OREANDA-NEWS. July 04, 2011. JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”) announces the results of the Annual General Meeting (“AGM”) of Polymetal’s shareholders that was held at the Company’s headquarters, reported the press-centre of Polymetal.

All resolutions on the agenda were approved by the AGM, specifically:

1. The 2010 statutory annual report and annual financial statements, including the income statement of the Company, were approved;

2. It was decided not to pay out any dividends for the financial year ended December 31, 2010;

3. The following members of the Board of directors of the Company were elected: Sergey Areshev, Jonathan Best, Marina Gronberg, Leonard Homeniuk, Ashot Khachaturyants, Vitaly Nesis, Russell Skirrow, Martin Schaffer, Ilya Yuzhanov, and Konstantin Yanakov;

4. The following members of the Revision committee of the Company were elected: Alexander Kazarinov, Denis Pavlov, and Alexander Zarya;

5. ZAO HLB Vneshaudit was approved as the auditor of the Company’s 2011 statutory financial statements (to be prepared in accordance with Russian Accounting Standards)

6. Interested party transactions that may be entered into by the Company in the future were approved.

Comment: under Russian law, certain transactions entered into or to be entered into by a Joint Stock Company are considered to be interested party transactions and need to be approved by a majority of ‘non-interested’ shareholders (i.e. shareholders whose ownership in the Company does not exceed 20%). Polymetal received shareholders’ approval for the following interested party transactions:

(1)      (1) Loan agreements between the Company and any of its subsidiaries where the amount borrowed under any such agreement does not exceed 10 billion roubles (c. US\\$354 million on the basis of the Bank of Russia exchange rate as of June 29, 2011) and the term of the relevant loan does not exceed 5 years;

(2)     (2) Surety agreements securing obligations of any of its subsidiaries owed to third parties where the amount secured under any such surety does not exceed 10 billion roubles (c. US\\$354 million on the basis of the Bank of Russia exchange rate as of June 29, 2011) and the term of the relevant surety does not exceed 7 years;

(3)    (3) Pledge agreements securing obligations of any of its subsidiaries owed to third parties where the amount secured under any such pledge does not exceed 10 billion roubles (c. US\\$354 million on the basis of the Bank of Russia exchange rate as of June 29, 2011);

(4)   (4) Loan and/or credit line agreements between the Company and OJSC “NOMOS-BANK” and pledge agreements securing the Company’s obligations under such loan and/or credit line agreements where the amount borrowed or secured under all such agreements and pledges does not exceed 10 billion roubles (c. US\\$354 million on the basis of the Bank of Russia exchange rate as of June 29, 2011) and the term of the relevant loan does not exceed 7 years;

(5)     (5) Directors and officers liability insurance policies with the minimum limit of liability of USD50 million.