PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019

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PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
PETROPAVLOVSK PLC
POX Capital Markets Day and H1 2019 Results
10th September 2019                           1
PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
Cautionary and forward-looking statements

— Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements, including
  references to guidance. Such statements reflect the Company’s current views with respect to future events and are subject to risks,
  assumptions, uncertainties and other factors beyond the Company’s control that could cause actual results to differ from those
  expressed in such statements. Although the Company believes that such forward-looking statements, which speak only as of the date
  of this presentation, are reasonable, no assurance can be given that they will prove to be correct. Therefore, you should not place
  undue reliance on these statements
— There can be no assurance that the results and events contemplated by the forward-looking statements contained in this presentation
  will, in fact, occur. The Company will not undertake any obligation to release publicly any revisions to these forward-looking
  statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation, except as required by
  law or by any appropriate regulatory authority. Nothing in this presentation or in documents referred to in it should be considered as a
  profit forecast.
— The past performance of the Company and its securities is not, and should not be relied on as, a guide to the future performance of
  the Company and its securities
— This presentation does not constitute, or form part of or contain any invitation, recommendation or offer to any person to underwrite,
  subscribe for, buy, sell, otherwise acquire, exchange or dispose of any shares or securities in the Company or advise persons to do
  so in any jurisdiction, including, but not limited to, the Russian Federation, nor shall it, or any part of it, form the basis of or be relied on
  in any connection with or act as an inducement to enter into any contract or commitment therefore or engage in any other investment
  activity. In particular, this presentation and the information contained herein are not an offer of securities for sale in the United States.
  This presentation does not constitute an advertisement of any securities in the Russian Federation
— No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its
  completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents
  or otherwise in connection therewith.
— The development and production plans and estimates set out herein represent the current views of the Company's management. The
  Company’s Board reviews the production estimates on an ongoing basis. All planning is subject, inter alia, to available funding and
  capital allocation decisions
— English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this presentation

                                                                                                                                               2
PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
Welcome and Opening
     Remarks

      Sir Roderic Lyne
                         3
PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
A Welcome From The Team
Senior Executive Members and the Board of Directors

          Senior Executive Members                                    Board of Directors
                                                                                                           Independent
                                                                                                               NED

                                                                                                    Harry Kenyon-
                                                     Dr Pavel             Sir Roderic Lyne
                                                                                                        Slaney
                     Dr Pavel                       Maslovskiy             Non-Executive
                                                                                                   Sr. Independent
                    Maslovskiy                        CEO                     Chairman
                                                                                                        Director
                       CEO
                                                            Independent              Independent           Independent
                                                                NED                      NED                   NED

                                                   James Cameron            Robert Jenkins          Damien Hackett
                                                  Independent Non-        Independent Non-         Independent Non-
                                                    Exec Director            Exec Director           Exec Director
        Dr Alya
     Samokhvalova
                                 Alexey Dubynin   — Board strengthened with 4 x new Independent NEDs
      Deputy CEO                      CFO
                                                  — New Board fully compliant with UK Corporate Governance Code
                                                  — An additional Board Member to be confirmed

                                                                                                               4
PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
Key Themes From Today’s Presentation
Petropavlovsk is well-positioned for growth with a strong and sustainable platform

                                   OUR CORPORATE OBJECTIVE
 Delivering sustainable returns above our cost of capital by leveraging our long-life asset-base and
                                       technical competence
                                       OUR KEY MESSAGES

✓ POX is up and running

✓ Petropavlovsk has one of only two gold concentrate POX processing plants in Russia → growth
   and value opportunities

✓ Pioneer flotation plant to increase concentrate feed to POX from Q4 2020

✓ A 10 year, c.US$400m, investment bearing fruit: a technologically advanced platform for future
   growth, processing abundant refractory ores

✓ Turnaround over past 12 months: H1 profits up, costs down. On track for 2019 production and costs
   guidance

                                                                                                   5
PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
Petropavlovsk:
Today & Tomorrow

    Dr Pavel Maslovskiy
                          6
PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
Petropavlovsk: An Overview
A leading vertically integrated Russian gold miner

        3x gold mines                                    c.15Mtpa                            20.5Moz of JORC Resources(1)                                c.7.3Moz Au
      Open pit + underground                           milling capacity                        incl. 8.2Moz of Reserves                                Produced to date(2)

                                                                                                                            Mining & Processing
                                                                                                                            Pioneer
                                                         St Petersburg                                                      Albyn
                                                         - RDC Hydrometallurgy
                                                                                                                            Malomir
                                                                                                                            Pokrovskiy

                                            Moscow                                         Blagoveshchensk
                                            - Petropavlovsk Moscow                         - Regis Exploration
                                            - PHM Engineering                              - Kapstroi Construction
          London
          - Petropavlovsk Plc
          - Corporate headquarters

                                                                                 Irkutsk
   Open-pit mine                            Analytical labs                      - Irgiredmet Institute

   Underground mine                         R&D
    POX Hub                                 Offices                                                                    IRC Ltd. (non-core)(3)

                      (1) As at 31 Dec 2018, in accordance with the JORC Code. Resources (M,I&I) are incl. of Reserves (2) As at 30 June 2019 (3) 31.1% equity interest   7
PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
Operational and Corporate Achievements
Over the last 12 months, a significant business turnaround has been achieved

                                              Recent Achievements
Flotation
✓ Malomir flotation plant fully ramped-up and operating above design parameters
✓ Ongoing Pioneer flotation construction to double refractory ore processing capacity
POX Hub
✓ POX plant commissioned ahead of schedule and successfully ramped-up
Financial Performance
✓ H1 2019 TCC better than lower end of guided range
Debt
✓ Convertible bonds refinanced at a lower coupon
✓ IRC loan refinanced with a more favorable payment schedule
Corporate
✓ Third party advisor retained to review and assist with ESG ratings and communication
✓ Independent Board constituted

                                                                                         8
PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
H1 2019 Financial Results Highlights
    Strong set of financials overall: costs and capex down, revenue, EBITDA and profits up

1     Group Revenue (US$m)    2      EBITDA (US$m)        3   Total Cash Costs (US$/oz)   4       Capex (US$m)

             +13%                        +37%                           -6%                             -33%

                                                  83            899                             67
                     305                                                       841
       270
                                    61
                                                                                                                 45

     H1 2018        H1 2019       H1 2018       H1 2019       H1 2018         H1 2019         H1 2018          H1 2019

                                                                                                                      9
PETROPAVLOVSK PLC POX Capital Markets Day and H1 2019 Results 10th September 2019
H1 2019 Group Total Cash Costs (TCC)
Fall in TCC despite underutilised capacity POX , further improvement expected in H2 2019

                                                                                                                   Avg. RUB:US$ FX
 Electricity (+5%)                                                               Higher grades +
                                 End of tax relief on                                                             depreciated by 10%                         Lower stripping in H1
  Diesel (+18%)                                                                recoveries at Albyn
                                 capital investment(1)                                                          from 59.3 (H1 2018) to                        2019 vs. H1 2018
 Materials (+10%)                                                                 and Malomir
                                                                                                                    65.2 (H1 2019)

                                            52                    30
                     80
                                                                                         131                 56
                                                                                                                                   32                   0.5

US$899/oz                                                                                                                                                                US$841/oz
                                                                                   -6%

                                                                                                                                                                               H1 2019
    H1 2018

                                            Inflation

                                                                                                             FX
                                                                  Mining tax

                                                                                                                                                         Other taxes
                 POX ramp-up

                                                                                      recoveries

                                                                                                                                 Deferred
                                                                                      Change in

                                                                                                                                 stripping
                 related costs

                                                                                       grades /

                          (1) The Russian statutory mining tax rate is 6%. Under Russian Federal Law 144-FZ dated 23 May 2016 that introduced certain amendments to the
                          Russian Tax Code, taxpayers who are participants in Regional Investment Projects have the right to apply reduced mining tax rate provided certain         10
                          conditions are met. Malomir and Albyn met eligibility criteria and applied 1.2% mining tax rate in H1 2019. Pokrovskiy applied full mining tax rate in H1
                          2019
Liquidity and Debt Overview
Recent bond restructuring has strengthened near-term liquidity position

       Group debt maturity schedule (US$m)                      Targeting mid-term Net Debt / EBITDA of c.2.0x
                                                                             FY 2018 EBITDA affected by
                US$500m notes                                                    refractory concentrate
                                                                             stockpile build-up during POX        4.0x
               maturing Nov 2022
                                                                                 commissioning phase
                                                                3.7x

                                                                             3.5x

                     500
                                                                                          3.0x         3.0x

                                       US$125m
                                   convertible bond
                                                               978                                                           Refractory
                                    issue maturing                   930
                                       Jul 2024
                                                                                                                            Target
                                                                            638 610     611 599     596 585     594 568      Refractory
                                                                                                                            c.2.0x

                                         125
        100

2019   2020   2021   2022    2023       2024     2025   2026    2014          2015        2016        2017        2018    2019 - 2022

                                                                       Total debt      Net debt       Net debt / Underlying EBITDA

                                                                                                                                  11
Improving Credit Rating
  An improved credit rating reduces the Company’s cost of capital

                         Key highlights from latest report                                         Key highlights from latest report

                                             B- (Outlook Negative)                                                 B- (Outlook Positive)
                                               (outlook re-affirmed)                                               (upgraded from CCC)
                                             Last review: April 2019                                             Last review: August 2019

                                                                                 – Significant strengthening in liquidity position
               – POX commissioning to have a positive impact on 2019
                 financials                                                      – Convertible bond successfully refinanced
  Highlights

                                                                                 – Repayment of US$57m bridging loan by IRC
               – IRC debt refinancing to improve liquidity position
                                                                                 – Increased visibility for production following POX commissioning
               – Development of underground operations
                                                                                 – Significant deleveraging by end-2020
               – Expanding the Board reinforced corporate governance
                                                                                 – Improved corporate governance

                Successful convertible bond refinancing
                                                                                  FFO adjusted gross leverage remaining sustained below 4x
                2019 EBITDA growth in line with S&P base case
Triggers
 Upside

                                                                                  Sustained FCF margin with funds used for reduction of gross debt
                Improved credit metrics backed by potential sale of IRC stake
                                                                                  Improvement of production volumes and cash costs
                Building up successful POX track record
                                                                                  Improvement in corporate governance
                Delivery on revised business strategy
Downside
 Triggers

                2019 EBITDA may not materially improve vs. 2018
                                                                                  Deterioration of liquidity and / or aggressive dividend distributions
                Difficulty in refinancing the US$100m convertible bond due
                                                                                  Failure to improve production volumes
                 2020

                                 Source: S&P and Fitch rating reports                                                                                      12
Mine By Mine TCC And H1 2019 Production Highlights
Overall H1 2019 Group Total Cash Costs (TCC) reduced by -6% yoy, with all mines profitable at
H1 2019 avg. realised gold price levels
  H1 production 11koz above plan     H1 production 3.6koz above plan              H1 production 7.4koz below plan

                                                                                                      1,138

                                             971
        884                                                  860                      843

                        622

               -30%                                 -12%                                     +35%

               Albyn                               Malomir                                  Pioneer

                                   H1 2018         H1 2019         % change yoy

                                                                                                                13
H1 2019 AISC and Capex
Decrease in Group AISC and Capex due to strong operating performance and financial
discipline
                   H1 2018 vs. H1 2019 AISC (US$/oz)                                                    H1 2018 vs. H1 2019 Total Capex Spend (US$m)

                                                                          1,506

                              1,186                                                                      34.0
  1,110                                                     1,116
                                             1,013

                  731

                                                                                                                                        13.0
                                                                                                10.4            9.1                                        10.2
     -34%                           -15%                         +35%                                                            8.5                 8.2
                                                                                          6.1                                                                      5.6
                                                                                                                         2.8                                                     3.1
                                                                                                                                                                         1.1
                                                                    Pioneer
                                       Malomir
          Albyn

                                                                                              Pioneer

                                                                                                                                             Exploration

                                                                                                                                                              Malomir

                                                                                                                                                                              Other
                                                                                                              POX

                                                                                                                              Albyn
          H1 2018               H1 2019              % change yoy                                                   H1 2018                 H1 2019

                          (1) The majority of Pioneer’s capex (US$10.4m of development + US$2.1m of exploration), is categorised as sustaining, resulting in increased AISC
                                                                                                                                                                                14
                          in H1 2019
FY2019 Outlook
On track to meet FY 2019 guidance of 450Koz – 500Koz gold with lowered cost guidance

    Malomir                — c.160Kt – 165Kt of refractory concentrate at 28g/t – 29g/t to be processed this year, of which:
  Concentrates                  — c.35Kt of concentrate at 28g/t produced / stockpiled in 2018
    (at POX)                    — c.125Kt – 130Kt of refractory concentrate at 28g/t – 29g/t produced in FY2019e(1)

    3rd party              — 38Kt at 40g/t – 75g/t Au secured H1 2019(2)
  Concentrates             — Additional c.20Kt at 49g/t - 75g/t Au currently under negotiation
    (at POX)               — Concentrate is from Russia and Kazakhstan

                          — TCC revised downwards to US$750 – US$850/oz due to strong operational achievements including a
     Costs                  smoother-than expected ramp-up of the POX Hub (RUB : US$ FX of 66)

                           — US$45m - US$55m, consisting of sustaining, exploration + remaining POX capex
     Capex
                           — Additional Pioneer flotation spend of c.US$30m (a portion of which falls into 2019)

                           — Elginskoye (Albyn) – currently open in all directions with drilling expected to increase resource of ore
                             body extensions
   Exploration             — NE Bakhmut pit (Pioneer) high grade material identified below pit with extensions of mineralisation to
                             increase open pit and underground reserves
                           — Khabarovsk assets (greenfield) showing highly promising results

                 (1) c.125Kt – 130Kt processed from 125Kt – 145Kt of concentrate produced at Malomir during FY2019e
                 (2) Material secured under contract, but not necessarily shipped to site                                           15
POX: Technology Driven
       Growth

       Dr Pavel Maslovskiy
                             16
POX: Introduction To Refractory And Double Refractory Gold Ores
POX – one of the most efficient and environmentally-friendly ways to extract gold from
refractory ore
               Refractory + Double Refractory Ore                                        Refractory Reserves(1)                         Refractory Resources (1)
— “Refractory” ore contains gold encapsulated in
  sulphides which resists recovery via standard methods
     — Sulphides need to be broken down chemically or                              Albyn                             Pioneer       Albyn                          Pioneer
                                                                                                                     open-pit      1.1Moz
                                                                                                                                  open-pit                        open-pit
       mechanically                                                                0.4Moz
                                                                                  open-pit                             2.0Moz
                                                                                                                                                                         4.2…
                                                                                   0.4Moz                             2.0Moz       1.1Moz                          4.2Moz
— “Double refractory” ore also contains carbon, which
  impacts recoveries → special measures are required to                                                                                               9%
                                                                                                       8%
  neutralise carbon’s effect
                                                                                                                   38%                                            34%

Main Options to Treat Gold Bearing Refractory Ores                                                    5.3Moz                                        12.3Moz
                                                                                                       Total                                         Total
                                                                                               51%
                                                                                                                                                54%               2%
                                                                                                                3%
           Pressure                          1. POX: oxidation in an
           Oxidation                         autoclave: high pressure
            (POX)
                                             + temperature
                                                                                  Malomir
                                                                                   2.7Moz                            Pioneer      Malomir                              Pioneer
                                             2. Roasting: oxidation                                                    0.2Moz      6.7Moz                                 0.3Moz
                       Roasting                                                   open-pit                             U/G        open-pit                               U/G
                                             via high temperature                  2.7Moz                            0.2Moz        6.7Moz                              0.3Moz
 High Grade                                  roasting
 Concentrate
                                             3. BIOX: oxidation using
                          Bio                bacteria                             ‒ 65% (5.2Moz) of the Group’s total Reserves (8.2Moz) are refractory
                       Oxidation
                        (BIOX)               4. UFG: fine grinding                ‒ 60% (12.3Moz) of the Group’s total Resources (20.5Moz) are
                                             releases gold                          refractory
            Ultra-
             Fine                            encapsulated in sulphides
           Grinding                          or other minerals                      By design, our POX Hub is able to treat the most technologically
                                                                                                 complex refractory ore concentrates

                         (1) As at 31 Dec 2018, in accordance with the JORC Code 2012. Reserves are shown as Proven + Probable. Resources are inclusive of Reserves     17
The POX Hub Concept
The POX Hub is well positioned in terms of easy access and well developed infrastructure
                                                                                             Concentrate Transportation:
                                                                                                                            Km
                                                                                             Malomir to POX
                                                                                              Truck: Malomir to Fevralsk    166
                                                                                              Rail: Fevralsk to Tygda      1,134
                                                                                              Truck: Tygda to POX Hub        18
                                                                                             Total                         1,318

                                                                                                                   Albyn
                                                                                                  Malomir
                                               Tygda(1)

                                                                        Pioneer
                              Pokrovskiy POX Hub
                        CHINA
                         Transportation route                                            Fevralsk(1)

                         Railway

                          Operating mines

                          Underground mine                          Pilot POX Plant
                          POX

                          Analytical labs
                                                                       Blagoveshchensk
                          Hydro power plant

               (1) Fevralsk and Tygda are rail loading facilities                                                                18
POX: A World Class Team
A world class research and development expertise lead by a world class team

Gidrometallurgia: Petropavlovsk’s Scientific Research Centre, established to support the POX project
— Unique laboratory, created the concept of the POX project for the Group, including key technological parameters
— Equipped with state of the art autoclave laboratory facilities (laboratory + pilot testing, feasibility work + audits)
— Unique team of 40 specialists incl. PhD holders, who have undertaken a range of work for c.30 third party companies in addition to POG

Irgiredmet: The Irkutsk Research Institute of Precious and Rare Metals and Diamonds
— Founded in 1871, over 140 years of expertise in R&D, design + engineering
— Helped to develop flotation process / testing, laboratories performed autoclave leaching tests
— 10 specialised technological laboratories with c.300 highly qualified staff, more than 25 patents in the fields of mining / metallurgy
— Annually carries out more than c.200 researches assignments for third party companies, incl. R&D activities to help develop new deposits
Pilot Test Plant: Petropavlovsk’s experimental industrial model pilot processing plant
— Launched in 2009, the plant is the first and only of its kind in Russia
— Small scale autoclave to test all parameters of the process
— Unique asset giving Petropavlovsk the flexibility to test any type of gold recovery process on a smaller scale
— Also carries out test work / scenario analysis for external third party companies

PHM Engineering: engineering and construction supervision of the Group’s processing assets, including the POX Hub
— Responsible for new project feasibility work, technical design, permitting, equipment selection, oversight of manufacturing process,
   installation, commissioning
— Over 50 employees including PhD holders

Our partners and industry specialists: over 20 leading industry companies contracted to help us successfully develop / launch the
POX Hub
— Shanghai Morimatsu (autoclaves), LOTERIOS SpA (pressure pipe lines), DSB Säurebau GmbH (titanium inner gear + autoclave linings),
   Outotec (flotation, control / automation equipment), Feluwa Pumpen GmbH (acid resistant high-pressure slurry pumps), MOGAS
   Industries (valves), Red Mountain Energy Corporation (oxygen plant)

                                                                                                                                         19
The POX Plant Flowsheet
POX processing is a series of standard and well understood technologies
       Regrinding

                                                                                                   1      Re-grinding via two separate lines ensures a fine,
1                                                                                                         homogenous feed
                                                                                                         –    Two parallel lines allow for separate feedstocks:
    treatment
    Acid pre-

2                                                                                                             –   Line 1 has two ball mills

                                                                                                              –   Line 2 has a single ball mill for finer grinding
    Chlorine
    washing

3                                                                                                             –   Both lines have optionality to feed material through acid
                                                                                                                  pre-treatment section (if ore requires this) or to by-pass
       Pressure Oxidation

                                                                                                   2     Acid pre-treatment section removes carbonates and
                                                                                                         other minerals which can affect pressure oxidation
4
                                                                                                   3      Chlorine washing removes chlorine ions to minimise
                                                                                                          gold losses at the POX stage

                                                                                                   4      Pressure oxidation via 4 autoclaves to break down
    Conditioning
    & thickening

                                                                                                          sulphides and liberate refractory gold
5
                                                                                                   5      Conditioning (cooling) and thickening of the oxidised
                                                                                                          pulp
       Neutralisation

                                                                                                   6      Liquid (comprising of sulphuric acid) is separated at a
6                                                                                                         dewatering stage and neutralised before discharge to
                                                                                                          POX tailings pond(1)
                                                                                                   7     Solid pulp is neutralised/ filtered using lime, before
       To RIP

7                                                                                                        being sent for conventional RIP processing
                                                   to RIP

                            (1)   A large water storage allows the use of fresh water in quantities sufficient to prevent chlorine ion concentration build-up, thus optimising gold
                                  recovery                                                                                                                                            20
Malomir And Pioneer Flotation Concentrate Parameters
 Design vs. actual performance

                                                Malomir                                                                                                                      Pioneer
                                                                                                                                                                             Design
Parameter          Design            H1 2019a             H2 2019e            FY 2019e          Comments                                                                    (Stage 1)

                                                                                                 H1 throughput on target, up to 10% increase in
Ore              1.8Mt (6m)
                                       1.81Mt             1.8-2.0Mt           3.6-3.8Mt          H2 due to better equipment utilisation and                                 3.6Mtpa
processing      3.6Mtpa (FY)
                                                                                                 optimisation of processing operations

                                                                                                 Flotation performance exceeded initial design
                                                                                                 parameters, affording the opportunity to test
                   1.25g/t -
Scheduled                                                                                        process low grade ore at c.0.7g/t in Q1 2019
                    1.35g/t           0.97g/t(1)        1.25-1.30g/t            1.10g/t                                                                                      1.1g/t
ROM grades
                                                                                                 The tests confirmed its feasibility, hence lower
                                                                                                 than design processed grades in H1 2019

Concentrate
                    5.5%                3.3%                 3.5%                3.4%            Up to 40% improvement in concentrate yield                                  2.90%
yields
                                                                                                 vs. design: lower transportation and POX
Concentrate                                                                                      processing costs and higher grade concentrate
                    24g/t               26g/t                31g/t               28g/t                                                                                       24.0g/t
grades

                                          61-70kt (6m)                                           Up to c.40% decrease in processed tonnage
Concentrate      100kt (6m)   59kt (6m)
                                          120-140ktpa                         125-130kt          due to a positive decrease in yield: more gold                             110ktpa
volumes         200ktpa (FY) 120ktpa (FY)
                                              (FY)                                               extracted into a smaller volume of concentrate

Recoveries           86%                 87%                 86%                  86%            Stable recoveries in line with the design                                    82%

 — Stage 2 flotation expansion will increase capacity of Malomir and Pioneer flotation from 3.6 to 5.4 – 6.0Mtpa
 — Similarly to Malomir, it is entirely possible that Pioneer flotation may outperform initial design parameters

                       (1)   H1 2019a Malomir ROM grades included trial processing of lower grade refractory stripping material to understand the ability of the plant to
                             treat lower grade ore and the potential for lower cut-off grades                                                                                    21
POX Plant Capacity vs. Sulphur Content
  Sulphur affects oxygen consumption and hence affects processing capacity

                                     Autoclave Capacity vs. Sulphur Content of Various Concentrates                                                  Autoclave capacity varies according to
                                                                                                                                                     1. Sulphur content (and to lesser extent arsenic +
                                     25
                                                                                                                                                        antimony)
                                                                                                                                                           – Higher sulphur consumes oxygen which
                                                                                                                                                             increases costs and reduces capacity
                                                                  Expected 3rd party range
                                     20                                                                                                              2. Residence time
Single Autoclave Capacity (t/hour)

                                                                                                                                                           – A function of concentrate properties,
                                                                                                          Malomir = c.28% S                                  temperature and pressure

                                     15                                                                                                                    – Graph plateaus on left side when it hits
                                                                                                                                                             residence time limit
                                               Current capacity                                                                                      3. Feeding pump capacity
                                                                                                                                                           – Affects physical tonnage of concentrate that can
                                     10                                                                                                                      be pumped into autoclave
                                                              Kazakh 1 c.20% S                   Pioneer = c.23% S
                                                                                                                                                           – Function of pump + connecting pipework
                                                                                                                                                             capacity
                                     5                                                                                                                     – Currently c.13t/hour, with measures being taken
                                                                                                                                                             to increase to c.24t/hour
                                                                                                                                                           – Shown on graph as current capacity and upper
                                                                                                                                                             threshold of capacity
                                     0
                                                                                                                                                     Potential exists to reduce residence time by increasing
                                          15                       20                       25                      30                       35
                                                                                                                                                     the fineness of the feed by additional grinding,
                                                                                   Sulphur Grade (%)                                                 temperature, pressure
                                           Malomir concentrate                  Pioneer concentrate                 Kazakh Concentrate 1             Currently POX is running at 30 bar / 220oC

                                                                  (1) Assumes 7,500 operation hours per annum and increased capacity constraints on solids from c.13 to c.24 t/hour                     22
POX: The Heart Of Our Future
 POX to reach its full potential by 2021(1): contribution from refractory ore to increase up to c.65%

                                                                                                                            Contribution of Refractory Ores at Malomir +
                                            POX ramp-up (ktpa)(1)(2)
                                                                                                                                          Pioneer (Mtpa)(1)
                   500                                                                                             18                                                                         %          70
                                                           Capacity Range(2)                                                                          % of total which is
                   450                                                                                                                                    refractory
                                                                                                                   16
                                                                                                                                                                                                         60
                          4 autoclaves

                   400
                                                                                                                   14

                                                                                                                                                                                               Albyn
                   350                                                                                                                                                                                   50
                                                                                                                   12
                   300
Concentrate (kt)

                                                                                                                   10                                                                                    40
                   250
                                                                                                                               Refractory
                                                                                                                                                  Refractory

                                                                                                                                                                                               Malomir
                                                                                                                        8                                           Refractory   Refractory              30
                   200
                         2 autoclaves

                                                                                                                        6
                   150                                                                                                                            Refractory
                                                                                                                                                                                                         20

                   100                                                                                                  4

                                                                                                                                                                                               Pioneer
                                                                                                                                                                    Refractory   Refractory              10
                   50                                                                                                   2

                    0                                                                                               -                                                                                    0
                                         2018        2019e          2020e           2021e            2022e                       2019e             2020e              2021e        2022e
                                                                                                                            Pioneer non-refract         Pioneer flotation        Malomir non-refract
                                           Pioneer               Malomir               3rd   Party                          Malomir flotation           Albyn non-refract        % Refractory (RHS)

                                                     (1)   Assumes 3rd flotation line at Malomir from 2021
                                                     (2)   Capacity ranges depend on concentrate parameters, particularly sulphur content                                                      23
POX Processing Costs: Fixed vs. Variable
Overall POX processing costs decline rapidly to c.US$100/t as throughput is increased

                Unit cost of processing and throughput rates                                                 Comment

        250      H1 to H2 2019                    FY 2019 to FY 2020                   – Through the ramp-up period in H1 the proportion
               76kt                                                                      of fixed costs was c.2/3 of total POX processing
                                                                                         costs; the share of fixed costs is expected to
                                                        Fixed costs decrease rapidly
        200                                                on a per tonne basis as       decrease with the increase of the plant’s utilisation
                                          220kt            throughput is increased
                                                                                       – H1 2019 processing cost equated to around
                                                                                         US$230/t concentrate
                          144kt
        150                                                                            – 144Kt – 149Kt of refractory concentrate is
US$/t

                                                                                         expected to be processed in H2 2019, comprising:
                                                   340kt
                                                               450kt    450kt
                                                                                             – 84Kt - 89Kt of our own concentrate
        100
                                                                                             – 60Kt from 3rd party sources
                                                                                       – As a result FY 2019 processing costs are
                                                                                         expected to be c.US$175/t concentrate
        50
                                                                                       – Going further the unit processing cost
                                                                                         declines rapidly to c.US$100/t as throughput is
                                                                                         increased as designed
         0
              H1 2019 H2 2019             FY 2019 FY 2020 FY 2021 FY 2022

                      Throughput (ktpa)       Fixed Cost      Variable Cost

                                                                                                                                          24
A Comparison Between POX Projects
There are only two gold POX processing plants in Russia, with a third under
construction

                                         Polymetal Amursk POX 1                             Polymetal POX 2                           Pokrovskiy POX Hub

Commissioned                                            2012                                      Q3 2023                                      Q4 2018

Number of autoclaves                                       1                                           1                                             4

Concentrate processing
                                                      225Ktpa                                  250 - 300Ktpa                               400 - 500Ktpa
capacity

Capex                                               US$272m                                      US$431m                                      US$310m

Capital intensity                                   US$1,210/t                         US$1,437/t - US$1,724/t                         US$620/t - US$775/t

Operational temperature                                200 ˚С                                       240 ˚С                                         225 ˚С

Pressure                                               22 bar                                       43 bar                                         35 bar

POX recovery rate                                       97%                                          96%                                      93% - 98%

— A comparable amount of development capex was spent to develop the Pokrovskiy POX Hub vs. the Amursk POX 1 project despite
  significant difference in processing capacity
— As such, the new Pokrovskiy POX facility has a low capital intensity

                       (1)   The Pokrovskiy POX Hub achieved pressure of 30 bar and temperature of 220˚С. Ramp-up to design parameters continues             25
Autoclave Peer Analysis
 POX technology around the world

Project               Start                   POX Feed            POX Capacity        Autoclaves            Temp            Pressure           ~S Feed             Reserves

 Pueblo Viejo         2012                    Whole Ore              24,000tpd               4              230C            3,450kPa             6.8%               2.8g/t
 Goldstrike           1990                    Whole Ore              16,000tpd               6              220C            2,900kPa             2.5%               3.9g/t
 Copler               2018                    Whole Ore              6,000tpd                2              220C            3,150kPa             4.8%               2.8g/t

                                            Whole Ore &
 Lihir                1997                                           25,000tpd               4              205C            2,650kPa             6.0%               2.3g/t
                                            Concentrate

                                            Whole Ore &
 Twin Creeks          1997                                           10,400tpd               2              225C            3,170kPa             4.5%               1.8g/t
                                            Concentrate

 Kittila              2008                   Concentrate              870tpd                 1              207C            2,500kPa            18.0%               4.7g/t
 Amursk               2012                   Concentrate              616tpd                 1              200C            2,170kPa             6.5%               5.2g/t
 Porgera              1990                   Concentrate             16,400tpd               4              197C            1,750kPa            14.0%               4.8g/t
 Macraes              1999                   Concentrate              650tpd                 1              225C            3,140kPa             9.0%               1.1g/t
 Corrego do Sitio     2011                   Concentrate              240tpd                 1              230C            3,600kPa             7.8%               4.1g/t
 Pokrovskiy           2018                   Concentrate             1,370tpd                4             225C(1)         3,500kPa(1)          23.0%               1.0g/t

 Stibnite (Project)   2023E                  Concentrate             20,000tpd               1              220C            2,400kPa             5.5%               1.6g/t
 Donlin (Project)     2025E                  Concentrate             8,500tpd                2              220C            3,250kPa             7.0%               2.1g/t

 Lagunas Norte
                      2026E                  Concentrate             6,000tpd                1                 -                 -               8.0%               2.9g/t
 (Project)

 Certej (Project)           -                Concentrate             2,600tpd                2              230C            3,547kPa            13.0%               1.7g/t

                      (1)       Pokrovskiy POX Hub achieved autoclave pressure of 3,000kPa and a temperature of 220˚С, as ramp-up to design parameters continues        26
Corporate Strategy

     Dr Pavel Maslovskiy
                           27
Strategic Priorities
  Asset rationalisation, organic and inorganic growth options

                         Opportunities                                       Goal                                                         Implementation

                                                                                                                    ‒ Disposal of a 31.1% controlling stake to a
the business
Streamlining

                                                    ‒   Eliminate IRC loan guarantee
                                                                                                                      strategic investor alongside a transfer of the
                                                    ‒   Improve credit rating
                                                                                                                      loan guarantee(1)
                      IRC sale                      ‒   Improve balance sheet metrics
                                                                                                                    ‒ Alongside subsequent sale of the IRC stake, an
                                                    ‒   Focus on gold
                                                                                                                      agreement with Gazprombank to eliminate IRC
                                                    ‒   Achieve higher market multiples
                                                                                                                      guarantee

                                                    ‒ Extend mine life at Albyn                                     ‒ Construction of mine at Elginskoye
                      Elginskoye                    ‒ Utilise existing infrastructure                               ‒ Construction of road to Albyn plant
   Organic Growth

                                                    ‒ Maximise IRR                                                  ‒ Transportation of ore to Albyn RIP

                                                    ‒ Optimise POX utilisation                                      ‒ Construction of Pioneer flotation plant (initially 2
                      Increase feed of POX
                                                    ‒ Secure concentrates with the best                               lines) with further expansion (3rd flotation line)
                      plant by processing
                                                      margins                                                       ‒ Expansion of flotation plant at Malomir (3rd
                      own concentrates
                                                    ‒ Maximise IRR                                                    flotation line)

                                                                                                                    ‒ Identification of higher grade refractory assets
   Inorganic Growth

                                                    ‒ Improve grade of POX feed material                              which can’t be developed at this moment
                      M&A                           ‒ Increase POX utilisation                                      ‒ Identification of the most effective way to bring
                                                    ‒ Expand margins + increase production                            together synergies of these assets and the
                                                                                                                      processing capacity of the POX Hub
                                                    ‒ Fully benefit from POX facilities and                         ‒ Financed by JV partner
                      Autoclaves
                                                      POG’s comprehensive in-house R&D                              ‒ Adjustment of the technological process to
                      5 + 6 (JV option)
                                                      capabilities                                                    process complex material (eg. triple refractory)
                                    (1)   Petropavlovsk is a 31.1% holder of IRC. Gazprombank has been mandated to assess Petropavlovsk’s options
                                                                                                                                                                     28
Organic Growth: Elginskoye to Replace Albyn Pit
Ore body shape is favourable for a low strip-ratio / low dilution operation

–   Elginskoye is predominantly a non-refractory ore body, located c.30km west of Albyn plant
–   2.8Moz of JORC Resources including 1.5Moz of JORC Reserves (at avg. 1.1g/t)
–   Shallow dipping mineralised zones suitable for low cost open pit mining
–   Preparation started to commence production in 2020
      –   Access road completed
      –   First mining equipment has been transferred from Albyn to site
–   Estimated gold production of c.156koz in 2020

                                                                                                29
Organic Growth: Pioneer Is A High Return Strategic Project
At spot gold prices, Pioneer has an IRR of greater than 130%

                                                                                                       Key Project Metrics
–            After more than 10 years of production Pioneer is
                                                                             Total capex spend over 2 yrs                     US$30m
             transitioning to become a mainly refractory deposit
–            Project looks attractive in terms of profitability + cash       Construction timeframe                      12 - 14 months
             flow generation under various macroeconomic scenarios
                                                                             First production                                 H2 2020

                                                                             Processing capacity                               3.6Mtpa

                                                                             Mine life                                        >10 years

                                                                 Project Sensitivities

                                    Gold Price (US$/oz)                                                     Gold Price (US$/oz)
         IRR                                                                          NPV
                       1,250         1,300         1,400         1,450                           1,250       1,300       1,400            1,450

               61       86%           99%          126%          140%                       61   137          167            226          256
RUB:US$ FX

                                                                               RUB:US$ FX

               67      119%          134%          165%          182%                       67   191          221            281          310

               70      136%          152%          186%          204%                       70   215          245            304          334

                                                                                                                                             30
Pioneer’s Transition to Become a Principally Refractory Mine
Understanding the transition to processing non-refractory to refractory gold

            Current non-refractory processing                                                                     Future refractory processing: flotation lines 2 + 3
— 6.7Mtpa current(1) RIP plant comprising of crushing +                                             — Construction of flotation facilities totalling 3.6Mtpa
  grinding sections                                                                                   capacity is underway
      — 3 x 1.8Mtpa(1) (“large”) crushing + grinding lines                                          — The crushing + grinding lines will be gradually switched
        plus                                                                                          to the flotation circuit as ore transitions from non-
                                                                                                      refractory to refractory
      — 1 x 0.6Mtpa (“small”) crushing + grinding line
                                                                                                    — Tailings storage will be in a conventional tailings dam
— RIP section will remain available after plant switched to
  flotation to provide optionality

                      Heap Leach                                                                                                     Pioneer flotation building (10 Aug 2019)

                                           Grinding Section (SAG                   RIP Section
               0.6Mtpa line                & Ball Mills)

               1.8Mtpa lines
                                                                         Flotation Building

                      (1)   1.8Mtpa is the nominal crushing capacity. Recently, Pioneer has been crushing 2.0Mtpa of softer oxidised (fresh) near-surface material, thus exceeding capacity   31
Inorganic Growth: 3rd Party Refractory Concentrates Market
 Concentrate markets in Russia and Kazakhstan

 1. Russia: 40% of gold resources are refractory
 — Only limited refractory treatment capacity exists including two POX plants
 — The majority of concentrates are exported to China
 — Russia has declared gold as strategic asset and intends to prohibit exports of concentrates
 — For environmental reasons, China is shutting down roasters - particularly those treating high arsenic / antimony(1)
 2. Kazakhstan: another source of refractory concentrates
 — Four refractory mines currently produce flotation concentrate, with potential to expand further.
 — Petropavlovsk has secured 20Kt grading 40g/t to 50g/t which it is currently processing at recoveries of 95%

                                        Refractory Mines in Russia and Concentrate Availability (Ktpa)
                                                                      Own                                            Tonnes                         Potential Tonnes
Mine                                Owner                                                     Exports
                                                                    Facilities                                     Available (Kt)                    Available (Kt)
 Olimpiada (Au)(2)                  Polyus                               ✘                       ✔                         50
 Olimpiada (Au,Sb)(2)               Polyus                               ✘                       ✔                                                            150
 Bogolyubovskoye                    NGOK                                 ✘                       ✔                         30
 Udereyskoye                        NGOK                                 ✘                       ✔                         35
 Drazhnoe                           GV Gold                              ✘                       ✔                         20
 Badran                             Zapadnaya                            ✘                       ✔                         10
 Mayskoye(3)                        Polymetal                            ✘                       ✔                                                             57
Total available volumes                                                                                                   145                                 207

                         (1)   Petropavlovsk’s process can stabilise arsenic as scorodite which offers a more environmentally-friendly approach to roasting
                         (2)   Olimpiada produces two types of flotation concentrates: 150Ktpa of concentrate is sold with an antimony content of up to 30% and 50Ktpa of gold 32
                               concentrates containing some antimony
                         (3)   57Ktpa of Mayskoye concentrate, which is not processed at the Amursk POX plant, may be available
Autoclaves 5 + 6 (JV Option)
Potential for a JV with another refractory producer or developer

  – Existing onsite infrastructure enables two additional autoclaves lines (5 + 6) to be added, although some expansion of
    oxygen capacity will be required
  – Given the large number of refractory ore bodies in the region, the Company believes the development could be
    funded via a JV with another refractory developer or producer
  – Adjustment in technology can be made to process very complex refractory materials, including:
        – Pyrrhotite-containing concentrates
        – Bio-cakes
        – Cuprous gold-bearing concentrates
        – Carbonaceous concentrates from other deposits
        – Concentrates obtained from the tails of existing mills

                                                                                                                       33
R&R / Exploration

    Dr Alya Samokhvalova
                           34
Proven Track Record Of Resource Growth
As at 31 Dec 2018, Group Reserves & Resources totalled 20.5Moz, with Reserves of 8.2Moz(1)

Moz

                                         12.3                             13.8
                        10.1                             11.7
                                                                                          14.0             14.4                                                8.2
                                                                                                                           10.4             11.2

  2.1     6.0
                        13.0             12.8            12.1             12.0                                                                                 12.3
                                                                                           9.3             9.3              9.3             9.6
  6.8
          5.2

  1.4     1.9            2.4             3.8              5.1             5.9              6.6             7.2
                                                                                                                           11.2             11.7               12.5

 2008     2009          2010            2011             2012            2013             2014            2015             2016            2017                2018

                Refractory Resources                        Non-Refractory Resources                            Depletion + Disposals

                  (1) As at 31 Dec 2018, in accordance with the JORC Code 2012. Reserves are shown as Proven + Probable. Resources are inclusive of Reserves     35
Mine By Mine JORC Resource Breakdown
New Resources at Pioneer, Albyn, Malomir + Pokrovskiy

                                                     Total JORC Resources (as at 31/12/2018)                                             Non-refractory Resources

                                                                                                                                            Refractory Resources
                                                                                                                                                New Resources -
                                                                                                                                                  Explanation
                                                    8.2Moz                 20.5Moz(1)                  12.3Moz
                                                     40%                                                 60%

          Malomir                                     Pioneer                                        Albyn                                     Pokrovskiy
           6.7Moz                                      4.5Moz                                       4.2Moz
            97%                                         76%                                          79%

          6.9Moz                                      5.9Moz                                       5.3Moz                                        0.9Moz
                                                                                                                1.1Moz
                                               1.4Moz                                                            21%
                                                24%                                                                                               0.9Moz
             0.2Moz                                                                                                                                100%
               3%

         RIP tailings for
                                                        Katrin                                                                              Decrease due to
        reprocessing via                                                                   Albyn main ore body +
                                                     Nikolaevskya                                                                       disposals + sterilisation
      flotation + POX and                                                                    Unglichikanskoye
                                                     Ulunginskaya                                                                          due at POX facility
          Quartzitovoye

                    (1)Total JORC Resources include Tokur asset, not shown in the split below. Tokur contains non-refractory Resources of 1.4Moz. For full details
                                                                                                                                                                     36
                    please refer to the 2018 Petropavlovsk AR
Resource Potential
Significant potential to convert resources into reserves plus add future discoveries

                                                                 Long Term Potential                                                            N

8Moz              Operating Mines                                   Development
                    & Satellites                                      Projects
7Moz

6Moz

5Moz

4Moz

3Moz

2Moz

1Moz
                                                                                                                   Malomir   Tokur&Osipkan   Albyn
0Moz

                                                                                                      20km

                    Reserves        Resources           Exploration

–   Total exploration potential estimated at c.4Moz in addition to the existing 20.52Moz of JORC Resources(1)
–   Significant potential to extend mine life of the Group’s operating mines via conversion of Resources into Reserves
–   Most promising exploration and development project outside existing operating mines is Tokur (together with Osipkan)
–   Strong regional exploration potential outside existing licence holdings

                        (1) As at 31 Dec 2018, in accordance with the JORC Code. Resources (M,I&I) are incl. of Reserves                        37
Responsible Business

      Dr Alya Samokhvalova
                             38
Sustainable Development
Maintaining leading ESG Practices

                      Health and Safety                                               Corporate Governance
                                                                    — Full compliance with UK Corporate Governance Code
— Full compliance with applicable health and safety legislation
                                                                    — Safety, Sustainability and Workforce Committee formed in Nov
— H&S management systems                                              2018
— Regular external + internal audits / inspections                  — Annual review + publication of a revised Modern Slavery
— Development of safety culture                                       Statement

— Risk management to mitigate impact                                — Remuneration disclosure

— High quality task specific training                               — Established Code of Conduct and Business Ethics

                    Social Responsibility                                         Environmental Management
— Major tax payer in Amur region                                    — Environmental Management system compliant with GOST R
                                                                      ISO 14001- 2016 (ISO 14001:2015)
— Active engagement with Indigenous communities
                                                                    — Optimisation of energy consumption, water recycling, GHG
— Establishment of POX Hub part of government’s policy to develop     monitoring + reporting in line with international standards
  Russian Far East
                                                                    — Strict control cyanide management
— Accessible and effective grievance procedure
                                                                    — Fully compliant + insured tailing management facilities
— Trade Union: 1,616 members, 18% of employees
                                                                    — Ongoing land rehabilitation + conservation of biodiversity
— Equal career opportunities regardless of gender
                                                                    — Effective waste management (31% of all waste is reused)
— Pokrovskiy Mining College

  Petropavlovsk is not only fully compliant with regional, national + international legislation, but is striving to
                                   perform in line with best industry practices

                                                                                                                                    39
Sustainability Management and Governance
The Board of Directors has appointed committees at Board level to oversee different aspects of
business, risks and performance
                           Board of Directors                                 The Executive Committee
                                                                              — Consists of both Executive Directors + key
                                                                                operational management
                                                                              — Responsible for overseeing implementation of
                                                                                strategy, business targets + decisions made at Board
                                                                                level, including decisions made by SS&W Committee
                                                                              — Reviewing internal control and risk management

              Mr Harry Kenyon -
                                                                                Structure for the Monitoring + Reporting of
                                                    Dr Pavel Maslovskiy              Sustainability Performance Data
              Slaney                                Chief Executive Officer
              Chairman
                                                                                                5
                                                                                      Recommendations             1
                                                                                        are given to key HSE  Performance
                                                                                          operational     data is collected
              Dr Alya                                                                 management, which by key operational
                                                     Mr Damien Hackett                then provides BoD    management
              Samokhvalova                           NED
              Deputy CEO                                                                 with feedback

                                                                                         4                              2
                                                                                   A summary is                  Data + summary
                                                                                    made to the                    reports are
The newly formed Safety, Sustainability & Workforce Committee                        Board of                    submitted to the
(SS&W) is responsible for:                                                           Directors                    CEO + Deputy
                                                                                                         3
— Reviewing + monitoring health, safety, environmental, sustainability                                                CEO
                                                                                                 Data + summary
  processes + procedures                                                                       reports submitted by
                                                                                                  Deputy CEO to
— Assisting with the community relations + workforce engagement                                  Executive + HSE
                                                                                                   Committees

                                                                                                                                    40
Key Performance Indicators H1 2019
Reporting in line with international standards
Lost Time Injury Frequency Rate (LTIFR)                                                 Energy Consumption
Accidents per million manhours                                                         Million GJ
                                                                                                                     +75%
                                 -55%

                                                                                                                                        2.8
              2.84
                                                                                                         1.6
                                                        1.29

            H1 2018                                  H1 2019                                           H1 2018                        H1 2019
  — Significant decrease in LTIFR due to more rigorous                                   — Increase in energy consumption attributable to POX hub
    implementation of health and safety procedures                                         commissioning(1)

Greenhouse Gas Emissions (GHG) intensity                                               Water Used
Normalised per ounce of gold produced, t CO2e/oz                                       Million m3
                                                                                                                     +19%
                                  -2%

             1.08                                                                                                                       11.5

                                                        1.06                                              9.7

           H1 2018                                   H1 2019                                           H1 2018                        H1 2019

   — Despite increased energy consumption, GHG intensity                                 — Water usage increase in line with increase in gold output
     decreased due to higher gold production

                      (1) Oxygen plant electricity needs contribute the increased energy consumption                                                   41
Health, Safety and Environment (HSE)
Continuous commitment to a safe working environment

            HSE And CSR Reporting Structure                                  H1 2019 H&S Progress / Initiatives

                                                                — Introduction of “near-hits” record system
                                 Chief Executive Officer
                                                                — Road Safety Campaign (Jan - Mar 2019)
                                   Petropavlovsk PLC
                                                                — Stricter monitoring of the equipment effect on employees’ health
                                                                    in the work zones
                                                                — More rigorous medical examinations exclusively by medical
 Head of Welfare
      and                           General Director                contractor
Community Liaison                                               — Medical treatment of diseases pre-requisites via Trade Union
                                                                    programmes
                                                                                 Road Safety Campaign 2019
     Head of
  Environmental                      Chief Engineer
Safety Department

   General Directors of           General Directors of
Pioneer, Pokrovskiy, Albyn,   BRMZ, Regis, Transit, Kapstroy,
          Malomir                     AVT – Amur
  (2-3 HSE specialists per       (2-3 HSE specialists per
          rotation)                     rotation)

   Production Facilities           Ancillary Facilities

                                                                                                                             42
ESG Performance Benchmarking(1)
 Petropavlovsk vs. major gold companies

 Energy consumption                               Greenhouse gas emissions (СО2)                   LTIFR(2)                                        Women employees

(GJ / US$m of revenue)                           (tonnes / US$m of revenue)                       (cases per million working hours)               (share of the total number of employees)

                    Polyus                                        Sibanye                1,776                    Sibanye                  1.18                Petropavlovsk                  24.6%
                                        10,343

      New Gold Incorporated           7,080                        Polyus            1,101               Anglogold Ashanti                 1.14                    Polymetal              20.0%

          Anglogold Ashanti       6,652                  Anglogold Ashanti      795                          Petropavlovsk          0.50                         Gold Fields            16.0%

                   Sibanye        6,053                      Petropavlovsk      759                            Gold Fields          0.45                             Polyus             15.4%

                    Kinross      5,813                           Centamin      612                  Eldorado Gold Company       0.33                   New Gold Incorporated           15.2%

              Petropavlovsk      5,316                         Gold Fields     566                               Centamin      0.26                                 Sibanye           13.0%

               Barrick Gold      5,105                           Polymetal    480                    New Gold Incorporated     0.24                             Barrick Gold          12.1%

                Gold Fields     4,387                New Gold Incorporated    464                             Barrick Gold    0.15                         Anglogold Ashanti          12.0%

                  Polymetal     4,362                              Kinross    460                                  Polyus    0.09                                    Kinross          11.0%

                                                            Eldorado Gold
    Eldorado Gold Company       4,338                         Company         450                                Polymetal   0.09                    Eldorado Gold Company         10.0%

                  Centamin    2,073                           Barrick Gold    397                                  Kinross   0.07                                  Centamin    2.0%

 Well positioned among peers in terms of implementing ESG standards, with some social aspects better vs. peers (eg.
     share of female employees). Room for further improvement to obtain an improved ESG rating in the mid-term

                                Sources: Thomson Reuters, company data
                                (1) Data for full year 2018                                                                                                                                43
                                (2) Reporting standards vary, it is not always apparent whether all accidents are reported by a company. Petropavlovsk reports accidents at all facilities while
                                Russian legislation dictates to report the accidents at hazardous facilities only
Sustainable Ratings
Well positioned among peers in the framework of Environmental responsibility and
sustainability disclosure
The Transparency Rating of Environmental                                                         ESG/CSR Rating(2)
Responsibility Project for M+M Companies of Russia(1)                                            (out of 100)

                                                                                                  80            79
  1.59                                                                                                               74   73   73   72   69
                    1.43                                                                                                                       68   67      64
                               1.33
                                                1.04

                                                                 0.53       0.48        0.38
   Kinross

                                                 Nordgol

                                                                  Petropa
                                Polymet
                      Polyus

                                                                            Highlan

                                                                                       Kamcha
                                                                                       Gold of
                                                                            d Gold
                                                                  vlovsk

                                                                                         tka
                                   al

                                                    d

                 Overall Rating                               Environmental Impact                — Well positioned among the peers
                               22 place                                                           — Second best group (60-79)
                               2018 (0.27)            22-34 place             22-34 place                                                     Community
    24 place                                               2017 (0.13)           2018 (0.36)
   2017 (0.53)
                                                                                                                                              Employees
      Ecological Management                                  Information Disclosure                   Score of 69 (out of 100)
                                                                                                     based on Petropavlovsk’s
                               17 place                                      23-31 place             disclosure of information
                               2018 (0.71)                                      2018 (0.50)                                                   Environment
    25-26 place                                            18 place
             2017 (0.13)                                   2017 (0.56)
    Improved rating in every category, with the exception of                                                                                  Governance
  Information Disclosure, an area where the Company has the
                opportunity to improve in 2019

                                (1)       World Wide Fund for Nature Russia 2018                                                                           44
                                (2)       CSR Hub 2018
Case Studies
Continuous participation in environmental and social programmes

                       Reforestation                              Biodiversity Protection

                       — c.255,000 of pine seedlings              — c.300,000 of carp
                         planted during 2017 - 2018                 hatchlings released into
                                                                    Zeya river during 2017-
                       — Pine seedlings are known                   2018
                         for high survival rate
                                                                  — Aimed to stimulate
                       — Seedlings are planted on                   reproduction of aquatic
                         an artificial surface for long             biological resources +
                         term prevention from                       preservation of wildlife in
                         wildfires                                  Amur region

                       Avoiding Forest Fires                      Sustaining Future Workforce

                       — 24/7 dedicated fire brigade              — More than 10,500 students
                         with specially trained fire                graduated from Pokrovskiy
                         fighters at each mine                      Mining College over 10
                                                                    years
                       — Regular safety briefings +
                         drills                                   — Majority have found
                                                                    employment at
                       — Group’s fire teams help                    Petropavlovsk
                         local villages to fight the
                         house fires coming from                  — College training tailored to
                         nearby forests                             the Group’s HR needs
                                                                    including H&S + POX

                                                                                             45
Closing Remarks / Q&A

       Sir Roderic Lyne
                          46
Investment Highlights
Our long term goal is to increase shareholder returns

 1
     Leveraging our technical expertise to become a leading refractory gold producer in
                                           Russia

 2
              Three large-scale mines in Russia producing 450koz+ per annum

 3
      Monetising our 12.3Moz of refractory resources + profitable processing 3rd party
                                    refractory material

 4
     Proven track record of exploration, development, expansion and asset optimisation

 5
                   Strategic location + access to developed infrastructure

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Summary: A Conservative Strategy Focused on Shareholder Returns
    A holistic strategy directed at improving long-term shareholder returns

      Cost optimisation +    — Focus on operational efficiencies and cost optimisation at existing operations
1
           margins           — Gold price hedging / forward sales agreements are complementary measures

     Increase production     — Construction of new Pioneer flotation to double existing flotation capacity (Q4 2020 launch)
2    of our own refractory
          concentrate        — Malomir 3rd flotation line planned for 2023, but may be accelerated

        Balance sheet        — Improved cash generation via POX ramp-up
3
        strengthening        — Targeting Net Debt / EBTIDA of 2.0x

              IRC:
4                            — Options include: improvements to existing guarantee structure, outright disposal , payment of a
      realising value from
                               dividend to Petropavlovsk
        non-core assets

                             — Addition of 2 more autoclaves to the existing 4
5        POX capacity        — 50% total processing capacity uplift from 400 – 500Ktpa to 500 – 750Ktpa
          expansion          — Autoclaves 1 to 4 to process own refractory ore, while 5 + 6 to process 3rd party material (JV
                               opportunities)

                             — Continue to generate maximum value from core assets via ongoing exploration both surface +
         Committed to          underground
6
          exploration
                             — Potential licence acquisitions adjacent to the existing infrastructure

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