Press Release

White & Case Advises Kazzinc on Sale of Kazakh Gold Deposit

Global Law firm White & Case LLP has advised Kazzinc Limited, a subsidiary of Glencore plc, on its sale of Orion Minerals LLP, which owns the Komarovskoye gold deposit in the Republic of Kazakhstan, to Polymetal International plc.

Located in north western Kazakhstan, Komarovskoye is one of the country's largest gold deposits, with inferred resources of an estimated 28 metric tons at 1.5 g/t gold containing approximately 1.4 Moz1. Resources are estimated only to the depth of 280 meters, while mineralisation is traced to a depth of 450 meters.

The total consideration payable to Orion Minerals at completion is US$100 million in cash. In addition, Kazzinc will receive a deferred consideration linked to future production from Komarovskoye and future gold price performance. This royalty will be calculated on a quarterly basis, payable at gold prices above US$1,250 per ounce, and capped at a total consideration of US$80 million.

Completion of the transaction is subject to regulatory approvals in Kazakhstan, including approval by the Ministry of Investment and Development and anti-monopoly approval.

The White & Case team in Astana which advised on the transaction was led by partner Maxim Telemtayev with support from local partner Kirill Zenin and associates Timur Odilov and Zarina Baikenzhina.

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