Semcha Platinum Property, Russia Polymetal International plc LOCATION: Semcha license area, where Viksha deposit lies, is located in the Central Karelia, 350 km from St. Petersburg and 100 km northwards from Petrozavodsk. The relief is slightly dissected with elevation points at 100-150 m above the sea level. The area is covered by forest. STORY: In 1953-55 exploration was carried out for Fe-Ti-V within Koykarsko Svyatnavolokskaya Proterozoic layered intrusion. The iron ore reserves were evaluated and amounted to 314 Mt, with average grades: Fe - 22%, TiO2 - 6.15%, V2O5 - 0.32%. These reserves are not registered in the state register since there are no efficient technologies for processing high-titanium titanomagnetite ores. Since 1983 the area is known to have ores with high Au, Pt, Pd, Cu grades. In 2013, as part of its Semcha greenfield exploration project, Polymetal performed exploration work for primary gold dissemination aureoles in three areas of titanomagnetite ores development levels: Viksha, Kenti, Sharghi. GEOLOGY: The area is located in the southeastern part of Fennoscandian shield at the boundary of granite-greenstone Archean formations (2.6 billion years) and slightly dislocated Lower-Proterozoic volcanic-sedimentary rocks of Jaturian complex (2.3-2.2 billion years). Ore field area of about 50 sq km is connected with a 2.1 billion year-old gabbrodolerite sill cropping out to the pre-Quaternary surface. The sill, with an apparent width of 200 m, lies concordantly among terrigenous-carbonate rocks of the upper Jatulian composing a core of shallow sinforms that extend mainly in the northeastern direction. The composition of the sill varies from coarse leucocratic essential albite varieties and granophyres in the upper parts, to melanocratic medium-grained and fine-grained varieties enriched with titanomagnetite and sulphides in the lower part. Stratiform level of titanomagnetite ores (TMG) (20 m wide) occurs 20-40 m above the base of the intrusion. The level of TMG dip is 15-40 degrees, and the outcrops are traced for over 20 km. Precious metal mineralization is confined to the level enriched with both titanomagnetite and sulphides (pyrite, chalcopyrite). DEPOSIT: According to preliminary drilling data from the three sections located in the area of 20 sq km, complex Au-Cu-Pt-Pd mineralization is developed within TMG with no signs of thinning and is outlined as a 3-8 m layer (APP-reef). Au + Pt + Pd grades are 1-2 g/m. In the meter-long assays, precious metals grades reach (g/t): gold - 0.3, platinum -0.55, palladium - 1.3 silver - 1. Copper grade is 0.1-0.2%. Maximum Au-Pt-Pd concentration level is associated with the transition from copper zone (0.1-0.2% Cu) to 1-3 meter level of maximum Fe-V-Ti (FVT-reef) concentrations. Ore minerals: gold, merenskyite, kotulskite, sperrylite, vincentite, naumannite, mertyite, moncheite, paolovite. Significant ore components are (%): Fe -20-30, Ti -4.5-9, V - 0.15-0.25, Ni 0.0070.015, Co 0.007-0.01. Exploration drilling was carried out in the Viksha area, 4 km long. APP reef resources (estimated up to the depth of 100 m) amount to 23 Mt. Expected technology: PGM and gold recovery to copper and sulphide concentrate. Easy morphology, sufficient extent and consistent content of stratiform ore bodies give reason to expect that Au-Pt-Pd resource base will amount to at least 200 t, with the depth of 300 m. It is expected that the accessibility of the area and the good infrastructure will enable Polymetal to complete exploration within a very short timeframe. Reserve estimates of precious metals are expected to be finalized by December 2014. DISPLAY: The box with assays characterizing intervals from APP-reef and FVT-reef containing dolerite and carbonate rocks. Maps and layouts describing the deposit.