NOVATEK Obtains Tanamskiy License

FOR IMMEDIATE RELEASE

NOVATEK Obtains Tanamskiy Subsoil License in the Krasnoyarsk Territory

Moscow, 28 October, 2016. PAO NOVATEK ("NOVATEK" and/or the "Company") announces that its subsidiary OOO NOVATEK-Yurkharovneftegas won the bid for a geological survey, exploration and hydrocarbons production license for the Tanamskiy subsoil area for a term of 27 years. The auction resulted in a one-time payment for the subsoil use in the amount of 467 million rubles.

The Company already owns significant resource base at the Gydan peninsula including Utrenneye, Geofizicheskoye and Ladertoyskoye fields. This is the first time the Company obtains a license area outside the Yamal-Nenets Autonomous Region. Tanamskiy license area is located in the Krasnoyarsk Territory in close proximity to NOVATEK's licenses on Gydan peninsula, near Nyavuyahskiy, West-Solpatinskiy and North-Tanamskiy license areas and the Ladertoyskoye field. This new license will allow the Company to expand its reserve base on the Gydan peninsula and to consider significant long-term projects to increase the Company's production. The license area's resources according to the Russian classification is 1,245 mmboe of hydrocarbons.

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For further information, please visit www.novatek.ru or contact:

Press Service Investor Relations

+7 (495) 721 2207 +7 (495) 730 6013

[email protected] [email protected]

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PAO NOVATEK is Russia's largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company's upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for approximately 80% of Russia's natural gas production and approximately 16% of the world's gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company's shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».