PETROPAVLOVSK PLCH1 2016 Trading Update (July 2016)

Cautionary and Forward-looking Statements

Some statements contained in this presentation or in documents referred to in it are or may be forward­looking statements, including

references to guidance. Such statements reflect the Company’s current views with respect to future events and are subject to risks,

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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

Contents

Underground Mining

Proposed POX Joint Venture

H1 2016 Trading Update1

2

3

33

Proposed Acquisition of Amur Zoloto

Exploration Update

Strategy

4

5

6

H1 2016 Trading Update

44

H1 2016 Trading Update

POG H1 2016 Update

Output lower vs. H1 2015 due to scheduled processing of lower grades + severe flooding

­ Production of 187.4Koz

­ Sales of 195.4Koz at avg. US$1,194/oz incl. hedging effect

Group’s focus remains further reduction of Net Debt

­ Net debt of c.US$598m(1) compared with c.US$610m as at 31 Dec 2015

­ Preliminary term sheets received from Sberbank + VTB incl. extending debt maturity profile with significantly relaxed near­term repayment schedule

55

maturity profile with significantly relaxed near­term repayment schedule

­ Principal payment holidays granted April ­ Oct 2016, negotiations ongoing

FY 2016 outlook

­ Targeting production at lower end of original guidance at c.460 ­ 500Koz, due to negative effects of flooding

­ On track for FY TCC of c.US$700/oz (preliminary H1 2016 TCC est. c.US$690/oz, down 10% vs. H1 2015)

­ FY Net Debt target of c.US$570m

­ Group reiterates FY capex of c.US$60m development + c.US$10m exploration

(1) As at 30 June 2016, preliminary unaudited figure

POG H1 2016 Corporate Highlights

Proposed acquisition of Amur Zoloto / Kamchatka Gold

­ SRK report on AZ assets published + available on our website

­ SRK confirm c.1.86Moz of JORC Resources of which c.1.35Moz are Reserves

­ Discussions under way to consider amending proposed transaction to include acquisition by Petropavlovsk of Renova’s gold assets in Kamchatka

66

POX JV with GMD Gold

­ Proposed JV unlocks c.4.0Moz of refractory gold reserves

­ JV is progressing well, circular to shareholders to be published Q3 2016

Disposal of non-core assets

­ Disposal of Ilyinskoye + remaining interest in Verkhnetisskaya for US$20m

­ Sale in line with strategy of debt reduction + focus on core producing assets

H1 2016 output impacted by regional flooding

77

Underground Mining at

88

Pioneer

Preparation work carried out to commence underground production at NE Bakhmut

During H1, the following works were undertaken

­ Design completed for underground mine access development + initial underground ore mining

­ Preparation for decline portal completed (incl. access road, site levelling, power + water)

­ Russian underground mining contractor for mine development + ore

Underground mine design, NE Bakhmut

99

contractor for mine development + ore mining appointed

­ Underground decline development to commence Aug 2016, first ore production est. Q1 2017

­ Plan to complete 29,915m3 of underground development H2 2016 at avg. cost 13,100 RUR/m3

­ Exploration targeting resources for underground mining at NE Bakhmut + other Pioneer zones expected to continue simultaneously alongside mine’s development

Pressure Oxidation (POX)

1010

Pressure Oxidation (POX)

Refractory ore

Mineralised rock resistant to recovery by standard cyanidation and carbon adsorption methods

Generally contains sulphide minerals, which encapsulate gold

Crushing + Grinding

What is refractory ore? Processing options for refractory ore

particles, making it difficult for the leach solution to reach the contained gold

Oxidation of sulphide minerals is necessary to recover the gold

Roasting BIOX

Pressure oxidation

(POX)

11

Extraction of gold from refractory ore requires additional stages

A refractory ore Processing Hub in the Russian Far East

Annual processing capacity of 500K tonnes of flotation concentrate via 4 x

autoclaves

Third party processing: option to process

refractory content from third parties, incl.

concentrate with a high carbon content

Ability to process different types of

refractory ore simultaneously

1212

Pokrovskiy will serve as a processing hub for

refractory concentrate provided by Pioneer +

Malomir mines

Developed infrastructure allows for

transportation of concentrate via road or

rail

Potential to upgrade to 6 x autoclaves

POX Processing Hub concept

MALOMIR Flotation Plant

Recovery = 88%Recovery = 86%

PIONEER Flotation Plant

Flotation Concentrate

Flotation Concentrate

POX Plant Recovery = 93% for Malomir and 98% for Pioneer

ConcentrateRe-grinding

AutoclaveOxidation

RIP circuit Doré to Refinery

THE POKROVSKIY POX HUB

1313

JV accelerates POX development without straining the Group’s balance sheet

Non-refractory JORC Reserves

Refractory JORC Reserves

3.95Moz

4.46Moz

c.50% of our Reserves are refractory…

POX Hub will enable POG to unlock value from extensive refractory reserves (at Malomir + Pioneer) without incurring additional debt

Once commissioned, POX Hub will be largest of its kind in Russia, able to process up to 500Kt of floatation concentrate p/a

­ 4 x autoclave lines with capacity of 125Ktpa of

As at 31/12/2015 Reserves Au (Moz) Au (g/t)

Malomir

Proven 0.3 1.27

Probable 2.2 1.01

P+P 2.5 1.04

Pioneer

Proven 0.4 1.06

Probable 1.0 0.86

1414 Note: proposed transaction is subject to shareholder approval and other conditions (1) Est. TCC of production c.US$600/oz, at current prices and FX rates

­ 4 x autoclave lines with capacity of 125Ktpa of floatation concentrate each

Est. attributable production via POX Hub of c.200 –300Koz p/a once fully operational at TCC similar to that of Pioneer’s non­refractory processing(1)

Sustainable production from refractory assets for at least 20 years with excellent growth potential

POX construction to resume H2 2016, with first production expected 2018 from Malomir (+ later Pioneer)

Pioneer Probable 1.0 0.86

P+P 1.5 0.91

Total

Proven 0.8 1.14

Probable 3.2 0.96

P+P 3.9 0.99

As at 31/12/2015 Resources Au (Moz) Au (g/t)

Malomir

Measured 0.3 1.21

Indicated 3.4 0.89

Inferred 2.4 0.70

M&I 3.7 0.91

Pioneer

Measured 0.6 0.95

Indicated 1.9 0.71

Inferred 0.7 0.58

M&I 2.4 0.76

Total

Measured 0.9 1.04

Indicated 5.3 0.82

Inferred 3.2 0.67

M&I 6.2 0.85

POX JV Key Facts

GMD Gold to provide US$120m of equity financing in exchange for 51% share in JV

Concentrate to be processed on a tolling basis: each partner has title to concentrate supplied + gold produced from it

JV shall charge each partner a toll fee calculated on a full cost plus up to 5% margin basis, of which POG will receive 50% through dividends distribution

JV agreement stipulates sharing POX hub capacity between partners on 50/50 basis (250Ktpa each)

At this time, GMD Gold is only able to provide

POG share of production

Minimum additional vol of concentrate to be supplied by POG

(25% of POX capacity)

Residual capacity

covered by POG

Concentrate to be

provided by

POX Hub Capacity Allocation

1515

At this time, GMD Gold is only able to provide 50Kpta of concentrate. It has been agreed that POG shall provide concentrate amounting to minimum 25% of POX capacity (ie. 500Ktpa x 25% = minimum 125Ktpa) in addition to its share of capacity (250Ktpa)

Residual capacity to be covered by POG, thus making the total volume of concentrate supplied by POG = 250 + 125 + 75 = 450Ktpa

POX average processing cost currently est. at c.US$75/t

TCC of gold produced at POX currently est. at c.$600/oz

JV is progressing well, circular to shareholders to be published Q3 2016

125Ktpa 125Ktpa 125Ktpa

50Ktpa

75Ktpa

Autoclave 1125Ktpa

Autoclave 2125Ktpa

Autoclave 3125Ktpa

Autoclave 4125Ktpa

provided by GMD Gold

Proposed Acquisition of

1616

Amur Zoloto

Petropavlovsk + Amur Zoloto:Compelling Strategic Rationale Immediate addition of c.40Koz of production in 2016, at

competitive TCC

­ Projected production growth uplift of c.10%

­ Future cash flow to assist debt reduction

Addition of higher grade R&R

­ Recent SRK report confirms 1.35Moz of Reserves and 1.86Moz of Resources (incl. c.1.2Moz hard rock at avg. 1.8g/t)

­ New hard rock R&R +180% vs. avg. POG grade

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CT

1717

Balance sheet optimisation

­ Acquisition, paid for in shares, increases Group asset base by c.US$140m

­ Improved financial flexibility from lenders

Operational synergies

­ Opportunity to decrease AZ TCC by bringing in low cost power generation from POG (electricity line extension)

­ Potential for immediate production uplift via introduction of heap leach operations overseen by POG

DE

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PA

CT

Source of production, resources and reserves figures: Amur Zoloto and 2016 SRK CPR Report. Transaction subject to prospectus / shareholder approval

Acquisition will help to complement, diversify + de-risk Petropavlovsk’s future production profile

AZ operates gold production + development assets in Russia’s Khabarovsk region

An established gold company with open-pit, underground + alluvial assets

­ Founded in 2010, c.300 employees, EBITDA of c.US$9m FY2015

­ 2 x hard rock assets in production + 2 under development

­ Producing placer deposits with processing capacity of 1,000,000m3 per season (c.16Koz p/a)

High grade, non-refractory ore

­

Amur Zoloto at a glance(1)

1818

­ In production or at pre­production stage = low capex requirements

­ Post­tax NPV of mineral assets est. at US$170m(1)

FY 2016 production target of 40Koz

­ Mainly from alluvial operations + Krasivoye underground deposit

­ 2016 FY TCC est. at c.US$680/oz

Strong development programme, with medium-term growth of up to c.140Koz p/a of production based on existing R&R

­ Plan to increase annual production to c.140Koz p/a by 2020

(1) Source: Amur Zoloto and 2016 SRK CPR Report (1) Assuming a discount rate of 10% and a gold price of US$1,100/oz

Both businesses are well aligned, with complimentary strengths + assets

POG and AZ Assets

Malutka

Tas-Yurakh

Yubileiny

Amur ZolotoAssets

Petropavlovsk Assets

Key:

Scale

= 100km

1919

Perevalnoye

Pioneer

Pokrovskiy

Malomir

Albyn

AZ Production + Financials(1)

Gold Production (Koz) Facility Type 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 TotalPerevalnoye Open Pit + Plant 9 32 35 37 32 29 27 26 23 17 12 279

Krasivoye(Yubileiny GOK)

Underground + Plant

15 20 19 22 30 30 29 14 - - - 179

Malyutka Open Pit + HL - - - 19 35 60 65 59 63 53 15 369

GOS Tas-YurakhOpen Pit + Underground + Plant

- - - 13 25 3 - - - - - 41

Total hard rock 24 52 54 91 122 122 121 99 86 71 27 868

Alluvials 15 17 17 17 16 18 13 13 0 0 0 126

Total AZ 40 68 72 108 138 139 133 111 86 71 27 994

Capex (US$m) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total

Perevalnoye 13 19 2 - - - - - - - - 34

2020

Perevalnoye 13 19 2 - - - - - - - - 34

Krasivoye(Yubileiny GOK)

- 2 8 3 - - 2 2 - - - 20

Malyutka - - 28 6 8 1 1 2 - - - 47

GOS Tas-Yurakh - - - 4 4 - - - - - - 7

Total hard rock 13 22 38 14 13 2 3 4 - - - 107

Alluvials - - 4 2 - - - - - - - 6

Total AZ 13 22 42 16 13 2 3 4 - - - 114

0

100

200

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Krasivoye (Yubileiny GOK)

Perevalnoye

Alluvials

GOS Tas-Yurakh

Malyutka

(1) Source: Amur Zoloto and 2016 SRK CPR Report. Figures may not add up due to rounding

Cash-Cost Comparison

FY 2015 Petropavlovsk FY 2015 Amur Zoloto(1)

Units Pioneer Pokrovskiy Malomir Albyn Total UnitsTas-

YurakhUlakhan Buor Total

Gold sold Koz 216.3 51.6 59.8 154.2 481.9 Gold sold Koz 15.0 4.2 3.9 23.1

TCC US$m 135.3 44.9 65.3 115.2 360.7 TCC US$m 7.6 2.1 2.0 11.7

Avg. TCC US$/oz 625 871 1,092 747 749 Avg. TCC US$/oz 508 494 520 508

Impairment of ore stockpiles

US$m 9.5 (0.9) 0.3 0.3 9.2Change in finished goods, WIP, DSC

US$m 2.1 (0.9) (0.7) 0.5

Adjusted operating costs US$m 144.8 44.0 65.6 115.5 369.9 Adjusted operating costs US$m 10.5 1.4 1.5 13.4

2121

Adjusted operating costs US$m 144.8 44.0 65.6 115.5 369.9 Adjusted operating costs US$m 10.5 1.4 1.5 13.4

Central admin US$m 13.7 3.3 3.8 9.7 30.4 Central admin US$m 2.4 0.7 0.6 3.7

Capitalised stripping (end) US$m - - - 18.0 18.0 Capitalised stripping (end) US$m - - - -

Capitalised stripping (start) US$m - - - (8.4) (8.4) Capitalised stripping (start) US$m - - - -

Site restoration US$m (0.5) (0.1) (0.1) (1.1) (1.7) Site restoration US$m - - - -

Sustaining capex US$m 4.7 0.1 1.2 6.7 12.7 Sustaining capex US$m 0.4 - - -

All-in sustaining costs US$m 162.7 47.3 70.6 140.3 420.9 All-in sustaining costs US$m 12.9 2.1 2.2 # 17.1

AISC US$/oz 752 918 1,180 910 874 AISC US$/oz 859 497 548 740

Exploration expenditure US$m 7.1 1.0 4.2 6.6 18.9 Exploration expenditure US$m - - - -

Capital expenditure US$m 0.4 - 0.6 - 1.0 Capital expenditure US$m 0.3 0.8 1.0 2.1

Impairment of ore stockpiles

US$m 2.4 - 5.8 - 8.2 Impairment of ore stockpiles US$m - - - -

All-in costs US$m 172.6 48.3 81.2 146.9 449.0 All-in costs US$m 13.2 2.9 3.1 19.2

AIC US$/oz 798 937 1,357 953 932 AIC US$/oz 879 700 790 831

(1) Source: Amur Zoloto

Synergies

AZ asset portfolio is underdeveloped

­ Potential to accelerate AZ projects using POG expertise + PPE

­ Opportunity for regional expansion: a number of promising unlicensed areas located in region between POG / AZ

Energy costs

­ AZ’s operations run on diesel, Petropavlovsk primarily uses electricity (cheap + plentiful)

2222

(cheap + plentiful)

­ Opportunity to drive costs down by switching to electricity via extension of supply from Amur Region

Heap leach operations

­ Potential for further uplift in production from proposed AZ HL operations using POG expertise

Government support

­ State grant of funds to the Group (c.US$100m) to help develop local electricity line

“Due to poor infrastructure, the Far East region is relatively under-explored for medium to large sized gold deposits. SRK considers there is reasonable potential to find / develop medium sized deposits if good target generation techniques are

used in conjunction with AZ’s knowledge of regional geology.” (SRK Consulting, July 2016)

Key Deal Terms

Transaction financing

­ Via issue of 1,434,303,624 new ordinary shares in Petropavlovsk at £0.0689

per share

­ Aggregate value of gross consideration payable on closing c.US$144m

­ Upon completion Amur Zoloto will hold c.30% of the enlarged Group’s issued

2323

share capital

Shareholder approval

­ Deal will require approval of Petropavlovsk shareholders

Completion

­ Subject to regulatory approvals

Reserves & Resources

Petropavlovsk(1) Amur Zoloto(2)

Total Ore ReservesGold(Moz)

Grade

Probable (Hard Rock, Kt) 1.21 1.8 g/t

Probable (Alluvials, 000m3) 0.14 0.5 g/m3

Total (P+P) 1.35 n/m

Total Mineral ResourcesGold(Moz)

Grade

Hard Rock

Measured+Indicated (Kt) 1.56 2.3 g/t

Inferred (Kt) 0.15 4.7 g/t

Total Ore ReservesGold(Moz)

Grade(g/t)

Proven 1.2 1.03

Probable 7.2 0.96

Total (P+P) 8.4 0.97

Non-Refractory Ore Reserves

Proven 0.5 0.91

Probable 4.0 0.97

Total (P+P) 4.5 0.96

2424

(1) Source 2016 WAI Report. Petropavlovsk JORC R&R as at 31 Dec 2015. Resources are inclusive of Reserves. Visokoye, a non-core asset containing 2.5Moz of JORC Resources (incl. 1.2Moz of JORC Reserves) was disposed of following preparation of the above R&R statement (2) Source: 2016 SRK CPR Report. AZ JORC R&R as at 31 Dec 2015, all material is non-refractory

Inferred (Kt) 0.15 4.7 g/t

Alluvials

Indicated (000m3) 0.15 0.6 g/m3

Inferred (000m3) - -

Measured + Indicated 1.71 n/m

Inferred 0.15 n/m

n/m = not meaningful

Refractory Ore Reserves

Proven 0.8 1.14

Probable 3.2 0.96

Total (P+P) 4.0 0.99

Total Mineral ResourcesGold(Moz)

Grade(g/t)

Measured + Indicated 15.8 0.89

Inferred 7.7 0.79

Non-refractory Mineral Resources

Measured + Indicated 9.6 0.93

Inferred 4.8 0.89

Refractory Mineral Resources

Measured + Indicated 6.2 0.85

Inferred 3.2 0.67

Amur Zoloto Assets / PPE(1)

Flotation Cells Gold RoomBall Mill + Classifier

2525

Crushing Section Flotation SectionYubileiny Processing Plant

Filtering Unit Milling + FlotationHydrometallurgical Section

(1) Source: Amur Zoloto

Key Management

Arsen Idrisov

Petropavlovsk Amur Zoloto

2626

Peter HambroChairman

Dr. Pavel MaslovskiyCEO

Andrey MarutaCFO

Dmitriy ChekashkinCOO

Musa BazhaevChairman, Russian Platinum

Alexander PolonyankinDeputy CEO, Strategy &

Development

Konstantin ZlotnikovDirector, Project

Management

Arsen IdrisovDeputy Chairman,Russian Platinum

Experienced management team with focus on delivery + operational excellence

Exploration Update

2727

Exploration Update

Exploration in H1 2016

Bakhmut

New thick lateral mineralised ore zone identified at Promezutochnaya / Bakhmutmeeting point

­ Strike length of 370m, avg. thickness 10.9 to 97.0m, at avg. cross sections grades of c.1.0 to 18.8g/t

Estimated that this will add new rich non­refractory ore for underground operations + avg. grade refractory ore for open pit mining

Pioneer

2828

+ avg. grade refractory ore for open pit mining

Otvalnaya

Zone is located on left bank of the Ulunga River, 1.6km north of NE Bakhmut, consists of main ore body / sub­parallel ore bodies, followed for 500m along strike with thickness of best intersections 18.0m at 5.26 g/t

­ Metallurgical samples shows c.70% recovery

­ Estimated that Otvalnaya zone will provide non­refractory ore for open + underground mining

­ Material suitable for open pit mining (up to 130m from surface) has thickness of 0.8 ­ 15.4m at 0.9­3.4g/t

Intersections of 3.8­7.5m thick at avg. grade of 2 ­ 6g/t (up to 18g/t in selected samples) occur below the designed pit

Exploration in H1 2016

Malomir Albyn

Quartzitovoye

Exploration at deeper horizons ongoing for planned underground operation

Exhausted by open pit mining, zone 55 confirmed to extend 200m beyond

Elginskoye

Exploration work being finalised at section of deposit scheduled for near­term production

Feasibility study (incl. R&R) being prepared

­

2929

pit, 1.4 ­ 12.9m thickness at 5.8 ­68.3g/t (cut­off grade 1.7g/t)

Two ore bodies identified 150m to the east, suitable for underground extraction with avg. thickness 1.1 ­3.9m at 6.1 ­ 10.6g/t

­ Preliminary internal resource est. (0.5g/t cut off) suggests 2.7Moz at c.1.3g/t based on Russian categories

­ C1 + C2 Reserves defined only for part of Elginskoye zone scheduled for production

­ Remainder of zone being explored, further reserves expected to be estimated in next feasibility study

Strategy Impact

3030

Strategy Impact

Combined effect of Petropavlovsk’s medium term strategy

Through exploration + acquisition of complementary assets

Higher gold production volumes

Growth in high-grade R&R

Synergies

From both refractory + non­refractory sources

3131

Strategy geared towards re-rating the stock + driving shareholder value

Return of Excess cash

Increased cash generation

Critical mass + scale

Return of dividend

Will enable debt to be paid down more aggressively

Synergies

Higher grades