doré - rns-pdf.londonstockexchange.com

2

Doré gold ouput increased 11% q-o-q to 699 koz. Total gold output increased 15% q-o-q to 691 koz.

The Company sold a total of 699 koz of gold, up 32% compared to 2Q 2018.

Revenue totaled $832 mln, up 20% q-o-q, driven by a seasonal increase in sales from the alluvial operations and higher flotation concentrate salesvolumes from Olimpiada. The group’s revenue includes sales from Natalka, following the cessation of its capitalisation from 1st of August 2018.

TCC remained flat q-o-q at $345/oz.

This figure includes TCC at Natalka, which amounted to $685/oz.

Reported TCC also reflects a by-product credit from sales of antimony-rich flotation concentrate in the amount of $33/oz.

The Company is adjusting its group’s TCC guidance for the full year 2018 downwards from the level of below $425/oz. Polyus now anticipates thegroup’s TCC for 2018 to stay below $400/oz.

AISC decreased to $571/oz, down 5% compared to 2Q 2018.

Adj. EBITDA amounted to $537 mln, up 18% q-o-q, on the back of the higher gold sales volumes. Adjusted EBITDA margin stood at 65%.

Net cash generated from operations amounted to $423 mln, up 13% q-o-q.

Capex decreased 33% q-o-q to $146 mln, reflecting lower capital expenditures across most of business units. Separately, the Company ceasedcapitalisation of borrowing costs and other directly attributable operating costs at Natalka.

Cash and cash equivalents as at 30 September 2018 amounted to $1,000 mln, compared to $908 mln as at 30 June 2018.

As at 30 September 2018, net debt stood at $3,029 mln, compared to $3,208 mln as at the end of the previous quarter.

3. OPERATIONAL PERFORMANCE

Gold production (doré) (koz) 699 628 11% 636 10% 1,865 1,607 16%

Gold production (refined) (koz) 691 602 15% 642 8% 1,800 1,580 14%

Average realised refined gold price excl. SPPP ($/oz) 1,209 1,300 (7%) 1,279 (5%) 1,275 1,254 2%

Average realised refined gold price incl. SPPP) ($/oz) 1,213 1,300 (7%) 1,279 (5%) 1,277 1,269 1%

Total cash cost (TCC) ($/oz) 345 345 0% 380 (9%) 355 380 (7%)

All-in sustaining cash cost (AISC) ($/oz) 571 601 (5%) 599 (5%) 611 606 1%

Total revenue ($mln) 832 692 20% 744 12% 2,141 1,978 8%

Adjusted EBITDA ($mln) 537 457 18% 475 13% 1,381 1,237 12%

Adjusted EBITDA margin (%) 65% 66% (1) Ppts 64% 1 ppts 65% 63% 2 ppts

Adjusted net profit ($mln) 355 457 (22%) 298 19% 1,036 773 34%

Net cash generated from operations ($mln) 423 376 13% 398 6% 1,060 948 12%

Capital expenditure ($mln) 146 219 (33%) 205 (29%) 547 525 4%

Free cash flow ($mln)1 231 165 40% 181 28% 466 461 1%

4

1 Free cash flow is presented on an unlevered basis

Net debt, $mln 3,029 3,208 3,079 3,077 3,151Net debt/adjusted EBITDA, x 1.6 1.8 1.8 1.8 1.9RUB/USD rate 65.53 61.80 56.88 58.41 59.02

Olimpiada52%

Blagodatnoye16%

Verninskoye9%

Kuranakh6%

Natalka4%

Other1%

Alluvials12%

5

$832 mln

The group’s revenue from gold sales amounted to $821 mln, a 20% increase compared to 2Q 2018.

Gold sales totaled 699 koz, a 32% increase on the previous quarter.

This positive dynamic was mainly driven by a seasonal increase in sales from the alluvial operations and higher flotation concentrate sales

volumes from Olimpiada.

The group’s revenue for 3Q 2018 includes sales from Natalka.

Krasnoyarsk cluster 68%

308

102

5324

44

375

110

6083

27 44

0

50

100

150

200

250

300

350

400

Olimpiada Blagodatnoye Verninskoye Alluvials Natalka Kuranakh

2Q 20183Q 2018

819

596 572 621 599 662 684

601 571

FY14 FY15 FY16 FY17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18

707

585

424 389 364

380324

383345 345

FY13 FY14 FY15 FY16 FY17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18

6

(17%)

(28%)

(8%)

TCC demonstrated a fourth consecutive year of decline

(27%)

(4%)

Similarly to the TCC/oz, the group’s AISC/oz showed a notable decrease in recent years

TCC remained flat compared to the previousquarter

9%

AISC decreased 5% q-o-q to $571/oz

(6%)

-5%

302368 368

691

-

516

233

358 340

725685

482

0

100

200

300

400

500

600

700

800


2Q 2018

3Q 2018

530 586656

1 111

751

395514

595

792

1 143

689

0

200

400

600

800

1 000

1 200

1 400


2Q 2018

3Q 2018

0

200

400

600

800

1 000

1 200

0% 20% 40% 60% 80% 100%

0

100

200

300

400

500

600

700

0 100 200 300 400 500 600

Olimpiada

TCC, $/oz

Polyus cumulative production, koz

$345/oz

Verninskoye Blagodatnoye

Ku

ranakh

7

TCC remained flat q-o-q at $345/oz.

This figure includes TCC at Natalka, which amounted to $685/oz. A

seasonal increase in output at the structurally higher cost alluvial

operations also put additional pressure on the group’s TCC.

These factors were fully mitigated by the local currency

depreciation as well as by-product credit from sales of antimony-

rich flotation concentrate, which amounted to $33/oz in 3Q 2018.

TCC at Olimpiada decreased 23% q-o-q to $233/oz due to an

increased share of lower cost flotation concentrate as part of the total

gold sold and by-product credit from sales of antimony-rich flotation

concentrate in the amount of $61/oz. Local currency depreciation

also contributed to the improved cost performance.

The average 3Q 2018 TCC amounted to 345$/oz

1 Source: Metals Focus (estimates for 2Q 2018)

Polyus

Cumulative production

TCC, $/oz

$345/oz

AlluvialsNatalka

0

200

400

600

800

1 000

1 200

1 400

0% 20% 40% 60% 80% 100%

AISC decreased to $571/oz, down 5% q-o-q.

AISC at Olimpiada decreased to $395/oz, while at Blagodatnoye AISC

decreased to $514/oz. Both were driven by lower TCC for the period.

AISC at Verninskoye decreased to $595/oz, while AISC at Kuranakh

decreased to $689/oz, both in line with TCC and reflecting lower

sustaining capital expenditures during the period.

AISC at Alluvials decreased to $792/oz driven by lower sustaining

capital expenditures.

AISC at Natalka amounted to $1,143/oz.

1 Source: Metals Focus (estimates for 2Q 2018)

Polyus

Cumulative production

AISC, $/oz

$571/oz

8

0

200

400

600

800

1 000

1 200

1 400

0 100 200 300 400 500 600

Olimpiada

AISC, $/oz

Polyus cumulative production, koz

$571/oz

VerninskoyeBlagodatnoye

Ku

ranakh

The average 3Q 2018 AISC amounted to $571/oz

Alluvials Natalka

9

Consumables and spares expenses, labour costs and power costs increased q-o-q reflecting higher production volumes at Alluvials and the

inclusion of costs related to Natalka into the cost of gold sales.

MET expenses increased 18% q-o-q. This was partially offset by the decline in average gold price in 3Q 2018.

Fuel costs increased 18% q-o-q due to the abovementioned factors related to the Alluvials and Natalka operations. Diesel prices across all

business units increased compared to the previous quarter.

3Q 2018$258 mln

Labour33%

Fuel12%

Power 4%

Other7%

Consumables and spares26%

Tax on mining 18%

2Q 2018$191 mln

Labour34%

Fuel9%

Power 4%

Other5%

Consumables and spares28%

Tax on mining 20%

10

The group’s adjusted EBITDA increased 18% q-o-q to $537 mln.

This was predominantly a result of higher gold sales volumes in the reporting period (including sales of flotation concentrate) from Olimpiada,

which represents 60% of the group’s adjusted EBITDA for 3Q 2018.

The adjusted EBITDA margin stood at 65% in 3Q 2018.

323

88

4729 32

9

75%

66% 65%

56%

31%27%

(10%)

0

10%

20%

30%

40%

50%

60%

70%

80%

-

50

100

150

200

250

300

350

400

Olimpiada Blagodatnoye Verninskoye Kuranakh Alluvials Natalka

Adj. EBITDA 3Q 2018, $ mln Adj. EBITDA margin, %

457537

206

(67)

(58)(1)

EBITDA2Q 2018

Gold price Salesvolume

COGS volume

Other EBITDA3Q 2018

11

In 3Q 2018, cash flow from operations increased to $423 mln,

compared to $376 mln in 2Q 2018, due to higher sales volumes in

the reporting period.

Cash outflow on investing activities decreased to $192 mln

compared to the $211 mln in the previous quarter on the back of

the lower capex spending.

Net financing cash outflow totaled $136 mln, reflecting the

repayment of borrowings, partly offset by proceeds on a bilateral

bank credit facility and positive net proceeds on cross-currency

and interest rate swaps.

The group’s cash and cash equivalents and bank deposits totaled

$1,000 mln, up 10% compared with the end of 2Q 2018.

RUB12%

USD88%

The group’s cash position is primarily denominated in USD

$117 mln

$883 mln

9081 000

423

(192)(136) (3)

-

200

400

600

800

1 000

1 200

1 400

Cash & CE30-Jun-18

Operating CF Investing CF Financing CF Effect of foreignexchange rate

changes

Cash & CE30-Sept-18

670820

4461 22

14 1256

(22) (37)

Net WC2Q 2018

Inventories Deferredexpenditures

Receivables Payables Interestpayables

Income tax, net Payables forPPE

Translation +non-OCF items

Net WC 3Q 2018

12

The group registered $46 mln of working capital outflow.

This reflects an inventory accumulation of ore stockpiles at Olimpiada, Blagodantnoye and Natalka as well as the increase in receivables related

to antimony-rich flotation concentrate sales.

At the same time, this was partially offset by the increase in payables related to fuel and consumables procurement at Olimpiada,

Blagodatnoye and Verninskoye and write-off of the deferred expenses at Alluvials due to active phase of washing season.

$ mln 3Q 2018 2Q 2018 Q-o-Q 9M 2018 9M 2017 Y-o-Y

Natalka, including

Purchase of equipment 36 46 (22%) 127 173 (27%)

Capitalisation of borrowing costs 7 24 (71%) 54 69 (22%)

Operating costs - 8 N.A. 25 42 (40%)

Net proceeds from selling gold produced during the ramp-up period (3) (14) (79%) (20) - N.A.

Natalka, total 40 64 (38%) 186 284 (35%)

Olimpiada 46 64 (28%) 146 93 57%

Blagodatnoe 6 34 (82%) 57 30 90%

Verninskoye 11 9 22% 30 23 30%

Alluvials 4 8 (50%) 18 17 6%

Kuranakh 10 14 (29%) 33 39 (15%)

Other 29 26 12% 77 39 97%

CAPEX 146 219 (33%) 547 525 4%

Omchak electricity transmitting line 10 8 25% 27 21 29%

Items capitalised, net 28 10 N.A. 43 20 N.A.

Change in working capital for purchase property, plant and equipment 14 (22) N.A. (4) (35) (89%)

Purchase of PP&E 198 215 (8%) 613 531 15%

13

Capital expenditures at Natalka, the group’s main development project, decreased 38% q-o-q to $40 mln.

The Company ceased capitalisation of borrowing costs and other directly attributable operating costs from 1st of August 2018.Total capitalised costs net of gold revenue amounted to $4 million in the third quarter of 2018.

Capital expenditures at Olimpiada and Blagodatnoye decreased to $46 mln and $6 mln, respectively, as the Company passed an active phaseof mining fleet procurement in 1H 2018. Polyus continues mining fleet expansion, increasing the share of large-scale mining equipment.

The Company conducted scheduled maintenance works in

July-August 2018. Over the course of the maintenance works,

the gyratory crusher MK-60-110E was put back into

operation.

By the end of 3Q 2018, as the Natalka Mill reached its

annualized design throughput run rate, the ball mill motor

went out of order due to a deformation of the mounting face

for the bearing on the rotor shaft.

Consequently, the Company has switched to a shortened

flowsheet, utilizing a one-stage grinding process at the SAG

mill and therefore bypassing the ball mill, which resulted in

lower throughput rates and recoveries.

The Company anticipates putting the ball mill back into

operation post repairs in November 2018 and expects the mill

to revert promptly to operating at full capacity.

14

536

1 368

1 8931 623

0200400600800

1 0001 2001 4001 6001 8002 000

4Q'17 1Q'18 2Q'18 3Q'18

A 14% decrease in ore processed volumes came on theback of maintenance works in July-August .

770

1,246

500459

6

546

632432

2018 2019 2020 2021 2022 2023 2024

697

1,313

448

3 8

614

985

46315

28

2018 2019 2020 2021 2022 2023 2024

Cross currency swaps Bank loans RUB bonds Convertibles Eurobonds

Polyus attracted a new credit line facility with Sberbank in atotal amount of RUB 65 bln due in 2024 to refinance existingSberbank credit line facility due in 2019.

The funds under the new facility will become available fordrawdown by maturity of the existing Facility in April 2019.

The Company plans to repay the principal amount andliabilities under cross-currency swaps in the amount ofapproximately $1.0 bln in 2019, in line with the currentmaturity schedule.

In August 2018, Polyus attracted a bilateral bank credit facilityfrom ING in the total amount of $80 mln at a fixed interest rate.

In September, Polyus has invited holders of its notes due 2020,2022, 2023 and 2024 to tender those notes for purchase in theaggregate maximum consideration amount of $300 mln.

Polyus repurchased ca. $132 mln in aggregate principalamount of notes.

RUB20%

USD80%

1The debt breakdown is shown before cross currency SWAPs. Effectively almost all of the debt is swapped into USD2The breakdown is based on actual maturities and excludes $41 million of banking commissions and deduction of convertion option component of convertible bonds.3Payments under cross currency swaps, including interest gain and exchange of notional amount as at 30 June 2018 and 30 September 2018 . 15

3

3

3

3

Fixed rate98%

Floating rate2%

As of 30 Jun 20181

16

Eurobonds62%

RUB bonds6%

Convertibles4%

Bank loans28%

4.8%

72% 28%Public debt Private debt

$4,116 mln

$4,116 mln

1The debt breakdown does not include liabilities under cross currency swaps related to RUB-denominated bank credit facilities and rouble bonds, in a total amount of $432 million as at 30 June 2018.2The debt breakdown does not include liabilities under cross currency swaps related to RUB-denominated bank credit facilities and rouble bonds, in a total amount of $507 million as at 30 September 2018.

Fixed rate98%

Floating rate2%

As of 30 Sep 20182

Eurobonds59%

RUB bonds6%

Convertibles5%

Bank loans30%

4.8%

70% 30%Public debt Private debt

$4,029 mln

$4,029 mln

3 241 3 128 3 084 3 151 3 077 3 079 3 208

3 029

1 7401 487 1 477

1 121 1 204 1 095908 1 000

2,1x

2,0x1,9x 1,9x

1,8x 1,8x 1,8x

1,6x

31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18

Net Debt, $ mln Cash position, $ mln Net Debt/adj. EBITDA, x

1The net debt/adjusted EBITDA ratio of PJSC Polyus for the last 12 months

At the end of 3Q 2018, the group’s net debt stood at $3,029 mln, down 6% compared to the end of 2Q 2018.

The net debt/adjusted EBITDA1 ratio as at 30 September 2018 declined to the level of 1.6x, reflecting a decrease in the net debt

position and the LTM EBITDA expansion.

17

2The debt breakdown does not include liabilities under cross currency swaps related to RUB-denominated bank credit facilities and rouble bonds, in a total amount of $507 million as at 30 September 2018.

2

19

Total gold output increased 15% to 691 koz compared to the previous quarter (2Q 2018: 602 koz). Year on year, volumes of doré gold and

total gold output rose by 10% and 8%, respectively.

Volumes of ore mined amounted to 12,673 kt, a 36% increase on the previous quarter and 28% increase year on year.

Volumes of ore processed rose to 10,382 kt, up 5% on the previous quarter as the Company is continuing to expand processing capacities at

its core assets.

3Q'18 2Q'18 Q-o-Q 1Q'18 4Q'17 3Q'17 Y-o-Y 9M’18 9M’17 Y-o-Y

Olimpiada 283.0 276.0 3% 213.1 297.9 264.1 7% 772.1 709.4 9%

Blagodatnoye 110.1 102.0 8% 91.4 126.7 116.0 -5% 303.5 330.1 -8%

Verninskoye 59.7 53.3 12% 58.6 45.6 53.1 12% 171.6 160.1 7%

Alluvials 83.7 23.7 253% - 29.8 85.0 -2% 107.4 115.9 -7%

Kuranakh 43.9 44.1 -1% 46.5 48.4 43.4 1% 134.5 123.1 9%

Natalka 43.4 39.8 9% 22.5 3.3 - n.a. 105.7 - n.a.

Refined gold, koz 623.8 538.9 16% 432.1 551.7 561.6 11% 1,594.8 1,438.5 11%

Flotation concentrate production, t 31,768 27,826 14% 35,760 13,620 39,892 -20% 95,354 71,342 34%

Antimony in flotation concentrate, t 6,408 6,219 3% 7,441 - - n.a. 20,068 - n.a.

Gold in flotation concentrate, koz 67.4 63.1 7% 74.4 28.1 80.7 -16% 204.9 141.9 44%

Gold payable in concentrate, koz 49.8 46.7 7% 55.1 19.7 56.5 -12% 151.6 99.3 53%

Total gold output, koz 691.2 602.0 15% 506.5 579.8 642.3 8% 1,799.7 1,580.4 14%

Rock moved, kt 79,757 72,808 10% 67,134 63,256 61,898 29% 219,699 161,167 36%

Stripping ratio, t/t 5.3 6.8 -22% 6.6 5.3 5.2 2% 6.1 4.8 27%

Ore mined, kt 12,673 9,317 36% 8,821 10,065 9,915 28% 30,811 27,744 11%

Ore processed, kt 10,382 9,872 5% 8,492 7,809 7,299 42% 28,746 20,854 38%

Recovery rate, % 80.6% 80.6% - 81.5% 82.7% 83.8% -3.2ppts 80.9% 83.7% -2.8ppts

Total doré & slime gold output, koz 698.8 627.6 11% 538.8 554.7 635.8 10% 1,865.2 1,607.1 16%

302

233

2Q'18 3Q'18

20

Doré gold output in 3Q 2018 stood at 347 koz, up 2% compared to the previous quarter.

Total gold output (refined and concentrate) grew by 3% compared to the previous quarter, to 350 koz, driven by higher production volumes of

gold contained in concentrate, increased ore processed volumes and improved recoveries.

On a year on year basis, doré gold output remained largely unchanged, while refined gold production and total gold output increased 7% and

2%, respectively.

-23%

3Q’18 2Q’18 Q-o-Q 3Q'17 Y-o-Y 9M’18 9M’17 Y-o-Y

Rock moved, kt 33,234 29,691 12% 20,812 60% 91,432 51,958 76%

incl. stripping, kt 27,349 25,993 5% 17,777 54% 78,430 42,923 83%

Stripping ratio, t/t 4.6 7.0 -34% 5.9 -22% 6.0 4.8 25%

Ore mined, kt 5,884 3,698 59% 3,035 93% 13,002 9,035 44%

Average grade in ore mined, g/t 3.48 4.04 -14% 4.19 -17% 3.72 4.15 -10%

Ore processed, kt 3,365 3,337 1% 3,490 -4% 9,857 9,302 6%

Average grade in ore processed, g/t 4.12 4.10 0% 3.93 5% 4.13 3.75 10%

Recovery, % 79.2% 79.0% 0.2ppts 81.4% -2.2ppts 79.4% 80.9% -1.5ppts

Doré gold (incl. gold in concentrate), koz 346.7 340.6 2% 347.4 0% 1,005.3 869.6 16%

Refined gold output, koz 283.0 276.0 3% 264.1 7% 772.1 709.4 9%

Flotation concentrate production, t 31,768 27,826 14% 39,892 -20% 95,354 71,342 34%

Antimony in flotation concentrate, t 6,408 6,219 3% - n.a. 20,068 - n.a.

Gold contained in concentrate, koz 67.4 63.1 7% 80.7 -16% 204.9 141.9 44%

Total gold output, koz 350.4 339.1 3% 344.8 2% 977.0 851.3 15%

368 358

2Q'18 3Q'18

21

Doré gold output in 3Q 2018 was 111 koz, up 9% compared to the previous quarter, mainly reflecting higher processing volumes.

Refined gold output amounted to 110 koz, up 8% on the previous reporting period.

Doré gold output increased 7% compared to 3Q 2017 on the back of higher processing volumes.

-3%

3Q’18 2Q’18 Q-o-Q 3Q’17 Y-o-Y 9M’18 9M’17 Y-o-Y

Total rock moved, kt 20,231 19,760 2% 20,495 -1% 59,256 55,468 7%

including stripping, kt 18,719 18,315 2% 17,018 10% 54,058 46,187 17%

Stripping ratio, t/t 12.4 12.7 -2% 4.9 153% 10.4 5.0 108%

Ore mined, kt 1,512 1,445 5% 3,477 -57% 5,198 9,264 -44%

Average grade in ore mined, g/t 1.54 1.59 -3% 1.90 -19% 1.61 1.95 -17%

Ore processed, kt 2,349 2,195 7% 1,880 25% 6,584 5,963 10%

Average grade in ore processed,

g/t1.66 1.64 1% 1.93 -14% 1.68 1.97 -15%

Recovery, % 87.7% 87.3% 0.4ppts 88.0% -0.3ppts 87.4% 87.9% -0.5ppts

Doré gold, koz 111.1 101.7 9% 103.4 7% 312.8 332.0 -6%

Refined gold output, koz 110.1 102.0 8% 116.0 -5% 303.5 330.1 -8%

368340

2Q'18 3Q'18

22

Doré gold output was 54 koz, down 11% on the previous quarter, due to scheduled maintenance works at the Mill.

Refined gold output amounted to 60 koz, compared to 53 koz in 2Q 2018, reflecting changes in gold in inventory at the refinery.

Refined gold output rose 12% compared to 3Q 2017.

-8%

3Q’18 2Q’18 Q-o-Q 3Q'17 Y-o-Y 9M’18 9M’17 Y-o-Y

Total rock moved, kt 4,726 5,415 -13% 4,629 2% 15,167 13,874 9%

including stripping, kt 3,971 4,674 -15% 3,783 5% 12,827 11,109 15%

Stripping ratio, t/t 5.3 6.3 -16% 4.5 18% 5.5 4.0 38%

Ore mined, kt 755 741 2% 846 -11% 2,341 2,765 -15%

Average grade in ore mined, g/t 2.60 2.61 0% 2.36 10% 2.62 2.22 18%

Ore processed, kt 712 801 -11% 693 3% 2,187 2,029 8%

Average grade in ore processed, g/t 2.64 2.63 0% 2.61 1% 2.64 2.62 1%

Recovery, % 89.5% 89.5% 0.0ppts 88.7% 0.8ppts 89.5% 88.4% 1.1ppts

Doré gold , koz 54.2 60.6 -11% 51.5 5% 165.8 150.7 10%


516482

2Q'18 3Q'18

23

Doré gold output in 3Q 2018 amounted to 55 koz, a 13% increase compared to 2Q 2018, driven by higher volumes of ore processed at heap

leaching facilities.

On a year on year basis, doré gold output has increased by 24%.

Refined gold output amounted to 44 koz, in line with 2Q 2018, reflecting changes in gold in inventory at the refinery.

-7%

3Q’18 2Q’18 Q-o-Q 3Q'17 Y-o-Y 9M'18 9M'17 Y-o-Y

Total rock moved, kt 8,477 8,103 5% 8,836 -4% 24,209 24,157 0%

including stripping, kt 5,955 6,115 -3% 7,138 -17% 18,065 19,603 -8%

Stripping ratio, t/t 2.4 3.1 -23% 4.2 -43% 2.9 4.3 -33%

Ore mined, kt 2,522 1,988 27% 1,698 49% 6,145 4,554 35%

Average grade in ore

mined, g/t0.97 1.07 -10% 1.16 -16% 1.05 1.16 -10%

Total ore processed, kt 2,333 1,646 42% 1,234 89% 5,234 3,525 48%

Mill

Ore processed, kt 1,303 1,308 0% 1,180 10% 3,866 3,471 11%


processed, g/t1.22 1.25 -2% 1.32 -8% 1.23 1.29 -5%

Recovery, % 88.9% 88.9% 0.0ppts 88.5% 0.4ppts 88.7% 88.4% 0.3ppts

Heap-leach

Ore processed, kt 1,030 338 204% 54 n.m. 1,368 54 n.m.


processed, g/t0.75 0.75 0% 0.75 0% 0.75 0.75 0%

Recovery, % 72.3% 72.0% 0.3ppts - n.a. 72.3% - n.a.

Total doré gold, koz 54.8 48.7 13% 44.3 24% 147.7 126.4 17%


691725

2Q'18 3Q'18

24

In 3Q 2018, Alluvial deposits produced 86 koz of gold in slime, up 158 % on 2Q 2018.

Refined gold output totalled 84 koz, compared to 24 koz in the previous quarter.

3Q’18 2Q’18 Q-o-Q 3Q'17 Y-o-Y 9M'18 9M'17 Y-o-Y

Sands washed, 000 m³ 4,457 1,974 126% 4,999 -11% 6,431 7,250 -11%

Average grade, g/m³ 0.60 0.53 13% 0.55 9% 0.58 0.55 5%

Gold in slime, koz 86.3 33.4 158% 88.9 -3% 119.7 127.1 -6%

Refined gold output, koz 83.7 23.7 253% 85.0 -2% 107.4 115.9 -7%

5%

685

2Q'18 3Q'18

25

Doré gold output in 2Q 2018 increased 8% q-o-q to 46 koz.

Refined gold output rose 9% q-o-q to 43 koz.

In 3Q 2018, the Company proceeded with the construction works at the Natalka Mill’s auxiliary infrastructure, including earthworks at thefuel warehouse and finishing works for an assay laboratory. The Company is also developing wireless broadband at Natalka, which, alongwith mining fleet automation system, will allow to improve control of mining equipment.

3Q’18 2Q’18 Q-o-Q 3Q'17 Y-o-Y 9M'18 9M'17 Y-o-Y

Total rock moved, kt 13,088 9,828 33% 6,772 93% 29,590 15,308 93%

including stripping, kt 11,090 8,392 32% 6,020 84% 25,493 13,311 92%

Stripping ratio, t/t 5.5 5.8 -5% 8.0 -31% 6.2 6.7 -7%

Ore mined, kt 1,998 1,436 39% 752 166% 4,097 1,997 105%

Average grade in ore mined, g/t 1.05 0.98 7% 1.01 4% 1.00 0.95 5%

Ore processed, kt 1,623 1,893 -14% 2 n.m. 4,884 35 n.m.

Average grade in ore processed, g/t 1.32 1.12 18% 0.56 136% 1.16 1.31 -11%

Recovery, % 65.1% 65.5% -0.4ppts 37.0% 28.1ppts 64.7% 74.2% -9.5ppts

Doré gold, koz 45.8 42.6 8% 0.3 n.m. 113.9 1.5 n.m.

Refined gold output, koz 43.4 39.8 9% - n.a. 105.7 - n.a.n/a

27

$mln 30-Sep-2018 31-Dec-2017

Assets

Non-current assets

Property, plant and equipment 3,826 4,005

Derivative financial instruments and investments 13 38

Inventories 262 300

Deferred tax assets 130 60

Other receivables 85 97

Other non-current assets 65 58

4,381 4,558

Current assets

Derivative financial instruments and investments 2 -

Inventories 605 435

Deferred expenditure 17 14

Trade and other receivables 117 101

Advances paid to suppliers and prepaid expenses 25 21

Taxes receivable 132 114

Cash and cash equivalents 1,000 1,204

1,898 1,889

Total assets 6,279 6,447

28

$mln 30-Sep-2018 31-Dec-2017

Equity and liabilitiesCapital and reservesShare capital 5 5Additional paid-in capital 1,937 1,948Treasury shares (67) (89)Other reserves (2) (2)Translation reserve (2,800) (2,723)Retained earnings 1,336 1,425Equity attributable to shareholders of the Company 409 564Non-controlling interests 86 92

495 656Non-current liabilitiesBorrowings 4,021 4,269Derivative financial instruments 57 448Deferred revenue 113 132Deferred consideration 167 216Deferred tax liabilities 207 217Site restoration, decommissioning and environmental obligations 37 47Other non-current liabilities 48 45

4,650 5,374Current liabilitiesBorrowings 8 12Deferred consideration 56 -Derivative financial instruments 465 -Trade and other payables 559 318Taxes payable 46 87

1,134 417

Total liabilities 5,784 5,791

Total equity and liabilities 6,279 6,447

29

$mlnThree months ended

30 SeptemberNine months ended 30

September2018 2017 2018 2017

Gold sales 821 733 2,112 1,950 Other sales 11 11 29 28

Total revenue 832 744 2,141 1,978

Cost of gold sales (305) (264) (744) (719)Cost of other sales (4) (9) (21) (23)

Gross profit 523 471 1,376 1,236

Selling, general and administrative expenses (57) (48) (157) (140)Other expenses, net (24) (13) (60) (32)

Operating profit 442 410 1,159 1,064

Finance costs, net (50) (43) (143) (151)Interest income 7 6 18 23 (Loss) / gain on investments and revaluation of derivative financial instruments, net (81) 30 (134) 98 Foreign exchange (loss) / gain, net (121) 43 (363) 112

Profit before income tax 197 446 537 1,146

Income tax expense (53) (75) (35) (172)

Profit for the period 144 371 502 974

Profit for the period attributable to:Shareholders of the Company 135 360 492 969 Non-controlling interests 9 11 10 5

144 371 502 974

30

$mlnThree months ended

30 SeptemberNine months ended

30 September2018 2017 2018 2017

Operating activitiesProfit before income tax 197 446 537 1,146 Adjustments for:

Finance costs, net 50 43 143 151 Interest income (7) (6) (18) (23)Loss / (gain) on investments and revaluation of derivative financial instruments, net 81 (30) 134 (98)Depreciation and amortisation 68 47 154 129 Foreign exchange loss / (gain), net 121 (43) 363 (112)Other 16 7 43 20

526 464 1,356 1,213 Movements in working capital

Inventories (45) (46) (117) (61)Deferred expenditure 22 21 (7) (2)Trade and other receivables (55) 13 (21) 27 Advances paid to suppliers and prepaid expenses - (6) (6) (10)Taxes receivable (5) (24) 2 (14)Trade and other payables and accrued expenses 34 12 23 9 Taxes payable 3 2 (28) (17)Other non-current liabilities - (1) - (3)

Cash flows from operations 480 435 1,202 1,142 Income tax paid (57) (37) (142) (194)Net cash generated from operating activities 423 398 1,060 948

Investing activitiesPurchase of property, plant and equipment (excluding payments for the Sukhoi Log deposit and construction of the Omchak high-voltage power grid) (188) (202) (586) (489)Payments for the Sukhoi Log deposit - - - (36)Payments for the Omchak high voltage power grid (10) (21) (27) (21)Interest received 6 6 17 26 Proceeds from disposal of joint venture - - - 100 Other - - 2 (3)Net cash utilised in investing activities (192) (217) (594) (423)

Financing activitiesProceeds from borrowings 80 - 1,125 800 Repayment of borrowings (131) (313) (1,247) (1,577)Interest paid (83) (71) (210) (234)Commissions on borrowings paid - (1) (17) (11)Proceeds from issuance of shares - 400 - 400 Direct expenses associated with issuance of the Company’s shares - (3) - (3)Proceeds from sales and leaseback transactions - - - 11 Repayments of principal under finance lease (1) (1) (3) (4)Net proceeds on exchange of interest payments under

interest rate swaps - - 1 1Net proceeds on exchange of interest payments under

cross currency rate swaps 12 13 27 29 Payment for buy-back of shares - - - (1)Increase of ownership in subsidiaries - - (2) -Dividends paid to shareholders of the Company (12) (564) (305) (564)Dividends paid to non-controlling interests (1) (3) (1) (3)Net cash utilised in financing activities (136) (543) (632) (1,156)Net increase / (decrease) in cash and cash equivalents 95 (362) (166) (631)Cash and cash equivalents at the beginning of the period 908 1,477 1,204 1,740 Effect of foreign exchange rate changes on cash and cash equivalents (3) 6 (38) 12 Cash and cash equivalents at the end of the period 1,000 1,121 1,000 1,121

31

The information contained herein has been prepared using information available to PJSC Polyus (“Polyus”) at the time of preparation of thepresentation. External or other factors may have impacted on the business of Polyus and the content of this presentation, since its preparation. Inaddition, all relevant information about Polyus may not be included in this presentation. No representation or warranty, expressed or implied, is made asto the accuracy, completeness or reliability of the information. No third parties have or take any responsibility for the information contained in thepresentation or have checked or verified it.

The presentation includes forward-looking statements that reflect Polyus’ intentions, beliefs or current expectations. Forward-looking statementsinvolve all matters that are not historical facts. Forward-looking statements can be identified by the use of words including “may”, “will”, “would”,“could”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “believe”, “seek”, “plan”, “predict”, “continue” and similar expressions or theirnegatives. Such statements are made on the basis of assumptions and expectations which, although Polyus believes them to be reasonable at this time,may prove to be erroneous. Forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause thecompany's actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves orintends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could causethose differences include, but are not limited to: changing business or other market conditions, changes in applicable law, rulings by governmentcommissions, general economic conditions in Russia, the European Union, the United States and elsewhere, and Polyus' ability to respond to trends in itsindustry. Additional factors could cause actual results, performance or achievements to differ materially. Polyus and its directors, officers and employeesexpressly disclaim any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation and anychange in Polyus’ expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except asrequired by applicable law or regulation.

Nothing herein shall constitute or form part of any offer for sale or subscription of or solicitation to buy or subscribe for any securities, and neither thisdocument nor any part of it shall form the basis of, or be relied on, in connection with, or act as an inducement to enter into, any contract orcommitment whatsoever.

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