OREANDA-NEWS. October 13, 2009. Further to the announcements by JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”) in relation to issuance of 84,375,000 additional ordinary shares to be placed by the Company (the “New Shares”), Polymetal announced that the Company raised 2.6 billion Russian roubles (approximately US 89 million as at today’s Bank of Russia exchange rate) from shareholders who exercised their pre-emptive rights to acquire New Shares, reported the press-centre of Polymetal.

The period during which pre-emptive rights could be exercised ended on October 8, 2009. During this period shareholders owning approximately 40% of the shares in respect of which pre-emptive rights were exercisable filed applications to purchase 9,524,643 of the New Shares at a price of 278 Russian roubles per New Share. As at today’s Bank of Russia exchange rate this price translates to US 9.38 per share and represents a 5% premium to yesterday’s closing price for Polymetal Global Depositary Receipts (“GDRs”) on the London Stock Exchange, which was US 8.91 per GDR.

The Company plans to use the funds received from its shareholders to reduce its short-term debt liabilities.

“I am fully satisfied with the results of the allocation of the New Shares. The existing shareholders of the Company showed confidence in Polymetal’s growth plans and endorsed our ambitious development strategy”, said Vitaly Nesis, CEO of Polymetal. “We are pleased to have allocated shares at a premium to the market which we believe demonstrates Polymetal’s potential to create shareholder value”.

Polymetal will continue to provide updates on the progress of the process relating to the issuance of the New Shares in due course.