Dividend policy

Extract from Dividend policy of Polyus Gold

• General shareholders meeting once in a year decides to pay share dividends based on the annual financial results. The meeting can also decide to pay interim dividends based on the first quarter, first half and nine months’ financial results. General shareholders meeting can decide not to pay dividends or can not to take a decision.
• The company aspires to pay dividends with a total sum up to 25% of net income, calculated according to IFRS.
• The Board of directors considers different limitations for the company (including operating and investment program financing, debt liabilities and Russian tax legislation restrictions) while recommends on the dividends.
• The company can accrue and pay dividends only if it recognizes a net income, calculated according to RAS (Russian accounting standards) and if it has no restrictions on dividend payments according to the article 43 of the federal law on joint-stock companies.
• The company compiles the list of shareholders who have the right to receive the dividends after the Board of directors meeting which recommends paying these dividends. The company compiles this list on the record date to participate in the General shareholders meeting, which will decide on this dividend payment.
• Dividends are payable within 60 days of their declaration by the General shareholders meeting unless something different is specified in the corporate charter.