OREANDA-NEWS. August 7, 2007. OJSC Polyus Gold (RTS, MICEX and LSE – PLZL), Russia’s leading gold producer, today released the preliminary production results for H1 2007. During the first six months of 2007 Polyus Gold produced 14.6 tonnes (470 k oz) of refined gold compared to 15.5 tonnes (502 k oz) during the same period last year. The year-on-year decrease is due to pre-scheduled reduction in gold production at Olimpiada mine in Krasnoyarsk region relating to the preparation for a new mill launch there (Mill-3). The decline in reported production is also a result of the fact that some volumes of gold produced by the Olimpiada mine, i. e. 0.498 tonnes (16 k oz) were not refined by the end of the period under review.

The Group’s sales volumes for the period amounted to 14.6 tonnes (470 k oz) compared to 15.7 tonnes (504 k oz) for the same period last year. The average gold sales price for the period increased to $659.7 per oz compared to $593.7 per oz in H1 2006.

Commenting of the Group’s H1 2007 production results General Director of Polyus Gold Pavel Skitovich noted: “We are satisfied with the Group’s performance in the period under review. The achieved results give us grounds to confirm our previously-stated production target of 1.2 million ounces of refined gold for the full year 2007 . Excellent results were shown by alluvial operations where production targets were exceeded substantially”.

During the period under review Polyus Gold’s production units mined 5 667 k tonnes of ore, compared to 6 497 k tonnes in H1 2006. Ore processed in H1 2007 amounted to 4 614 k tonnes compared to 4 050 k tonnes last year.

During the first six months of 2007 the Group continued its large-scale exploration activities in all areas of Polyus Gold’s operations. The volume of drilling works amounted to 185.7km, which is a three-fold year-on-year increase, compared to 56.1km drilled in H1 2006.