Notice of Hedging

15 February 2013

Notice of Hedging Agreements

Petropavlovsk PLC ("the Company" or, together with its subsidiaries, the "Group") announces that the Group has entered into financing contracts to sell a total of 399,000 ounces of gold over a period of 14 months ending in March 2014 at an average price of US$1,663 per ounce. This represents 46% to 47% of the Group's forecast production for the period and guarantees a minimum revenue stream of c. US$ 664 million.

These financing arrangements increase the certainty of a significant proportion of the Group's cash flow whilst the Group continues its capital investment in its Pressure Oxidation Project and the further development of its mining and processing operations at Malomir and Albyn. It does not reflect the Company's view of the likely future course of the US$ gold price.

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