CATALOGUE OF DEPOSITS

BLAGODATNOYE

The Blagodatnoye deposit is located in the Krasnoyarsk Region. The deposit is located 25 kilometers from the Olimpiada deposit, which is also operated by Polyus Gold.

Blagodatnoye was discovered in 1966–1968. Exploration operations during 1973–1976 have confirmed a mineralization in the ore body. Initial projected resources of the deposit amounted to 40 tonnes of gold. It was recommended to continue exploration operations at northern and southern zones of the deposit to estimate the resource potential.

ZAO Polyus, a subsidiary of Polyus Gold, has started operations at the deposit in 2000. In 2005, the company confirmed and listed on the state balance 222.4 tonnes of gold reserves under B+C1+C2 categories with the State Reserves Committee. Average gold content in ore stands at 2.4 grams per tonne. Off balance reserves of the deposit amount to 42 tonnes of gold under C2 category, projected resources amount to 117 tonnes.

Under the report of Micon International published in May 2006, proved and probable reserves of the Blagodatnoye deposit amounted to 104.99 million tonnes of ore containing 2.39 grams of gold per tonne, or 251.32 tonnes of gold.

Measured and indicated reserves stood at 102.03 million tonnes of ore with 2.4 grams of gold per tonne, or a total of 247.785 tonnes.

Inferred resources of the deposit, under the report, amounted to 37.49 million tonnes of ore with the cut off grade at 2.4 grams of gold per tonne, or a total of 89.93 tonnes.

Exploration license holder: