JSC “Polymetal” announces that the acquisition of a 100% equity stake in OOO «Zolotorudnaya Kompaniya Mayskoye», a company holding the mining license for the Mayskoye gold deposit, has been completed.

On April 29, 2009 Polymetal announced that it had acquired a 9% equity stake ZK Mayskoye, and had agreed to acquire, subject to certain conditions, the remaining 91% of the equity of ZK Mayskoye (which was simultaneously acquired by four Russian private companies) (the “Transaction”). All the conditions of the Transaction have been satisfied and the Company acquired 91% of the equity of ZK Mayskoye in exchange for 15,925,000 ordinary shares of Polymetal plus a cash recapitalization adjustment of US$1.5 million.

The announcement by the Company on April 29, 2009 referred to a claim by Wagner Services LLC (“Wagner”) against ZK Mayskoye in relation to construction and related services allegedly performed by Wagner. This claim by Wagner, which is for US$30.1 million plus interest US$1.2 million is ongoing and the subject of court proceedings in Russia.