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UGC Performed 3D Modeling and Assessment of Resources in Accordance with the Requirements of the JORC Code (2012)

Uzhuralzoloto Group of Companies (“UGC” or “the Group”) announces the results of the assessment of resources in accordance with the reporting requirements of the JORC Code (2012) based on the data of geological exploration and operational exploration. All the core assets of the Group as of 01.09.2020 were assessed.

The assessment confirmed high quality of UGC’s mineral resource base. A conservative approach to assessment and classification allows counting on an increase in the company's mineral resource base during additional geological exploration.

“Assessment of our mineral resource base is an important positive step for unlocking the great potential of our deposits, developing the most technologically advanced and environmentally friendly methods of ore extraction and processing. The safest possible field development, with due regard for geological features and economic calculations, remains our priority”, said UGC president Konstantin Strukov.

Key reserves indicators

· The total resource base estimated in accordance with the JORC Code is 1,496.3 tons of gold.

· The largest share of UGC’s gold resources accounts for Svetlinsky cluster and reaches 477.4 tons.

· As of today, the resources of Kochkarskoye and Sovetskoye fields have not been included into assessment. According to the internal assessment of the Group, they amount to 185 tonnes of gold.

· Intensive geological exploration is being carried out at almost all fields and areas, including survey and evaluation of new areas, exploration of the flanks and deep horizons of existing fields. Newly explored reserves at the Svetlinskoye, Kochkarskoye and Semenovskoye fields of the Oseyskiy district will be put on the balance sheet in the Q1 of 2021, along the flanks of the West Kurasan and Nailinskoye fields in the Q4 of 2021.

Key geological exploration indicators

The Group of Companies has objective reasons to increase the mineral resource base in the future with deep exploration of Zayavka-13 deposit, the deep horizons of the Svetlinskoye deposit, or additional exploration of the flanks at the Nailinsky area.

In the future, it is also necessary to carry out exploration with the aim of transferring mineral resources to higher categories at sites such as Semyonovskoye deposit and Zaitsevsky area.

The assessment of the mineral resource base and the classification of the mineral resources and reserves of UGC were carried out in accordance with the reporting requirements of the JORC Code based on the data of the geological exploration and operational exploration.

Competent persons

The mineral resource base was assessed by Mira-Mine LLC, an independent company specializing in geological consulting and resource assessment, under the management of the CEO of Mira-Mine LLC, Alexey Nikandrov. Mira-Mine provides comprehensive solutions for companies involved in mining and exploration projects around the world.

Alexey Nikandrov is qualified as a mining engineer-geologist, member of the Society of Experts of Russia on Subsoil Use (No. 341), Member of the Australian Institute of Geoscientists (No. 3084), Excellence in Subsoil Exploration and has over 30 years of experience in field appraisal.

Assessment criteria and methods

For May-September period of 2020, Mira-Mine LLC created resource models for the UGC’s deposits based on the data of the geological exploration and operational exploration in order to assess mineral resources and recoverable reserves according to the reporting criteria of the JORC Code. The work was carried out to assess the resource base of the UGC, as well as to ensure long-term planning and design of mining operations and economic analysis of the deposit.

Analysis of the available geological information for each object was the basis for the development of the methodology for delineating the mineralization and interpolating the content.

The authors of the report also examined not less than 10% of the databases with primary materials. No discrepancies were found.

Estimation of Mineral Resources and Reserves

The table below shows the reserves as of September 2020. According to the data, the Group of Companies has a significant mineral resource base.

For more information

Please visit http://www.ugold.ru/en/ or contact:

Citigate Dewe Rogerson

David Westover Tel +44 7768 897722

Louise Mason-Rutherford Tel +44 7932 681947

Email ursa@citigatedewerogerson.com

About UGC

UGC is one of Russia's largest gold mining companies, with a track record of growth over many years. It produced 450,000 oz of gold in 2019, generating revenue of over US$600m and significant cash flow. It has doubled production in the five years since 2014, and has mined 150 tonnes of gold over the last 22 years. UGC has a low cash cost per ounce, has built a portfolio of assets representing the third largest gold reserves in Russia, and constructed the largest processing plant in Russia (Svetlinskaya at Chelyabinsk). UGC is run by experienced mining professionals, with the current management team having been in place since 1997. It aims to maintain the best industry ESG standards, and has a long record of cost-efficient production and successful investment in its business.

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