OREANDA-NEWS. On May 19, 2008 JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”) noted the recent press speculation and confirms that it is aware of a series of discussions currently underway between the majority shareholder of the Company and variety of possible counterparties concerning the possibility of such counterparties each acquiring parts of the majority shareholder's stake in Polymetal, reported the press-centre of Polymetal.

One person involved in these preliminary discussions is the brother of the current CEO of the Company, Vitaly Nesis. Polymetal is not a participant in these discussions and it is too early to predict their outcome. These discussions are ongoing and any or all of them may or may not lead to any transaction or transactions.

A further announcement will be made by the Company in due course. Pending any further announcement Polymetal does not intend to comment further.