MMC Norilsk Nickel: NORILSK NICKEL GROUP ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 3d QUARTHER AND 9 MONTHS OF 2017

 PRESS RELEASE

October 30, 2017

Public Joint Stock Company "Mining and Metallurgical Company "NORILSK NICKEL" (PJSC "MMC "Norilsk Nickel", "Nornickel" or the "Company")

NORILSK NICKEL GROUP ANNOUNCES PRELIMINARY CONSOLIDATED PRODUCTION RESULTS FOR 3d QUARTHER AND 9 MONTHS OF 2017

Moscow - PJSC MMC Norilsk Nickel, the largest refined nickel and palladium producer in the world, announces preliminary consolidated production results for the third quarter and nine months of 2017.

First Vice-President - Chief Operating Officer, Sergey Dyachenko commented on the 9M17 production results:

«In 3Q17 our nickel production increased by 10% as Talnakh Concentrator reached its design parameters and Norilsk Nickel Harjavalta nickel refinery restarted its operations after annual scheduled repair works in 2Q17. Copper production in the reported quarter decreased as a result of temporary suspensions of our smelting operations in the Polar division due to unfavorable weather conditions in Norilsk. The company plans to process accumulated concentrate in 4Q17, which should fully compensate for the reduction of copper volumes in 3Q17. We reiterate our 2017 metal production guidance».

Nickel

In 3Q17, consolidated nickel production amounted to 54 kt increasing 10% quarter-on-quarter (q-o-q). Nickel output from the Company's own Russian feed reached 53 kt, up 10% q-o-q. The growth was mainly attributed to the increase in production at Norilsk Nickel Harjavalta as the refinery was undergoing scheduled repairs in 2Q17.

In 9M17, nickel output amounted to 157 kt decreasing 11% year-on-year (y-o-y) driven primarily by the reduction of low-margin processing of third parties feed as a result of reconfiguration of downstream production facilities at the Polar division. Nickel output from the Company's own Russian feed reached 150 kt, up 4% y-o-y, as Talnakh Concentrator reached its design parameters.

Copper

In 3Q17, consolidated copper production amounted to 96 kt, down 4% q-o-q. Decrease of copper production was attributed to temporary suspensions at Copper smelter due to unfavorable meteorological conditions in Norilsk in order to keep the pollutant concentrations in the residential area within the limits. The Company plans to process accumulated concentrate in 4Q17, which should compensate for the decrease of copper volumes in the reported quarter.

In 9M17, copper output amounted to 291 kt, up 10% y-o-y driven mostly by the processing of concentrate purchased from Rostec and reduced metal losses in recovery of copper into copper concentrate as a result of the modernization of Talnakh Concentrator.

 Platinum Group Metals

In 3Q17, consolidated palladium and platinum output amounted to 693 koz (down 11% q-o-q) and 174 koz (down 8% q-o-q), respectively. Palladium output from the Company's own Russian feed reached 687 koz, down 9% q-o-q and platinum output reached 172 koz, down 6% q-o-q. The decrease was attributed to a high base effect of 2Q17 when the Company processed precious metal concentrate accumulated in 1Q17 (PGMs contained in the nickel matte, which was shipped for processing from the Polar to Kola division) and at Krasnoyarsk Precious Metals Plant.

In 9M17, palladium and platinum output amounted to 2,026 koz (up 2% y-o-y) and 493 koz (flat y-o-y), respectively. The increase in palladium output was attributed to the change in metal content in mined ore.

Russian operations

Due to the shutdown of Nickel plant in the Polar division, since 2H16 all saleable nickel has been produced at two production sites: Kola MMC in Russia and Norilsk Nickel Harjavalta in Finland. In 3Q17, nickel output in Russia amounted to 39 kt, up 1% q-o-q.

In 9M17, nickel output in Russia amounted to 115 kt, down 18% y-o-y. The decrease was driven by decommissioning of Nickel Plant in 2016 and increase in processing of Russian feed at Norilsk Nickel Harjavalta as a part of downstream reconfiguration.

In 3Q17, copper output in Russia amounted to 92 kt, down 7% q-o-q. The decrease of copper output was attributed to temporary suspensions of smelting operations in the Polar division due to unfavorable meteorological conditions. The Company plans to process the accumulated concentrate in 4Q17.

In 9M17, copper output amounted to 281 kt, up 9% y-o-y. The increase of copper output in the reported period was attributed to the launch of processing of concentrate purchased from Rostec and reduction of metal losses in recovery of copper into copper concentrate as a result of modernization of Talnakh Concentrator.

In 3Q17, palladium and platinum output in Russia amounted to 682 koz (down 12% q-o-q) and to 171 koz (down 9% q-o-q), respectively. The decrease of palladium and platinum output was attributed to a high base effect of 2Q17 when the Company processed precious metal concentrate accumulated in 1Q17 (PGMs contained in the nickel matte, which was shipped for processing from the Polar to Kola division) and at Krasnoyarsk Precious Metals Plant.

In 9M17, palladium output in Russia reached 1,988 koz (up 2% y-o-y) and platinum output amounted to 483 koz (up 1% y-o-y). The increase was mainly attributed to the change in metal content in mined ore.

Norilsk Nickel Harjavalta (Finland)

In 3Q17, nickel production at Norilsk Nickel Harjavalta amounted to 15 kt, up 40% q-o-q, with the most of the nickel output being produced from the Company's own Russian feed (up 50% q-o-q) except for 0,5 kt, which were produced from third parties feed. The increase was from a low base of 2Q17 when the refinery was undergoing scheduled repairs.

In 9M17, nickel output amounted to 42 kt, up 15% y-o-y, with nickel output from the Company's own Russian feed amounting to 38 kt (increased 6-fold y-o-y). The increase was attributed to higher processing volumes of Russian concentrate as a part of the downstream assets reconfiguration.

In 3Q17, output of copper at Norilsk Nickel Harjavalta amounted to 4 kt (increased 2-fold q-o-q), almost all of which was produced from own Russian feed. The increase was from a low base of 2Q17 when the refinery was undergoing scheduled repairs.

In 9M17, copper output amounted to 9 kt (up 48% y-o-y), with copper output from the Company's own Russian feed amounting to 8,3 kt. The increase was attributed to higher processing volumes of Russian concentrate as a part of the downstream assets reconfiguration.

In 3Q17, output of saleable palladium and platinum (in copper cake) amounted to 11 koz (up 38% q-o-q) and 3 koz (up 50% q-o-q), respectively. The increase was from a low base of 2Q17 when the refinery was undergoing scheduled repairs.

In 9M17, output of palladium and platinum reached 38 koz (down 5% y-o-y) and 10 koz (down 32% y-o-y), respectively. The decline was attributed to the substitution of purchased feed from third parties by the Russian feed with a lower PGMs content.

2017 Production guidance from Russian feedstock:

Notes:

¹ Totals may vary from the sum of numbers as a result of rounding.

² Production results include processing of nickel concentrate from Russian feed and purchased materials.

3 Metal in concentrate for sale assuming 50% ownership. The numbers are not consolidated in the Group totals.

This announcement contains inside information in accordance with Article 7 of EU Regulation 596/2014 of 16 April 2014.

Full name and position of person making the announcement - Vladimir Zhukov,

Vice - president, Investor Relations

ABOUT THE COMPANY

PJSC MMC NORILSK NICKEL is a diversified mining and metallurgical company, the world's largest producer of refined nickel and palladium and a leading producer of platinum, cobalt, copper and rhodium. The company also produces gold, silver, iridium, selenium, ruthenium and tellurium.

The production units of NORILSK NICKEL Group include the Polar Division, located at the Norilsk Industrial District on Taimyr Peninsula, and Kola Mining and Metallurgical Company located on the Kola Peninsula in Russia as well as Harjavalta nickel refinery in Finland.

PJSC MMC NORILSK NICKEL shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges. PJSC MMC NORILSK NICKEL ADRs trade over the counter in the US and on the London and Berlin Stock Exchanges.

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