OREANDA-NEWS. Petropavlovsk PLC ("Petropavlovsk" or the "Company", or together with its subsidiaries "the Group") today issues its interim management statement for the period from 1 July 2014 to the date of this release (the "Period").

Q3 Highlights and FY 2014 Outlook

150,100oz of total gold production in Q3 2014 - increase of 2% on Q2 2014 (147,200oz)

Total gold production and sales for the first nine months of the year at 456,500oz and 460,900oz respectively. This is lower than the corresponding period in 2013 following the sale of high-cost alluvial operations in the Magadan region

Average realised gold price of USD 1,329/oz during Q3 2014, including a USD 59/oz contribution from the hedging programme

FY 2014 production expected to be in line with the Group's previously-stated guidance of 625,000oz of gold

Total cash costs ("TCC") for the year expected to be below USD 900/oz, benefiting from the cost-cutting programme and rouble devaluation (previous guidance USD 900/oz-USD 950/oz)

Net debt of c.USD 902 million as at 30 September 2014, down by c.USD 46 million since 31 December 2013. The Group remains on track to reduce further its net debt by the end of the year, as per the guidance in its half-year report

Cash balance as at 30 September 2014 of c.USD 80 million

New promising exploration results from Malomir and Pioneer:

New high-grade, non-refractory mineralisation established at Malomir o Extensions of the high-grade Andreevskaya and Vostochnaya zones at Pioneer identified o New findings expected to result in additions to the Group's non-refractory JORC Reserves and Resources

Continued detailed discussions with senior lenders, bondholders, other stakeholders and third-parties with regards to refinancing the Group's outstanding 4% Convertible Bonds due February 2015. A further announcement will be made in due course.

Commenting on the announcement, Peter Hambro, Chairman, said:

"I am pleased to report that, during the last quarter, our team hit our operational targets, keeping us on track to deliver our plan for the year.

We now expect our full-year total cash costs per ounce of gold produced ("TCC/oz") will decrease to below USD 900/oz, compared with the initially-planned CAD 900/oz-USD 950/oz. This reduction in costs is expected to be achieved due to operational efficiencies and the significant devaluation of the rouble relative to the US dollar which we have been experiencing in the second half of the year. Our geological team expects that the recent exploration work will result in additions of new, high-grade material to our non-refractory Mineral Resource base at Pioneer and Malomir. The team is now working to convert these new findings into JORC Mineral Resources and to upgrade some of our existing Mineral Resources into Ore Reserves for our next statement, which is due to be published in H1 2015. It is hoped that this work will improve our short to medium term production output.

We continue to make progress in our discussions with senior lenders, bondholders, other stakeholders and third parties about securing a refinancing for the Group and expect to make a further announcement in due course.

Finally, I would like to welcome back Dr Pavel Maslovskiy who will be re-joining the Board as a Director and Chief Executive with effect from 5 November 2014. I, and my fellow Board colleagues, consider his extensive knowledge and experience will be of great assistance during this transformational time for the Group."