OREANDA-NEWS. On February 19, 2008JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”), through its subsidiary CJSC “Magadan Silver”, acquired a 1,9% stake in OAO Omolon Gold Mining Company (“Omolon”), the owner of the Kubaka gold mine properties (“Kubaka”), including full mine infrastructure, processing plant, and four subsoil licenses, from the Russian Fund of Federal Property (“RFFP”). The corresponding record in the Omolon’s register was made in Magadan, reported the press-centre of Polymetal.

Share purchase agreement, according to which Polymetal paid to RFFP approximately 20mln. roubles (US$0.8mln.), was concluded in January 2008 as a result of the Company submitting its bid to RFFP’s public offer of 833 Omolon’s shares. As a result of this transaction, Polymetal owns a 100% stake in Omolon. Earlier in 2008, Polymetal purchased a 98,1% stake in Omolon from Kinam Magadan Gold Corporation, a wholly-owned subsidiary of Kinross Gold Corporation.

Kubaka produced 90,8 tons of gold between 1997 and 2005, when it was put on care and maintenance. Polymetal plans to identify priority targets around Kubaka for detailed exploration in 2008, produce JORC-compliant resource for 1-2 of these targets in 2009, complete feasibility study with JORC-compliant reserve calculation in 2010, and re-launch the mine with annual production of 150-250Koz of gold in 2011.