[http://www.polusgold.ru/eng/about/company/strategy/]

Strategy

OJSC Polyus Gold Strategic Development Plan for the Period of 2006 - 2015

New development srategy for OJSC Polyus Gold was approved by Board of Directors meeting on September 14th, 2006.

The strategy provides a plan for Polyus Gold to boost its gold production, to increase its reserves, net income, and market cap in 2006-2015, which will elevate OJSC Polyus Gold to the Top 5 of the global gold producers.

Key 2015 targets include:

• JORC proven and probable reserves  - at least 68 million oz;
• Annual gold production  - at least 3.9 million oz;
• EBITDA  - US$710…900 million;
 • Net cash flow  - US$600…710 mln;
• Net debt  - no more than US$100 mln.

To reach these targets, the strategy envisages total capex of US$3.4 billion for 2006-2015. This covers investments both to boost production and to acquire new assets and licenses in Russia and internationally, should suitable opportunities arise.