 200m from the surface. The results of the resource estimate are summarised in the table below.

Tarutin Mineral Resources estimate, as at January 1, 2015¹

¹Discrepancies in calculations are due to rounding.

Mineral Resources were estimated as of 01.01.2015 for open pit at the following prices: Au = 1,200 $/oz, Cu = 5,600 $/t, Ag = 17 $/oz. COG Cu Eqv = 0.4%.

"I am pleased to report that following our maiden resource estimate, we decided to increase our stake in this asset" - said Vitaly Nesis, Group CEO of Polymetal. - "Given its developed infrastructure and proximity, Tarutin is now very well positioned to complement our resource base for Varvara."

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