OJSC Polymetall Management is pleased to announce its production figures in 2004. Results of 2004 precious metal output at the enterprises managed by Polymetall Management enables the holding to get a stable foothold among the leading producers in Russia and abroad.

In 2004 Polymetall enterprises delivered to the refinery 14,3 tons (459,000 oz) in gold equivalent. The figure exceeds 2003 result by 51%.

Gold production in 2004 grew by 56% compared to 2003 and made 6,6 tons (212,000 oz), silver production increased by 47% to 537 tons (17,3 mln. oz).

Considerable production growth in 2004 was mainly connected with the launch of mine and mill complex at the Khakanja deposit (Khabarovsk Territory) and increase of output at the Dukat and Lunnoye deposits (Magadan region).

“In 2004 we also carried out holding reorganization, established management and engineering companies, formalized and put in order key business procedures and created a strong management team. Last year we worked much with Standard Bank London. Obtaining a long-term syndicated loan not only confirms excellent prospects of our business growth, but also evidences confidence the international financial institutions have in our company as a debtor.

Prospects of production growth in 2005 are mainly connected with the Khakanja deposit, which is to reach its full capacity and also with the launch of precious metal production at the second phase of the Vorontsovskoye deposit” – said OAO Polymetall Management CEO Vitaliy Nesis.

Results of Polymetall operation in 2004 put the holding in the list of the top-ten leading world silver producers and at the second place among leading domestic precious metal producers.