Volume of precious metal produced by Polymetal enterprises in the 1st half of 2004, makes the holding one of the leading Russian producers.

In the 1st half of 2004 Polymetal enterprises produced 7,054 tons of precious metal in gold equivalent (226, 8 th. oz.). This figure exceeds 2003 result for the same time period by 85%.

Volume of gold production in the 1st half of 2004 made 2,255 kilos (72,5 th.oz.) and 298,3 tons of silver (9,589 mln.oz) were produced.

In 2003 Polymetal produced 10,7 tons (345 th.oz.) of precious metal in gold equivalent. The figure exceeded 2002 year results more than twice. Volume of gold production in 2003 made 4,500 kilos (145 th.oz.), silver - 413, 3 tons(13,3 mln.oz)

Results of Polymetal operation in the 1st half of 2004 make the holding the 8th largest world silver producer and allow it take the 2nd place among the leading Russian precious metal producers. (Data provided by The Union of Gold Producers (including co-production).

Polymetal (www.polymetal.ru) was founded in 1998. Currently Polymetal Group includes Polymetal Management, Polymetal Engineering, 4 mining and 8 prospecting and exploration subsidiaries operating in the Republik of Buryatia, Khabarovsk territory, Sakhalin, Irkutsk, Chita and Magadan regions. Polymetal holds 16 licenses for precious metal deposits and prospecting fields. The company takes the first place among Russian silver producers and it is in the list of top-ten gold producing companies. Polymetal is also one of the ten leaders in world silver production. Balance reserves of the company (C1+C2) are estimated at 22,417 tons of silver and 205 tons of gold.