Polyus Gold

Deutsche Bank 6th Annual BRICS Metals & Mining ConferenceLondon, 9-10 November, 2009

The information contained herein has been prepared using information available to Polyus Gold Group at the time of preparation of the presentation. External or other factors may have impacted on the business of the Polyus Gold Group and the content of this presentation, since its preparation. In addition all relevant information about Polyus Gold Group may not be included in this presentation. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information.

Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and Polyus Gold Group cautions that actual results may differ materially from those expressed or implied in such statements.

Nothing herein should be construed as either an offer to sell or

a solicitation of an offer to buy or sell securities in any jurisdiction.

Cautionary Statements

2

* -

B+C1+C2

3

Zholymbet

Olimpiada ZapadnoyeKuranakh

Nezdaninskoye

Natalka

TitimukhtaBlagodatnoe

Aksu Bestobe VerninskoeAlluvials

Overview: key operations and facts

3

Polyus Gold key facts and operations, ex KazakhGold2008 1H2009

Gold sales, $M 1,062 442 Gold production, M OZ 1.2 0.4 TCC, $/OZ 392 361EBITDA, $M 436 218EBITDA margin, % 41 48JORC 2P, M OZ 74.1 74.1 Hedge free, Debt free

World’s champion in long-term 2P growth

2005- 2009 2P additions, m oz**

+60.8 of 2P in 3 yearsFinding cost: < $1 per ouncePotential to grow: over 30 licenses*** to

give additional ounces of 2P reserves*Sources: U.S. Geological Survey, GFMS **Sources: companies’

web-sites***Including KazakhGold 4

Market capitalization/2P, US$/oz

One of the cheapest in terms of 2P

1 share of Polyus = 0.39 oz of goldEvery US$1000 of investments in Polyus = 8.7 oz = US$9 000

+60.8

+49.9

+23.3+17.5

+12 +11.9 +11.9

-3.9 -6.7 -11.8

PLZL ABX GG GFI NCM AU KGC FCX NEMHMY

Poly

us

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Free

port

New

mon

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Har

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PLZLABXGG GFINCM AUNEM HMYKGC

Poly

us

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Low-cost growth leader

Sources: BMO Capital Markets, companies’

web-sites 5

Highest growth, lowest costs

ABX

GFI

NCM

NEM

600HMY

Newcrest

Newmont

Harmony

0300

1H 2

009

TCC

, USD

/oz

KGC

KinrossBarrick

Goldfields

PLZLGG

+75%

Goldcorp

Polyus Gold

5-year production growth

+150%

450

CapEx program

The company invested almost USD 1 billion in development and construction since 2007

Now Polyus is the fastest growing gold miner who benefits from previous intensive investments

6

USD million

365

422459 476

571

630

116

0

100

200

300

400

500

600

700

2007 2008 1H2009

Capex, ex M&A and strippingCapex, ex. M&ATotal Capex

One of the fastest growing gold miners

Since the company’s inception in 20062 large-scale mining projects launched. . .

. . .2 large-scale mining projects at advanced construction stageOlimpiada Mill-3: launched in 2007 Titimukhta: launched in 2009

Blagodatnoye: to be launched in 2010 Verninskoye: to be launched in 2011

5.7 MTPA added

8.2 MTPA to be added

7

Current throughput of Russian peers: Polymetal –

3.4 mtpa, Petropavlovsk –

3.3 mtpa

Low cost of construction

8

Capex/designed mill capacity, USD/tpa*

Capex/projected annual gold production, USD thousand/oz*

*Source: Companies’

web-sites.

Polyus’s costs of new mine construction are among the lowest on the list of upcoming development projects in the global gold industry.

51 57 70 88113

129 146183

304341

0

50

100

150

200

250

300

350

Mill N

o.3 (P

olyus)

Santa

 Luz (

Yama

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Blago

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Polyu

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Cerro

 Coro

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old Fi

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Verni

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Albaz

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Pascu

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Merce

des (

Yama

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Pueb

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Goldc

orp)

0.3 0.5 0.7 1.0 1.4 1.4 1.42.2

3.0 3.23.8

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0123456789

Mill 

No.3 

(Poly

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Corte

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Malo

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Blago

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Polyu

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Vern

insko

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olyus

)

Alba

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Polym

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Lobo

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inros

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Hidd

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Newc

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Recent developments: KazakhGold acquisition

9

KZG key facts

One of the largest gold producers in CIS;LSE-listed and Jersey-registered entity;3 key mines: 300 k oz of gold produced over 2 years;60 m oz of resources (Russian classification);Well-developed infrastructure.

Recent developments: KazakhGold acquisition

50.1% acquired for $256M($191M cash+0.9%PLZL shares), when MCap of KazakhGold at the beginning of 2008 was USD 1.5 bln.Complex and novel transaction;Offer value decreased three times since the start of negotiations.

Partial offer completed

$13 per oz of resources;Attractive pricing.

Deal favorable conditions

New Board composition and new management team;New strategy to be announced in Feb 2010;First steps to be to restore output to the level of over 200 k oz and then expand it through an increase in open-pit mining and via construction.

Integration underway

10

Recent M&A deals comparison79

5142 41

21

14 13

0

10

20

30

40

50

60

70

80$/oz of resources

Severst

al/

High RiverKinross/

AurelianKinross/

Lobo-Marte

Polymetal/

Quartz Hill

IAMGold/

Orezone

Polymetal/

Mayskoe

Polyus/

Kazakh

Gold

Item Comments

Sales KZG produced 300k oz in the recent 2 years

Labour Relatively cheap labour in Kazakhstan

Power Cascade of HP-station in proximity to the mines

Mining tax

Relatively low mining tax rate in Kazakhstan (5% vs 6% in Russia)

Corporatetax

Relatively low corporate tax rate (15% in Kazakhstan vs 20% in Russia)

Debt Debt obtained at a competitive annual interest rate – 9.375%

Fuel Cheaper oil products and coal in Kazakhstan vs Russia

1H2007 1H2008 1H2009

347 449

341

69

68

74

37

31

34 16

11

11 17

Titimukhta

Zapadnoye mine

Alluvials

Kuranakh mine

Olimpiada mine

11

Gold production, k oz

Olimpiada

mine:40 k oz of Dore gold (the metal before refining) were

delivered to the refining plant, but were not refined in the reporting period;

Completed switch to processing of sulfide ores, which have a lower grade, compared to the oxide ores;

Mill-2 was closed to perform regular maintenance works.

Processing of stock-piled ore (with different qualities compared to the ore from the pit)

Alluvials:

Increase in volumes of sands washed.

Zapadnoye

mine:

Maintained the stable level of production compared to 1H2008.Kuranakh

mine:

Increase in gold grade of ore processed

(up to

1.52 g/t).

1H2009 production amounted to 477 k oz

Total:

477470

559

The major factors influencing 1H2009 operating results:

Recent developments: 1H09 results

The Group confirms the FY2009 production target at 1.3 m oz

56% 55% 54%52%

50% 49%45%

35%33%

9%

0%

10%

20%

30%

40%

50%

60%

Recent developments: 1H09 results

Among global leaders in terms of gross margin;1H09 margins: EBITDA – 48%, Pretax – 42%,

Operating – 39%, and Net – 33%SGA – USD 45.5 mln: a 30% y-o-y decrease

Peer comparison – gross margin, %

12

PLZL ABX GGGFINCM AUKGC NEMBVN

Poly

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Har

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* Calculated using the companies’

average gold selling prices in 1H2009.** Calculated using the average London PM fixing price of USD915/oz.

361

565

353

562

359

556

377

542

427

484

427

479

467

456

492

421

458

420

599

316

0

100

200

300

400

500

600

700

800

900

1000

TCC and cash margin* of world’s leading producers in 1H2009, USD/oz

The largest cash margin in the industry;

Ranking 3rd among the global gold miners in terms of TCC

Cas

h m

argi

nTC

C

PLZL ABXGG GFINCM AUKGCNEMBVN

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*

Source: Companies’

web-sites.

Strong balance sheet

USD'000 30 June 2009 31 Dec 2008ASSETS

Non-current assets 1,965,080 1,990,817Current assets, including 1,181,692 1,088,045

Cash and cash equivalents 441,367 398,826

Investments in securities and other financial assets 291,092 285,236

TOTAL ASSETS 3,146,772 3,078,862EQUITY AND LIABILITIESEQUITY 2,814,540 2,794,541LIABILITES 332,232 284,321

Non-current liabilities 193,512 182,623Long-term borrowings 0 0

Current liabilities 138,720 101,698

Short-term borrowings 0 0

TOTAL EQUITY AND LIABILITIES 3,146,772 3,078,862

Condensed statement of financial position at 30 June 2009 (unaudited)

Strong cash position, crucial in the current conditions on theglobal financial market

13

~~

14

Projects update: Titimukhta

9 km from the Olimpiada mine;Nov 2007 – the feasibility study approved

by the BoD;July 2008 – JORC reserves audit

completed;January 2009 – permitting completed; The Titimukhta’s ores are processed at

former Mill-1 after its reconstruction with new crushing complex and expanded capacity.

Facts:Highlights of the feasibility study:

Mine life 2009 –

2021

P&P reserves 2.2 m oz at 3.3 g/t

Mill capacity 2.2 mtpa

Recovery 88%

Average annual gold production 170 k oz

Capex (ex VAT) US$ 98.7 million

Average TCC 260 US$/oz

Commissioning in time and on budgetApril

2009 –

mining started

1H2009 –

17 k oz produced

Projects update: Blagodatnoye

Mill construction in progress;Site for tailings dam and diversion facilities

prepared;Mining and transport equipment supply in

progress; Camp and canteen construction completed;Coal power plant is under construction;Water pipe laying;Power grid and roads constructed;Percentage of readiness of different objects

varies from 50 to 100%;43% of budgeted investments drawn @

1/07/09.Permitting completed as of Sept 01,2009

15

Highlights of the feasibility study: 1H2009 CAPEX update:

* Data according to the Reserves Audit completed by Micon Int. Co Ltd. In November 2008.

Commissioning in time (2H2010)

Mine life 2010 –

2031

P&P reserves 9.9 m oz at 2.3 g/t*

Mill capacity 6 mtpa

Recovery 88.6%

Average annual gold production 412 k oz

Capex (ex VAT) US$ 419 million

Average TCC 244 US$/oz

Projects update: Verninskoye

Highlights of the feasibility study:

Mining started;

Camp and canteen construction completed;

Works on main building and crushing plant in progress;

Core mining and transport equipment acquired;

Road construction began;

Tailings facilities preparation in progress;

25% of budgeted investments drawn @ 1/07/09.

1H2009 CAPEX update:

16

Mine life 2011 –

2025

P&P reserves(exploration underway)

1.7 m oz at 3.0 g/t

Mill capacity 2.2 mtpa

Recovery 86.9 %

Average annual gold production 183 k oz

Capex (ex VAT) US$ 249 million

Average TCC 281 US$/oz

Commissioning in 2011

6 9 10 10 10 16 19 20 20 3238

40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40

15

-

5

10

15

20

25

30

35

40

2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041

Ore processed, m tonnes

679

1 9051 675

1 016

3 678

9821 056

1 330

2 697

1 434 1 593

1 643

832

3030

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

Gold production, k oz

Projects update: NatalkaNew development plan

Insufficient power generating facilities;Insufficient power transportation facilities;High cost of borrowing due to credit crunch.

17

Mine life 2013 –

2041

P&P reserves 40.8 m oz at 1.13 g/t

Mill capacity 10 mtpa

(2013-2017), 20 mtpa

(2017-2021) and 40 mtpa

(2022-

2041)

Recovery 85 %

Av. annual gold production 1400 k oz

Capex

(ex VAT) US$1.1 bln

(1st

stage) + US$1.1 bln

(2nd

and 3rd

stages)

Average TCC 340 US$/oz

In Feb 2009 the amended plan of Natalka development prepared by Polyus team, approved by the BoD in Mar 2009.

The plan will work on the following grades:in 2013-2017 -

3.15 to 3.85 g/tin 2018-2023 -

2.35 –

3.32 g/tin 2024-2036 –

1.34 –

1.76 g/t

Rationale for the staged development:

Project status:Feasibility study and

construction plans preparation to be completed by end of

2009.Permitting to be completed by

end of 1H2010

Projects pipeline

FURTHERUPSIDE POTENTIAL:+ Nezhdaninskoye,+ Chertovo Koryto,+ Bamskoe,+ Panimba,+ Razdolinskoe/Poputnenskoe.0.5

1.5

2.5

3.0

0.0

1.0

2.0

2008 1H 2009 2H 2009E 2010E 2011E 2012E 2013E 2014E

0.90.3 0.4

0.7 0.7 0.7 0.7 0.7

Olimpiada

0.2 0.2 0.2 0.2 0.2

Kuranakh

0.2

0.2

0.2 0.2 0.2 0.2 0.2

Alluvials Zapadnoe

0.2 0.2 0.2 0.2 0.2

Titimukhta

0.2 0.4 0.4 0.4 0.4

Blagodatnoye

0.2 0.2 0.2

Verninskoye

0.71.0

Natalka

Approximately 140% output increase is expected to come from existing and approved development projects

18

1.21.5

1.81.9

∑=1.3

2.62.9

Promised growth delivery

●Commissioning of Mill-3 at Olimpiada

●Commissioning of Titimukhta

● Expansion to CIS

●Construction of Blagodatnoye

●Construction of Verninskoye

●Construction of Natalka

STATUSPROJECT

Done

Done

Done

Near completion

Underway

FS underway

19

Successful completion of KazakhGold acquisition: Polyus Gold becoming an international mining company with FSU focus;Attractive deal conditions and excellent growth potential;Strong and experienced new management appointed at KZG;

Strong operational and financial results;Increasing production and stable profitability level;Hedge free - Debt freeOutstanding growth of the 2P reserves.

Polyus met previously announced capacity expansion targets:Titimukhta: successful launch in 1H2009;Blagodatnoye: 50-100% readiness of all the facilities;Re-launch of Verninskoye development project;Development plan for Natalka approved by the Board;

Favorable market conditions: strong gold price and devaluation of national currency.

Conclusions

20

3

Why Polyus?

21

No 1 in Russiaand

one of the best positioned

gold miners globally

International company

Growth leader

Strong margins

Low costs

No debt

No hedge

Favorable market