IRC Update

20 June 2018

Petropavlovsk PLC

IRC Update

Further to the announcement made by IRC Limited ("IRC") on 20 June 2018 and further to our previous announcement dated 13 June 2018, Petropavlovsk PLC ("Petropavlovsk" or the "Company" and together with its subsidiaries, the "Group") is pleased to confirm in relation to the US$340 million project finance facility between Kimkano-Sutarsky Mining and Beneficiation Plant LLC ("K&S", a wholly owned subsidiary of IRC) and the Industrial and Commercial Bank of China ("ICBC", and the "ICBC Facility") that certain waivers in respect of the ICBC Facility have been granted by ICBC, subject to the fulfilment of certain conditions precedent.

Details of the ICBC waiver

ICBC has granted K&S and Petropavlovsk waivers from the obligation to comply with certain financial covenants and has granted K&S a waiver from its obligation to maintain certain cash deposits with ICBC. The waivers will be effective upon fulfilment of certain conditions precedent and will continue until 31 December 2018, subject to the ongoing satisfaction of certain requirements.

Petropavlovsk and IRC are now working with all parties involved to ensure that all conditions precedent are fulfilled. Further announcements will be made in due course.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

About Petropavlovsk

Petropavlovsk is one of Russia's leading gold mining companies. As at 31 March 2018, the Company had

produced approximately 6.9Moz of gold.

At this time, Petropavlovsk is in the construction phase of a state of the art pressure oxidation facility to process the Company's substantial refractory resource base. The Company's combined 3,430km2 license holding has untapped resource potential. The Company is a leading employer and contributor to the development of the local economy in the Amur region, Russian Far East, where it has operated since 1994.

Petropavlovsk is a shareholder (31.1%) of IRC Limited and is the guarantor of IRC's US$340 million project finance facility. IRC is a vertically integrated iron ore producer and developer in the Russian Far East and North-eastern China. IRC is listed on the Hong Kong Stock Exchange (ticker: 1029.HK).

Petropavlovsk is listed on the Main Market of the London Stock Exchange (ticker POG:LN).

Enquiries

For more information, please visit www.petropavlovsk.net and www.ircgroup.com.hk or contact: