Polymetal Engineering is pleased to announce the signing of an agreement to fulfill the optimization of the development of the Lomonosov diamond deposit.

Polymetal Engineering, a subsidiary of Polymetal, signed the agreement — stipulated for fulfilling the work package for optimizing the development of the Lomonosov diamond deposit (Arkhangelsk Region) — with Severalmaz, a subsidiary of AK “Alrosa”.

According to the agreement, Polymetal Engineering will optimize the planned schedule for converting mining works from experienced-industrial field to project pit of Stage I Lomonosovskiy GOK.

Polymetal Engineering plans to complete the first phase of work in December 2005. This phase involves preparing initial information for optimal planned schedules in 3-5 year intervals for the deposit’s development. The information will include volumes of stripping work and ore with diamond head grades for 2006. Polymetal Engineering will also calculate the fleet of mining transport and equipment for 2006. All work under the contract is carried out based on a confidential agreement.

During the second phase, Polymetal Engineering intends to work out technical solutions and optimization estimations, corresponding to the recommended planned schedule.

Highly professional specialists, up-to-date equipment and state-of-the-art technologies allow Polymetal Engineering to fulfill a vast range of design work for developing ore deposits (precious metals and precious stones, ferrous metals and base metals) at any stage of development.

“We are sure that our wide and successful experience in designing ore deposits will allow us to successfully implement this contract on term. It’s an honor for our company to work on such a significant Russian project”, said Polymetal Engineering CEO Valery Tsyplakov.