Petropavlovsk : Agreement by the Guarantor to Sell its Assets (Petropavlovsk 2016 Ltd)

4 August 2022

Petropavlovsk 2016 Limited

Agreement by the Guarantor to Sell its Assets

Petropavlovsk 2016 Limited (the "Issuer") announces that, on 1 August 2022, Petropavlovsk PLC, (the "Guarantor") and its administrators, Allister Manson, Trevor Binyon and Joanne Rolls of Opus Group LLP, (the "Administrators") entered into an agreement with UMMC-Invest JSC ("UMMC") for the sale to UMMC of the right, title and interest of the Guarantor in its subsidiary companies in Russia and the majority of its subsidiaries in other jurisdictions. The Guarantor is the parent company of the Issuer and guarantor of its US$500 million 8.125% guaranteed notes due 2022 (the "Notes").

The sale is conditional on a number of matters and has a longstop completion date of 30 September 2022. If the sale proceeds to completion (in relation to which there can be no certainty at present) the Guarantor will receive consideration with a value in excess of US$600,000,000. It remains unclear what return, if any, may be secured for shareholders of the Guarantor, the holders of the Notes or the holders of other listed debt securities issued by the Group and guaranteed by the Guarantor.

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