OREANDA-NEWS. On May 26, 2008 OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia’s leading gold producer, announced that, following the decision taken by its Board on 21.05.2008, the company’s management has considered the offer recently received from Kazimir Partners to sell 4,766,000 shares of OJSC Polyus Gold at the price of \\$73,44 per share, reported the press-centre of Polyus Gold.

The stance of the management on the Kazimir Partner’s offer was prepared and sent to the members of the Board.

Particularly, the reasoned stance sent to all the members of the Board of Polyus Gold says the following:

As of  January 01, 2008 OJSC Polyus Gold had \\$1,4 billion in cash and equivalents, the sum sufficient to finance new gold mines construction and development without raising debt from the market, up till the year 2010;

In 2010 Polyus Gold is planning to start mining at two new deposits – Blagodatnoye and Verninskoye - which will boost the gold production, and provided the gold market conditions are favourable, will lead to the growth of the Company’s profits;

Placement of excessive cash either on bank deposits or with asset management schemes will not allow to achieve profitability comparable to profitability of investments in gold-linked assets.