OREANDA-NEWS. On August 28, 2008 JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”) announced that it has acquired a 100% interest in Urals Exploration Company (“UEC”), which holds the exploration and mining license for Degtyarskoye gold-silver deposit, from Russian Copper Company (“RCC”) for US\\$ 6.25 million, reported the press-centre of Polymetal.

Degtyarskoye is located in the Urals region of the Russian Federation, 35 kilometers south-west from Ekaterinburg, and 380 kilometers from Voro (Polymetal’s operating mine in the region), next to Degtyarsk, a city with population of 15 thousand people, developed infrastructure including automotive and rail roads, and grid power.

Gold and silver mineralization at Degtyarskoye was discovered in 2000; detailed exploration was completed by UEC in 2006. In 2007 Polymetal Engineering reviewed drilling results and conducted technological testing which showed high recoveries at both heap leach (more than 75%) and CIP (more than 85%) processing facilities at Voro.

“This is a small, but high-quality, acquisition in line with our strategy of building portfolios of high-grade deposits around our existing processing facilities”, said Vitaly Nesis, CEO of Polymetal. “We will continue to be on search of such high-grade capital-light and technologically and logistically straightforward projects.”

Following the receipt of permitting documentation, Polymetal plans to start open pit mining (with ultimate pit depth of only 30 meters) in 2009. Due to softness of rock, no blasting will be required. Ore will be transported to Voro where it will be processed at the existing facilities. Further exploration on the property will also be undertaken as there is some potential to extend mineralization along strike in one direction.