OREANDA-NEWS. On January 10, 2007 JSC “Polymetal” announced that it has completely fulfilled its obligations under the hedging agreements with ABN AMRO Bank N.V. (“ABN AMRO”), reported the press-centre of Polymetal.

The Company originally entered into the hedging agreements back in 2004 as a condition of a syndicated loan agreement with Standard Bank London (“SBL”). In 2006, the rights and obligations of SBL under these agreements (according to which in 2007 Polymetal had to sell 13,9Moz of silver at prices in the range of US$7,25-8,60 per ounce) were assumed by ABN AMRO.

During 2007, the Company shipped to ABN AMRO 12,5Moz of silver it produced and settled 1,4Moz with metal bought on the market, of which 0,6Moz were purchased at a price of US$13,55 per ounce in January, and 0,8Moz — at a price of US$13,998 per ounce in December.

“We are very pleased that we unloaded the burden of hedging agreements in 2007 and are entering 2008 in a recovered status of a hedge-free company”, said Vitaly Nesis, CEO of Polymetal. “Given the current price environment, this status encourages our earnings optimism for the future and, most importantly, provides our investors with the opportunity to be fully leveraged to both gold and silver prices”.

The Company’s gold sales are not subject to any price limitations since 2006. Polymetal’s policy going forward approved by the Board of Directors in 2007 is not to enter into any agreements that could limit its exposure to upside potential of precious metals prices.