OJSC Polyus Gold announced that the Company’s Board of Directors approved the Company’s new development strategy, which provides OJSC Polyus Gold with a plan to increase its gold output more than 3 times by 2015. The Board of Directors meeting took place on September 14th, 2006.

New Strategy

The strategy approved by OJSC Polyus Gold Board of Directors provides a plan for OJSC Polyus Gold to boost its gold production, to increase its reserves, its net income and its market cap in 2006-2015, which will elevate OJSC Polyus Gold to the Top 5 of the global gold producers.

The key 2015 targets include:

• JORC proven and probable reserves - at least 68 million oz;

• Annual gold production - at least 3.9 million oz;

• EBITDA - US$710…900 million;

• Net cash flow - US$600…710 mln;

• Net debt - no more than US$100 mln.

To reach these targets, the strategy envisages total capex of US$3.4 billion for 2006-2015. This covers investments both to boost production and to acquire new assets and licenses in Russia and internationally, WHERE suitable opportunities arise.

ADR Listing on the LSE

The Board of Directors of OJSC Polyus Gold approved the plan to list the existing American Depositary Receipts (“ADRs”) representing common shares of Polyus Gold on the London Stock Exchange plc (the "LSE") and authorized the Company’s management to proceed with an application to the U.K. Financial Services Authority (the “U.K. Listing Authority”) for the ADRs to be admitted to the official list of the U.K. Listing Authority (the "Official List") and to the LSE for such ADRs to be admitted to trading on the LSE's EEA Regulated Market.

Admission of the ADRs to the Official List and to trading on the LSE's EEA Regulated Market is expected to take place in the final quarter of 2006 or first quarter of 2007 and will be subject to the approval of the U.K. Listing Authority and the LSE, as well as further corporate approvals of the company. No additional shares of Polyus Gold or ADRs will be issued or offered in connection with these applications for admission to listing and trading.

In connection with the listing application, OJSC Polyus Gold is expected to become the first Russian mining company to publish a valuation of its business in the form of a Competent Person’s Report (CPR) prepared by the international auditors, Micon International Co Ltd.

Changes to the consolidated budget (Shares buy-back program)

OJSC Polyus Gold’s Board of Directors has also approved changes to the company’s consolidated budget that will allow the launch of a share buy-back program for the amount of US$1 billion. It is expected that an investment bank will be engaged to provide advice in connection with the share buy-back, including the purchase price to be offered to shareholders. The buy-back, which is expected to occur in the final quarter of 2006, subject to market conditions and other factors, will be funded by existing cash-flow and is expected to be carried out by a subsidiary of OJSC Polyus Gold.

Other decisions passed by the Board of Directors included approval of two new corporate policies: “Public and Investor Relations” and “Financial Risk Management”.

Commenting on the announcement, the CEO of OJSC Polyus Gold, Evgueni Ivanov, said: “Decisions passed by the Board at this meeting are vital for the company and its shareholders. We are close to reaching the US$ 8 billion market capitalization target set in the previous version of the strategy significantly ahead of the stated timetable. This revised strategy sets new goals and provides the funds to reach them. We continue delivering on our promises. Projects such as the ADR listing and the share buy-back are aimed at raising our stock’s appeal to investors”.