JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”) is pleased to announce the first resource estimate for the Tsokol gold deposit located in the Magadan region in the Far East of Russia compiled in accordance with the terms and definitions given in “The 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) as published by the Joint Ore Reserves Committee (“JORC”) of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.” The Mineral Resource statement presented herein has been prepared by SRK Consulting (UK) Limited (“SRK”).

The Tsokol deposit is located in the Northern-Evensk district of the Magadan region and is a part of the Omolon processing hub. It is situated approximately 1,200 meters from the existing Kubaka plant site.

The Tsokol zone was first discovered in 1984. From 1987 to 1992 the project was considered to be a portion of the Kubaka deposit and prospecting was incorporated in the same exploration program. Tsokol was part of the Kubaka package acquired from Kinross Gold Corporation in 2008.

Tsokol represents a highly weathered near surface high sulphidation epithermal vein deposit along the Kubaka thrust fault. Vein associations of adularia-quartz predominate and their distribution is controlled by crustal Archean-Proterozoic or Paleozoic tectonic structures. The mineralized zone is a continuous system of vein structures, dipping approximately 70-80 degrees to the southeast and plunging 15-20 degrees to the east. Ore shots within the vein structures are approximately 110 meters high and vary in length from 50 to 300 meters. There are approximately 6 discrete ore shots within the Tsokol zone.

A total of 224 holes to a combined length of 39 thousand meters of drilling have been undertaken at Tsokol.

The next stage of the project necessitates the preparation of a feasibility study planned for completion in Q3 2011, which will form part of the larger Omolon processing hub study. The Tsokol component of the study will pay particular attention to hydrogeology as the deposit strikes east-west across the valley floor, outcropping partially in saturated gravels of the Kubaka River. No further drilling is currently scheduled for Tsokol based on the current geological model.

“Tsokol resource is an excellent addition to the portfolio of high-grade open-pit properties surrounding our Omolon processing hub,” said Vitaly Nesis, CEO of Polymetal. “Tsokol is particularly attractive as it is located within direct eyesight from the Kubaka plant and can be brought into production easily and cheaply.”

ABOUT POLYMETAL

Polymetal is a Russian gold and silver miner with operations and development projects in Russia and Kazakhstan. The Company produced 0.6 million of gold equivalent ounces in 2009 and is targeting to double its total production by 2012 mostly as a result of commissioning of the new projects, all of which are now under construction. A key element of Polymetal’s strategy is creation of processing hubs with the goal to ensure the most efficient and responsible utilization of financial and human capital by treating ores and concentrates from various sources at centralized locations.