OREANDA-NEWS. October 29, 2009. JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”) announced that the placement of 84,375,000 additional ordinary shares of the Company (the “New Shares”) by way of a closed subscription (the “Closed Subscription”) was completed, that 57,350,357 of the New Shares were placed to JSC “Polymetal Management”, a 100% subsidiary of Polymetal, and that issuance of the New Shares will be completed when the Federal Financial Markets Services of Russia registers the report on the results of the issuance, reported the press-centre of Polymetal.

In the Company’s initial announcement regarding the proposed issuance of the New Shares (which was released on May 14, 2009), it was stated that certain of the New Shares to be acquired by JSC “Polymetal Management” under the Closed Subscription would be available to be placed in the market for cash if market conditions are favorable and there is sufficient interest from investors.

The Company notes recent press speculation regarding a secondary placement of its shares and confirms that it is considering a potential secondary placement of part of the New Shares acquired by JSC “Polymetal Management” under the Closed Subscription.

Polymetal emphasizes that no decision has been taken to proceed with a secondary placement, and there can be no certainty that any secondary placement of any of the New Shares acquired by JSC “Polymetal Management” under the Closed Subscription will ultimately proceed, or as to the terms or structure of such a secondary placement.

A further announcement in relation to a possible secondary placement will be made by the Company in due course.