OREANDA-NEWS. On August 22, 2008 JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”) announced that the Company entered into a Loan agreement (“Agreement”) with ZAO “UniCredit Bank”, reported the press-centre of Polymetal.

Parameters of the Agreement are as follows: amount — US 45 million, term — twelve months, drawdown period — one month from the date of the Agreement execution, arrangement fee — 0.25%, interest rate — 1 month LIBOR plus 3.25% per annum during the first six months of the Agreement and 3.75% — starting from the seventh month of the Agreement. ZAO “Zoloto Severnogo Urala”, a 100% subsidiary of Polymetal and operator of Voro, a gold mine located in the Urals, acted as a guarantor in connection with the Agreement.

“The favorable conditions of this transaction resulting from our continuous effort on cost of debt reduction and achieved in today’s somewhat difficult market conditions signify our financial strength and impeccable reputation”, said Sergey Cherkashin, CFO of Polymetal. “Also, from the long-term perspective, it’s useful to initiate a relationship with one of premier European banking institutions and we look forward to developing this relationship further”.

The funds withdrawn under the Agreement will be used by the Company for general corporate purposes.

The details of the Agreement are being made public by Polymetal as required by Russian Law since its aggregate sum, including interest and fees, exceeds 10% of the book value of the Company’s assets (unconsolidated, in accordance with Russian Accounting Standards).