OREANDA-NEWS. Polymetal Wins the Auction for Tamunier Prospect Geological Exploration and Mining License Saint Petersburg, Russia, August 07, 2007 - JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”), through its 100% subsidiary Northern Urals Gold, won the auction for geological exploration and mining license of the Tamunier prospect located in the Sverdlovsk region of Russia, 560km north of Ekaterinburg, reported the press-centre of Polymetal.

The auction took place in Ekaterinburg on August 06, 2007, and Polymetal’s winning bid amounted to 13,65m roubles (US$0,5m).

Tamunier prospect was discovered in 1963. According to the Federal Subsoil Agency (Rosnedra), it contains 30 tons (1Moz) of gold (Russian P2 category) with the average grade of 6g/t. Average thickness of the core ore zone is 2m with the average grade of 9,16g/t, ranging from 1g/t to 56g/t.

Geological position, genetic type and mineralogy of the Tamunier prospect are similar to those of Voro, Polymetal’s major operation in the region, which is located 200km south of Tamunier (360km north of Ekaterinburg).

The license covering the area of 21 square kilometers will expire in 25 years after its issuance later this year.

“Tamunier prospect is an important addition to our exploration portfolio in the Sverdlovsk region”, said Vitaly Nesis, CEO of Polymetal. “Its similarity and proximity to Voro suggest the possibility of significant recourse expansion and processing of Tamunier ore at the Voro facility.”

In 2006, Polymetal acquired 3 exploration and mining licenses in the Sverdlovsk region executing its strategy of active exploration aimed at increasing resource base for existing operations and developing new stand-alone projects.