1

PETROPAVLOVSK PLC

Q4 / FY 2019 Operating Results

January 2020

2

Cautionary and forward-looking statements

— Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements, including

references to guidance. Such statements reflect the Company’s current views with respect to future events and are subject to risks,

assumptions, uncertainties and other factors beyond the Company’s control that could cause actual results to differ from those

expressed in such statements. Although the Company believes that such forward-looking statements, which speak only as of the date

of this presentation, are reasonable, no assurance can be given that they will prove to be correct. Therefore, you should not place

undue reliance on these statements

— There can be no assurance that the results and events contemplated by the forward-looking statements contained in this presentation

will, in fact, occur. The Company will not undertake any obligation to release publicly any revisions to these forward-looking

statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation, except as required by

law or by any appropriate regulatory authority. Nothing in this presentation or in documents referred to in it should be considered as a

profit forecast.

— The past performance of the Company and its securities is not, and should not be relied on as, a guide to the future performance of

the Company and its securities

— This presentation does not constitute, or form part of or contain any invitation, recommendation or offer to any person to underwrite,

subscribe for, buy, sell, otherwise acquire, exchange or dispose of any shares or securities in the Company or advise persons to do

so in any jurisdiction, including, but not limited to, the Russian Federation, nor shall it, or any part of it, form the basis of or be relied on

in any connection with or act as an inducement to enter into any contract or commitment therefore or engage in any other investment

activity. In particular, this presentation and the information contained herein are not an offer of securities for sale in the United States.

This presentation does not constitute an advertisement of any securities in the Russian Federation

— No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its

completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents

or otherwise in connection therewith.

— The development and production plans and estimates set out herein represent the current views of the Company's management. The

Company’s Board reviews the production estimates on an ongoing basis. All planning is subject, inter alia, to available funding and

capital allocation decisions

— English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this presentation

3

Company Overview

St Petersburg

- RDC Hydrometallurgy

Mining & Processing

Pioneer

Albyn

Malomir

Pokrovskiy

Moscow

- Petropavlovsk Moscow

- PHM Engineering

Blagoveshchensk

- Regis Exploration

- Kapstroi Construction

Irkutsk

- Irgiredmet Institute

IRC Ltd. (non-core)(1)

London

- Petropavlovsk Plc

- Corporate headquarters

Open-pit mine

Underground mine

POX Hub

Analytical labs

R&D

Offices

(1) 31.1% equity interest

7.6Moz Gold mined to date

18 year Average mine life

1 of only two POX plants in

Russia

620 - 720koz 2020e production

A premium-listed Russian gold miner and processor with strong technical capabilities

4

Investment Highlights

Exploitable long life mineral resource base (20.5Moz) with additional

expansion potential (2,600km2 licence area)

2

Strategic location and access to developed infrastructure

3

Strong track record of mine development, expansion + asset optimisation

4

Strong and experienced Board, fully compliant with the UK Corporate Governance Code

6

Future production growth and optionality to process refractory ore at the

Pressure Oxidation (POX) Hub

1

Experienced management team and skilled workforce, in-house technical

expertise and R&D facilities

5

ESG focus: sustainable development is a key focus for the Group

7

A major Russian gold producer, operating in the Far East of Russia for over 25 years

5

0m

50m

100m

150m

200m

250m

4p

5p

6p

7p

8p

9p

10p

11p

12p

13p

14p

Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan 2020

Price Vols

Premium listing on the London Stock Exchange

Share price and key market drivers(1)

Share price and trading volumes(1)

(1) As at 17 Jan 2020

(2) As at 31 Dec 2019

Shareholder structure(2)

Roman Trotsenko(via Fincraft Holdings Ltd

& VTB Bank)22.4%

Prosperity Capital Mgt

13.5%

Everest Alliance Ltd

7.5%

Fortiana Holdings4.6%Slevin Ltd

4.6%

Abu Dhabi Investment Authority

4.5%

Norges Bank Investment Mgt 4.0%

Canaccord Genuity Wealth Mgt2.9%

Hargreaves Lansdown Asset Mgt2.6%

Dimensional Fund Advisors1.9%

Legal & General Investment Mgt1.8%

Ontario Teachers Pension Plan Board

1.0%

East Capital1.0%

Other27.6%

Price (GBP, pence) 12.80p

52 Week Range 6.72p – 13.16p

Avg. Daily Vol (12m) 7,040,004

Shares outstanding 3,310,210,281

Market Cap. £428.3m (US$556.7m)

EV £880.9m (US$1,131.2m)

Gold PM Fix $1,559/oz

52 Week Range US$1,265/oz - US$1,611/oz

USD:RUB FX 61.57

52 Week Range 60.99 – 66.95

6

2019 Achievements and 2020 Goals

A significant business turnaround has been achieved, with a clear set of goals for 2020

2019 Achievements

Production

✓ 42% yoy increase in gold production to 517.3koz

✓ Avg. realised gold price of US$1,346/oz (+7% vs. FY 2018)

Flotation and POX

✓ Malomir flotation fully ramped-up, operating above design

parameters

✓ POX plant commissioned ahead of schedule and successfully

ramped-up

Balance Sheet

✓ S&P upgrade outlook to Positive affirming B- rating

Corporate

✓ Convertible bond issue refinanced at a lower coupon

✓ IRC loan refinanced with a more favorable payment schedule

Responsible business / ESG

✓ LTIFR dropped by 36% to 1.61 accidents per 1m hours worked

✓ Joined UN Global Compact Initiative on Corporate Sustainability

✓ 2 x new female Independent Non-Executive Directors appointed

bringing female representation up to c.22%

2020 Goals

Production

✓ Gold production guidance of 620koz - 720koz, including third

party concentrate

✓ Focus on operational efficiencies + cost optimisation at existing

operations

Flotation and POX

✓ Ongoing expansion of POX Hub → reduction in unit costs via

the processing of third party concentrates

✓ Pioneer flotation construction to double Group refractory ore

processing capacity from 3.6Mtpa to 7.2Mtpa, on schedule for

Q4 2020 launch

Balance Sheet

✓ Focus on net debt reduction targeting an ultimate Net Debt /

EBITDA ratio of 2x

Corporate

✓ Hedge book closed out → full exposure to strong gold price

environment

✓ IRC disposal to realise value from non-core assets

Responsible business / ESG

✓ Continued focus on ESG best practice + improving health and

safety

7

Q4 / FY 2019

Operating Results

8

Q4 / FY 2019 Production Performance

Total 2019 gold production increase of 42% to 517.3koz vs. 2018

Koz

POX

FY 2019 vs. 2018 production by mine-site

Koz

0

20

40

60

80

100

120

140

160

180

200

2018 2019 2018 2019 2018 2019 2018 2019

Malomir Albyn Pioneer POX Plant

(3rd party concentrates)

77.6

180.3

151.0

170.9

120.4

135.1

45.7

POX RIP

RIP

RIP

RIP RIPRIP

POX

Malomir (47.6koz Q4 / 180.3koz FY 2019)

– Following 2018 flotation commissioning, Malomir has been

transitioning from mining non-refractory to mainly refractory

ores for POX processing, resulting in lower non-refractory

volumes through the mill as processing switched

– Flotation plant exceeded design rate / recovery, allowing for

processing of lower grade material

– Mining of non-refractory ore in Q4 was mainly at

underground workings with some non-refractory gold from

transitional ores at the upper horizons of the Central pit

Albyn (44.7koz Q4 / 170.9koz FY 2019)

– Strong FY performance due to increased volumes of higher-

grade ore from lower sections of main ore body + southern

flank

– In Q4, production from Albyn pit was slightly above budget in

terms of mining, processing, production

Pioneer (36.9koz Q4 / 120.4koz FY 2019)

– Processing of harder ores from bottom of the pits resulted in

a c.12% decrease in milled ore volumes

– As a result, despite achieving higher recoveries + grades,

overall production was slightly lower y.o.y.

POX 3rd party concentrates (32.5koz Q4 / 45.7koz FY 2019)

– 32.5kt processed @ 61.6g/t, 94.9% recovery

– Gold doré production lower than gold recovered due to

fluctuation of gold in circuit

+13% -11%+132%

RIP

9

50.25

45.33

FY 2018 FY 2019

1.01

0.90

FY 2018 FY 2019

12.03

10.40

FY 2018 FY 2019

Reporting in line with international standards

FY 2019 Environmental Performance

2.521.61

FY 2018 FY 2019

Lost Time Injury Frequency Rate (LTIFR)Accidents per million hours

Greenhouse Gas Emissions (GHG) Intensity Normalised per ounce of gold produced, t CO2e/oz

Energy IntensityGJ/oz

Water Intensitym3/oz

-36% -14%

-11% -10%

― Significant drop in LTIFR was a result of several Company initiatives, including an increase in health and safety training and stricter onsite

safety monitoring procedures

― An increase in overall production has led to an inevitable rise in energy and water consumption on an absolute basis

― However, the efficient use of resources across the company’s operations, the intensity of consumption has fallen on a per ounce

basis as evidenced by a reduction in GHG intensity

10

POX: Technology Driven

Growth

11

— “Refractory” ore contains gold encapsulated in

sulphides which resists recovery via standard methods

— Sulphides need to be broken down chemically or

mechanically

— “Double refractory” ore also contains carbon, which

impacts recoveries → special measures are required to

neutralise carbon’s effect

Main Options to Treat Gold Bearing Refractory Ores

POX: Introduction To Refractory And Double Refractory Gold OresPOX – one of the most efficient and environmentally-friendly ways to extract gold from

refractory ore

High Grade Concentrate

Pressure Oxidation

(POX)

Bio Oxidation

(BIOX)

Ultra-Fine

Grinding

Roasting

1. POX: oxidation in an

autoclave: high pressure

+ temperature

2. Roasting: oxidation

via high temperature

roasting

3. BIOX: oxidation using

bacteria

4. UFG: fine grinding

releases gold

encapsulated in sulphides

or other minerals

‒ 65% (5.2Moz) of the Group’s total Reserves (8.2Moz) are refractory

‒ 60% (12.3Moz) of the Group’s total Resources (20.5Moz) are refractory

(1) As at 31 Dec 2018, in accordance with the JORC Code 2012. Reserves are shown as Proven + Probable. Resources are inclusive of Reserves

By design, our POX Hub is able to treat some of the most

technologically complex refractory ore concentrates

2.0Moz

0.2Moz2.7Moz

0.4Moz

5.3Moz

Total

38%

51%

3%

8%

Pioneer

open-pit

2.0Moz

Albyn

open-pit

0.4Moz

Malomir

open-pit

2.7Moz

Pioneer

U/G

0.2Moz

4.2…

0.3Moz6.7Moz

1.1Moz

12.3Moz

Total

34%

54% 2%

9%

Albyn

open-pit

1.1Moz

Malomir

open-pit

6.7Moz

Pioneer

U/G

0.3Moz

Refractory Reserves(1) Refractory Resources (1)Refractory + Double Refractory Ore

Pioneer

open-pit

4.2Moz

12

The POX Hub is well positioned in terms of easy access and well developed infrastructure

The POX Hub

Blagoveshchensk

Albyn

Pilot POX Plant

Malomir

Pioneer

Pokrovskiy POX Hub

Fevralsk(1)

(1) Fevralsk and Tygda are rail loading facilities

Tygda(1)

Concentrate Transportation: Malomir to POX

Km

Truck: Malomir to Fevralsk 166

Rail: Fevralsk to Tygda 1,134

Truck: Tygda to POX Hub 18

Total 1,318

CHINA

Operating mines

Underground mine

POX

Analytical labs

Hydro power plant

Railway

Transportation route

13

0

50

100

150

200

250

300

350

400

450

500

2018a 2019a 2020e 2021e 2022e

Pioneer Malomir Albyn 3rd Party

POX to reach full potential by 2021, with 65% of ores mined being refractory(1)

(1) Assumes 3rd flotation line at Malomir from 2021

(2) Capacity ranges depend on concentrate parameters, particularly Sulphur content

Capacity Range(2)

POX: The Heart of Our Future Strategy

Pioneer Malomir 3rd Party Ore

Contribution of Refractory Ores at Malomir +

Pioneer (Mtpa)(1)POX ramp-up (ktpa)(1)(2)

2 a

uto

clave

s4 a

uto

clave

s

Conce

ntrate

(kt

)

0

10

20

30

40

50

60

70

0

2

4

6

8

10

12

14

16

2019a 2020e 2021e 2022e

Pioneer non-ref Pioneer flotation

Malomir non-ref Malomir flotation

Albyn non-ref % Refractory (RHS)

Pio

neer

Malo

mir

Alb

yn

% of total which

is refractory

14

POX Processing Costs: Fixed vs. Variable

Overall POX processing costs decline rapidly to c.US$100/t as throughput is increased

Throughput (ktpa) Variable CostFixed Cost

– Through the early ramp-up period in H1 2019, the

proportion of fixed costs was c.2/3 of total POX

processing costs

– The share of fixed costs decreases as plant

utilisation increases

– H1 2019 processing cost equated to around

US$230/t concentrate, which fell to c.US$180/t in

H2 2019

– As throughput is increased to full capacity,

unit processing costs decline rapidly to

c.US$100/t

0

50

100

150

200

250

H1 2019 H2 2019 FY 2019 FY 2020 FY 2021 FY 2022

76kt

450kt

340kt

188kt

112kt

Fixed costs decrease rapidly

on a per tonne basis as

throughput is increased

US

$/t

FY 2019 to FY 2020H1 to H2 2019

Unit cost of processing and throughput rates Comment

450kt

15

Autoclave Peer Analysis

POX technology around the world

Project Start POX Feed POX Capacity Autoclaves Temp Pressure ~S Feed Reserves

Pueblo Viejo 2012 Whole Ore 24,000tpd 4 230C 3,450kPa 6.8% 2.8g/t

Goldstrike 1990 Whole Ore 16,000tpd 6 220C 2,900kPa 2.5% 3.9g/t

Copler 2018 Whole Ore 6,000tpd 2 220C 3,150kPa 4.8% 2.8g/t

Lihir 1997Whole Ore &

Concentrate25,000tpd 4 205C 2,650kPa 6.0% 2.3g/t

Twin Creeks 1997Whole Ore &

Concentrate10,400tpd 2 225C 3,170kPa 4.5% 1.8g/t

Kittila 2008 Concentrate 870tpd 1 207C 2,500kPa 18.0% 4.7g/t

Amursk 2012 Concentrate 616tpd 1 200C 2,170kPa 6.5% 5.2g/t

Porgera 1990 Concentrate 16,400tpd 4 197C 1,750kPa 14.0% 4.8g/t

Macraes 1999 Concentrate 650tpd 1 225C 3,140kPa 9.0% 1.1g/t

Corrego do Sitio 2011 Concentrate 240tpd 1 230C 3,600kPa 7.8% 4.1g/t

Pokrovskiy 2018 Concentrate 1,370tpd 4 225C(1) 3,500kPa(1) 23.0% 1.0g/t

Stibnite (Project) 2023E Concentrate 20,000tpd 1 220C 2,400kPa 5.5% 1.6g/t

Donlin (Project) 2025E Concentrate 8,500tpd 2 220C 3,250kPa 7.0% 2.1g/t

Lagunas Norte

(Project)2026E Concentrate 6,000tpd 1 - - 8.0% 2.9g/t

Certej (Project) - Concentrate 2,600tpd 2 230C 3,547kPa 13.0% 1.7g/t

(1) Pokrovskiy POX Hub achieved autoclave pressure of 3,000kPa and a temperature of 220˚С, as ramp-up to design parameters continues

16

POX: A World Class TeamA world class research and development expertise lead by a world class team

Gidrometallurgia: Petropavlovsk’s Scientific Research Centre, established to support the POX project

— Unique laboratory, created the concept of the POX project for the Group, including key technological parameters

— Equipped with state of the art autoclave laboratory facilities (laboratory + pilot testing, feasibility work + audits)

— Unique team of 40 specialists incl. PhD holders, who have undertaken a range of work for c.30 third party companies in addition to POG

Irgiredmet: The Irkutsk Research Institute of Precious and Rare Metals and Diamonds

— Founded in 1871, over 140 years of expertise in R&D, design + engineering

— Helped to develop flotation process / testing, laboratories performed autoclave leaching tests

— 10 specialised technological laboratories with c.300 highly qualified staff, more than 25 patents in the fields of mining / metallurgy

— Annually carries out more than c.200 researches assignments for third party companies, incl. R&D activities to help develop new deposits

Pilot Test Plant: Petropavlovsk’s experimental industrial model pilot processing plant

— Launched in 2009, the plant is the first and only of its kind in Russia

— Small scale autoclave to test all parameters of the process

— Unique asset giving Petropavlovsk the flexibility to test any type of gold recovery process on a smaller scale

— Also carries out test work / scenario analysis for external third party companies

Our partners and industry specialists: over 20 leading industry companies contracted to help us successfully develop / launch the

POX Hub

— Shanghai Morimatsu (autoclaves), LOTERIOS SpA(pressure pipe lines), DSB Säurebau GmbH (titanium inner gear + autoclave linings),

Outotec (flotation, control / automation equipment), Feluwa Pumpen GmbH (acid resistant high-pressure slurry pumps), MOGAS

Industries (valves), Red Mountain Energy Corporation (oxygen plant)

PHM Engineering: engineering and construction supervision of the Group’s processing assets, including the POX Hub

— Responsible for new project feasibility work, technical design, permitting, equipment selection, oversight of manufacturing process,

installation, commissioning

— Over 50 employees including PhD holders

17

Balance Sheet

18

Liquidity and Debt Overview

Recent bond restructuring has strengthened near-term liquidity position

Refractory

Refractory978

638 611 596 594

930

610 599 585 568

3.7x

3.5x

3.0x 3.0x

4.0x

2014 2015 2016 2017 2018 2019 - 2022

Total debt Net debt Net debt / Underlying EBITDA

Target

c.2.0x

FY 2018 EBITDA affected by

refractory concentrate

stockpile build-up during POX

commissioning phase

Targeting mid-term Net Debt / EBITDA of c.2.0x

100

500

125

2019 2020 2021 2022 2023 2024 2025 2026

US$125m

convertible bond

matures

Jul 2024 with

8.25% coupon

US$500m notes

maturing Nov 2022

with 8.125%

coupon

Group debt maturity schedule (US$m)

19

B (Outlook Positive)

(upgraded from CCC)

Last review: Aug 2019

Improving Credit RatingH

igh

lig

hts

– POX commissioning to have a positive impact on 2019

financials

– IRC debt refinancing to improve liquidity position

– Development of underground operations

– Expanding the Board reinforced corporate governance

Up

sid

e

Tri

gg

ers

Successful convertible bond refinancing

2019 EBITDA growth in line with S&P base case

Improved credit metrics backed by potential sale of IRC stake

Building up successful POX track record

Delivery on revised business strategy

Do

wn

sid

e

Tri

gg

ers 2019 EBITDA may not materially improve vs. 2018

Difficulty in refinancing the US$100m convertible bond due

2020

B- (Outlook Positive)

(outlook upgraded from Negative)

Last review: Oct 2019

– Significant strengthening in liquidity position

– Convertible bond successfully refinanced

– Repayment of US$57m bridging loan by IRC

– Increased visibility for production following POX commissioning

– Significant deleveraging by end-2020

– Improved corporate governance

FFO adjusted gross leverage remaining sustained below 4x

Sustained FCF margin with funds used for reduction of gross debt

Improvement of production volumes and cash costs

Improvement in corporate governance

Deterioration of liquidity and / or aggressive dividend distributions

Failure to improve production volumes

Source: S&P and Fitch rating reports

An improved credit rating reduces the Company’s cost of capital

Key highlights from latest report Key highlights from latest report

20

Responsible Business

21

Sustainable Development

Maintaining leading ESG Practices

— Full compliance with applicable health and safety legislation

— H&S management systems

— Regular external + internal audits / inspections

— Development of safety culture

— Risk management to mitigate impact

— High quality task specific training

Health and Safety

— Full compliance with UK Corporate Governance Code

— Safety, Sustainability and Workforce Committee formed in Nov

2018

— Annual review + publication of a revised Modern Slavery

Statement

— Remuneration disclosure

— Established Code of Conduct and Business Ethics

Corporate Governance

— Environmental Management system compliant with GOST R

ISO 14001- 2016 (ISO 14001:2015)

— Optimisation of energy consumption, water recycling, GHG

monitoring + reporting in line with international standards

— Strict control cyanide management

— Fully compliant + insured tailing management facilities

— Ongoing land rehabilitation + conservation of biodiversity

— Effective waste management (31% of all waste is reused)

Environmental Management

— Major tax payer in Amur region

— Active engagement with Indigenous communities

— Establishment of POX Hub part of government’s policy to develop

Russian Far East

— Accessible and effective grievance procedure

— Trade Union: 1,616 members, 18% of employees

— Equal career opportunities regardless of gender

— Pokrovskiy Mining College

Social Responsibility

Petropavlovsk is not only fully compliant with regional, national + international legislation, but is striving to

perform in line with best industry practices

22

Strong corporate governance supported by an experienced Board

Dr Pavel Maslovskiy (N) (S) (E*)

Chief Executive Officer

– Re-appointed in Jun 2018– Сo-founded the Company in 1994– CEO of Petropavlovsk 1994-2011

(when acted as Senator-Member to Federation Council) and again 2014-2017

Sir Roderic Lyne (N*)

Non-Executive Chairman

– Appointed as Chairman following Jun

2018 AGM

– Previously was a Non-Ex. Director of

Aricom PLC and Petropavlovsk PLC

– Served as British Ambassador to

Russia from Jan 2000 until Aug 2004

Mr Damien Hackett (N) (A) (R) (S)

– Appointed Oct 2018– Mr Hackett is Chairman of UrAmerica– Has 26 years critical research

experience covering globally diverse mining companies

– Former Vice Chairman Mining Advisory at Canaccord Genuity

Mr Mirzaaziz Musakhanov

– Nominated by AEON Mining Ltd, our largest shareholder, appointed Non-Executive Director on 14 Oct 2019

– Chairman of the Board at NovaportGroup and a Director at GeoProMiningGroup

– Over 20 years of experience in financing and industry

Mr Robert Jenkins(A*) (R*) (N)

– Re-appointed June 2018– 25 years of Russia-related investment /

natural resources experience– Previously CFO of two Russia-focused

natural resources companies– Formerly held Board appointments

with Ruspetro PLC and Toledo Mining PLC

Mr Harry Kenyon-Slaney (S*) (A) (N)

– Appointed Nov 2018, became Senior

Independent Director April 2019

– Currently holds positions of Non-Ex.

Chairman at Gem Diamonds, Non-Ex.

Director at Sibanye Gold

– 33 years experience, principally with

Rio Tinto

(S) Member of the Safety, Sustainability and Workforce Committee

(N) Member of the Nominations Committee

(A) Member of the Audit Committee

Board fully compliant with the UK Corporate Governance Code

(R) Member of the Remuneration Committee * Denotes role of Chairman of the Committee

(E) Chairman of the Executive Committee

Ms Charlotte Philipps (A) (R)

– Appointed Nov 2019– Extensive natural resources sector

corporate finance and transactional experience across CIS / CMEA

– Member of the Strategy / Investment Committee at Inter RAO

– Member of the Advisory Board of CAPTIS Intelligence Inc.

– Previously held senior positions at EBRD and AIG Russia Century Fund

Mrs Katia Ray (R) (S)

– Appointed Nov 2019– Over 25 years’ of mining sector

experience in senior leadership roles with Rio Tinto plc and Anglo American plc

– Founded a management consulting firm advising corporate mining companies and private equity groups and start-ups

11%

11%

67%

11%

9Directors

Non-Executive Chairman

Non-Executive Director

Indep. Non-Exec. Directors

Executive Director

Mr James W Cameron Jr (A) (R)

– Appointed Oct 2018

– Formerly Founder, CEO + Chairman

of Occupational Urgent Care Systems

– Extensive experience, providing

expertise and consulting services for

companies in Russia and the former

USSR

23

Sustainability Management and Governance

The Board of Directors has appointed committees at Board level to oversee different aspects of

business, risks and performance

Board of Directors

Structure for the Monitoring + Reporting of

Sustainability Performance Data

1HSE Performance data is collected

by key operational management

2Data + summary

reports are submitted to the CEO + Deputy

CEO3

Data + summary reports submitted by

Deputy CEO to Executive + HSE

Committees

4A summary is made to the

Board of Directors

5Recommendations

are given to key operational

management, which then provides BoD

with feedback

The newly formed Safety, Sustainability & Workforce Committee

(SS&W) is responsible for:

— Reviewing + monitoring health, safety, environmental, sustainability

processes + procedures

— Assisting with the community relations + workforce engagement

The Executive Committee

— Consists of both Executive Directors + key

operational management

— Responsible for overseeing implementation of

strategy, business targets + decisions made at Board

level, including decisions made by SS&W Committee

— Reviewing internal control and risk management

Dr Pavel MaslovskiyChief Executive Officer

Mr Damien HackettNED

Mr Harry Kenyon -SlaneyChairman

Dr Alya SamokhvalovaDeputy CEO

24

10,343

7,080

6,652

6,053

5,813

5,316

5,105

4,387

4,362

4,338

2,073

Polyus

New Gold Incorporated

Anglogold Ashanti

Sibanye

Kinross

Petropavlovsk

Barrick Gold

Gold Fields

Polymetal

Eldorado Gold Company

Centamin

Energy consumption

(GJ / US$m of revenue)

Greenhouse gas emissions (СО2)

(tonnes / US$m of revenue)

LTIFR(2)

(cases per million working hours)

Women employees

(share of the total number of employees)

24.6%

20.0%

16.0%

15.4%

15.2%

13.0%

12.1%

12.0%

11.0%

10.0%

2.0%

Petropavlovsk

Polymetal

Gold Fields

Polyus

New Gold Incorporated

Sibanye

Barrick Gold

Anglogold Ashanti

Kinross

Eldorado Gold Company

Centamin

1,776

1,101

795

759

612

566

480

464

460

450

397

Sibanye

Polyus

Anglogold Ashanti

Petropavlovsk

Centamin

Gold Fields

Polymetal

New Gold Incorporated

Kinross

Eldorado GoldCompany

Barrick Gold

1.18

1.14

0.50

0.45

0.33

0.26

0.24

0.15

0.09

0.09

0.07

Sibanye

Anglogold Ashanti

Petropavlovsk

Gold Fields

Eldorado Gold Company

Centamin

New Gold Incorporated

Barrick Gold

Polyus

Polymetal

Kinross

Sources: Thomson Reuters, company data

(1) Data for full year 2018

(2) Reporting standards vary, it is not always apparent whether all accidents are reported by a company. Petropavlovsk reports accidents at all facilities while

Russian legislation dictates to report the accidents at hazardous facilities only

ESG Performance Benchmarking(1)

Petropavlovsk vs. major gold companies

Well positioned among peers in terms of implementing ESG standards, with some social aspects better vs. peers (eg.

share of female employees). Room for further improvement to obtain an improved ESG rating in the mid-term

25(1) World Wide Fund for Nature Russia 2018

(2) CSR Hub 2018

Sustainable RatingsWell positioned among peers in the framework of Environmental responsibility and

sustainability disclosure

ESG/CSR Rating(2)

(out of 100)

80 79 74 73 73 72 69 68 67 64 1.59

1.43 1.331.04

0.53 0.48 0.38

Kin

ros

s

Po

lyu

s

Po

lym

et

al

No

rdg

ol

d

Pe

tro

pa

vlo

vs

k

Hig

hla

nd

Go

ld

Go

ld o

fK

am

ch

atk

a

Score of 69 (out of 100)

based on Petropavlovsk’s

disclosure of information

Community

Employees

Environment

Governance

The Transparency Rating of Environmental

Responsibility Project for M+M Companies of Russia(1)

Overall Rating

22 place2018 (0.27)

24 place2017 (0.53)

Ecological Management

17 place2018 (0.71)

25-26 place2017 (0.13)

Environmental Impact

22-34 place2017 (0.13)

22-34 place2018 (0.36)

Information Disclosure

23-31 place2018 (0.50)

18 place2017 (0.56)

— Well positioned among the peers

— Second best group (60-79)

Improved rating in every category, with the exception of

Information Disclosure, an area where the Company has the

opportunity to improve in 2019

26

Corporate Strategy

27

Strategic Priorities

Asset rationalisation, organic and inorganic growth options

(1) Petropavlovsk is a 31.1% holder of IRC. Gazprombank has been mandated to assess Petropavlovsk’s options

Opportunities Goal Implementation

Str

eam

lin

ing

the b

usin

ess

IRC sale

‒ Eliminate IRC loan guarantee

‒ Improve credit rating

‒ Improve balance sheet metrics

‒ Focus on gold

‒ Achieve higher market multiples

‒ Disposal of 31.1% controlling stake to a

strategic investor alongside a transfer of the

loan guarantee(1)

‒ Alongside subsequent sale of the IRC stake, an

agreement with Gazprombank to eliminate IRC

guarantee

Org

an

ic G

row

th

Elginskoye

‒ Extend mine life at Albyn

‒ Utilise existing infrastructure

‒ Maximise IRR

‒ Construction of mine at Elginskoye

‒ Construction of road to Albyn plant

‒ Transportation of ore to Albyn RIP

Increase feed of POX

plant by processing

own concentrates

‒ Optimise POX utilisation

‒ Secure concentrates with the best

margins

‒ Maximise IRR

‒ Construction of Pioneer flotation plant (initially 2

lines) with further expansion (3rd flotation line)

‒ Expansion of flotation plant at Malomir (3rd

flotation line)

Ino

rgan

ic G

row

th

New Business

‒ Improve grade of POX feed material

‒ Increase POX utilisation

‒ Expand margins + increase production

‒ Identification of higher grade refractory assets

which can’t be developed at this moment

‒ Identification of the most effective way to bring

together synergies of these assets and the

processing capacity of the POX Hub

Autoclaves

5 + 6 (JV option)

‒ Fully benefit from POX facilities and

POG’s comprehensive in-house R&D

capabilities

‒ Financed by JV partner

‒ Adjustment of the technological process to

process complex material (eg. triple refractory)

28

Organic Growth: Elginskoye to Replace Albyn Pit

Ore body shape is favourable for a low strip-ratio / low dilution operation

– Elginskoye is predominantly a non-refractory ore body, located c.30km west of Albyn plant

– 2.8Moz of JORC Resources including 1.5Moz of JORC Reserves (at avg. 1.1g/t)

– Shallow dipping mineralised zones suitable for low cost open pit mining

– Preparation started to commence production in 2020

– Access road completed

– First mining equipment has been transferred from Albyn to site

– Estimated gold production of c.156koz in 2020

29

Inorganic Opportunities: Refractory Deposits in Russia

A large number of known refractory deposits exist in the region and across Russia

POX Hub

Olimpiada

(Polyus)

41.4Moz @ 2.9g/t

Mayskoye

(Polymetal)

2.8Moz @ 11.4g/t

Veduga

(Polymetal)

0.9Moz @ 4.8g/t

Kyuchus

(Govt. owned)

6.9Moz @ 9.3g/t

Nezhdaninskoye

(Polymetal)

7.9Moz @ 5.0g/t

Albazino

(Polymetal)

1.6Moz @ 4.6g/t

Taseevskoye

(Highland Gold)

5.1Moz @ 5.1g/t

Itakinskoye

1.3Moz @ 6g/t

Kluchevskoye

(Sun Gold /

China Gold)

2.5Moz

Malomir

6.9Moz @ 0.8g/t

Bogolubovskoye

(NOK)

2.3Moz

Pioneer

5.9Moz @ 0.7g/t

Nasedkino

(Mangazeya

Mining)

0.9Moz @ 2.1g/t

Poputninskoye

(Polyus)

4.3Moz @ 3.2g/t

Zmeinoye

(Polyus)

0.4Moz @ 4.6g/t

30

Inorganic Growth: 3rd Party Refractory Concentrates Market

Concentrate markets in Russia and Kazakhstan

Mine OwnerOwn

FacilitiesExports

Tonnes

Available (Kt)

Potential Tonnes

Available (Kt)

Olimpiada (Au)(2) Polyus ✘ ✔ 50

Olimpiada (Au,Sb)(2) Polyus ✘ ✔ 150

Bogolyubovskoye NGOK ✘ ✔ 30

Udereyskoye NGOK ✘ ✔ 35

Drazhnoe GV Gold ✘ ✔ 20

Badran Zapadnaya ✘ ✔ 10

Mayskoye(3) Polymetal ✘ ✔ 57

Total available volumes 145 207

Refractory Mines in Russia and Concentrate Availability (Ktpa)

(1) Petropavlovsk’s process can stabilise arsenic as scorodite which offers a more environmentally-friendly approach to roasting

(2) Olimpiada produces two types of flotation concentrates: 150Ktpa of concentrate is sold with an antimony content of up to 30% and 50Ktpa of gold

concentrates containing some antimony

(3) 57Ktpa of Mayskoye concentrate, which is not processed at the Amursk POX plant, may be available

1. Russia: 40% of gold resources are refractory

— Only limited refractory treatment capacity exists including two POX plants

— The majority of concentrates are exported to China

— Russia has declared gold as strategic asset and intends to prohibit exports of concentrates

— For environmental reasons, China is shutting down roasters - particularly those treating high arsenic / antimony(1)

2. Kazakhstan: another source of refractory concentrates

— Four refractory mines currently produce flotation concentrate, with potential to expand further.

— Petropavlovsk has secured 20Kt grading 40g/t to 50g/t which it is currently processing at recoveries of 95%

31

Autoclaves 5 + 6 (JV Option)

Potential for a JV with another refractory producer or developer

– Existing onsite infrastructure enables two additional autoclaves lines (5 + 6) to be added, although some expansion of

oxygen capacity will be required

– Given the large number of refractory ore bodies in the region, the Company believes the development could be

funded via a JV with another refractory developer or producer

– Adjustment in technology can be made to process very complex refractory materials, including:

– Pyrrhotite-containing concentrates

– Bio-cakes

– Cuprous gold-bearing concentrates

– Carbonaceous concentrates from other deposits

– Concentrates obtained from the tails of existing mills

32

Conclusions

33

Summary: A Conservative Strategy Focused on Shareholder Returns

A holistic strategy directed at improving long-term shareholder returns

— Addition of 2 more autoclaves to the existing 4

— 50% total processing capacity uplift from 400 – 500Ktpa to 500 – 750Ktpa

— Autoclaves 1 to 4 to process own refractory ore, while 5 + 6 to process 3rd party material (JV

opportunities)

POX capacity

expansion

IRC:

realising value from

non-core assets

— Options include: improvements to existing guarantee structure, outright disposal , payment of a

dividend to Petropavlovsk

Committed to

exploration

— Continue to generate maximum value from core assets via ongoing exploration both surface +

underground

— Potential licence acquisitions adjacent to the existing infrastructure

Balance sheet

strengthening

— Improved cash generation via POX ramp-up

— Targeting Net Debt / EBTIDA of 2.0x

— Construction of new Pioneer flotation to double existing flotation capacity (Q4 2020 launch)

— Malomir 3rd flotation line planned for 2023, but may be accelerated

Increase production

of our own refractory

concentrate

— Focus on operational efficiencies and cost optimisation at existing operations

— Gold price hedging / forward sales agreements are complementary measures

Cost optimisation +

margins1

2

3

4

5

6

34

Peer Group Valuation Analysis

A re-rating is underway - Petropavlovsk was 2nd best performing stock in its peer group in 2019

EV / EBITDA (NTM) EV / Reserves (Gold Equivalent) Times (x)

Times (x)

US$/oz

Source: Thomson Reuters, as at 6 Jan 2020

P / CF (NTM) – av. 7.0x

8.77.9 7.9

7.1

5.6 5.6

4.5 4.2 3.9 3.8

5.9

Ba

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terr

a

Pe

trop

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377 376 375

308

257220

201

140123

80

245

En

de

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ur

Po

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old

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do

11.7

9.48.5 8.1 7.6

6.85.9

4.4 4.1 3.8

7.0

Cen

tam

in

New

mon

t

Po

lym

eta

l

Ba

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k G

old

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Pe

trop

avlo

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Hig

hla

nd

En

de

avo

ur

Cen

terr

a

Eld

ora

do

%

Market Performance (LTM)

156

92

77

43 40 3927 26

132

56E

ldo

rad

o

Pe

trop

avlo

vsk

Cen

terr

a

Ba

rric

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old

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New

mon

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Hig

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En

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avo

ur

Cen

tam

in

35

Appendix

36

History of the Group

0Mtpa

2Mtpa

4Mtpa

6Mtpa

8Mtpa

10Mtpa

12Mtpa

14Mtpa

16Mtpa

18Mtpa

20Mtpa

1999a 2002a 2003a 2004a 2005a 2006a 2007a 2008a 2009a 2010a 2011a 2012a 2013a 2014a 2015a 2016a 2017a 2018a

RIP + HL + Flotation Processing

First gold

from Pioneer

Pokrovskiy RIP

expanded

First gold

from Pokrovskiy

First gold

from Malomir

First gold

from Albyn

Pioneer RIP

commissioned

Moved to LSE

Main Board

Pioneer RIP

plant expanded

Pokrovskiy

RIP plant

commissioned

Listed on AIM

Malomir

RIP expanded

Albyn licence

and Malomir

main site

licence

acquired

Malomir

first

exploration

licence

acquired

Plant

expansions:

Pioneer, Malomir,

Albyn

Albyn

is commissioned

Pioneer RIP

expanded

Malomir RIP

plant

commissioned

Record gold

production of

741Koz

POX

construction

begins

POX

commissioning

First gold

recovered from

POX

Malomir

flotation line

commissioned

37

Mine By Mine JORC Resource Breakdown

New Resources at Pioneer, Albyn, Malomir + Pokrovskiy

Malomir Pioneer Albyn Pokrovskiy

Refractory Resources

Non-refractory Resources

6.7Moz

97%

0.2Moz

3%

1.4Moz

24%

1.1Moz

21%

4.5Moz

76%4.2Moz

79%

0.9Moz

100%

6.9Moz 5.9Moz 5.3Moz 0.9Moz

Total JORC Resources (as at 31/12/2018)

20.5Moz(1)8.2Moz

40%

12.3Moz

60%

Decrease due to

disposals + sterilisation

due at POX facility

Albyn main ore body +

Unglichikanskoye

Katrin

Nikolaevskya

Ulunginskaya

RIP tailings for

reprocessing via

flotation + POX and

Quartzitovoye

New Resources -

Explanation

(1)Total JORC Resources include Tokur asset, not shown in the split below. Tokur contains non-refractory Resources of 1.4Moz. For full details

please refer to the 2018 Petropavlovsk AR

38

A Comparison of Russian POX ProjectsThere are only two gold POX processing plants in Russia, with a third under

construction

Polymetal Amursk POX 1 Polymetal POX 2 Pokrovskiy POX Hub

Commissioned 2012 Q3 2023 Q4 2018

Number of autoclaves 1 1 4

Concentrate processing

capacity225Ktpa 250 - 300Ktpa 400 - 500Ktpa

Capex US$272m US$431m US$310m

Capital intensity US$1,210/t US$1,437/t - US$1,724/t US$620/t - US$775/t

Operational temperature 200 ˚С 240 ˚С 225 ˚С

Pressure 22 bar 43 bar 35 bar

POX recovery rate 97% 96% 93% - 98%

— A comparable amount of development capex was spent to develop the Pokrovskiy POX Hub vs. the Amursk POX 1 project despite

significant difference in processing capacity

— As such, the new Pokrovskiy POX facility has a low capital intensity

(1) The Pokrovskiy POX Hub achieved pressure of 30 bar and temperature of 220˚С. Ramp-up to design parameters continues

39

Malomir And Pioneer Flotation Concentrate Parameters

Design vs. actual performance

Malomir Pioneer

Design

(Stage 1)Parameter Design H1 2019a H2 2019e FY 2019e Comments

Ore

processing

1.8Mt (6m)

3.6Mtpa (FY)1.81Mt 1.8-2.0Mt 3.6-3.8Mt

H1 throughput on target, up to 10% increase in

H2 due to better equipment utilisation and

optimisation of processing operations

3.6Mtpa

Scheduled

ROM grades

1.25g/t -

1.35g/t 0.97g/t(1) 1.25-1.30g/t 1.10g/t

Flotation performance exceeded initial design

parameters, affording the opportunity to test

process low grade ore at c.0.7g/t in Q1 2019

The tests confirmed its feasibility, hence lower

than design processed grades in H1 2019

1.1g/t

Concentrate

yields5.5% 3.3% 3.5% 3.4% Up to 40% improvement in concentrate yield

vs. design: lower transportation and POX

processing costs and higher grade concentrate

2.90%

Concentrate

grades24g/t 26g/t 31g/t 28g/t 24.0g/t

Concentrate

volumes

100kt (6m)

200ktpa (FY)

59kt (6m)

120ktpa (FY)

61-70kt (6m)

120-140ktpa

(FY)

120-130kt

Up to c.40% decrease in processed tonnage

due to a positive decrease in yield: more gold

extracted into a smaller volume of concentrate

110ktpa

Recoveries 86% 87% 86% 86% Stable recoveries in line with the design 82%

— Stage 2 flotation expansion will increase capacity of Malomir and Pioneer flotation from 3.6 to 5.4 – 6.0Mtpa

— Similarly to Malomir, it is entirely possible that Pioneer flotation may outperform initial design parameters

(1) H1 2019a Malomir ROM grades included trial processing of lower grade refractory stripping material to understand the ability of the plant to

treat lower grade ore and the potential for lower cut-off grades

40

Option agreement to acquire outstanding 25% stake in TEMI LLC

The prospective Unglichikan, Afanasevskoye and Elginskoye deposits sit within TEMI

Option and purchase agreement

– On 23 Sept 2019, the Company entered an option

agreement to purchase outstanding 25% stake in TEMI

– Option price of US$13m payable by 18 Nov 2019

– US$7m cash payment made in May 2019

– US$6m outstanding may be paid in cash or shares at a

fixed price of £0.0826 / share

– Exercise priced depends on when payment is made:

– US$60.0m payable in May 2021, or

– US$53.5m on or before 20 May 2020

– Payable in whole or in part using shares or cash, at the

Company’s election

Future production

– Elginskoye ores are partly non-refractory and amenable to

processing at the Albyn RIP plant

– Production at Elginskoye to begin 2020, coinciding with

depletion of ore currently mined at Albyn main pit

– 156koz of possible production in 2020

JORC Reserves & Resources(1)

– Reserves (P&P) of 1.95Moz, of which 1.53Moz are non-

refractory

– Resources (M&I+I) of c.4.00Moz

Albyn

Afanasevskoye

Elginskoye

Unglichikan

Scale

= 5km

(1) As at 31 Dec 2018