OREANDA-NEWS. On January 25, 2007 JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”) announced that acquisition of the 98,1% stake in OAO Omolon Gold Mining Company (“Omolon”), the owner of the Kubaka gold mine properties (“Kubaka”), including full mine infrastructure, processing plant, and four subsoil licenses, was closed in Magadan, reported the press-centre of Polymetal.

In October 2007, Polymetal entered into a Memorandum of Understanding with Kinam Magadan Gold Corporation (“Kinam”), a wholly-owned subsidiary of Kinross Gold Corporation, to purchase a stake in Omolon and intercompany debt owed to Kinam for cash consideration of US$15 million plus a variable royalty on future production. In December 2007, Polymetal and Kinam executed a Share Purchase Agreement, and Federal Antimonopoly Service of the Russian Federation (FAS of Russia) approved the transaction.

Kubaka produced 90,8 tons of gold between 1997 and 2005 when it was put on care and maintenance. Polymetal plans to identify priority targets around Kubaka for detailed exploration in 2008, produce JORC-compliant resource for 1-2 of these targets in 2009, complete feasibility study with JORC-compliant reserve calculation in 2010, and re-launch the mine with a run rate annual production of 150-250Koz of gold in 2011.