ISE Irish Stock Exchange : S&P rating action

For immediate release 19 January 2017

Polyus Gold International Limited

S&PGR revises outlook on Polyus Gold International Limited to Positive and affirms 'BB-' rating

Polyus Gold International Limited ('PGIL', or the 'Company') notes that S&P Global Ratings Services ('S&PGR', or the 'Agency') has revised its outlook on the Company and its subsidiary PJSC Polyus ('Polyus') to Positive from Stable and affirmed 'BB-' long-term corporate credit ratings on both companies.

The S&PGR also affirmed its 'BB-' issue ratings on PGIL's USD 750 million 5.625% Eurobonds due in 2020 and USD 500 million 4.699% Eurobonds due in 2022.

Among the key reasons for the outlook upgrade, S&PGR noted Polyus' new dividend policy and clear commitment to public capital markets. The Agency also highlighted strong liquidity, positive free operating cash flow generation, minimal debt maturities in the next two years, and expected the company to report supportive operating and financial results for 2016 and 2017. Polyus' solid market position internationally, long reserves life and low production costs supported the outlook revision, S&PGR said.

Forward looking statements

This announcement may contain 'forward-looking statements' concerning PGIL. Generally, the words 'will', 'may', 'should', 'could', 'would', 'can', 'continue', 'opportunity', 'believes', 'expects', 'intends', 'anticipates', 'estimates' or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressedin the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of PGIL's operations. Many of these risks and uncertainties relate to factors that are beyond PGIL's ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. PGIL assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.