OREANDA-NEWS. September 27, 2010. Further to the announcement by JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”) on August 21, 2009 in relation to the issuance of 5,000,000 bonds with a nominal value of 1,000 roubles each (the “Bonds”), the Company announces that it has decided not to place the Bonds as it found alternative methods of debt financing to be more attractive, reported the press-centre of Polymetal.

The issuance of the Bonds has been registered by the Federal Financial Markets Services of Russia (“FFMS”) on August 20, 2009. According to Russian law, the Company was able to place the Bonds within one year after the date of the registration, i.e. until August 23, 2010 inclusive.

During this period Polymetal has successfully refinanced the largest part of its debt using mostly bilateral medium- and long-term bank credit facilities nominated in US dollars. Taking into account that the Company’s revenues are de facto linked to US dollars and that the yields on the Russian bond market are higher than the average interest rate of the Company’s credit portfolio, it has decided that placing of the Bonds would have no economic sense.

Notwithstanding the fact that the Bonds were not placed, Polymetal, in accordance with the requirements of Russian law, filed the report on the results of the issuance of the Bonds with the FFMS on September 8, 2010. As a result of reviewing of this report, FFMS has considered the issuance to be void and annulled the state registration of the issuance on September 21, 2010.