JSC Polymetal («Polymetal»), a market leader in the precious metals mining industry, is pleased to announce that it has obtained 3 licenses for geological exploration and gold and silver mining in the Khabarovsk Territory of Russia.

OJSC Okhotsk Mining and Geological Company, a subsidiary of Polymetal, received 3 licenses for geological exploration and precious metals mining in the Okhotsk District of the Khabarovsk Territory.

The long-term licenses — which expire in 2032 — were granted to OJSC Okhotsk Mining and Geological Company in a tender. The total paid for the three licenses was approximately $ 0.8mln.

The newly licensed areas cover more than 2,500 sq. km. and are located in close proximity to Polymetal’s silver and gold producing Khakanja mine and its satellite Yurievskoye deposit in the Okhotsk District of the Khabarovsk Territory, allowing Polymetal to potentially capitalize on existing infrastructure in the area. Polymetal considers this region to be one of its key focus areas for future development.

Polymetal plans to launch extensive geological study at the newly licensed areas in 2007. Search and estimation work will be conducted by CJSC Georazvedka, a specialized exploration subsidiary of Polymetal.

According to the conditions in the licensing agreements, the two flanks areas have mineralizations similar to what are seen at Khakanja and Yurievskoye. The Company will aim to use the two flanks areas to expand the mineral resource base and increase the life of mine at Khakanja. Khakanja currently has an estimated life of mine until 2013 for open-pit and from 2011-2017 for underground operations.

In addition to these newly obtained licenses, the Company holds five more licenses in the Khabarovsk Territory — for Khakanja (producing), Yurievskoye (development), Albazino (advanced exploration), Khakari (stand-alone exploration) and Arka (early stage exploration).

Commenting on the announcement, Vitaly Nesis, Polymetal CEO, said: “We believe that we will be able to successfully develop these newly licensed projects and capitalize on our existing infrastructure, workforce and expertise in this region. We believe that by developing projects in close geographical proximity to each other that the Company will be able to achieve positive synergistic benefits.”

Source: official web-site of the company.