Polymetal announces Q3 2011 production resultsSaint-Petersburg, Russia, October 13, 2011 – JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”, together with its subsidiaries – the “Group”) announces its production results for the quarter and nine months ended September 30, 2011.

HIGHLIGHTS

3 months ended Sep 30, %
9 months ended Sep 30, %

2011 2010 change1 2011 2010 change

e,

% changes can be equal to zero when absolute numbers differ due to the same reason. This note applies to all the tables in this release

(2) Starting from Q2 2011 Polymetal has changed the methodology it uses for accounting of, and reporting of, metals produced. Previously production of metals contained in dore and zinc precipitate was recorded upon shipment of lots of dore or precipitate from the gold rooms located at the mine sites to third party refineries. Under the new methodology, these me tals are considered to be produced upon receipt of dore or precipitate at the gold rooms. Production of metals contained in concentrat es was recorded upon shipment of lots of concentrate to third party off-takers, whereas under the new methodology these metals are considered to be produced when concentrate is bagged, sampled, and prepared for shipment. The Company believes that the new methodology is more accurate as it reflects physical production and eliminates variations associated with shipment cycles. It mostly applies to concentrates, where stockpiles buildup accelerated in 2011, and to much lesser extent – to dore and precipitate, where shipment cycles remain unchanged. Q3 2010 and 9M 2010 numbers used for year-on-year comparisons have not been restated as the Company believes that such restatement would not lead to material differences to those numbers. Comparisons for the three months ended 30 September 2011 to the three months ended 30 June 2011 are made on the basis of both Q3 and Q2 2011 numbers calculated in accordance with the new methodology

(3) Polymetal reports production of metals contained in concentrates based on percentages payable for these metals by off-takers of concentrates. As final assays are typically determined at the receiving smelters several months after shipment of each lot of concentrate from the Company’s mine sites, production reported in relation to the most recent quarter is subject to further reconciliation

(4) Calculated based on consolidated management accounts. Unaudited